The Companies Act 2006 provides that all companies must deliver annual accounts to the Registrar of Companies by the due date and that a late filing penalty will be payable if the accounts are delivered late. These penalties were originally introduced in 1992 to encourage directors of limited companies to file their accounts on time as this statutory information is required for the public record.

The February 2009 changes include an increase in penalties generally, a faster rate of increase in the level of the penalty for companies filing more than one month late and a doubling of the penalty for anyone filing late two years in a row. Penalties now run to:

• £150 for filing up to a month late;
• £375 for 1-3 months;
• £750 for 3-6 months and
• £1500 for more than 6 months late.

Flat management and dormant companies should note that these penalties apply to them as well as trading companies.

It is vital that you make sure you allow enough time for your accounts to be filed within the period stated in the Companies Act, so ensure your records are given to your bookkeeper or accountant to prepare in plenty of time, bearing in mind their busy periods. You should also be aware that penalties will not be waived for papers that are delayed in the post, so allow ample time and do not leave it until the last minute to send your paperwork off.

Lynn Watson is the Director of Office Assistants, a company certified by the Institute of Certified Bookkeepers. They offer small to medium businesses of all types the chance to cherry pick from a flexible range of services including bookkeeping; VAT; Payroll; CIS returns and general office services. The company has 20 years experience and pure expertise in streamlining systems and making substantial savings for all types of Essex and London businesses from sole traders upwards. For more information visit www.officeassistants.org.uk

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Accounting is an important and strategic move because accounting is the backbone of any business. Therefore, there are many things that are to be kept in mind while accounting outsourcing. The most important thing here is to find out why is it necessary to outsource the accounting of a company. It costs are to be cut or productivity increased, then it has to be evaluated of such a step is necessary. The entire board of directors in the case of a big company and all the partners in the case of a small concerned should be convinced this step is necessary. The next thing is to fully discover the actual credential of the supplier in question. It has to be confirmed that the supplier is in a condition to deliver the kind of service that it has offered. The contract that is to be drawn in the case of accounting outsourcing has to be thoroughly evaluated. It will be detrimental if the contract is poorly made. The contract must include the Service Level Agreement because it ensures that the company enjoys an optimum level of quality of work from the supplier. The last thing that has to be kept in mind is that the company has to send the best of it employees to the supplier when setting up the business.

Accounting outsourcing can be processed in many ways. It is primarily undertaken by BPO’s situated at various offshore locations. Another way of accounting outsourcing process is available online. There are various companies that handle accounting online and this means that there is no need to physically shift the process to another place. The accounting companies can log into the accounts of the party concerned, do the work required and then can log out. All this is done using a secure path. Independent chartered accountants can do the accounting work of companies. They can be hired on a freelance basis for a fixed period of time.

Accounting outsourcing has a lot of benefits. It reduces the cost of maintaining an accounting department within the concern itself. Because most business is outsourced to the third world, it means that one can avail skilled labor at low cost, which ensures that capital can be utilized elsewhere too. It means that the company can be assured that at least their accounting business will be taken care of in time. However, it should always be kept in mind that accounting is a delicate business so its outsourcing has to be considered thoughtfully.

Accounting outsourcing firms also avail the services of search engine optimization. You can easily firm SEO New York firm that caters to your company’s needs in affordable range.

Alvis Brazma gives advice to business owners about how to manage their business efficiently without any hassles. To know more about Accounting firm USA, Accounting outsourcing, retail accounting, accounting outsourcing services, small business accounting and accounting help visit www.impacctusa.com

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If you are getting into bodybuilding then you need to understand that what you eat is just as important as what you exercise. In other words, you can lift as many weights as you like but if your muscles are not getting the fuel they need to grow, you are wasting a great deal of effort.

<Strong>Protein is a <em>MUST</em> for Bodybuilders</strong>

With just a little research into an effective bodybuilding diet you will quickly discover that enough protein is one of the most (some say <em>the</em> most) important parts of your nutritional intake. In short, protein is the building block of lean muscle – a lack of protein means your muscle building potential is much lower. Visit now – Picmoney.com

There are many opinions on how much protein your body needs each day and it may depend on your bodybuilding goals. Typically you might consider taking around 1 gram of protein per pound of your body weight each day.

<Strong>Check the Food’s Nutritional Info <em>before</em> you Buy</strong>

There are plenty of foods in your local supermarket or grocery store that contain a useful amount of protein. Today’s regulations that ensure food product manufacturers display the nutritional content of their product make choosing your groceries a breeze. However, before you go running off to buy every high protein food you can find, a certain amount of care must be taken. Take the time to read through the food’s nutritional information table <em>in its entirety</em>. Not only are you looking out for the protein content but you also need to consider fat content, sugar content, carbohydrates, and so on. If your goal is to grow lean muscle then it is a good idea to avoid too many products high in simple sugars, calories and refined carbohydrates.

<Strong>Recommended <em>Quality Protein Sources</em> for your Shopping List</strong>

You are now ready to hit the supermarket in search of <em>quality protein</em> food sources. These are foods that are high in protein but not so high in other elements that will hinder your lean muscle targets (i.e. calories, carbs, etc.):

<Strong>MEATS :< /strong> If you enjoy eating meat then generally 3 meats are recommended. The favorite is chicken (the numbers of recipes you can find on bodybuilding forums show this). Chicken is very lean and cheap. Similarly, turkey is actually slightly leaner then chicken and has higher protein percentage. <em>Lean</em> beef (look for cuts that are really red without any visible fat when possible) is another great source of protein.

<Strong>SOY :< /strong> the vegetarians amongst you will no doubt be aware of the protein content of soy products. Soy beans are pulses and so they contain a good helping of protein. Soy beans are used to make soy milk, tofu and many meat substitutes, many of which taste like the real thing. This not only helps vegetarian bodybuilders but also people with a lower tolerance for dairy products.

<Strong>MILK/DAIRY :< /strong> ‘Skimmed’ or ‘fat free’ milk is another good source of quality protein and can be consumed as it is (think homemade shakes or in your breakfast cereal) or in so many dairy foods. You need to take care with which dairy products you choose but there are always options for the dieting conscious. You can eat fat free versions of your favorite yogurts, ice-creams (watch out for other ingredients), cheeses (cottage cheese is always highly recommended), and more.

<Strong>EGGS :< /strong> Raw or cooked, eggs are another staple in a lot of bodybuilder’s diets. Many people will avoid the yolk of the egg and simply eat the white, discarding some quality protein. It’s true that the yolk of an egg contains most of the calories but it also contains most of the eggs nutrients as well as some protein. Why not save a few of the yolks!

<Strong>FISH :< /strong> Fish is an important source of protein and many bodybuilders live off cans of tuna. In fact I knew one guy who would mix in a can of tuna with his cereal every morning – not really my idea of a tasty start to the day.

<Strong>AND MORE… :< /strong> There are plenty of other foods high in protein such as nuts (good for vegetarians) pulses (another good source for vegetarians), cereals, and so on. Take some time to research other foods on the internet – there is a massive amount of information on websites, forums, newsletters, and so on.

Is Protein All I Need to Focus On?

No. Protein, although a vital part of a bodybuilder’s diet, is not the be all and end all. Bodybuilders also need the energy to physically perform their exercises and this comes mostly from carbohydrates, or more specifically, complex carbohydrates. This is a subject of another article so watch this space. You need both a higher protein intake to ‘rebuild’ your muscle and the appropriate complex carbohydrates to fuel your workouts.

Build a high quality protein source shopping list then hit the grocery store

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Accounting is one process employed by every business company, whether small or big for management and it is being done mostly through the process of outsourcing. The outsourcing services are provided in several varieties and types like

1.Firm activities
2.Formulation of the accounting policies
3.Preparation of different types of accounting statements
4.Formulation of the tax statements

Thus, these features are provided by the established firms, which act as third parties. These parties have years of experience and expertise in accounting and its various other necessities so that the respective companies can be helped in the demanded forms.

There are unlimited advantages offered by the concept of accounting outsourcing to several clients. The entire work of accounting and maintenance of the records is done by the well trained professionals who have been updating themselves with the various tools in accounting and the development of various software that have been done in the time frame. A lot of time and energy is saved when the services are outsourced because well trained and experienced professionals handle the work.

The company which does the accounting outsourcing is also benefited by the process as it does not have to take care and out all its resources together for the case of accounting while the crisis situation can also be handled very professionally by the third parties.

Accounting tends to be one of the revealing factors of the progress of the company and its management’s status so that the needed actions can be taken, if it is found in jeopardised state. At the same time, the companies need to be cautious while outsourcing the various accounting activities to the third parties and maintain a check of whatever has been done and is going on.

It is also quite difficult to select the best firm which does the services of accounting outsourcing because the numbers of such firms have recently increased in a very dynamic manner. Thus, it’s important to research the different firms and then make the needed choice. Internet is one potential medium which helps in this search and can provide various useful names and references for these third parties which have years of expertise in the field. After all, the accounting should be done in the best possible manner.

Michelle Barkley is a CPA who advises people on tax preparation and tax calculation. She specializes in Finance accounting outsourcing, bookkeeping outsourcing, accounting outsourcing. To know more about Tax return outsourcing, Back office outsourcing and Tax return visit www.ifrworld.com

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The real reason you’re doing a marketing budget is the same reason why you create a budget for your personal life. You want to allocate what you will spend money on, and know what your limits are. By taking the time to do this in advance, you’ll reap huge rewards once you start using your marketing budget.

The most useful type of hotel marketing budget is a combination of a historical based budget and the zero based budget process. By reviewing the trends of expenses in the past (borrowed from the historical method) and looking at each expense anew (from the Zero Based Budget), you’ll be able to get the most accurate numbers for your budget.

Although you may be required to write a marketing budget for a boss, a bank or even because you think “you have to do it”, the smart, truly professional hospitality marketer will embrace the marketing budget process. The real reason you’re doing a marketing budget is the same reason why you would create a budget for your personal life. You want to allocate what you will spend money on, and know what your limits are. By taking the time to do this in advance, you’ll reap huge rewards once you start using your marketing budget.

The most useful type of hotel marketing budget is a combination of a historical based budget and the zero based budget process. By reviewing the trends of expenses in the past (borrowed from the historical method) and looking at each expense anew (from the Zero Based Budget), you’ll be able to get the most accurate numbers for your budget.

Budgets can be done yearly, but quarterly budgets give you greater flexibility to make fast changes if a strategy isn’t working out for you. For those who fear commitment, a quarterly budget allows you to decide on strategy for only 90 days then decide if it’s a strategy you want to continue with. Once you’ve completed this combination method, run each line item as a % of sales against total revenue. When your revenue numbers fluctuate, “this % of ” will allow you to level the playing field for fast comparison.

And for pity’s sake- use the budget! Once created, your budget should be reviewed on a weekly or at the most-monthly basis. Check your budget before you make purchases or approve an invoice. All those invoices will get coded back to your department, and eventually you’ll have to answer for them.

When creating the actual budget, start with pen and paper, review your marketing plan and list any task that will cost any money. Don’t worry about the details or the order right now, just list the different tactics you’ll be using. From then, working across a tablet and listing the 3 months you are budgeting for, begin filling in the dollar amounts of what you want to spend. Once you have this rough draft, transfer the information into the excel templates provided to you for free.

Mediocre (or even under performing) hospitality professionals will never view their marketing budget as the return on investment tool it should be. And those same average professionals will probably never advance to their full potential. But managers who “get it”, that understand that the marketing money they are entrusted with is nothing more than seed money. This seed money needs to be planted and then return on this investment in the form of revenues (the return on the investment). At the very least, every tactic on your marketing plan should break even. It’s appalling how many marketing professionals spend money on strategies that don’t cover its costs.

But no more excuses! Follow the guides in this Ebook, read the insiders tips, and complete the assignments and you’ll soon master your marketing budgets for quarters and years to come!

Thom Finn is small business coach in Central Pennsylvania. Known for his toughness and high standards for his clients, he has coached hundreds of businesses to improved profitability. With a bunch of fancy letters after his name, and his experience from the school of hard knocks, Coach Thom combines small business education with accountability to bring massive results for his clients. He was recently named Runner up for the 2007 North American Coach of the Year, and voted “Last Person you want to meet in a dark alley”. thomfinn@coachmybiz.com

Coach Thom Finn owns several small businesses that literally run without him, much to the delight of his employees. He received some impressive degrees from Penn State but credits the school of hard knocks for the most valuable of his education. He currently coaches small business owners in all areas.

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At the same time, the increasing cutting of the profits and the thinning of the profits margin, has enhanced the need of these accounting services, which after being outsourced, help in getting the needed work to be done at the reasonable rates. These outsourcing features aid in making the business operations quick and that too at economical rates. At the same time, with the help of outsourcing the overhead and administrative costs are further decreased which helps in the increase of the profit margins.

In the process of the accounting outsourcing service, the companies have to look forward for a third party which can manage the needed accounting and bookkeeping services but at the same time also save the confidential details of the respective corporation. The services include everything from the very performance of the routine accounting and outsourcing services to the preparation of ledgers, the making and keeping of the appropriate and needed book entries and the formulation of all the financial statements so that the in depth and meticulous scrutiny of the entire work can be done in a very professional manner.

Due to the unlimited number of advantages which are present along with the accounting outsourcing service, the popularity and essence of such services has increased in a tremendous manner. After all, it tends to be one of the most economical and cost effective manners in which the companies can get their work done with the aid of the well trained and experienced professionals. Moreover, the management department of the top notch companies do not have so much of time and energy to fuel in for the accounting business because of which the further importance of the outsourcing has become more prevalent.

It is not just a few dollars which are saved when the accounting outsourcing services of the third parties are hired. At the same time, as this entire work is based on the process of temporary association so the needed company does not have to waste more money in the forms of the maintaining the permanent payrolls of the employees, the calculation of allowances and other such formalities.

Though, some fees are charged by these firms. But at the same time, these are reasonable and tend to be comparatively less expensive than the entire other costs, which the company might have had to invest in, if it did not choose these features. At the same time, these services bestowed by the third parties also help in maintaining the special needs of these companies and thus, produce better results.

Thus, the accounting outsourcing services tend to be very important for the various business companies and provide them with several benefits at very low costs.

Michelle Barkley is a CPA who advises people on tax preparation and tax calculation. She specializes in Finance accounting outsourcing, bookkeeping outsourcing, accounting outsourcing. To know more about Tax return outsourcing, Back office outsourcing, Accounting outsourcing service and Tax return visit www.ifrworld.com

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Everyone knows the value of a sponge: it absorbs water. Well, your company’s balance sheet is just like a sponge, except that it soaks up cash, rather than water. This is not necessarily a good financial deal. As a sponge nears its capacity to absorb additional water it becomes increasingly less efficient. The same thing occurs with your balance sheet and the phenomenon has two basic causes:

Increasing sales (or growth), creates a need for additional money to finance an increased level of assets. The main source for most companies for this is from creditors, in other words, debt. Risk (in the form of increased debt) increases accordingly, and increasing interest expense may even put downward pressure on profits.

Furthermore, growth in sales is often accompanied by a decrease in the efficiency of the operation. This inefficiency really surfaces on the balance sheet as proportionally more assets are required to support new sales levels. In other words, the rate of asset growth increases faster than sales, you make the same percentage of profit, but you make it less efficiently.

So, what do you do? The clear message in a growth situation is straightforward – manage better!

Listed below are a few of the ways that can be done:

* Manage current assets (inventory, accounts receivable) more efficiently

* Restructure debt (long-term, not short-term)

* Make more profit

* Sell existing unproductive assets

* Curtail expansion

* Lease fixed assets

* Implement sale-leaseback of existing fixed assets

* Accept more risk (i.e. more debt)

* Grow organically

* Get new equity (a passive investor, or active partner)

By earning the same level of profits more efficiently, sufficient cash is squeezed out the balance sheet to significantly reduce the borrowing requirements.

Consequently, the concept of ‘financial gap’ can be applied two ways. First, it’s effective as a tool to estimate borrowing needs in a growth situation, at an existing level of asset management efficiency. More importantly, it is an indispensable management planning tool for developing goals and standards of performance for efficient management.

Keep in mind, then, that there are three fundamental parameters in evaluating the growth capabilities of expanding companies:

1. How efficient is the company now?

2. The financial requirements of a particular company, that is, what new assets will be      needed?

3. The owner’s abilities as an ‘asset manager’, are they strong or weak?

Growth is reflected on the profit and loss statement as increases in sales and (hopefully) profits. The ‘cost of growth’ is generally reflected on the balance sheet in the form of increased debt to offset decreased efficiency.

These are controllable issues.

The sponge analogy? Well, efficiency translates to squeezing your balance sheet to free up the funds you need to grow; otherwise, you’ll find it squeezing you!

For more information and more topics to assist in your business growth please visit us at: www.umacs-business-solutions.com

John Duffield is an experienced management consultant with broad experience in all aspects of business management including, process and procedure implementation, business performance improvement, results coaching and profitability improvement.

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While hiring any agency to produce an accounting plan for your new business setup, look for the following:

1- Is the company able to prepare business and individual federal tax returns for you? Tax returns are normally prepared on the format prescribed by the law enforcement authorities.

2- Can the company keep a track of all your payrolls, such as financial records of salaries, income, bonuses, deductions, increments etc?

3- How well the company understands you and your business? It’s important that the company you hire looks beyond its personal profits and give you the most economical accounting solutions, even if it means sacrificing its own benefits.

4- Is the company able to handle your diverse accounting tasks and activities easily?

Almost every new business wants to save time, money and manpower. Therefore it is essential that the accounting service provided to them can be easily used anywhere and anytime with full technical support. Some accounting tasks become so expensive that a small business can’t afford their prices. So, the best way is to outsource your accounting requirements. Outsourcing to offshore destinations lessens the services cost on one hand and operational and physical office setup costs on other. The questions highlighted earlier in this article are those you should consider while selecting any accounting company, but it’s a must in case of offshore outsourcing.

If you’re looking for top accounting firm in DC, orbest accounting firms in Virginia, must contact Avicenna Accounting for once and you’ll find all yourbookkeeping outsourcingsolutions at one place. solutions at one place.

Bryan William is an IT professional working on web site design and development for last 10 years.

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                One of the most infamous accounting scandals of the 21st Century involves a breech of ethical standards and fiduciary responsibility. The relationship between Enron Corporation and Arthur Anderson, has earned its place in the accounting profession Hall of Shame. Enron was at one time the leader of the energy industry.  Arthur Anderson was both Enron’s external and internal audit organization. This is a conflict of interest from the beginning. Additionally, Enron’s top management and Anderson’s heads of the Audit team violated independence and objectivity by socializing on a regular basis. Enron was one of Arthur Anderson’s largest clients.  With fees in excess of 100 million dollars, Anderson had much to lose by dropping Enron as a client. In return, the dubious business practices of Enron were “overlooked” and signed-off on by Anderson’s auditors. This “I’ll scratch your back, you scratch mine” situation had the two parties locked in a symbiotic relationship, which can be hard to escape. Eventually, after litigation and much negative publicity, Enron and Arthur Anderson, once a member of the “Big 5”, had been stripped of their reputations and positions in the business world.

                Another example of the abuse of knowledge and power is the WorldCom scandal. Bernie Ebbers, former CEO of WorldCom greatly expanded his company into Fortune 500 status. In the midst of the telecommunication decline in the late 1990’s, while most components of the industry were reporting losses, WorldCom was reporting profits. This was an initial red-flag. Basically, about $2 Billion designated for a liability reserve were transferred to revenue.  There were anonymous tips sent to the internal audit team, but the audit committee had no documentation for the questionable $ 2 Billion. In all, $3.85 Billion of expenses had been misallocated. Ultimately, the whistle-blower of this scandal was Cynthia Cooper, head of Internal Audit. She started asking questions and “nosing around”. She was shunted by higher management and external auditors (at that time also Arthur Anderson). She decided to take matters into her own hands. Her role of Chief Audit Executive prepared her to acknowledge when things were askew, due primarily to daily experience with the company’s operations and personnel. Inevitably, she, with a small team of associates, found the $3.85 Billion dollar monster.  That being said, Mr. Bernard Ebbers was sentenced to 25 years in prison for fraud and violation of securities laws.

                The similarity of these two stories is obviously that that the people in charge who should’ve been trustworthy, were not. The difference lies mostly in the in the strength of the internal audit team. In one case, ambition overcame virtue.  In the other, bravery and ethics opposed the status-quo.  The latter should be qualities of all business persons, but especially those in the audit profession.

                The need for a strong, ethical internal audit organization becomes increasingly important.

                October 31, 2004 the NYSE mandated that publically held companies have an internal audit function. This requires an internal audit team that openly communicates with the audit committee and management. Like external auditors, internal auditors must maintain objectivity and independence, both in attitude and appearance. This may seem difficult considering the relationship between the internal audit team, audit committee and management. However, the audit charter provides management’s agreement to support independence, description of audit department’s responsibility, activities and authorization. Also, like external auditors, there must not be any conflicts of interest.

They also must adhere to ethical standards. There are specific steps to follow in order to follow out their duties. First, there is adequate planning involving setting objectives and defining the scope of the audit.  Next, the field work includes interviewing management and department personnel, performing tests within a small error rate and document analysis. Lastly, the head of the internal audit department reviews the field work and a feedback meeting is held among the team. A formal draft is distributed to management for response before a report is published. This process differs from an external audit function in that the internal auditors work closely with management, keeping lines of communication open. There is an important component of the internal audit that only recently has the external function utilized, which is the examination of internal controls. The Sarbanes-Oxley Act of 2002 required external auditors to test the efficiency of internal control, put into motion primarily due to the volume of scandals.  However, evaluation of internal control, examination and opinion of financial statements in accordance to generally accepted accounting principles is the limit of the external audit’s function. Internal auditors provide preventative assistance to the business on an on-going basis by monitoring all activities such as; operations, risk management and internal control. The internal auditors are focused on future events and may advise management in decisions. The internal function can be considered “the first line of defense” against error and fraudulent activity. Internal and external auditing are complements, they both support each other and provide a system of checks and balances for the business involved. 

The primary importance of the internal audit function is that it adds value to the company for which it is employed. This is achieved through assessing operational risks, improving efficiency of operations, ensuring adherence to management’s instruction and representing management. By assessing risk, the internal auditor evaluates fluctuations of the economy, regulations, and the business environment and then advises the company accordingly. However, it is not the external auditor’s responsibility to take such action. One benefit of having an internal audit team is that it is familiar with the business’ daily functions. This makes working with management much more fluid and disables most of the communication barrier. Even if the internal audit organization is outsourced to a CPA firm, they will be much more accustomed to the company’s operations by dealing with them more frequently and consistently. The external audit team may not be as affluent in the functionality of the company, even if they remain its primary auditors over many years. Although internal auditors do not police the various departments, it is an important of their roll to report any material non- compliance that would erode efficiency of operations or increase risk. External auditors must also testify on non-compliance, but only concerning the financial reports and the internal controls that affect them.  Internal auditors act as representatives to management because they are physically present more often than senior manager can possibly be, especially if the company has a hierarchical organization.  They can serve as the “eyes and ears” of a business if necessary.  These four elements of an internal auditor’s duties are certainly not limited, but are most important to literally adding value to a business.  This value is measured by the decrease of monetary losses due to inefficiency, company reputation (good-will) and the minimization of lawsuits. An external audit definitely can add value to a company by giving an unqualified report, which can lead to a maintenance or increase in financing activity; however, the internal audit  paves the way for the likelihood of an unqualified report.

The utilization of both internal and external audits provides corresponding services for the company at hand. As previously stated, the conjunction of both gives assurance to management that all requirements are met and business is running smoothly. Investors and other stakeholders can be satisfied and motivated to continue their interest in that business. The internal audit function provides an on-going monitor of company performance and can be considered the internal control of the internal controls. The external audit function provides reliability of the company’s financial statements, which is proliferated by its sound obedience to those internal controls.

Ironically, due to all the recent accounting scandals, the demand for accountants will increase. The more detailed and voluminous work required, calls for more from the profession, especially in internal auditing. According to the Bureau of Labor and Statistics, within the next five years, career opportunities will have risen by 22%. Also, enrollment in Accounting is increasing, so competition among accounting students and entry-level graduates will also increase. This, coupled with the gain in workload, implies a mean salary increase as well.

Unfortunately, there seems to be a stigma attached to the accounting/auditing profession currently, although I don’t think there are too many professions that escape a certain level of cynicism. Let us excel in our careers by demonstrating a solid sense of business ethics, competence and respect for the industry.

I am currently an Accounting student at West Chester University, as well as a wife and a mother. I live in a small town in the middle of practically nothing, but I wouldn’t have it any other way. My family and I are hard workers and are pleased with what we have accomplished over the past few years. We recently moved into our new house, and I’ve been able to accelerate my education by attending school full-time. I anticipate to graduate in May 2010 and I am eager to start my career. I am always looking for opportunities to gain knowledge and experience, and I am glad that I participated in this writing assignment.

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It can be classified into: operating, investing and financing. The operating activities shows it is sufficient to repay the debt, pay dividends and invest or not without the external funds. It represents the net increase of decrease in cash form the operations. The investing activities includes: that paid and received for property, plant and equipment and other non-current assets, interest and dividends received on investments. The financing activities comprise receipts or repayments of principal from or to external providers of finance.

Here we need to learn the direct and indirect method of cash flow. The direct and indirect method from operating activities can be used to prepare the cash flow statement, the direct and indirect method have their advantages and disadvantages. The advantage of the direct method is that it shows operating receipts and payments. The disadvantage is the significant cost that there may be in preparing the information. The advantage of the indirect method is that it highlights the differences between reported profit and net cash flow from operating activities. The disadvantage is the lack of information on the significant elements of trading.

Through the investing activities, you can know the resources transferred in order to obtain the earning in the future and cash flow, and the cash inflows arising from the resources transferred previously.

The financing activities can help the investors and creditors estimate the claim for the cash flow of the company in the future, and the price to obtain the cash inflows previously.

http://www.onlinefreeaccounting.com
The site discuss all kinds of accounting questions, professional accounting theory and practice, including: finance, balance sheet, income statement and cash flow.

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