An Infographic Look At Small Business Financial Fitness

intuitPRESENTS AN INFOGRAPHIC LOOK AT SMALL BUSINESS FINANCIAL FITNESS According to Office for National Statistics figures, one in three businesses don't make it past their third birthday. With poor financial management a key factor in business failures, getting to grips with the numbers is vital. This infographic, brought to you by Intuit (makers of QuickBooks accounting software), looks at how well small businesses in the UK understand and manage their money, based on research carried out by the company in 2011 amongst over 800 entrepreneurs. A Snapshot Of Small Business Finance Issues: 75% 10% 20% 31% Of small businesses spend more than a day per week managing finances and admin. Of employers have missed payroll due to financial problems or difficulties. Rely on pen and paper or spreadsheets to Have made mistakes with HMRC, resulting in a fine or overhaul of finance processes. track their business performance. Of businesses have a business plan 59% Of small businesses use or plan to use accounting software to help manage finances Answers To The Intuit Financial Fitness Test (correct answers are highlighted in blue): What are some of the details VAT registered businesses are obliged to show on their invoices? 09% Think businesses are obliged to || include the word 'invoice' on invoices. 13% Think invoices must show a unique and sequential identifying invoice no. 14% Think invoices must show the total || amout payable, excluding VAT. 64% Think all of the above statements are CORRECT true for VAT registered businesses. •77% 61% • Think 'turnover' refers to the Think gross profit means total sales of a business before costs and expenses are incurred. totals sales less cost of sales and expenses. •23% 39% • Think gross profit means total sales less costs of Think 'turnover' refers to the total sales of a business after CORRECT CORRECT costs and expenses are incurred. sales. Think margin means cost price times selling 07% price of a product 0% 50% 100% 12% Think margin means cost price plus selling Think margin means 81% selling price of a product minus cost price price of a product RE 86% Think cash flow is a report that shows CORRECT movement in and out of a business. 14% Think cash flow is a report that shows the end of month bank balance. CORRECT 10% 23% 67% Think the VAT Think the VAT threshold in the UK Think the VAT threshold in the UK threshold in the UK is £100,000 is £85,000 is £73,000 CORRECT 45% 32% Think VAT taxable turnover Think VAT taxable turnover should be checked on a rolling 12 month period to determine if a business has exceeded should be checked for the last financial year to determine if a business has exceeded the VAT threshold the VAT threshold 23% Think VAT taxable turnover should be checked for the last tax year to determine if a business has exceeded the VAT threshold intuit Scan the QR code to visit our website, or visit us at: http://www.intuit.co.uk