hub_General Accountancy

What is a business plan and what financial information should one include?

A business plan sets out the future strategy and financial development of a business, typically over 5 years. Business plans can be external or internal reports. The content of which will vary depending on the purpose of the plan. Banks will often request a business plan in order for a company to secure a loan. […]

What is Gross Domestic Product (GDP)?

Gross Domestic Product (GDP) is the monetary value of a country’s overall output of goods and services, usually within 1 year. In the UK, reports on the progress of this indicator are issued quarterly and are used as a guide to the health of the economy.

What is the Retail Price Index (RPI)?

The Retail Price Index is a measure of inflation. It is published monthly by the Office of National Statistics and is calculated by measuring the change in price of a representative sample of retail goods and services.

What is inflation?

Inflation is an upward movement in the average level of prices. Keeping inflation steady allows businesses to more accurately plan for the future, since they have a better idea of what to expect.

Who is the Bank of England and what does it do?

The Bank of England was established in 1694 to act as bank to the Government. It is the UK’s central bank and it is owned by the Government. It is different from other banks, in that it does not hold accounts or make loans to the public. The main things the Bank of England does: […]

Who sets interest rates?

The Bank of England’s Monetary Policy Committee(MPC) meets each month to set interest rates. The MPC is made up of nine experts. Five are senior Bank of England staff and four are external members, appointed by the Chancellor. Each has a vote to decide what interest rate to set.

What does the Chancellor of the Exchequer do?

The Chancellor of the Exchequer has the overall responsibility for the work of the Treasury. His main roles are to raise revenue through taxation or borrowing and controlling public spending.

How can I seek information on how to get into accountancy?

To become an accountant in practice The larger accountancy firms usually take in graduates with a 2:1 and above. A financial degree can help your chances, but isn’t always necessary. It usually takes about 3 years to qualify, and during this time, you will study for exams and gain the necessary work experience required. Smaller […]

What does an accountant do?

There are two main types of accountant: Accountants in practice Accountants in practice are typically hired to produce company accounts from the client’s accounting system. These accounts are then used as the basis of tax calculations to be filed with HMRC. The clients’ accounting systems will vary in level of sophistication, for example, basic spreadsheets […]

What is the difference between a PLC and a Limited Company?

In a limited company, ownership is determined by dividing up shares. In a standard limited company, these shares are traded privately. In a PLC, shares are traded publicly on a stock exchange.