Your guide to your financial information
Understand your financial information & reporting requirements to make better business decisions.
Financial information articles
Everything you need to know about small business finances.
What is a financial statement?
A financial statement is a report that shows how your business is performing & its overall health. There are four primary types of financial statements commonly used in the United Kingdom. Read the article to learn more about each type.
What is accounts receivable?
Put simply, accounts receivable is the money you’re owed by your customers. As soon as you send out an invoice, the money your customer owes you goes into accounts receivables. Read the article for the ins-and-outs of accounts receivable to better understand its related terms, uses, and implications.
Understanding the PAYE tax tables
As an employer in the United Kingdom, it’s your responsibility to pay the HMRC your employees’ PAYE taxes. You’ll need to know the various income tax brackets, understand PAYE tax tables and what your duties are. Read the article to find out everything you need to know about tax tables.
What is depreciation?
Depreciation is what happens when a business asset declines in value over time. You’ll probably have a good idea about depreciating assets, but when it comes to specifics around depreciation accounting and understanding what is depreciation schedules, it becomes a bit more complex. Read the article to break it down.
Sole trader tax
Sole trader tax in the UK falls under the category of ‘Self-Assessment’. If you operate a sole trader business, it means you’re responsible for understanding, calculating, and paying the correct sole trader tax rate. Read the article to find out the different sole trader tax rates and how to calculate and settle those tax responsibilities with HM Revenue & Customs.
What are fringe benefits?
As a business owner and employer, you may choose to provide your employees with what’s known as ‘fringe benefits’. You’ll need to both understand how to classify a fringe benefit and the tax implications they hold. Want to know how to manage the compliance of these employee incentives? Read the article to learn more.
Financial information FAQs
Why is financial information important?
Your company’s financial information is very important because it is often used to evaluate a company’s financial performance. Some aspects of financial reporting are even required by law. For example:
- Creditors such as banks will require your financial information to assess your eligibility for a loan
- Investors need your financial information to assess whether they want to invest in your company
- Managers & owners of the business use financial information as a way to measure past and forecast future performance.
What are some sources of financial information?
Financial information can come from many sources such as a companies credit card statement or bank account. However this will never give enough information to make the judgment on overall performance. To do this effectively, you ideally need the balance sheet, income statement and a cash flow statement. Each of these statements gives a different insight useful for the overall assessment of how a business is performing.
Types of financial information?
There are four main financial information statements. They are:
- Balance sheets
- Income statements
- Cash flow statement
- Statements of shareholders’ equity.
Financial information can also be more broad and include any relevant information in relation to money such as credit card statements or bank transactions.
What is non financial information?
Non financial performance are simply measures of success in a business that are not expressed as a monetary value. Non financial reporting might include things like environmental impact, diversity in the workplace and social responsibility. These kinds of measure are increasingly important for determining the overall success of a company.