accountancy & financial issues for sme's

by Mark Graham & Co Chartered Management Accountants and

Registered Auditors

Mark Graham & Company

a. No Cash – No Businessb. Profits DO NOT equal Cashc. Seasonalityd. Bad Cash Controle. Shortage of Cash/Business Failuref. Importance of Cash Planning & Control

Mark Graham & Company

New companies/under capitalised Level of funding required Cash Flow projections Types of Funding

Mark Graham & Company

Annual Audit AccountsKPI’s - Monthly BasisOne Page ReportGross Profit/Net ProfitDebtor/Creditor/Stock DaysBank BalancesTaxes Outstanding

Mark Graham & Company

Over reliance on one contract Have you underpriced? Have you sufficient resources? Sufficient staff? Retention money?

Mark Graham & Company

Working Capital requirements Bank Loans (Increase) Interest payments (Increase) Cash Reserves (Decrease) Profits (Decrease)

Mark Graham & Company

What is the real cost of producing your product or service?

Know what price to charge Know when to change the price Prices too low – expenses not covered Prices too high – sales volume lost

Mark Graham & Company

Little or no Market Research Is there a Sales Plan Do you understand the market you are in? Define your Market Place Do you know your target customer

Mark Graham & Company

Increased working Capital requirement Increased labour numbers or skills

requirement Increased fixed assets requirement Increased capital funding requirement Less time, everyone is busier

Mark Graham & Company

Most common in Family businessesPersonal drawings should not exceed profitsRetained profits – Future requirementsDoes the Business owe you a living?What is the quality of that “living”?

Mark Graham & Company

Income Tax Return 31st October yearly Books easier to maintain Register Business Name with CRO Business Name Certificate display at

business premises Copy given to Bank Closing down is relatively straight forward

Mark Graham & Company

Legal entity Shareholder not personally liable for debts

(exceptions – fraudulently trading – personal guarantees)

Taxation Company name legally protected Large organisation will not deal with non-

limited companies Annual filing with CRO Business losses v’s Personal Income Compliance with Companies Act

Mark Graham & Company

1. There is no guarantee of success in business. Some businesses will be get lucky but depending on luck is a risky pastime.

2. The risk of failure can be reduced – but not eliminated – by planning along the lines outlined above.

3. Remember, failing to plan is effectively planning to fail.

Mark Graham & Company

by Mark Graham & Co Chartered Management Accountants and

Registered Auditors

Mark Graham & Company

was set up to provide services in :

Annual Audits Management Accounts Taxation Computerised Bookkeeping Payroll for small and medium-size businesses Company Secretarial Personal Financial Planning

With over thirty years experience in practice and industry, we are able to give a

continuous and dedicated personalised service. We strive to provide top quality

service and advice in a cost effective manner. We can help with your business

needs, whether you are starting, expanding, or planning for retirement, or sale

of your business.

Mark Graham & Company

Presented by

Mark Graham & Co Chartered Management Accountants and

Registered Auditors 045-897981

Email: margra@eircom.net

Mark Graham & Company