Course Contents


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Course Contents Course Introduction What will you ‘take home with you’ today?........... 1 LESSON 1 Accessing MyBusinessWorks Managing your subscription and getting help...... 4 LESSON 2 Business planning Part 1 Business planning with LivePlan.............................. 6 Part 2 Starting a business plan with LivePlan................... 7 Part 3 Working with Financials............................................. 8 Part 4 Planning your marketing.......................................... 10 Part 5 Additional tools in LivePlan..................................... 11 LESSON 3 Legal compliance Part 1 What are the key benefits of Legal Manager?...... 13 Part 2 What common compliance issues can Legal Manager help you with?............................. 13 Part 3 I have just taken on staff. What do I need to do? .................................................. 14 Part 4 How do I comply with health and safety legislation................................................... 16 Part 5 Getting started with your Legal Manager............. 16 Part 6 List of topics covered................................................ 20 LESSON 4 Training and development Part 1 Why is training and development important?..... 28 Part 2 Getting started with Mindleaders......................... 28 Part 3 What are the key business skills you need?......... 29 LESSON 5 Web Builder - Moonfruit Part 1 What is Moonfruit?.................................... 32 Part 2 Getting started with Moonfruit......................... 32 Part 3 Customising your site ………………………………………….. 33 Part 4 Support for your site ……………………………………………… 37 LESSON 6 Data backup Why is it important to back up your data?........... 39 What is mozypro?...................................................... 39 Your mozypro.............................................................. 39

LESSON 7 Financial management Why is financial management important?........... 45 Part 1 Getting started............................................................ 45 1 Signing up............................................................... 45 2 Setting up your details......................................... 45 3 Dealing with VAT............................................................. 46

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4 Help and support................................................... 47 5 Creating a new bank account............................ 48 6 Setting up Contacts........................................... 49

Part 2 Money in...................................................................... 52 1 Introducing the Chart of Accounts................... 52 2 Invoicing.................................................................. 52 3 Recording Other Income................................................ 63 Part 3 Money out................................................................... 66 1 Purchase Invoices........................................................... 66 2 Other Expenses........................................................ 70 Part 4 Banking........................................................................ 72 1 Bank transfers........................................................ 73 2 Bank reconciliation............................................... 74 Part 5 VAT and reporting...................................................... 76 1 VAT settings…………………………………………………………………… 76 2 VAT returns............................................................. 78 3 Accounting reports............................................... 81 Getting started Checklist........................................................85 Troubleshooting Technical troubleshooting tips.............................................. 86 Glossary Glossary of common business terms.................................. 87 Appendix Your MindLeaders training and development plan.......... 90 Notes................................................................................................. 91

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Course introduction Key reasons for business failure vary, from poor planning to bad debts, access to funding, lack of business management and IT skills, and of course, red tape and regulation. Conversely, key factors to business success include; good financial planning and business management including managing customers, suppliers, stock and assets as well as continuing to market your product and service and adapt to changes in your environment. MyBusinessWorks includes a number of different applications to help ensure you can meet each of the success criteria outlined above. This workbook is designed to help you understand why each application included is vital to business success, what each of these applications can do for your business and how to get started with each of them.

What will you ‘take home with you’ today? 1. The confidence to activate and get started with MyBusinessWorks - including how to get around MyBusinessWorks to launch your applications, manage your subscription and get help. 2. The ability to set up your company in Sage One - input vital data such as customers and suppliers, items, and VAT codes, enter invoices, and receive customer payments. You will also understand how to create various receipts, file your VAT return and access useful reports. 3. The knowledge you need to create a business plan that suits your needs and resources, which shows you predicted financial information using tables. 4. The ability to create your own training and development plan that you can complete, in your own time at a pace to suit you, using Mindleaders. Evaluate your own needs against those recognised as crucial to success by a number of leading Business Support Organisations. 5. An understanding of the main compliance areas and how Legal Manager can help. Create your own personal checklist which covers the areas you need to get compliant with now. 6. The knowledge to back up all your business critical data using Mozy Pro. By utilizing the automatic back up feature you will have comfort in knowing that your business information is protected against loss. 7. How Moonfruit could help you create a professional looking website to promote your business online using easy to follow wizards and templates.

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LESSON 1 Accessing MyBusinessWorks Once Activation has taken place you will be able to launch the Applications included within MyBusinessWorks by going to the following URL www.mybusinessworks. co.uk/barclays To logon you must enter your email address and password.

The MyBusinessWorks Dashboard will appear. From this screen you can launch the Application you wish to use

Managing your subscription and Getting Help Get answers to your questions about MyBusinessWorks: - Click on Help at the top right corner of your screen to access Troubleshooting support

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- Send an email to Customer Support, [email protected] or give them a call on 0845 6080 280 For additional services you can purchase these through the MARKET Tab:-

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LESSON 2 A business plan is a strategy document which defines where your business is going and how it intends to get there

Business planning Why is a business plan important? Business planning is important for all businesses, not just those starting out that need funding. It is crucial for helping you manage your business effectively and helping you set realistic goals and objectives that you can measure your progress against. Business plans are not just useful at critical moments; they also have a role to play in everyday business management. It can be difficult to justify spending time on a business plan when there are client demands, tax returns and various other daily tasks. But it is a crucial document. A business that doesn’t have a clear idea of what it wants to achieve will find any plans difficult to follow, and could have an unstable financial structure. This could affect long-term business prospects and possibly lead to business stagnation or even bankruptcy.

How can a business plan help your business? A business plan is a strategy document that helps you define where your business is heading and how you are going to get there. It is normally a long-term vision over three or five years. The plan itself is a useful tool to benchmark your progress and you should try to review it every three months. But the process of making the business plan is also a valuable tool. It gives you the chance to analyse the resources you have and find any shortfalls or risks. You can then work out how you can fill those gaps, and look at the market you want to compete in, both now and in the future. When you draw up a business plan it forces you to think about, and prioritise, the objectives for your business. It also commits you to a certain road and helps you to stay on it. In your business plan, it’s a good idea to add a section relating to your marketing ideas and plans. This will help you to see how much it will cost to promote your business and how to recoup those costs. By focusing on the marketing element of your plan, you can think about the budget you have and the best type of marketing for your business. Finally, it is also a good idea to think about the time when you want to leave your business. It may seem strange to think about this when you are just starting out but it can help you make important decisions. A well written business plan can highlight the opportunity for potential buyers or investors when you decide to bow out.

Why do you need a written plan? Like anything else, if your business plan is in black and white you cannot pretend it didn’t exist three months ago. If your plan didn’t work then you need to acknowledge it and find out what went wrong, so you can see what changes you need to make so that your strategy works. By writing your business plan and thinking about how it looks to an outsider, you will need to answer questions you may have wanted to avoid or had not thought about before. It is easy to become distracted by new business opportunities. But a business plan means you can compare these new opportunities against your original goals. You can then work out if these opportunities will help you achieve those goals. If not, then leave them for now and go back to them later. Don’t try to do everything at once. If you need to produce a business plan for someone else later on, having it there already will make it easier for you to produce what that person wants. The fact that you already have the document will also make you look more credible.

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Can you cheat? You should never fiddle your figures – regardless of who will or won’t see your business plan. It may be tempting, but investors and bankers can see through a bluff. Even if they accept the figures, you will need to deliver against your unrealistic targets. A business plan will only work if it is grounded in reality.

PART 2 Starting a business plan with LivePlan In this session, you are going to create the financials for a fictional café start-up company. It doesn’t matter whether you are a start-up or an established business: you can apply the skills you learn in this session to whatever business plan you create. Access your plan from the Live Plan (Planning) Tab within your MyBusinessWorks Home page and then you will come into a screen that encourages you to start your new plan.

Set up To get started you will need to create a plan name. This is normally your business name, as it will appear on each printed page of your plan. You will then need to answer questions about your business type and business stage.

Using examples in your plan Once you’ve set up your plan, choose ‘Company’ from the task list on the left-hand side of the screen and click ‘Company Overview’.

You can type freely here, but you will see tips on what to include. You can also see example text by clicking ‘Company Overview’, then ‘Get Started’ and finally ‘Examples’ under ‘Instructions’.

If you find example text that would be a useful starting for your plan, copy and paste it into the space. You can then customise it. If not, you can just type your own overview in the space.

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Part 3 Working with Financials We will now look at how to fill in your financial figures using tables.

Estimating sales Useful hint Keep your lists simple by grouping potential products, services or types of work together. This will help you focus. For example: • Commercial • Domestic • Public Authority In this Revenue Forecast section you will learn how to create a row for products and services that you sell, input estimated sales figures and cost of sales. From the task list choose ‘Financial Plan’ and click ‘Revenue Forecast’. Under the Revenue Forecast table click ‘Get Started’. Now you need to forecast monthly sales for the next 12 months. You need to create a row for each type of product or service that you sell. For example in your café you would have: • food sales • drink sales • other sales (to cover promotions). Now create a row called ‘Food Sales’. To do this: • click inside the ‘Product or Service’ box • type ‘Food Sales’ • click on ‘Add another product or service’ to add your other headings Now enter sales numbers for Food Sales.

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Click ‘Forecast’ next to where you typed Food Sales.

Type your headings like this

Click here to add your financial data

Choose how to forecast your sales

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When you’ve finished forecasting the sales of each row click ‘Save and Close’. The summary chart of your figures then opens.

After the summary chart you can write an explanation of the assumptions behind these figures. You can then add in your expenses for business, using the ‘Expenses Budget’ section of LivePlan. This covers areas like advertising, utilities, insurance and taxes – all of which are important expenses for your business. You can also add extra expenses that are specific to your business.

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Add expense amounts here

Profit and Loss Statement When you’ve put some financial data into your plan, you can start to test your ideas and look at the bottom line to see if you will make a profit or a loss. This is an excellent tool to help you review your goals and budgets, and stay on track. The Profit and Loss Statement gives you the chance to explain your projections, and see how realistic your goals are. To do this: • click ‘Profit and Loss Statement’ from ‘Financial Plan’ in the tasks list on the left-hand side • then click ‘Get Started’.

Like other areas of LivePlan, you have instructions and examples to help you

Part 4 Planning your Marketing As mentioned earlier, every good business plan should include a marketing plan. We are now going to look at how this can be useful to when you are looking at your business and its future. From the task list on the left-hand side, click ‘Strategy and Implementation’. Then click ‘Marketing Plan’. This opens up the following sections: • Overview • Positioning • Pricing

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• Promotion • Distribution From here you can outline: • • • • •

what separates your business from your competition how to target your audience which media channel suits your business and your audience a distribution strategy how your pricing relates to your clients’ needs and your business goals.

You then need to think about milestones for your business and what you want to achieve. These should be realistic and specific. Think about them carefully and consider who should be responsible for each area.

Part 5 Additional tools in LivePlan

Along the top taskbar of LivePlan you’ll see: • My Plans • Help • Logout

My Plans Here you can transfer between different business plans. This is relevant if you have more than one business and they have different aims and objectives. You can have up to three different business plans.

Profile Here you can amend your company details, such as your company address if you move or expand.

Completing the plan When you have finished your plan, you can preview it before you print it. The plan will be a PDF but you can also export to a Word format on your computer. You can choose the layout of your printed document, as well as include a confidentiality statement to cover you if you are showing this plan to any potential client or investor.

Executive Summary This section is a summary of your plan. You will need to complete it once you have created your business plan. If you set up your plan and then realise some of the information is wrong, click ‘Plan Settings’ at the top right of your screen to change it. For more information see the Help section of the software.

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LESSON 3 Legal compliance Helping you stay compliant To help you address the most common compliance issues for your business, you have access to Legal Manager as part of your MyBusinessWorks subscription. This service helps you comply with the complex, and often confusing acts, laws, rules and regulations that all small businesses have to contend with.

PART 1 What are the key Benefits of Legal Manager?       

A risk management package which allows for a better run business Sophisticated, interactive, online software allows the creation of over 100 business documents, ensuring that you are fully compliant with the law Tailor-made documents which fit your company brand - simply import your logo Saves money - no need to employ highly-paid professionals or pay solicitors' hourly rates Regular news bulletins to keep you up to date with changes in legislation Stress and employee health management - helps you comply with duty of care towards your employees resulting in reduced stress claims and sickness absence rates Online access to the most up-to-date information and news

PART 2 What are the most common place compliance issues that Legal Manager can help you with? You will find all the information in your Legal Manager service presented in an easy to use and easy to understand format so that you can apply the law to your business and create a paper trail to enable you to prove the actions you have taken. The main sections available in Legal Manager are:         

Business Start Up E-Commerce Health and Safety Property Debts and Debt Recovery Employment Intellectual Property Purchase and Sale Agreement Money Laundering

Please refer to the sessions within each section on the following page and note down which would be most applicable to you. Now we’re going to take a look at some of these policies in turn, why they are important and how to get started with them using the Legal Manager service. Then you will have

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the chance to create your own compliance checklist covering the areas you know you need to get compliant with.

Business start-up When you start a new business there are four business structures to choose from:    

Sole Traders Partnerships Limited liability partnerships Limited companies

Each business structure has its own implications. The one that’s right for you depends on the nature and size of your new business. Legal Manager will help you to consider:     

The ways the business can raise money The way decisions are made in the business Your personal liability if the business fails The records that you need to keep The amount of tax and National Insurance you have to pay.

With Legal Manager you can create some of the common documents needed when you set up a limited company. They are a:   

Limited liability partnership agreement Non-executive director appointment letter Shareholder’s agreement

An example of the sort of document you can tailor is the Shareholder’s agreement. This document should be used when two or more people are running a business as a limited company. The agreement sets out the duties and responsibilities of the shareholders. The shareholders can be individuals or companies – or both.

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PART 3 I have just taken on staff what do I need to do? Question: Which of the following must any employer who takes on staff do as a minimum (be it straight away or after a minimum period of continuous employment)? 1. Provide a written statement of the main terms and conditions of their contract of employment 2. Ensure the working environment is safe and secure 3. Register as an employer with HM Revenue and Customs to set up a payroll 4. Provide employees with a minimum level of paid holiday, a maximum length of a working week and minimum level of rest breaks 5. Pay at least the national minimum wage 6. Provide statutory sick pay 7. Treat employees fairly and avoid discrimination Answer: All of the above! You can use Legal Manager to prepare the following documents to meet your requirements as an employer: -

an employment contract setting out the terms and conditions of employment risk assessments information on types of discrimination and how to avoid this current information about minimum wage, sick pay and holiday pay requirements

What’s an employee handbook and can it help with performance? An employee handbook lets you set out the non-contractual issues relating to employment including key administrative procedures and is given to all staff members.

Producing a company handbook for your employees:

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- Helps you comply with the law - Effectively communicates your practices and standards - Can lead to improved performance - Can reduce the chance of being involved in costly tribunals and disputes As a legal minimum your company handbook should contain policies on: -

disciplinary procedures equal opportunities grievance procedures mobile phones

Some of the optional additions to the handbook are: -

company cars dress code alcohol and drug testing bonus schemes

What do you do with the handbook? Each time a policy is introduced or amended you must notify your employees asking them to familiarise themselves with any relevant points. You should either send copies to the employees or let them know where the handbook can be found, for example on the intranet or their manager.

PART 4 How do I comply with Health and Safety legislation? The point of health and safety regulations is to reduce the risk of a person becoming ill or injured as a result of something your business has done. The Health and Safety Executive state that around 156,000 non-fatal injuries are reported each year and an estimated 2.3 million suffer from ill health caused or made worse by work. In addition to this, did you know that your health and safety policy should not just cover an employee but should also cover a member of the public visiting your premises or a customer using your product? Your Legal Manager service can provide you with a checklist to make you aware of the main steps you must take to comply with health and safety regulations, link you to further information and guide you towards deciding on the actions you must take.

Creating a Health and Safety Policy Your health and safety policy statement is central to the successful management of health and safety in the workplace. It shows who does what, when and how it is done. It is the key to achieving acceptable standards and reducing accidents and cases of workrelated ill health. Based on your interactive answers your Legal Manager Service provides you with: -

A guidance note about health and safety policies A health and safety policy tailored to your business An employee handbook

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Risk assessments and much more!

PART 5 Getting started with Legal Manager Before you access your Legal Manager service please make sure you are connected to the internet. Then from within MyBusinessWorks, click to launch “Legal Manager” from the Home Page. Once it’s up and running, you can start creating the documents you need. First, choose which session you want to start from the home page shown below:

Once you select an area you would like to start working in you then choose specific topics with in this. When you select a topic your Legal Manager Service will inform you of how it will help you tackle this topic and what documents you can create. Whenever you start a session you will be guided through with information and instructions at each step.

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My Documents The ‘My Documents’ page is where you can manage the document that you have selected and started to work on. For example you can print, rename and export documents to MS Word or make a PDF.

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REMEMBER

You also have the opportunity to add a Legal Document Review service to your MyBusinessWorks package for an additional monthly fee. You can buy this BOLT ON, which enables you to send your legal documents to the Legal Support Team, through the MARKET section of your MyBusinessWorks.

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Business Start Up

Choosing business structure

Sole traders Partnerships

Limited liability partnerships Limited companies

Limited companies



Includes the pros & cons of setting up as a Partnership  Document templates include: Partnership Agreement  Includes the pros & cons of setting up as a Limited Liability Partnership  Document templates includes: Limited Liability Partnership Agreement  Includes the pros & cons of setting up as a Limited Company  Documents template included: Shareholders’ Agreement, Non-Executive Director Appointment Letter Includes the main types of Limited Companies, and how to set up , manage and file the accounts

Company directors

Explains how to appoint and remove directors, and their duties & responsibilities

Shareholders

Covers the issuing, transfer & submission of shares, and debentures

Share capital listing

Covers raising money on the stock market, listing on the stock exchange, increasing share capital, duties of disclosure, and more

Limited liability partnerships

Limited liability partnership agreements

Covers the legal requirements for setting up a Legal Liability Partnership

Partnerships

Creating a partnership

Covers how to set up a Partnership

Liability of partners

Explains the different types of liabilities

Sole traders

Ecommerce

Forming a company

Includes the pros & cons of setting up as a Sole Trader

Running a website

Taxation of partnerships



Dissolving of a partnership

 



Covers how to outline the exact terms of each partners rights and liabilities in a document Document template includes: Partnership agreement Explains how to dissolve a partnership Document template included: Notice of dissolution of a partnership agreement

Taxation

Explains the types of tax and when they should be paid

Relief from taxation

Covers the types of tax relief that exist

Terms and conditions





Includes creating and publishing a website with terms and conditions which comply with the requirements as set out in the Distance Selling Regulations. Document templates include: Terms and Conditions for website selling consumer goods and/or services.

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Ecommerce regulations

Privacy policy

 

Domain names



Right to cancel

Distance selling regulations

Health and safety

Creating a health and safety policy

Creating a health and safety policy

Consulting employees

Health and safety concerns

Risk assessment

Covers the data protection principles Document templates include: Privacy policy for a website

Covers Registration and re-registration, and Fees for transfer  Document templates include: Domain name transfer agreement Covers a customer’s right to cancel and the cooling off period This includes the exclusions of specific types of transactions, purpose and enforcement of the regulations.



Covers the legal requirements, the policy content and regulations  Document templates include: Letter to an employee seeking consent to a medical examination Explains why consultation is important, what it involves and how regulation is enforced

Accidents

Covers the common cause of accidents, slips and trips, and reporting accidents

Computers

Covers using Visual display units, and how to treat disabled workers

Driving

Covers the Health & Safety considerations during driving, tiredness whilst driving and use of mobile phones whilst driving

Gas and electricity

Covers the Health & Safety regulations that cover electricity, PAT testing, and gas legislation

Smoking

Explains the Employers’ minimum actions and content of a smoke-free workplace policy

Hazardous substances

Explains the main legislation, COSHH (Control of Substances Hazardous to Health) Regulation 2002, and preventing and minimizing exposure

Manual handling

Covers employers’ duties, avoiding manual handling, assessing and reducing the risks of injuries

Noise

Covers noise in relation to Health & Safety and employers’ legal duties

Vibration

Covers the regulations, types of vibrations and vibration levels

Vulnerable employees

 

Explain the work they cannot do because of their age (young people) or their condition (expectant mothers) Document templates include: Risk Assessment

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for young persons on work experience Fire assessment risks

Workplace regulations explained

Assessing stress

Covers performing a risk assessment, identifying hazards, and removing or reducing the risk  Document templates include: Fire risk assessment – Record of significant finding, Fire risk review checklist Explains the 5 steps to risk assessment

The Work at Height (WAHR) Regulation

Covers what it is, regulations required and the use of ladders

Control of Substances Hazardous Health (COSHH)



The dangerous Substances and Explosive Atmospheres Regulation



Disability Discrimination Act



Employments Rights Act 1996 First Aid Regulations The Health and Safety at Work Act

Property

Residential







Explains what is classified as hazardous substances under COSHH and where they can be found Document templates include: Health & Safety compliance review and policy creator Explains what DSEAR is, and the employers’ obligations Document templates include: Health & Safety compliance review and policy creator

Explains what the Act includes, and covers example risk assessments  Document templates include: Health & Safety compliance review and policy creator Covers the grounds on which employees should not be dismissed Covers the regulations and First Aid items

 

Explains what the Act includes, and covers all the Health & Safety policies Document templates include: Health & Safety compliance review and policy creator

LOLER

Explains the equipment covered by LOLER, who the regulations apply to and employers’ requirements

Personal Protective Equipment at Work Regulations (PPE)

Explains what PPE is, assessing suitable PPE hazards and types of PPE, and requirements for employers

PUWER

Explains what PUWER is, who the regulations apply to, how they relate to Health & Safety, and the equipment covered

Working time regulations

Gives a summary of the basic rights and protections that the regulations provide to employees

Residential tenancy

 

Includes how to set up a tenancy Document templates include: Residential and

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Leases

agreements Rent and deposits

Covers rent reviews, increasing rent and rent arrears

House in multiple occupation (HMO’s)

Explains which types of properties fall under HMOs and which ones don’t

Health and safety

Covers gas, fire and electrical safety in rented accommodation

Property development

Buying property

Covers the types of property purchase contracts

Evicting a residential tenant

Accelerated possession procedure

Building work

Rent arrears

Other grounds for eviction

Debts and debt recovery

Commercial leases

Creating a commercial lease

Debt, bankruptcy and liquidation

Liquidation of a company Debt

Bankruptcy

Debt recovery

Recovery of debt through third parties How to recover debt yourself

Employment

assured short hold tenancy agreement

Discipline and

Employment



This outlines the parties involved, procedures for planning permission and how to inspect the site  Document templates include: Small-scale building contract  Includes the procedures to get tenants out as quickly as possible and get new tenants in who will start paying  Document templates include: Notice under section 21 of the Housing Act 1988, Notice under section 8 of the Housing Act 1988 Describes steps to take following the correct procedures Mandatory and discretionary grounds for obtaining possession of a property let 

Covers the agreement between a landlord and tenant of a commercial property  Document templates include: Licence to occupy business premises, Medium Term Lease of Commercial Premises with rent review, Short Term Lease of Commercial Premises with no rent review Covers distribution of assets, compulsory liquidation and alternatives to liquidation 

Includes Guarantees, alternative to banking, and more  Document templates include: Guarantee for the payment of debt, Guarantee for the performance of a contract, and more Includes the bankruptcy process, and alternatives to bankruptcy 

Covers steps to collect the debt, assignment & guarantees, powers of attorney to collect debt  Document templates include: Debt collection letters for unpaid invoices, Form N1 – Claim form for debt recovery This covers steps you can take to ensure that debt is recovered via letter and taking the matter through court 

Covers the ways in which dismissal or

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Dismissal

claims

Employment Tribunal

Redundancy

disciplinary actions can arise, and the types of claims employees can make  Document templates include: Employee handbook, Compromise agreements, and more Includes what an employee can claim for and by when, the role of the Advisory Conciliation and Arbitration Service (ACAS), steps before the hearing and the hearing Covers information about the key provisions, the types of redundancy, Employers’ obligations and redundancy payments

Disciplinary procedure

Dismissal

Employee rights

Work time regulations

Flexible working

Discrimination and equal pay



Includes setting out disciplinary rules, informal and formal disciplinary documents, penalties and appeals  Document templates include: Employee disciplinary meeting letter, Employee disciplinary appeal hearing letter, and more  Covers the reasons for dismissal, and unfair dismissal  Document templates include: Employee dismissal letter for gross misconduct, Employee dismissal letter following previous disciplinary action  Covers Working time regulations, maximum working hours, annual leave, night shifts, and more  Document templates include: General purpose absence request form  Covers all types of flexible working, applications for flexible working and employers’ decision  Document templates include: Statement of change in terms of employment Covers all types of discrimination, Equality and discrimination laws, equal opportunity and equal pay

Adoption and dependencies

Covers adoption leave and dependent care leave

Maternity and paternity

Covers maternity leave, paternity leave, maternity pay and flexible working

Parental leave and rights

Explains what it is, when available, how employers should process these demands

Pay and time off

Covers pay and minimum wage, employees’ entitlement to unpaid time off

Part time working

Covers part-time employees’ rights, rate of pay, fair treatment of part-time workers

Whistle blowing by staff

Explains how workers are protected from being victimised or dismissed for whistleblowing

Working for a new

Covers staff rights, information and consultation

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owner Pensions

Employing Staff

Recruitment

Explains employers’ obligations to offer stakeholder pension scheme when they have 5+ employees, and the types of schemes  

Employment contracts

Flexible working

 

Unusual employees

Covers employing international students, staff with criminal convictions, and working holiday makers

Teleworking

Covers distance working, contractual issues, data protection, equipment provision and Health & Safety

Part-time working

Covers part-time employees’ rights, rate of pay, fair treatment of part-time workers

Flexible working

 

Grievances

Grievance procedures

 

Sickness absence

Intellectual property

Protecting your ideas

Copyright and

Covers the recruitment process, all appropriate documents, background and reference checks, induction process, and more Document templates include: Job application form Covers what should be included in the contract: clauses, terms, wages Document templates include: Employment agreement, Work experience agreement, and more

Self-certification

 

Statutory sickness pay



Passing off







Covers all types of flexible working, applications for flexible working and employers’ decision Document templates include: Statement of changes in terms of employment Covers the issues that might cause a grievance, which procedures to follow and how to deal with them Document templates include: Employee handbook Explains how to design and operate a company self-certification system Document templates include: Sickness selfcertification form Covers the statutory sick pay and employers’ responsibilities Document templates include: Letter to an employee seeking consent to a medical examination Covers breaches of confidence and confidentiality agreements Document templates include: Mutual nondisclosure agreement, Product name: Nondisclosure agreement

Non-disclosure agreements

Includes alternatives to non-disclosure agreements and covenants in restraint of trade

Confidentiality

Covers confidentiality law, the quality and the obligation of confidence

Trade marks

Explains how a trademark protects any sign or symbol that allows your customers to tell you apart from your

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trade marks

competitors Performance rights

Includes exploitation, standard terms and individual contracts

Moral rights

Includes paternity rights, the right to privacy of photos & films,, false attribution and derogatory treatment

Design rights

Copyright

Purchase and sales agreements

UK sales and agreements

Sales contracts

Consumer protection Competition law

Agency distribution agreements

Money Laundering

Privilege and privileged circumstances



Covers how this relates to the designs of mass produced industrial products such as toys, furniture and cutlery  Document templates include: Trademark licence agreement Includes ownership of copyright, rights of the owner of the copyright, infringement and examples of how copyright law works



Includes the nature of the consumers rights, those who sell goods in the course of a business and their obligations  Document templates include: Purchase order, Notice of cancellation of order, and more Covers the Consumer Protection Act and The Common Law Position Includes The Competition Act 1998, compliance with the law and consequences of infringement 

Financing

Includes the distributor’s and manufacturer’s duties and how to appoint an agent  Document templates include: Agency agreement, Distribution agreement, and more Covers method of payment and documentary credit

Transportation of goods

Covers transport costs, shipping documents and delivery and risks

Jurisdiction clauses

Covers which country’s law will apply when trading globally

Law clauses

Covers agreement on applicable law, consumer contracts and the Rome convention

Privilege

Explains the provisions in the Proceeds of Crime Act 2002 and in the Terrorism Act 2000 and the tension between a lawyer’s duties

Privileged circumstances

Explains the Privilege reporting exception, crime/fraud exception and the differences between legal professional privilege (LPP) and privileged circumstances

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Obligations and good practice in the regulated sector

Anti-money Laundering

Money Laundering Reporting Officers

Covers the role of the MLRO and who should be one

Risk based approach

Explains the rationale and includes developing and applying a risk-based approach and managing and monitoring compliance

Customer due diligence

Explains standard, simplified and enhance due diligence

Internal control and monitoring compliance

Covers how monitoring businesses is achieved

Disclosures

Covers the outline of the disclosure regime, the protected and authorised disclosure, how to report, assessing internal report, making external reports, and more

Record keeping

Covers what records should be kept and for how long, and the Data Protection requirements

Training

Explains which staff should be trained and how frequently, and covers the criminal sanctions and defences

The legal and regulatory framework

Get advice on how to stay compliant with Anti-Money Laundering regulations

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LESSON 4 Training and development PART 1 Why is Training and development so important? According to the Department of Business, Innovation and Skills (announced October 2010); there are currently around 4.8 million SMEs in the UK. There are also about 400,000 new businesses are set-up each year, but only 49.5% of SMEs believe they have the skills to start and run a business*.

What does this all mean for you? The very nature of small businesses means they will be incredibly diverse, and each business is likely to have differing business objectives and management structures, which means that different skill sets are required for each one. Furthermore, the skills needed by a business will change as it develops or its environment changes. This is why we’ve included Mindleaders in your MyBusinessWorks subscription. With over 2500 award winning quality courses and videos, it is designed to enable you to constantly improve and add to your skills so your business can grow. We will look at how you can make sure you are working on and developing the skills you really need later in this session, but first let’s look at how you use Mindleaders.

PART 2 Getting started with Mindleaders From within your MyBusinessWorks dashboard select ‘Mindleaders ’. Once logged in you can select “View All Learning Resources” from My E-Learning to view all the available courses and videos. Each course is broken down into modules and you can drill down into each course series to look at the modules available. You can then drill down further to view the actual lessons that make up a specific course.

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Navigating around your courses Use the course navigation bar at the bottom of each page to navigate within a course. • Exit closes the course and marks your current page • Print allows you to print the current course page • The back button goes to the previous page • The forward button goes to the next page.

Understanding where you are in a course The lesson title is displayed in the top left corner of your course window. In the bottom left corner of your course window, you will find your location in the course and the current lesson are also shown. If you move your mouse over the lesson location information, a progress bar showing your overall location in the course is displayed. Viewing the Course Topics Click the Course Topics tab to view the topics covered in a course. Topics are organised by lesson. To view the learning objectives for a lesson, move your mouse over a lesson title. To view a topic, click the appropriate link in the topics list. Your current topic is indicated by an arrow. You can move your mouse over a lesson title in the topics to view the learning objectives for that lesson.

Before you begin a course, take a skill Assessment When you start a course, you will initially be given the option to Begin the Course or Take the Skills Assessment. The Skills Assessment functionality within Mindleaders gives you the opportunity to answer questions, chosen at random, about the topics covered in the course. You can take the Skill Assessment as often as you like, and it is a useful tool to help you gauge whether you need to spend time on this course and how deep your knowledge is before you start. To access the Skill Assessment, press A or click ‘Take Skill Assessment’ on the Course Tools tab in a course. Now you know how to get around your MindLeaders, let’s look at creating your own personal training and development plan.

PART 3 What are the key business skills you need? SFEDI Skill Area Business strategy and analytical thinking

SFEDI Skill

Mindleaders Thirdforce Series

Visionary Strategic and analytical thinking Managing Change Decision Making Problem Solving

Business Management/Leadership Global Business/Project Management/Career Development Time Management/Communication Business Management Project Management/Negotiation/Communication

Add to Plan

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People Abilities

Setting Goals and Business Planning Spotting and seizing opportunities Communication Motivation Team working Build Confidence

Functional or task-based abilities

Giving social and emotional support ability to listen and engage Financial awareness Marketing Delegating Organisational Skills Technical Skills

Learning Skills Council areas

Business Management/Sales and Marketing Business Management/Sales and Marketing Communication/Leading Teams Leadership/Leading Teams/Career Development Leadership//Leading Teams Communication/Leadership/Leading Teams/Project Management Self-Management/Communication

Basics of Business Maths/Access Sales and Marketing/Customer Service Business Management/SelfManagement/Leading teams Time Management/Self Management/Project Management Photoshop/Web Design and Graphics/HTML/Dreamweaver/Windows Server/Project/Windows/Access/Excel

Learning Skills Council skill

Mindleaders Thirdforce Series

Management Skills

Business Management/SelfManagement/Time Management/Project Management European Computer Driving Licence/International Computer Driving Licence/Word/Works/Excel/Access/ Windows/ PowerPoint Customer Service/Business Communication/Negotiation/Sales and Marketing

Technical Skills, in particular IT skills Communication and customer handling skills

Add to plan

Your Mindleaders course series listed above is just a taster of what is available to you as part your MyBusinessWorks subscription. Your Mindleaders application includes over 2,500 courses and videos designed to help you develop your skills and plug any gaps you may have.

Create your own training and development plan Use the list above to identify any skills that you currently lack, or which need work on. Whether it’s technical skills you require such as web development, MS Excel or Photoshop, or business skills, such as time management, negotiating or internet marketing. It may be that you are not as computer literate as you would like to be, or it may be marketing skills, so you can maximise your sales potential. Whatever

Helpful Tip A series is made up of several courses. You do as much or as little of any of the courses in the series as you like, depending on what you

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your needs, Mindleaders is likely to have the course you need to help you address key skills gaps and achieve your goals for your businesses.

want to learn.

1. Turn to Appendix to begin creating your training and development plan.

Helpful Tip

2. Select 10 of the skills you know you need to develop in order to run a better business, if there is a specific skill that is not listed above, but that you know you need to work on and it is in your Mindleaders library, then add that to your list too. 3. Now prioritise this list, and rank the skills you need to acquire first at the top.

Don’t forget at the start of many of the courses in Mindleaders you can take a quick Skills Assessment to see how much you know and how much you need to learn. Use your Mindleaders Licence course and video list to identify the courses/ videos that will enable you to develop these skills.

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LESSON 5

Part 1 What is Moonfruit In 2013, according to the Office of National Statistics 36 million adults in the UK (73 per cent) accessed the Internet every day or almost every day, highlighting the importance of having a web presence. Moonfruit is a multiple award-winning website building service that allows you to quickly and easily create professional looking websites. Moonfruit is simple to use and packed with powerful features allowing you to achieve results beyond your expectations! Moonfruit can be used for any kind of website or online content. From an information web page to e-commerce stores, Moonfruit makes publishing and designing your website quick and easy.

3,822,218 sites and counting.

You can layer, crop, animate, colour and apply transparency to objects on your page. It has many features including those discussed in this guide.

Part 2 Getting Started With Moonfruit You will begin the set up process through the Website Builder Tab on your MBW Homepage. After clicking on the tab you will need to enter your Moonfruit web name, username, password and email address. Once these have been entered you need to agree terms and you can then launch your site. Once the site has been launched you can then start to edit the site.

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Part 3 Customising Your Site The template can be then changed using the ‘Design’ icon to enable you to put your company logo

on every page.

Adding a logo to every page To add a company logo or company name to every page you will need to amend the page master. This can be found via the ‘Design’ tab and the page master is the second option on the left hand side of the screen. You can then add in text or upload your logo so that it appears on every page of your website.

Uploading media

To upload pictures, music and videos use the ‘Files’ icon. This opens up a pop up box, choose ‘Upload’ select the files you want to upload and click ‘Upload’.

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To use these files click on ‘Use This’. This will then upload it to your site.

Using pictures Pictures can be moved around the site, cropped, made into links and have the transparency changed by using the ‘Editor’ function.

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The ‘Editor’ box will appear every time something is uploaded or added in.

Insert options The ‘Insert’ icon can be used to perform various functions. The basic objects option enables you to insert titles and text boxes. Once these have been entered in, the ‘Editor’ will allow you to amend the font and colour and use the text to link to websites or other pages in the website. To do this, highlight the text to be used as a link and use the ‘link’ section in the ‘Editor’ box. Pictures can be amended, again by using the ‘Editor’ function, but can also be put in a gallery or slideshow via the image tab in the ‘Insert’ menu.

Pages Pages can be added in, deleted out, renamed or reorganised using the ‘Pages’ icon, then ‘Organise your pages’.

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Domains Moonfruit will allow you to check domain name availability and register it. If you have received a voucher as part of your subscription package it will be shown here to use for or towards the cost of purchasing domain names.

Admin The ‘Admin’ button allows you to view statistics such as how many visitors there have been to your site. If you have registered for the free Google tools, information from them will also be shown here.

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Services There are free Google services that you can use. These are accessed via the ‘Services’ icon. Google Analytics enables you to receive information about how people move around your site, how long they spend on each page, where they came from before they went to the site and where they go afterwards. Reports and graphs are also generated based on keywords that have been used to help maximise the site.

Part 4 Support for Your Site Social media integration All Moonfruit sites support a full membership/login system allowing you to create members only pages and give edit rights to different users of your site. This all links in with

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your social networks so that you can message out from your site to Facebook or Twitter, and invite people to become members of your site from other networks.

The Moonfruit Library Moonfruit provide a free library of images, animations and widgets for you to use in your site. They are available in a range of styles, individually customisable and help you achieve the look and content you want.

Search Engine Optimisation (SEO) All Moonfruit sites are optimised for search engines by default. Search Engine Optimisation is the process of improving the visibility of a web site in search engines. As well as the Flash version of your site seen by your visitors, it also produces a clean and simple HTML version for SEO. All normal page content is represented in the HTML version which correctly marks up all text formats (e.g. Headers, etc.).

Integrated Google tools Building and editing is only one part of running a successful website. After that you must generate traffic, track visitors, and master the tricky world of Search Engine Optimisation. Google offer support in these areas and Moonfruit allows you to easily use these free and powerful tools to help manage your website. An unlimited number of additional features can be added to your site from Google Gadgets, Wigetbox and Amazon widgets - games, ecommerce tools, and video/ music players. Sell things on your site Moonfruit also makes it easy to start trading online. Use the PayPal widgets to set up ‘buy now’ buttons that link to a PayPal shopping cart. Add nicely designed product pages from the templates.

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LESSON 6 Data backup Backing up your data with mozypro

Why is it important to back up your data? The Department of Business, Innovation and Skills estimates that over 70% of businesses never reopen their doors after losing company data.

What is mozypro? mozypro is an online service that allows you to automatically back up any data stored on your PC. In just a few easy steps you can make sure that your business data is protected. Once installed, mozypro can back up your data manually or automatically to our servers, as often as you like. Plus, all files are stored with a high level of encryption for security.

Your mozypro We’ve included unlimited use of mozypro in your MyBusinessWorks subscription for the first year. Installation, Registration and Setup Before you install mozypro on your PC, it is worth checking if your machine is compatible: • mozypro currently supports Windows 2000 and later versions. It also supports Mac. • It is not compatible with server operating systems. • We recommend you have a broadband connection. When you launch mozypro from the MyBusinessWorks launch portal, you be provided with a wizard to help you through the installation, registration and setup process. Follow the step by step instructions on screen to complete this whole process. When prompted please enter your Licence key- this is available for you on the instruction screen. Once you have completed the installation and registration mozypro will automatically find and back up the most important files on your machine, however if you have specific requirements you can use the mozypro application to customise your settings. To configure your mozypro tick the Launch mozy Configuration Wizard box. If you need more help, visit https://mbw.mozypro.com/login’.

Configuration It is important to configure mozypro when you first get started. This is so you know it’s working properly and you can choose how it will operate for you when you start backing up your data. Your initial configuration comes up straight after installation. mozypro will now load your pre-selected backup sets (your backup sets are groups of files that mozypro has recommended you back up). You can select which types of file you would like to back up by ticking the relevant boxes next to each backup set.

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When you have ticked the boxes, click ‘Next’. Remember you can change these selections at any time.

mozypro will now test the speed of your internet connection and determine how long it will take to back up your selected files. When this is done, click ‘Next’.

You will now be given an estimate of how long your initial backup will take. Remember, your first backup will always take longer than subsequent backups because more information will need to be uploaded to our servers. On this screen you can choose to increase or decrease the speed of your backups, depending on how well you would like your computer to perform during backups.

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Once you have chosen the frequency, click ‘Next’.

Now select when you would like your first backup to begin. (If you want to change your configuration, click ‘Expert Mode’.) Remember that you can change any of these settings whenever you like. Click ‘OK’ to complete the configuration

Successful backups and the Status screen After you have installed and configured your software, mozypro will start to back up your selected data automatically. After each successful backup, mozypro gives you a confirmation and brief summary of your last backup on your Status screen: With each confirmation you have these options: 1. Start another backup. 2. Configure your backup more – you can add more files to your backup set or change the speed or frequency of your backups. 3. View your backup history by clicking ’Settings’ to see when and how frequently your data has been backed up. 4. If your files have been lost or corrupted since your last backup, you can restore them. 5. If you have queries about your last backup or mozypro you can go to http://www.mybusinessworks. co.uk/help for help.

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If you want to go to the Status screen at any point in the future, click the mozypro icon on your desktop. Or you can use the mozypro icon in your system tray in the bottom-right-hand corner of your desktop. Your mozypro icon

Extra configuration of mozy Although mozypro will be running automatically by now, you may want to change either the way your backups run or what is included in them. To do this, click ‘Settings’ from your Status screen to go to your mozypro configuration page. Or you can right click on the mozypro icon in your system tray. 

Select Back Up Sets

2. File System

3. Options

4. History

5. Restore

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Click ‘Backup Sets’ to modify them in exactly the same way as you did in the configuration process. If you click ‘File System’ you can be more specific about which files you are backing up.

Select a file To back up files from the ‘File System’ menu: • select the files you would like to back up from the left-hand side of the screen and tick the box next to each one • click ‘OK’ in the bottom-right-hand corner of your screen. These specific files will now be added to your Backup Sets, and backed up automatically each time. Click ‘Options’ to change technical aspects of your backup, from speed to frequency. These can be modified depending on your preferences but you may need to think about the following: • Internet speed and computer performance • How often you update your business data If you want to see your previous backups, click ‘History’.

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Restoring files If your business data is lost or becomes corrupted, you can use mozypro to restore the files. This is the key benefit of the programme. As long as you have configured your mozypro correctly, restoring your files is easy. You can be totally reassured your files are safe with mozypro. When you click ‘Restore’ you will be directed through to the following screen:

Select Files

Restore Files

On the left-hand side of your screen, you will see the files (and their paths) that you have been backing up using mozypro. Tick the box next to each file you want to restore and click ‘Restore files’. Then your restored files will be put back in their original places. It’s as simple as that!

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LESSON 7 Financial Management Why is financial management important? According to the UK Insolvency Helpline, the main reasons behind insolvencies are, “poor management and financial restraints”, which are “more prevalent in small businesses”. On top of this, their research has also shown that “more than half of Britain’s small businesses collapse because of cash-flow problems”. Some of the more recent insolvency cases the helpline dealt with show that the reasons for these cash flow problems are: • failure to control cash – by carrying too much stock, paying suppliers too promptly and allowing clients too long to pay • failure to pay crown taxes, for example PAYE and VAT • clients not paying • a lack of working capital • the business widening its range of suppliers, simply to make more credit available. According to small.business.co.uk A quarter (25 per cent) of business owners and leaders admit that they don’t feel fully in control of their accounts and business finances and almost one in six small businesses in a UK-wide study say they are ‘very’ concerned about managing cash flow effectively over the next 12 months To make sure you can manage your cash flow and keep your business going, we’ve included a financial management application as part of your MyBusinessWorks subscription.

Part 1 Getting started 1. Signing up To speed up the process of creating your company file, you will need to gather various bits of information together. See Checklist on Page 85 for more help.

Tip: Ask your accountant to provide you with information you are missing

Identification Email Address Enter your email address. This will be used to log into SageOne in future. Business Name Enter your business name.

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Contact Information Fill in your contact information. Click on continue when complete.

Business Address Fill in your business address. This will also appear on customer invoices when printed or emailed.

Account Details Select the type of business most relevant to your needs.

The ‘Year End Date’, will be used by SageOne to set the year end for future years. So if your first accounting year finished on 31st March 2012, SageOne will work out your accounts to 31st March 2013 and produce reports ending on your first accounting year end date and for each year after that.

VAT Registration This is where you fill in your VAT information. Your VAT details are required by the program to ensure that VAT reporting can be carried out in an accurate and timely fashion. If you are VAT registered you can enter your VAT registration number in this area.

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Your Security You will be asked to select 3 security questions and record the answers to these. This is a security measure in case you forget your login details in future.

1. Activation You will receive an email to the email address you subscribed with. To activate your account click the link in the email.

You’re ready to start, click continue!

2. Help & Support Throughout the program online context sensitive help is available to assist you. This can be accessed from any screen simply by clicking on the “Help” tab at the top of each page and selecting Accounts.

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3. Creating a new Bank Account You manage all your bank accounts and transactions from the Banking menu. Add New bank accounts in SageOne to reflect your own business bank accounts - for example Savings or Credit Card accounts. SageOne has automatically created two bank accounts for you. Current account and Cash in hand. We will use the cash in hand account to record any petty cash expenses and cash sales.

It makes good sense to set up and use the bank accounts in SageOne to mirror the way you use your actual bank accounts.

To view bank accounts, select Banking menu. To create a new bank account, select Manage Bank Accounts, then Add New Account.

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Enter relevant account details, and then click Save.

4.

Set up Contacts

Clients can be set up and viewed from the Contacts menu. Here you can see all your business's contacts, both clients and suppliers.

To create a new customer/supplier record, hover over the Contacts menu and select Customers or Suppliers then click, Create Contact.

The Create Contact screen opens.

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Contact Type Select contact type as customer or supplier. Contact Details Enter the customer name or company the invoice is to be addressed to/from. You can also record the contacts telephone details and email address. Address Record the contacts address which is to appear on the invoice.

Delivery Address If your business sells products you can record a delivery address onto your invoice. Notes This field is optional and can be used to record any additional information about your contact that you may want to be reminded of.

When finished click Save.

View Customers/Suppliers

To view your customers or suppliers hover over the Contacts Menu, and then click Customers or Suppliers.

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Your contacts will show in a list format. You can also search for customers and suppliers using the search box above the contacts list.

Changing a contact's details If you want to change any details for a contact, from the overview screen click the customer’s record you wish to edit. Then click Manage Customer (or Manage Supplier if you’re in the Suppliers list), Edit.

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Part 2: Money In

1.

Introducing the Chart of Accounts

The Chart of Accounts is the most important list in SageOne. Every transaction you enter flows through the Chart of Accounts, and the end results are your financial statements. - The Balance Sheet and the Profit and Loss Report. In essence, the Chart of Accounts is your financial statement because every account appears on either the Balance Sheet or the Profit and Loss Report. The government requires all companies to publish annual financial statements, although smaller companies only need publish them in abbreviated form. This list will help you set up appropriate accounts for the kinds of information with which you want to work in SageOne. The ability to change the Type of Sale and Type of Expense Categories is one of the ways you customise SageOne to meet the needs of your company. As we raise our customer and supplier invoices in SageOne we will customise our own Chart of Accounts for our business. 2.

Invoicing

Use SageOne to create professional invoices to send to your clients. Here's how to create a new invoice from scratch. Customising your Invoice Template There are a number of features built within SageOne to help build a personalised invoice template for your business to use. To customise your invoices click on the Settings Menu, Accounts Settings and the select Invoice Settings.

Choose your invoice template If you wish to change your invoice template select Change Template. There are four different layouts to choose from.

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Click Save once you have chosen your template.

Adding a Company Logo To add your company logo to your invoices click Change Company Logo. A window opens allowing you to browse your computer for your logo. Find the logo you wish to use and select it to upload.

Invoice Terms & Conditions The information you enter here will appear by default on each new invoice you raise. If you want to you can overwrite the terms & conditions on the invoice at the point of creation.

Customer Credit/Supplier Credit The customer and supplier credit terms effect the default due date on invoices.

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Next Invoice Number The next invoice number dictates which number is to be used for the next sales invoice or credit note created in Sage One. Sales Invoice/Credit Note Number Prefix The sales invoice number and credit note number prefix is what will appear before the actual invoice number. For example SI-1 or SCN-1.

Raising the invoice The first step is to create a list of the products and services you sell. SageOne will remember the details for you to easily use again. Hover over the Sales Menu and select Products & Services.

The following page will display all products and services your business sells. To create your first product or service, select the relevant tab Products or Services.

In the example below I’m creating a product. I will now select Create Product. When you select the Service Tab this button will change to Create Service.

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To Create a Product

Item Code This field is optional. If the product you are selling has an item code type this in. This will help you to easily manage your products in SageOne and will also show on the customers invoice. Description This field is compulsory. Use this field to record the name of the product you are selling. Type of Sale The Type of Sale field relates to our Chart of Accounts. We need to tell SageOne how we would like this income to be recorded on our Profit and Loss report. Select a Type of Sale, or click Create new to add a new sales type in.

You will need to type in a name for the sales type as this is how it will show on your Profit and Loss report. Select the default VAT rate and select Sales as the Category. Click Save when finished.

Notes You can use this field to record any additional information about this product for your reference. Cost Price This field is optional. If you purchase this product to sell onto your customer and would like to record your cost price type this in here.

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Sales Price This is how much you sell your product for to your customer. If the price differs depending on who you are selling to you can leave this field blank and type it manually on the invoice. VAT If the price includes VAT please tick the checkbox. If the checkbox remains un-ticked the VAT will automatically be added onto the sales price for you. (Please note: if you are not VAT registered you will not see this box).

Click Save when finished. The product has now been added to your products list.

To Create a Service From the main Products & Screen, click Services tab and then Create Service.

The View Service screen will display

Description This field is compulsory. Use this field to record the name of the service you are selling.

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Type of Sale The Type of Sale field relates to our Chart of Accounts. We need to tell SageOne how we would like this income to be recorded on our Profit and Loss report. Select a Type of Sale, or click Create new to add a new sales type in.

You will need to type in a name for the sales type as this is how it will show on your Profit and Loss report. Select the default VAT rate and select Sales as the Category. Click Save when finished.

Rate This field is optional. Here you can record the amount you charge for this service. If the price you charge is always different depending on whom you sell to leave this field blank as you will be able to type it on the invoice manually. VAT If the price includes VAT please tick the checkbox. If the checkbox remains un-ticked the VAT will automatically be added onto the sales price for you. (Please note: if you are not VAT registered you will not see this box).

Rate Frequency This field is optional. If you have typed in a rate you can select the frequency you charge the rate at. (I.e. in the example above my service is installation. I may choose to charge my customer at a frequency of hourly). Notes You can use this field to record any additional information about this service for your reference Click Save when finished. The service has now been added to your services list.

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To Raise an Invoice To raise an invoice hover over the Sales Menu and select Sales Invoices. In future any invoices you raise will also show here along with any outstanding balances.

Click on Create Invoice.

The invoice template will display.

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Name Start by typing in your customer name. If this is a new customer you can also add it at this stage by clicking the New Contact icon next to the name field. customer their address details will automatically populate.

Once you have selected your

Invoice Date/Due Date These fields are compulsory and must be completed. SageOne will track for you what invoices are due and what invoices are overdue based on the due date you enter. Reference This field is optional. You can use this to record any information that may be useful such as a purchase order number. Adding a Product or Service to the invoice Start by typing into the search box the name of a product or service you are invoicing for. If you’ve forgotten to add it to your products or services list you can always add by clicking on Create Product or Create Service.

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Once you have selected your product or service the description will appear on the invoice automatically. This can be added to by clicking into the description field and typing any further information.

Quantity Enter the number of units sold. This must be a minimum of one. Unit Price This is the amount you are charging for this product or service. VAT If you have previously set up your product or service list the VAT will automatically populate. This can also be changed by using the drop down arrow. Notes Use this field to type any notes you may wish to appear on the customers invoice. Terms & Conditions Any terms and conditions can be recorded here. This space can also be used to record your account number if you accept payment by BACS. (Please note: You can also set default Terms & Conditions for all invoices by going to the Settings Menu and selecting Invoice Settings). Print/Email Check Box To print or email the invoice tick the relevant checkboxes. If you are emailing the invoice, once you save it you will have an email invoice template appear. If you have recorded the customers email address in your contact information this will pre-populate in the To: field. You can also manually type in the email address.

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Click send once complete. View outstanding balances and previous invoices. To view any outstanding balances and previous invoices hover over the Sales Menu and select Sales Invoices. This will display all invoices you have raised. To view unpaid invoices click on the Payment Status Colum. This will group all invoices by payment status paid, part paid and unpaid.

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Receiving payment for an invoice When your customers pay their invoices you can record payment in SageOne by first opening the invoice that is outstanding. (The invoice can be accessed through the Sales Invoices Menu as above). Once the invoice has opened click on Record Payment.

The Record Payment screen will display.

Amount Paid The total amount of the invoice will populate automatically into the Amount Paid field. If you have received part payment for this invoice type the amount you have received into this field. Any outstanding balances will continue to show on your Sales Invoices screen as part paid. Date Type the date payment was received. Paid To Select the bank account you have received the payment into. Cheque Payment If your customer has paid you by cheque tick the checkbox and record the cheque number you have received. SageOne will keep this record and display the cheque number on your reports as a reference.

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3.

Recording Other Income

Recording Other Income There are times when we need to record other income into the business when an invoice is not created. This process could be used to record other income such as cash sales, money received from a grant, an investment or dividends. Whenever income comes into the business without an invoice associated with it. For example this process would be used to record cash sales into your Cash in Hand account. From the main toolbar hover over the Sales Menu then select Other Income. The Other Income screen is displayed.

Payment Method There are three payment methods to select from. Bank Receipt – Use this method to record any debit card or direct deposit transactions. Cash Receipt – Use this method to record any cash in hand transactions such as till takings. Cheque in Hand – Use this method to record any cheques you have received as payment. The payment method selected determines which bank accounts are available to use for the receipt. For example by selecting cash receipt you will only be given the option to deposit the money into cash in hand bank account. For this reason bank receipts, cash receipts and cheque receipts should be recorded separately. Complete the following fields. All fields marked with as asterisk* are mandatory. Type of Sale The Type of Sale field relates to our Chart of Accounts. We need to tell SageOne how we would like this income to be recorded on our Profit and Loss report. Payment date/invoice date Enter the date of the sale/deposit

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Name This field is optional. If the transaction relates to a customer you can search for your customers name or add in a new customer. Reference This field can be used to record a description such as the paying in slip reference, receipt number or till report number. Bank Account Select the bank account from the drop-down menu. Please note the choice of bank accounts here will depend on the transaction type selected. Total Enter the total value of the sale/deposit. VAT Rate Select a VAT rate from the drop-down menu Tick if total includes VAT Check this box if the total you have entered already includes VAT. (If you are not VAT registered this box will not appear).

Select Save once all information has been completed. Paying Other Income into Bank The Pay into Bank feature helps you to record exactly where your money is. In the example of a retail business I would record my daily cash sales into my cash in hand bank account. If in future I physically take that money to the bank to deposit I will also record this in SageOne by using the pay into bank feature. (Please note: The Pay into Bank feature only needs to be completed for Cash in Hand income). Go to the Banking menu and select Cash in Hand bank account Click Pay into Bank

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The pay into bank screen will display. Complete the following fields. All fields marked with as asterisk* are mandatory.

Paying in Ref Enter the same reference that you used on the paying in slip. (I.e. daily sales deposit or cash deposit). Bank A/C Select the bank account you paid the money into using the drop-down menu. Date Enter the paying in date. You can enter the denomination of notes and coins here if you wish or you can enter the total value instead of the breakdown by using the Cash Total field.

Click Select to add in any cheques you want to deposit. Note: when cheques are entered as other income transaction they will automatically appear in this screen. You can choose to include them when paying into the bank by clicking Select.

The Select Cheque screen will open. Select which cheques you want to pay into the bank by ticking the box in the Include Column.

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Click Save when finished. When the total of cash and cheques is correct, click Save to pay the money into the bank. The money is now paid into the bank account and the transaction will now appear on the paid into bank list.

Part 3: Money Out We will look at two ways of recording money we spend, purchase invoices and other expenses. Purchase Invoices Purchase Invoices are costs that the business will pay for itself, from its own bank account, but not straight away. An example would be a utility bill or a sub-contractors invoice. Other Expenses Other expenses are costs that the business pays for itself, straight away, normally when you would get a receipt, rather than a purchase invoice – such as if the business owner buys fuel using the company debit card – these don’t need to be entered as bills. You can just explain them as Other Expenses. 1. Purchase Invoices Creating a new supplier record In SageOne is similar to creating a new customer. SageOne uses the contacts list to hold information about the companies and people from whom you buy goods and services to run your business. For example, the list could include subcontractors, utility companies, and your office supplies vendor. You can add a supplier at any point. Enter Bills By recording your bills and invoices as soon as you receive them, SageOne can help you to manage your purchase invoices and cash flow. Successfully managing the relationship with your creditors can have a positive impact on your cash flow, your relationship with suppliers and correspondingly, the financial health of your business. It is just as important to pay attention to the credit that your suppliers are granting you as the amount of credit you extend to your customers.

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Hover over the Expenses menu, to enter your first purchase invoice and select Purchase Invoices.

Click on Record Invoice.

This will bring you to the New Purchase Invoice screen.

Complete the following fields, fields marked with an asterisk* are compulsory. Name Enter the name of the supplier you have received the bill from using the search field. If this is a new supplier you can also add it at this stage by clicking the New Contact icon next to the name field.

Invoice Date Enter the date as shown on the bill. Your supplier will usually call this the "Invoice Date". Due Date

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Enter the due date of the invoice. Note: The due date is automatically entered if you have entered your supplier credit terms within the settings menu. This can be overwritten when recording an invoice. Reference Use this field to record the invoice number. Description Type in an invoice description, for example what the bill was for. Type of Expense Select the correct type of expense from the drop-down list. If the purchase invoice divides into more than one expense category, particularly if those categories have different VAT settings, then you'll need to divide the bill up into its components by recording one expense type on each line. Qty Enter a quantity for items on the invoice this must be at least one. Unit Price Record the net price of the item. VAT Rate Select the relevant VAT rate, VAT will automatically be added on top of the Unit Price for you. VAT Amount This field is calculated automatically and is read only. Total This field is calculated automatically and is read only. Notes Put a comment in the Notes box if you wish, for example some notes about what the purchase invoice was for. This is particularly important for bills in tax-sensitive categories such as legal and professional fees, purchases of capital assets, or sundries

View Outstanding Purchase Orders To view any outstanding balances and previous purchase invoices you can go to the Expenses Menu and select Purchase Invoices. This will display all invoices you have raised. To view unpaid invoices click on the Payment Status Colum. This will group all purchase invoices by payment status.

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. Pay Bills When you have paid your supplier you will need to tell SageOne that the purchase invoice has been paid. Find and click the bill on the list on the Purchase Invoices screen. This will open the Viewing Purchase Invoice screen. Click Record Payment to record the purchase invoice as paid.

The payment screen will display. Type in the amount paid and the date the amount was paid. You will also need to select the bank account the amount was paid from. When finished, click Save.

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You will see the amount outstanding has reduced

2. Other Expenses Other Expenses are costs that the business pays for itself, straight away, normally when you would get a receipt, rather than a purchase invoice. These may be expenses from Petty Cash, or paid for directly by credit or debit card. Hover over the Expenses Menu and click on Other Expenses.

The Other Expenses screen is displayed.

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Complete the following fields all fields marked with as asterisk* are mandatory. Payment Method There are three payment methods to select from. Bank Payment – Use this method to record any direct debits or standing orders. Cash Payment – Use this method to record any cash in hand transactions. Credit Card Payment – Credit card payments are used to record any transactions where by a credit card has been used. You must first create a credit card bank account before you can use this payment method. The payment method selected determines which bank accounts are available to use for the receipt. For example by selecting cash payment you will only be given the option to debit the money from cash in hand bank account. For this reason bank payments, cash payments and credit card payments should be recorded separately. Type of Expense Choose expense type. Payment date/invoice date Enter the date of the expense/invoice Name This field is optional. If the transaction relates to a supplier, you can search for your supplier name or add in a new supplier. Reference This field can be used to record a description such as place of purchase or a receipt number.

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Bank Account Select the bank account the expense has been paid from using the drop-down menu. Please note the choice of bank accounts here will depend on the transaction type selected. Total Enter the total value of the expense. VAT Rate Select a VAT rate from the drop-down menu Tick if total includes VAT Check this box if the total you have entered already includes VAT. (If you are not VAT registered this box will not appear). Select Save once all information has been completed.

Part 4: Banking

1.

Finding transactions

View a summary of your bank accounts.

1.

Click Banking menu.

2.

Click on the bank account name, e.g. Current Account, to see details.

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2.

Bank Transfers

This option exists to move money between your bank accounts. For instance:

o o

Transferring to and from your deposit or current accounts. Paying off your credit card bill.

Go to the Banking Menu. Hover over Manage Bank Accounts and click on Transfer.

The Transfer screen will display. Using the drop-down menus select the bank account you’re transferring from and to. Record the amount, transfer date and reference.

Click Save to complete transfer.

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3.

Bank Reconciliation

Bank reconciliations are a way of comparing the statements issued by your bank against information you’ve entered in SageOne. They are very important because they allow you to catch mistakes like things you forgot to enter, or may have entered twice. This is particularly important to do before you file your VAT returns. How to do a bank reconciliation.

1. 2. 3.

Click on the Banking Menu Select the bank account which you will be reconciling from account list. Click Reconcile

4.

Enter the statement date, the statement end balance and a statement reference at step one of the process. Click on next to continue.

5.

To record any bank interest or bank charges, use the Interest/Charges option to enter these.

The following window will display. Fill out amounts and record the same dates that show against these transactions on your bank statement. When finished click Save.

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6.

Match off transactions that appear on your statement by ticking the box in the reconcile Column for each transaction line, or by clicking on the transaction line.

7.

When all transactions are matched and the difference is 0.00 click Next to continue. If the difference is not 0.00 you should check the following: Statement end balance - Check this was entered correctly and is the same as the bank statement end balance. Previous balance – This should agree with the opening balance on the bank statement. Interest/Charges – Ensure any interest or charges have been entered. Matched transactions – Make sure there are no transactions matched din error or any transactions that have been missed. Value of transactions – Make sure all transaction entered and matched are for the correct value.

8.

The summary screen will display. Click Save to complete the reconciliation process. You will be returned to the banking screen and the matched transactions are saved and reconciled. The next time you reconcile the bank account, only transactions that haven’t been reconciled will appear.

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Part 5: VAT and Reporting 1.

VAT Settings

Dealing with VAT There are two types of tax scheme commonly used by businesses: Standard VAT Accounting and VAT Cash Accounting. By using the Standard VAT Accounting scheme, you must pay VAT on sales you have not yet received payment for. VAT Cash Accounting is a scheme devised by the tax authorities to help smaller companies with their cash flow. On this scheme, you pay and reclaim VAT only on what’s actually been received or paid. To qualify for the VAT Cash Accounting scheme you must have an annual turnover below a certain figure. For more information, please refer to the HM Revenue and Customs website at http://www.hmrc.gov.uk. In SageOne, any transactions you post will have the VAT automatically calculated for you, when you select the VAT rate to apply to the transaction at time of processing. When you come to do your tax return, all VAT transactions are automatically included, depending on their tax rates, by SageOne for you. By default all new businesses that are set up in SageOne are set up as not VAT registered. When you first set up your business in SageOne, you will choose your VAT settings. It is important that these are correct Click Settings menu, then click Financial Settings.

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The Financial Settings screen will display.

VAT Scheme Click the change button to add your VAT scheme. Standard Accrual scheme is added as a default. If you wish to add another scheme such as cash accounting or flat-rate click on Create Scheme.

If your business is using the VAT flat rate scheme, you will need to type in the relevant VAT rate for your industry sector. Please visit www.hmrc.gov.uk to view current industry rates. Click Save once complete.

VAT Registration Number Enter your VAT registration number. This is a compulsory field if you are registered for VAT because your VAT registration number must be printed on your invoices.

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Submission Frequency Select how often you submit your VAT returns. The most common submission is monthly but you can check directly with HMRC or your accountant if you are unsure. Click Save when complete. 2. VAT Returns If you are registered for VAT you will need to run a quarterly VAT return to calculate how much VAT you owe HMRC and also how much VAT you can reclaim from them. Within SageOne the VAT is calculated automatically on transactions when the appropriate VAT rate has been applied.

To produce a VAT Return Hover over the More menu, select VAT Returns.

This brings up the VAT Submissions screen. Any previously submitted VAT returns will show here. To create your first VAT return click Create Report for HMRC.

The VAT Return Wizard will display. Work through the 4 step wizard to submit your VAT directly to HMRC. Start by ticking the Create VAT Return Report and clicking the Next button.

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Enter the VAT period date range. If you have entered and checked all of the transactions for the period you are running the VAT Return tick the checkbox and click next.

The VAT Return will display.

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To check how the figures were calculated on the VAT Return, click view the detailed report link.

The detailed report opens as a pdf file in a new window.

You may need to post an adjustment to the VAT return, for example if you have additional income from another business which needs to be included or if you are on a VAT scheme which is not supported or have changes from your accountant. If you need to post any adjustments, click the adjust link for the specific box.

Note: You can only post one adjustment per box. If you attempt to post a second adjustment against a box the first will be overwritten with the new adjustment value. You must enter a reason for the change, in order to post an adjustment.

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Click Next to proceed to the submission page.

Completing VAT return Once you're confident that you've correctly entered all your transactions into SageOne for the VAT return, we will need to file our return with HMRC. This can be done by filing your return online with HMRC using SageOne. In order to proceed you will need your Government Gateway Credentials. To submit online, select the check box then enter your credentials and click Save.

A confirmation message will appear.

What happens when I mark my VAT return as filed? When a VAT return period has been marked submitted you won't be able to change any transactions dated during that period, or to enter any new transactions dated during that period. Enter and check all transactions before submitting your return online.

3.

Accounting Reports

Summary Screen The Summary screen gives you a snapshot of your business sales, expenses and profit to date. It also shows your current account balance and top 5 unpaid invoices.

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Financial reports To view more in depth reports hover over the More menu and click Reports.

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Profit and Loss A profit and loss report will tell you whether you are – or were – trading profitably over any fixed financial period. It is one of the two types of annual account (the other is the balance sheet) that limited companies have to file with Companies House every year. A Profit and Loss analyses your incomings and outgoings and strips out any extraordinary income, such as the one-off sale of a piece of machinery, which would distort your true profitability. For example, if it was only the sale of your car that kept your business in the black, then the company is not financially secure as you cannot keep reselling the same asset.

Profit and Loss The Profit and Loss Report can show you a full accounting period's worth of profit and loss, going back as far as your SageOne start date. Or it can show you your current accounting period's profit and loss so far. If you need to see the details of what makes up any of the figures on the profit and loss account, simply click on the figure To view a specific period enter the date range required into the following field.

If you wish to drill down into detail to see what makes up the total figure for an item on your profit and loss simply click the transaction, in this case Sales.

I will now see a list of all the transactions that make my drink sales figure.

Balance Sheet A Balance Sheet shows everything that your business owns, its assets, and everything that it owes, its liabilities, as at a given moment in time.

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Trial Balance A Trial Balance, or TB for short, is a list of all the balances in all your business's accounts at any given time. Accounts in this case doesn't just mean bank accounts. It means all the categories that you put bills, expenses, and income into. All these categories are accounts and they will all show separately on the TB. A TB is always shown as at a given date, because it shows the balances in those accounts as at that date. You can check the figures for the year so far, or look at the full year, which is useful if you want to see costs that will come in at a later date such as payrolls that have been run for the whole year. You can also edit the date range for this report by completing the date range fields. Download Report If you need to, you can also export the any of the financial reports as a .csv or .pdf file. This might be useful if you need to create your own reports from the information you've put into SageOne. Simply click into the report you wish to download. Hover over Download Report and click Printable PDF or Export to CSV file.

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Getting Started Checklist Company name and address

VAT registration number and information

SageOne Start Date

Bank statements

Client and supplier balances Credit card balance

PAYE reference number and liabilities

Assets and liabilities

Fixed assets

You’ll need both the trading name and legal name of your business. The legal name is the one you use when you file taxes. The trading name is the name you use on invoices, statements, etc. These can be one and the same. If you registered for VAT with HMRC, you will have been issued a VAT registration number. You need to know this number – as well as the VAT scheme you are registered for and when your VAT reporting quarters are (e.g. July/Aug/Sept, with VAT due 31 Oct). Decide on the first day that you want to start keeping records in SageOne. If you just started trading, the start date should be the day you formed the limited company with Companies House, or the day you told HMRC you started trading (sole traders). If you are an established business, a good start date is the first day after the end of your last financial year. If you have recently started trading you need to have all the bank statements beginning from your start date, as well as a list of cheques that have been written but did not clear your account yet. If you have filed year end accounts in the past, you will also need a list of cheques that were yet to be cleared at your last year end date. You will need to know the amount each client owes you and the amount you owe each supplier at the start date. You will need to know the balance on each of your business credit cards. If you pay employees you should have been issued a PAYE reference number by the tax office. You can find it on the front of the yellow payslip booklets (P30BC) sent out by HMRC. You will also need to know the amount of PAYE and National Insurance outstanding at the start date. You need to know the balance of what your business owes (liabilities) and what it is owed (assets). If you had stock on your start date you need to know its value. You need to know the value of each category of each fixed asset, such as the total of your vehicles, office equipment or computer equipment.

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LESSON 8 Technical troubleshooting tips What are the system requirements for MyBusinessWorks? Operating systems The following operating systems are compatible with MyBusinessWorks: • Microsoft Windows XP SP3 and above, including server versions • Mac OS X 10.4 and above, desktop and server versions

Browsers The following browsers are compatible with MyBusinessWorks: • Microsoft Internet Explorer version 7 and above • Mozilla Firefox version 3.5 and above • Apple Safari version 4 and above • Google Chrome version 7 and above JavaScript must be enabled for the service to work properly. Adobe Flash, Adobe Reader and other plugins may also need to be installed on request. What if I have not received the activation email? You can activate your details by entering the URL on your order form and putting in your registration code. You will also receive another activation email a week after subscribing. Where can I find my registration code? You can find your registration code on the copy of the order form you got from your Barclays Business Manager when you bought MyBusinessWorks. What happens if I have lost the order form and do not know my registration code? If you have lost your order form, you can get a copy of it by speaking to your Barclays Business Manager. You can also contact the MyBusinessWorks support team on 0845 6080 280. What happens if my email address has changed since I completed the MyBusinessWorks order form? You can still activate your details by entering the URL and registration code on your order form. You will need to use your previous email address at first but, once you have activated the details, you can edit your profile on the MyBusinessWorks portal.

Got another question? Don’t worry, our MyBusinessWorks telephone support team are here to help. You can email us on [email protected] or call us on 0845 6080 280, Monday to Friday from 9am to 5:30pm (excluding UK bank holidays). We will respond to your email within 24 working hours.

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Glossary Glossary of common business terms Articles of Association – this sets out the rights of the shareholders and the powers of directors in a limited company. Asset – property owned by the business that has a monetary value – usually stock, business equipment or premises. Audit – the process of checking items in a set of accounts to make sure they agree with the original information (e.g. checking stock values against the original purchase and sales invoices). Audit trail – a list of transactions in the order they were recorded. Award – a sum of money acknowledging achievement in competition with other businesses, and therefore not a guaranteed source of funding. Balance sheet – a summary of all the assets and liabilities of a business at a particular time, usually prepared at the end of each financial year. Business plan – a document that sets out your business goals, how the business will operate, and what resources will be needed. This is supported by financial forecasts. Capital equipment – equipment such as plant and machinery, which is used to produce goods and services. Capital Gains Tax – when a fixed asset is sold in excess of its original cost, the profit may be liable to Capital Gains Tax. Calculating the tax can be complicated - taper relief adjustments for inflation and other allowances all need to be considered. Cash accounting – an accounting method where only invoices and bills that have been paid are accounted for. For most types of business in the UK, as far as the HM Revenue and Customs is concerned, any invoice (paid or not) which you issue must be treated as revenue and accounted for. Cash flow – a report which shows the actual flow of money in and out of the business over a particular period of time. Cash flow forecast – a report showing the estimated cash flow

Certificate of Incorporation – this document is issued by the Registrar of Companies once all relevant documents have been satisfactorily completed. A company is only recognised as a legal entity when this document has been issued, and it is only then that it can start to trade. Class 1 National Insurance Contributions (NIC) – are payable by all employees and directors based on their salary. In addition, the company or business is also liable to pay employer contributions. Class 2 National Insurance Contributions (NIC) – are payable by all self-employed individuals (sole traders and partners) at a flat rate for every week of self-employment. Class 4 National Insurance Contributions (NIC) – are payable by all self-employed individuals (sole traders and partners) whose taxable profits are greater than the lower limit specified by HM Revenue and Customs. Companies House – all UK limited companies have to register at Companies House, an Executive Agency of the Department of Trade and Industry. The main functions of Companies House are to incorporate and dissolve limited companies, examine and store company information delivered under the Companies Act and related legislation, and to make this information available to the public. Company Secretary – a company official who ensures that a limited company’s statutory obligations are met. Construction Industry Scheme (CIS) - The Construction Industry Scheme (CIS) sets out the rules for how payments to subcontractors for construction work must be handled by contractors. The scheme applies mainly to contractors and subcontractors in mainstream construction work, however businesses or organisations whose core activity isn’t construction but have a high annual spend on construction may also count as contractors and fall under the

Corporation tax – this is payable by limited companies to the HM Revenue and Customs based on their taxable profits. Cost of sales – costs relating to the production of an item for sale (e.g. the cost of raw materials). Credit – credits are a record of transactions in the business’s books. For example, if a £50 cheque is paid by the business for petrol, the credit and debit entries in the books using double-entry bookkeeping would be: CREDIT Bank £50 (increase in liabilities on the balance sheet). DEBIT Purchases £50 (purchase on the profit and loss account). Credit note – a sales invoice cancelled in full or part. For example, you issue an invoice for £100, the customer returns £25 worth of goods, and you issue the customer with a credit note owing the customer £25. Creditors – suppliers or third parties to whom the business owes money. Current assets – assets such as stock, money owed by debtors (for goods, services or materials not yet paid for) and cash. These are held for short term (less than one year) use within a business. Current liabilities – amounts which you’re obliged to pay out in the short term (less than one year). These include amounts owed to trade creditors (who have supplied goods, services or materials not yet paid for) and money borrowed e.g. a bank overdraft. Debit – debits are a record of transactions in the business’s books. For example, if a business asset is sold for £250 cash, the debit and credit in the books using double-entry bookkeeping would be: DEBIT Bank £250 (increase in assets on the balance sheet). CREDIT Sales £250 (turnover on the profit and loss account). Debtors – customers or third parties who owe money to the business. Directors Loan – Created if a director lends their business money. Dividend – a payment made to shareholders who have invested in

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based on future plans.

scheme.

the business.

Drawings – general living expenses that can be taken out of a business by the owner.

Leasing – funding for assets that you use for a fixed period whilst making regular fixed payments. The asset never belongs to your business; ownership is kept by the company supplying it.

Notary public – a person authorised to perform certain legal formalities, in particular to draw up or certify contracts, deeds, etc.

Double-entry bookkeeping – a system which accounts for every aspect of a transaction – where it came from and where it went to. This ‘from and to’ aspect of a transaction (see Credit and Debit) is referred to by the term double entry. Equity Funding – also known as shareholder funding. This is money put into a business by its owner(s) or from external investors. Expenses – goods or services purchased for running the business. This doesn’t include purchases relating to sales or any items of equipment such as fixed assets. Fixed assets – property such as buildings, machinery and capital equipment that is bought for longterm use in a business and is not intended for resale. Goodwill Payment - A payment made to someone or a company where this is no legal obligation to do so. It is usually done to retain the business of a specific customer Grant – usually a one off payment by a charity, the government, a local authority or business support agency to help finance a business. Gross profit – turnover less cost of sales. If the resulting figure is negative, this represents a ‘gross loss’ rather than a profit. Hire purchase – funding for assets that you can use for a fixed time period whilst making regular fixed payments. When all the payments have been made, the asset belongs to your business. Income – turnover plus any nontaxable income e.g. dividends received. (See Revenue.) Invoice – an original document either issued by a business for the sale of goods (a sales invoice) or received by the business for goods bought (a purchase invoice). Journal entries – a term used to describe the transfer of an item in the books and records.

Ledger – also called the nominal ledger. A book in which entries recorded in the books and records are analysed. Liabilities – represent what a business owes. This includes bank overdrafts, loans taken out for the business and money owed by the business to its suppliers. Limited company – a business that has a legal identity separate from the people who own it (the shareholders). Their share of any profits, or liability for any debts, is limited to the amount of shares they own. Limited Liability Partnership (LLP) – a LLP offers businesses such as solicitors and accountants the flexibility and tax status of a partnership but has the advantage of limiting personal liability for the businesses debts. LLPs need to be registered with Companies House. Limited partner – a limited partner can be an individual or a company. The partnership must have at least one general partner with management rights and unlimited liability and at least one limited partner. Liability for debts is restricted to each partner’s financial contribution. Loan – an amount of money that you borrow for an agreed period of time. You normally repay this in fixed monthly instalments. Long-term liabilities – these usually refer to long-term loans (i.e. a loan which lasts for more than one year such as a mortgage). Memorandum of Association – this document records the name and Registered Office of a limited company as well as its purpose (the object) and its liability. Net profit – income less total costs, including cost of sales and expenses. (Where this results in a negative figure, this represents a ‘net loss’ rather than a profit.)

Off-the-shelf limited liability company - this is a company which has already been formed as a non-trading company by a formation agency. When it is sold, new details are registered with Companies House. Overdraft – a way of obtaining short term finance by borrowing money from a bank up to an agreed limit, usually on a business current account. Overheads – the general costs involved in running a business. They consist entirely of expense accounts (e.g. rent, insurance, petrol, and staff wages). Partnership ACT 1980 – the legislation that governs partnerships Partnership – a business set up by two or three people. Its legal identity is not separate from its owners, who share profits according to the terms of the partnership and have unlimited liability for any debts. P.A.Y.E (UK only) – ‘Pay as you earn’ is the name given to the income tax system where an employee’s tax and National Insurance Contributions are deducted before their wages are paid. Petty Cash – a small amount of cash kept on hand by a business for incidental expenses Private equity company – a company that helps investors make decisions about investments in smaller businesses. They may also provide consultancy and support services to business. Private limited company (Limited or Ltd) – a company that is privately owned – shareholders are usually family members, acquaintances or employees. Its legal identity is separate to that of its owners. Public limited company (PLC or plc.) – a company which is authorised to sell its shares to the public. Its legal identity is separate to that of its owners and it must have a minimum authorised share capital of £50,000. PLCs may or may not be listed on the stock exchange.

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Profit and loss account – an account made up of income, cost of sales and expenses which shows the current profit or loss earned by a business over a particular period (i.e. whether a business has earned more than it has spent over the period). The profit and loss account is usually prepared for the 12-month period to the financial year end. Purchase ledger – a separate ledger which shows the full accounts of a business’s suppliers. A record of purchases is also included in the nominal ledger which shows the outstanding balances owed to individual suppliers. Receipt – a term typically used to describe confirmation of a payment (e.g. If you buy some petrol you will normally ask for a receipt to prove that the money was spent legitimately). Reconciling – the procedure of checking entries made in a business’s books with those on another statement or ledger (e.g. checking a bank statement against your own records).

Self-assessment tax return – this form is issued by the HM Revenue and Customs to all selfemployed individuals, as well as company directors and other individuals who have more complicated tax affairs. The return brings together all the figures HM Revenue and Customs needs to calculate and check on individuals’ liability for tax. This information can be completed and calculated online. Share – a share is a legal document of ownership over part of a company. A shareholder is normally entitled to a proportionate share of any profit or dividends. Shareholder – limited companies are ultimately owned by their members. In the case of a company that issues shares, its members are shareholders i.e. persons who own ‘shares’ of the company’s capital. Sleeping partner – a person who makes a financial contribution to a partnership but who is not involved in the day-to-day running of the business.

Registrar of Companies – the Registrar of Companies manages all paperwork handled by Companies House. There is a separate registrar for England and Wales, Scotland, and Northern Ireland.

Sole trader – a business that is owned, developed and managed by one person, who is entitled to all profits and is responsible for all its liabilities. The business’s legal identity is not separate from the owner.

Retained earnings – the profits earned by a business after its expenses have been paid. These are kept in the business to provide extra working capital or to buy equipment or asset

Stock – goods manufactured or bought for resale by a business. Raw materials used to produce goods for resale may also be classified as stock.

Revenue – the sales and any other income of a business (e.g. interest earned from money on deposit). (See Income.) Sales – income received from selling goods or services. (See Revenue.) Sales ledger – a separate ledger which shows the full accounts of a business’s customers. A record of sales is also included in the nominal ledger which shows the balances owed by individual customers. Security – an asset which is legally assigned to a lender when borrowing. If the borrowing isn’t repaid, the lender can recover their money by selling this asset.

Turnover – the income of a business over a period (usually a year). Value Added Tax – VAT is a tax administered by the HM Revenue and Customs on behalf of the Government. The standard rate of 20% (at February 2011) is added to the selling price of goods or services. Any VAT incurred on goods or services purchased by a company may be offset against the VAT charged by the business and the net balance only paid to the HMRC. Other rates include Zero Rated, Reduced Rate at 5% (at Feb 2011) and exempt (see www. hmrc.gov.uk for more information) Venture capitalists – investors who finance private companies in return for a share in the business. Wages – payments made to the employees of a business for their work on behalf of the business. These are classed as expense items and must not be confused with ‘drawings’ where money is taken out of the business by sole proprietors and partners for their own use. Working capital – also known as net current assets. The current assets of a business less the current liabilities.

Stock taking – the process of physically checking a business’s stock for total quantities and value. Trading account - an account that shows turnover less cost of sales and the resulting gross profit or loss of a manufacturing or retail business. Transaction – entries that are recorded in a journal which correspond to an original document such as a sales invoice or purchase receipt. Trial balance – a statement showing all the accounts used in a business and their balances at a particular time.

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Appendix Your Mindleaders training and development plan Course Name

Key Skills

Date for Completion

Completed

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Notes .

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