Finance Sheets

A finance sheets is simply a piece of paper that people can use to keep track of payments within a company or project. 

Project Costs

Keep a separate finance sheet for projects because this will be used to add up the total cost the client will have to pay for a finished project. Below are examples of costs within a project.

• Design - Which consists of things like: paper, pens, pencils, rubbers, ink, travelling to the client, photography etc.

• Production - Presenting the finished design to the public.

• Staff Time - People need paying who were involved with the development of the project.

• Total Costs - All the costs above are shown as a total amount.

• Clients Total - This will be the overall amount that the client owns to the company.

Company Financials

A company needs to keep financial sheets to track all the expenses that happens within the company. Below are examples of things that company will have to pay for.

• General Liability insurances - Protects when people sue the company for injury.

• Professional Indemnity Insurance - Protects companies getting sued because their designs have injured someone or does something it wasn’t advertised for.

• Company services like phone lines and broadband.

• Staff costs.

• Building repairs.

• Equipment Depreciation - Replacing equipment when it breaks like computers and printers. 

• Loan Interest.

• Total costs - Only for the company not the projects they do.

Staff Costs

A company will have to plan and track what they pay their staff so they can ensure they can keep paying a consistent amount for them without going bankrupt.

• Pension - Money people can retire on. It is in everyones payment even if it is 1 or 2% that adds up over the years.

• Gross Pay - The amount of money the staff get from their salary after tax and other deductions.

• National Insurance - An amount that is deducted from employers pay that entitles them to certain benefits.

Cash Flow

Keeping track of all the money coming out of the company and coming in. Below are examples of the total costs the company need to keep track of.

• Staff Costs - Overall payment towards people working there.

• Projects Cost - Overall payment towards the cost for projects the company gets involved in.

• Total Costs - Overall cost for the company (total money coming out).

• Project Income - Overall project income from multiple projects in that month.

• Other Income - Overall income from other clients.

• Total Income - Overall amount coming in to the company.

• Income Less Costs (Profit/Lost) - The overall profit or loss of money.

What Did I Learn and Summary

This lecture was to inform us about finance sheets and how helpful and vital they can be towards the process of organisation that allows people to stay on top of finances. I have learnt that finance sheets are more important than I thought and companies need to pay attention to this information to avoid sudden bankruptcy. Another thing I learnt that the most common means of companies going bankrupt is the lack of attention to cash flow because companies find themselves paying money out here and there expecting a payment from another specific job they do that might not happen or go wrong.