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How to Prepare a Cash Flow statement? Cash flow statements are one of the key financial reports that business leaders depend on to assess their company’s financial health. Knowing how to prepare a cash flow statement alongside income statements and balance sheets provides essential insights into cash inflows and outflows, offering a clear view of a company’s cash movement. Although all three financial statements are crucial, many believe that cash flow statements give the most straightforward snapshot of a business’s liquidity and stability. Business owners, managers, and stakeholders use cash flow statements to understand their company’s financial stability and make informed choices. Learning to create and explain these statements is valuable for anyone looking to understand their company’s finances and support its growth. At SAS KPO Services, our outsourcing team can assist with clear and accurate cash flow management, so you can stay focused on what truly matters—growing your business.
What is a Cash Flow Statement? What is the Difference Between Accounts Payable and Accounts Receivable? Accounts receivable and accounts payable are similar to one another. Accounts payable refer to the money your business needs to pay others, like suppliers or service providers. On the other hand, accounts receivable is the money your business expects to receive from customers for goods or services sold. So, let’s understand the difference between accounts payable and accounts receivable with examples- Example of Accounts Payable: Let’s say a tech company produces laptops and smartphones. To create these products, it buys parts and materials from factories in Japan and China. The payments made to these factories are recorded as accounts payable because the company needs to pay this money to its suppliers.
Example of Accounts Receivable: Suppose a merchant sold 1,000 T-shirts to Company A at £10 each, totaling £10,000. To Sum Up: Accounts Payable: Money your business needs to pay others. Accounts Receivable Process Cycle Process Cycle of Accounts Payable Process When To Use Accounts Receivable. Management Accounts Outsourcing Services. Payroll Outsourcing Services - SAS KPO Services. How to Calculate Cost of Sales Accounting? In accounting, the cost of sales refers to the total expenses incurred to sell a product, but it only includes the costs related to items that were actually sold.
This concept is commonly used in retail stores and online businesses, while manufacturing companies usually focus on the cost of goods sold (COGS) to track their profitability. For service-based businesses and stores that sell products made by others, understanding the cost of sales is crucial for managing finances effectively. It forms a key part of the broader COGS calculation, helping businesses track their overall expenses and profit margins. If you’re wondering how to calculate cost of sales accounting, it’s vital to have a clear understanding of your financials to optimise operations and boost profitability. This is where SAS KPO Services can step in.
What does Cost of Goods Sold Mean? How Do Cost of Sales and Cost of Goods Sold Differ From One Another? Cost of Sales Ratio Formula When to use COGS vs. cost of sales- When is the Deadline for Submitting Personal Tax Returns in UK? A personal tax return is a set of forms you send to the tax authorities that show your income, deductions, tax credits, and other financial details for the year. At SAS KPO Services, we offer tax preparation services that help you outsource accounting tasks so you can focus on growing your business. By outsourcing, you can cut costs, improve efficiency, and scale your business without worrying about expensive software or training staff. Outsourcing also improves financial planning, reduces mistakes in tax filings, and gives you access to advanced technology, making the whole process easier.
Your tax return will show your total income from various sources, allowable deductions, tax credits, and any payments you’ve made during the year. Deadline for submitting personal tax returns in the UK- To submit your tax return for the 2024/25 UK tax year (which runs from April 6 to April 5), keep these Self-Assessment dates in mind: October 5: Deadline to inform HMRC if you need to file online. How to Calculate Corporation Tax for Small Businesses in the UK? At SAS KPO Services, we understand the importance of managing your corporation tax effectively.
Corporation tax, also known as corporate tax or business income tax, is a direct tax imposed on the profits earned by companies, public corporations, and other entities in the UK. This tax is applied to the profit that remains after deducting allowable expenses and tax reliefs during a specific accounting period. Here is a quick guide on how to calculate corporation tax for small businesses in the UK, along with the main components, rates, reliefs, and important considerations. Corporation tax is applied to trading profits from the income statement of a business. Trading Profits: Profit generated from the company’s primary business activities. Current Corporation Tax Rates in the UK (2024/25)– For annual profits of £250,000 or more: 25% (Main Rate) For annual profits of £50,000 or less: 19% (Small Profits Rate) Calculation of Corporation Tax for Small Businesses in the UK Calculate Expenses.
How Does the CIS Tax Return Process Work? The CIS tax return process helps contractors and subcontractors in the UK manage their tax payments efficiently. Established by the government in 1999, the CIS ensures that registered contractors pay tax at the source, making tax compliance straightforward. Under this system, subcontractors who register pay 20% tax on their income, while those who are not registered pay 30%, highlighting the benefits of proper registration. In this blog we will discuss that how does the CIS tax return process work. In this blog we will discuss that how does the CIS tax return process work. At SAS KPO Services, our CIS tax return outsourcing services are tailored to your unique needs.
Before submitting your CIS (Construction Industry Scheme) tax return, it’s important to follow these key steps to ensure compliance with HM Revenue & Customs (HMRC) and avoid costly mistakes. Collect Your Documents: Gather all necessary paperwork, including invoices, receipts, and bank statements, to have everything ready. Why Community Pharmacy Needs Accounts Outsourcing Services. Community pharmacies are essential in providing medication and healthcare advice, especially in regions where healthcare services are limited.
Traditionally, pharmacists were responsible only for dispensing medications. However, their role has evolved significantly, and they now play a crucial role in delivering healthcare services, particularly in rural areas where physicians may be unavailable or too costly. As the scope of community pharmacy expands, so do the complexities of managing its financial and accounting needs. This is where SAS KPO Services can step in to provide valuable accounts outsourcing services. Today, community pharmacies do much more than just dispense medications. They inform healthcare professionals and the public about various medicines, oversee the use of over-the-counter medications, participate in health promotion campaigns, and play a critical role in drug selection and consumer education. Benefits of Outsourcing Accounting Services Focus on What Matters Most. Accounts Payable automation. Accounts Payable (AP) automation technology streamlines routine tasks like receiving invoices, coding, routing for approval, making payments, and reconciling accounts.
It includes “touchless” processing, which means less manual data entry and more automated handling of invoices and approvals with just a click. AP automation software also offers dashboards and analytics to manage the process efficiently and identify any issues quickly. By digitising all AP data in one system, it becomes easier to search and audit financial information, enhancing transparency and compliance. Accordingly at SAS KPO Services, AP automation tools eliminate manual tasks in accounts payable by using dedicated software.
They enable digital submission and approval of invoices and purchase orders, reducing reliance on physical paperwork and manual data entry. Accordingly to start, AP automation uses Optical Character Recognition (OCR) to extract information from invoices. What makes Accounts Payable so challenging. White label payroll services. The demand for outsourced payroll services, particularly white label payroll services for accountancy firms, is increasing every year. With the widespread adoption of specialist software and the rapid pace of digital transformation in the sector, firms like SAS KPO Services can offer significant cost and productivity savings due to economies of scale. For your accounting business, utilising white-label payroll services might be one of the quickest methods to: Free Up Your Team: Using a white-label payroll services can quickly free up your team for higher-value tasks.
This is especially beneficial in the run-up to the new tax year starting in April, allowing your firm to focus on more critical tasks. Increase Productivity: Outsourcing payroll helps create productivity gains within your firm. Achieve Recurring Profit: Payroll outsourcing can help you achieve a recurring profit stream without adding to your workload. Compliance and Expertise Proven Track Record Conclusion. Payroll Outsourcing Services. Payroll outsourcing services means hiring a third-party company to manage your payroll needs. This includes ensuring your employees get their paychecks on time while complying with legal, tax, and accounting requirements. It also helps you follow HMRC and Pension Regulator guidelines.
Outsourcing payroll to SAS KPO Services provides skilled assistance, making sure your employees are paid correctly and on time. Originally, companies only outsourced low-skill tasks, but now, even critical functions like payroll are being trusted by experts. Allowing SAS to manage your payroll means routine tasks are managed efficiently, following established guidelines, and you still maintain control over decision-making. This way, you can focus on your core business while we take care of the payroll details.
Managing payroll can be challenging and time-consuming, particularly for employers without the necessary administrative resources or expertise. Average costs of Payroll outsourcing services Conclusion.