Diploma In Small Business Finance

Student Profile
This programme is designed for people working in a wide variety of business sectors and sizes, together with voluntary sector organisations.  People not currently in work but seeking employment will also find the programme of value, as assessment is based on case study information which eliminates the need for current employment.  The programme is most suitable for people wishing to enhance their business finance skills and also for those seeking an introductory programme before studying for professional qualifications.

Objectives
To develop the candidate’s knowledge and understanding of the basic records and financial controls required to run a successful small business.

Accreditation
The course can be studied for personal interest and development without assessment. However the course covers the requirements of the Institute of Certified Bookkeepers Level 3 Diploma in Small Business Financial Mangement. Students must register independently with the ICB and submit for the examinations which are held three times a year at centres worldwide. Membership and examination fees are payable to the ICB and are not included in the price.

Study Method
The course is designed for study by distance learning at work or at home.  Students receive course manual, assignments and studyguide plus tutor support by mail and email.  You can start at any time and plan your studies over a period of up to one year from the time of registration. 

Assessment
Each module is followed by a written assignment based upon a case study, enabling you to practice your skills on the trading details of a typical small business.

Course Duration
Students may register at any time and have a full one year to complete their studies.  The course will take around 80 hours of study to complete.

Pack Contents
• Studyguide
• Six workbooks covering the ICB syllabus
• Assignment pack
• Tax & NI Tables
• IAB registration
• Tutor support
• Assignment marking & feedback
• Accreditation

Course Outline
1.  Basic Records
• why records are necessary
• cash transactions and the records needed
• single and double column cash books
• analysed cash books
• pre-printed records ("Simplex", Twinlock")
• petty cash and the advantages of the imprest system
• bank reconciliation statements
• concept of debit and credit
• internal checking: invoices and statements

2.  Value Added Tax
• history of VAT
• rates of VAT including zero rated and exempted goods
• how VAT is calculated
• input tax and output tax
• registration and deregistration thresholds
• annual accounting and cash accounting schemes
• quarterly returns
• treatment of discounts, bad debts and special schemes
• penalties for failure to comply

3.  Payroll including National Insurance
• basic concepts of PAYE
• tax tables and how to use them
• tax codes and changes of code number
• National Insurance contributions
• P45 and P60 forms
• end year procedures
• SSP and SMP
• methods of payment

4.  Final Accounts and the Inland Revenue
• Explanation of the profit and loss account
• Explanation of a balance sheet
• construction of simple accounts
• interpreting accounts
• the tax computation
• allowable and non-allowable expenses
• concept of capital allowances
• the work of the accountant
• assessment and payment of tax due

5.  Pricing the Product
• the costs of making, selling and delivering the product or service, distinguishing between fixed and variable costs, and direct and indirect costs
• calculate a selling price using the following methods:
        standard cost pricing
        cost plus profit
• break even analysis and marginal pricing

6.   Credit Control
• credit management systems and the use of credit and bank references
• the effect on profitability of allowing discounts to induce prompt payments
• the cost of giving credit and allowing extended credit
• debt collection procedures and the use of the courts to enforce a debt.

7.  Working capital management
• the importance of working capital
• controlling cash, stock, debtors and creditors
• the financing of working capital and the cause and effects of overtrading
• preparation of cash and profit budgets
• knowledge and use of key ratios
• the advantages and disadvantages of using short term borrowing
• financing the purchase of assets and the use of medium and long term loans

8.  Financial planning - the advantages of using a computer
• a knowledge of the use of computers in business
• word processing, databases and spreadsheets and their application to the small business
• reference to accounting packages
• the business plan - structure and financial information required
• advantages of financial modelling - the 'what if' type of question
• advantages of preparing a business plan for submission to lending institutions