The difference between a debit note and a credit note
What is a debit note? A debit note, sometimes referred to as a debit memo, is a document r…
Your 'margin of safety': What is it and why is it important for the running of your business?
What is the ‘margin of safety’? The margin of safety is the difference between your antici…
Revenue expenditure and capital expenditure explained
What is revenue expenditure? Revenue expenditure is the amount spent or expense incurred, on a …
What is activity-based costing (ABC) and how does it work?
What is Activity-based costing (ABC)? Activity-based costing (ABC) is defined as a technique f…
What is a 'remittance advice', and does your business need to produce them?
What is a remittance advice? A ‘remittance advice’ is a document or note to a supplier sent…
What is 'profit margin' or 'net profit margin ratio'?
Introduction to net profit margin Net profit margin, also known as ‘profit margin’ or ’n…
The 'reducing balance method' of depreciation: how it shows an asset's declining value
What is the reducing balance method? The reducing balance method of depreciation, also known as d…
VAT registration numbers: how to search for company VAT numbers in the UK?
What is value added tax (VAT)? VAT stands for value added tax. It is a 20% sales tax levied on…
AML software for accountants in practice
If you’re an accountant providing services to clients, it’s your legal obligation to kee…