uk

Osome UK Blog contains information that helps to run a business in the UK more efficiently: save on taxes, prevent fines, and use the rules to your advantage

A collection of 76 posts

FTSE Index

The FTSE is a stock market index that indicates how well the economy is doing. The number after the letters (i.e. FTSE 100, FTSE 250, etc) tells you how many of the

5 min read

Everything You Wanted to Know About EBITDA Explained by an Investor

How to calculate EBITDA and, most importantly, why? A practicing financial analyst and investor Dan Satkunas explains how to assess business decisions based on EBITDA margin—and makes it all look quite interesting.

10 min read

Director’s Duties, Responsibilities and Liability Under English Law

Being a director, although prestigious, entails a lot of rules to play by, and mistakes can result in serious penalties. This article written by a practicing lawyer will help you understand the rules and decide if you want to take the director’s chair.

9 min read

Equity

Equity is a broad term. In its most general meaning, equity is an equilibrium, or “a state when the two parties are even.” Jack fulfilled all his obligations to Tom and vice versa.

8 min read

Contra Account

A Contra account balances out associated accounts in the general ledger. If the main account is recorded as a debit, its contra account is a credit and vice versa. If you wish to

3 min read

Terminal Value

The terminal value is all the money a company will make in the future beyond a certain forecast period. It is a part of the discounted cash flow (DCF) analysis that helps to

5 min read

Market Segmentation

Market segmentation is a process that companies use to divide their customers into groups based on one or several criteria. The customers in one group either have common needs or respond similarly to

3 min read

Trial Balance

Trial Balance is an accounting report which summarises the balances of all company’s general ledger accounts. The balances are divided between the debit and credit columns. The totals of these columns should

3 min read

How Accounting Is Different from Bookkeeping?

In short, bookkeepers record transactions of your company, then accountants summarise, interpret and report them. We explain who needs both specialists and why a bookkeeper can't substitute an accountant.

4 min read

Interim Report

An interim report is a set of a company’s financial statements for a period shorter than a financial year. An interim report can be prepared monthly, or quarterly, or ad hoc, when

5 min read

Cash Book

A cash book is a part of a company’s bookkeeping and accounting processes. It usually looks like a paper notebook or a computer program where you write down all financial operations taking

3 min read

Depreciation

Computers, office furniture or a company van are all business-owned assets that lose value over time. Depreciation is the accounting term that represents the cost of using assets like these over their useful lifespan. Take a read to see how it applies to a UK business owner like yourself.

3 min read

Accrual Accounting

Accrual Accounting is one of two methods of keeping your financial records. Its main feature is that you make an entry in your books when you make a deal, not when cash actually

3 min read

Hire Purchase

Hire purchase is an agreement that lets you buy expensive goods without paying the whole price right away. The difference from a purchase on credit is that you do not own the item

6 min read

2,000 Osome Clients

It took us 15 months to grow the first 1,000 clients. Now, only six months later, another 1,000 business owners joined us. Thank you for trusting Osome!

1 min read

Osome Becomes Xero’s Gold Partner

Osome has received the gold partner status from Xero, a cloud-based accounting software platform. With only 30 Singapore companies holding this title, Xero recognizes Osome expertise in bookkeeping, accounting, and taxation.

2 min read

Big Ben, Victoria Peak, and $3 Million

Osome announced a $3 million financing led by Target Global. The new investment will help expand its technology platform to the UK and Hong Kong, and already started testing these markets.

2 min read

Osome Becomes Xero Platinum Partner in Just 3 Months

Xero, the global small business platform, awarded Osome with a platinum partner status. This is the highest level of recognition that Xero offers to their counterparts, with only 3 other companies in Singapore holding the title.

2 min read

Book Value

2 min read

Return on Investment (ROI)

What is ROI?Return of Investment (ROI) is one of the basic metrics in financial analysis. It measures how much financial gain (or loss) an investment brings compared to the total cost of

5 min read

Bad debts

Bad debts of your business are the money that you are sure you will not collect. You only have to record the bad debts if your business sticks to the accrual accounting principle

2 min read

Chart of accounts

A chart of accounts (COA) is a list of all your company’s accounts in the general ledger, divided into subcategories, registered in a specific accounting period. For example, when your business has

2 min read

Deductible

The term “deductible” in accounting is usually applied to the expenses your company has  — “deductible expenses”. You can deduct these expenses from your profit before you report your taxable income to HMRC  — the

2 min read

Council Tax Break

What Is Council Tax & Council Tax Break? What Are Council Tax Bands? Who Pays Council Tax? How To Pay Council Tax Bill? What Is Council Tax & Council Tax Break?Council tax is

4 min read

Markup

Markup is the difference in the amount of money you paid for the product against what your customer paid for it. In other words, it is how much money you charge on top

3 min read

Liability

Liabilities are anything that your business owes to anyone — banks, suppliers, your own employees or even your clients if they launch a lawsuit against your business and the court obliges you to pay.

4 min read

Cash accounting

Cash accounting method or cash accounting basis is a way of recording your sales and purchases when you make a note about them in the ledger at the time money comes to your

2 min read

Closing balance

A closing balance is an amount of funds your business has at the end of a particular chosen accounting period — a day, a month, a quarter or a year. Once you calculate the

2 min read

Opening balance

An opening balance is the amount of funds your company has at the beginning of an accounting period you want to analyse or the one you report to the tax authority: a day,

1 min read

How Saying “No” Can Become Your Superpower in Every Negotiation

Compromise ruins negotiations. The win-win approach ruins negotiations. What doesn’t? Saying “no” whenever it needs to be said. This is the essence of Jim Camp’s theory. The 4 rules he put forward will help you feel confident and seize opportunities inside and outside the conference room.

10 min read

KPI

What is a Key Performance Indicator? Types of Key Performance Indicators What KPIs are important for my business? How do I identify relevant KPIs? Examples of KPI What is a Key Performance Indicator?

4 min read

Horizontal Merger

A horizontal merger is a merger of two companies that operate in the same industry. Let’s define how horizontal mergers work, discover why competitors could want to merge and compare a horizontal and a vertical merger.

3 min read

Ordinary Share

Ordinary shares allow shareholders to vote and to receive dividends. Let’s define the ordinary shareholders’ rights, discover ordinary shares advantage and compare them to preference shares.

3 min read

Liquidity

What are current assets and current liabilities? How to measure liquidity? How to increase liquidity? Liquidity vs solvency Liquidity is a touchstone of your company’s ability to pay its bills and debts

5 min read

Invoice

An invoice is a way to get payment from your client, for example, if you sell coffee beans to the coffee shops — you issue invoices for them to pay. Or if you have

2 min read

Billing

When you sell your goods and services, you want money for them — and bill your customers. Billing works like this: you provide a service, you issue an invoice, the customer makes the payment,

2 min read

Petty cash

Petty cash is a certain sum of money (obviously, in cash) that your business keeps at hand, in case you need to pay for some small and not expected expenses. It is better

2 min read

Ledger

A ledger, or general ledger, or general journal or just GL covers all the financial information about your company. The data on a ledger helps you guide your income and see quickly how

2 min read

Working capital

Working capital, also known as net working capital or NWC is the net liquid assets of your company — which is calculated by deducting current liabilities from the current assets. How much available working

4 min read

How to Regulate Your Relationship with a Business Partner under English Law

Whoever is becoming your partner, an old friend, your wife, or an investor, you'd better agree on how your partnership will work before you start doing business. We explain what to pay attention to and how legal documents can help.

6 min read

Invoice factoring

Invoice factoring can also be referred to as accounts receivable factoring, just factoring, or sometimes accounts receivable financing. This type of financial transaction allows a business to sell its accounts receivable (invoices) to

2 min read

National Insurance

National insurance or National insurance contributions (NIC) is a tax in the UK which both employees and employers pay. You must pay it if you fall under certain conditions, though, you can also

4 min read

Capital expenditure

Capital expenditure, or capital expense, or CAPEX is expenses your company incurs to generate benefit in the future. CAPEX goes in contrast with OPEX — which stands for the day-to-day costs of the company.

3 min read

Operating expenditure

Operating expenditure, operating expenses (OPEX) or manufacturing expenses are the costs that your company incurs while the main product of your business is being produced. OPEX include: MaterialsLabour costsMachineryThe energy needed to produce

2 min read

Non-executive Director

A non-executive director is a person in your company who is the one on the board of directors who does not have any executive powers. This person does not take part in the

4 min read

HMRC

Her Majesty’s Revenues and Customs (HMRC) is the main tax collecting authority in the UK. It is responsible for collecting: Income TaxCorporation TaxCapital Gains TaxInheritance TaxInsurance Premium TaxStamp DutyLand and Petroleum Revenue

4 min read

Exit strategy

4 min read

Break-even point

A break-even point (BEP) — in accounting and finance — is the term defining the stage of business development when the revenue you make equals the costs. Putting it another way, it is a point

3 min read

Balance sheet

A balance sheet (aka a statement of financial position) is a document showing the net worth of your company at a particular moment of time. It usually looks like a table with sections

6 min read

Minimum wage

A minimum wage (or national minimum wage, or NMW) is the lowest per hour wage that you can pay to an employee. The law defines this figure, and most of the countries in

3 min read

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