1. Young Enterprise Scotland Finance & Accounts Workshop

2. What we will cover this evening Responsibilities Keeping records Financial and accounting terms Financial Statements YES way Ending the year What next? Exercise

3. Responsibilities Understand role of Finance Director Recording transactions (using finance system) Ensuring records are accurate and up to date Regular banking Monthly bank reconciliation Draw up draft and end of year Finance Statements

4. Keeping Records You will be keeping monthly records of the following: Receipts Payments Share Records Stock Debtors Creditors Monthly bank reconciliation Summary of monthly results

5. Financial & Accounting Terms Balance Sheet Assets Liabilities Profit & Loss Income Expenditure Cash Donations Creditors Stocks Debtors Cost of Sales Sales Gross Profit Shareholders Funds Loans Purchases YES VAT Stationery Registration Fee Dividends YES Corporation Tax Net Profit

6. Financial Statements YES way

8. Financial Statements Yes Way – things to remember Figures net of VAT VAT on all sales and purchases (no exceptions) at 20% Corporation tax at 10% Share price is £1 per share with max shareholding per person of 25 shares and total shares of £500 max Company registration fee of £100 Accounts should balance! All profit to be distributed to charity or to shareholders Share capital to be repaid

9. Ending the Year Draft P&L account drawn up and explained to team along with four ways profit can be allocated Agreement reached on profit allocation (post corporation tax) Agreement reached on Dividends and Donations Final Accounts prepared (P&L and B/S) and signed off by adviser YE VAT, YE Corporation Tax, Shareholder returns paid Liquidation Report prepared and Bank Account closed.

10. So... What Next?  Decide now on a date for winding up the company  Start process at least 6 weeks in advance of agreed date  Ensure all sales and purchases recorded plus debtors, creditors and stock identified  Talk to all company members  Pull Financial Statements together and communicate to all company members  Talk and discuss with Adviser/Link Teacher  Produce a set of Financial Statements to complete Company Report  Pay YE VAT and YE corporation tax  Pay donations, dividends and capital  Close bank account once all outstanding cheques cleared  Prepare Liquidation Report