A guide to commercial finance
The purpose of this book is to present in general, and, it is to be hoped, interesting terms, some of the topics that frequently come under the notice of business men ; topics that, perhaps, may be of assistance both to those who are obtaining benefits through having their businesses already organised on up-to-date lines, and to those others who are endeavouring to secure those benefits. We have taken it for granted (and it seems too late in the day to do otherwise) that the reader admits that Finance and General Organisation are imperative in the successful running of a business ; that these are, in fact, the keynotes of success.
The large number of unsuccessful undertakings, through not recognising this fact, demonstrates the truth of our assertion. This book has not been written to particularise any class of business, nor has it been written as a text book for students ; but it has been our endeavour to submit and enlarge upon principles that appertain to nearly all businesses, and which, we consider, work out the most successfully.
The views stated herein are the outcome of our experience in connection with well-organised and properly-managed concerns. In a work of this description, it is, of course, quite impossible to consider all details of business affairs, but many of the most important features are dealt with in a manner as concise as possible, considering the nature of the particular subject under review. Conditions and contin- gencies in connection with business affairs are constantly changing, but the observations herein contained will, we hope, be instrumental in aiding the establishment or furthering the improvement of businesses on sound financial lines, and assist in avoiding the many pitfalls which we, as Accountants, observe from time to time.
Contents:
I. PRINCIPLES OF FINANCE 1
II. TURNOVER ... 3
III. GROSS PROFITS 8
IV. EXPENSES 12
V. NET PROFIT 15
VI. CASH POSITION 16
VII. BALANCE SHEET ... 18
(A) Assets in a Balance Sheet :
Property 20
Machinery 20
Goodwill 22
Trade Marks, Patents 23
Debtors for Goods 23
Loans 25
Stock 25
(B) Liabilities in a Balance Sheet :
Mortgages and Loans 28
Bank Overdraft 28
Creditors 31
Capital 32
VIII. MONTHLY RETURNS 34
IX. CREDIT 41
X. BRANCHES 46
XI. PURCHASE OF A BUSINESS 51
XII. SPECIALISATION IN BUSINESS 56
XIII. NECESSITY OF KEEPING BOOKS AND VALUE OF FIGURES 58
XIV. PROFITS AND INSURANCE AGAINST Loss BY FIRE ... 61
XV. ADVANTAGES OF AN AUDIT 64
XV. ADVANTAGES OF AN AUDIT 64
XVI. TRAVELLERS so
XVII. BAD DEBTS 84
XVIII. ADVANTAGES OF A PRIVATE LIMITED COMPANY ... 87
XIX. INVESTMENTS IN PROPERTY 98
XX. OFFICE ORGANISATION AND INTERNAL CHECKS ... 100
XXI. COSTING ACCOUNTS 105
XXII. INVESTMENTS 110
XIII VARIOUS MATTERS:
Income Tax 114
Partnership ... ... ... ... ... ... 115
Wills and Trusts 116
Deeds of Arrangement and Bankruptcy 117
Agreements of Service ... ... ... ... ... 118
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