When you decide on the price for your product or service, you need to consider all of your costs to ensure you are making enough profit. Often students forget to include wages in their costing. In the real world, paying staff is essential.
You can visit this useful website to help price up your product www.shopify.com/blog/how-to-price-your-product
Keeping Accurate Accounts
It is important that you keep records of all of the financial transactions of the business so that you know how much money you have available to pay bills and so that you can check that you are making a profit.
To keep accurate records of your finances download the accounts spreadsheet below.
- The Excel spreadsheets have been designed to help you keep records and explain what should be included in your financial statements for the Company Programme Competition.
- Receipts & Payments – these are lists of amounts received and paid and an analysis of what the amounts represent so that you can then put them into the correct part of the financial statements.
- Bank Balance – this page has links to the totals on the receipts and payments pages so that you can keep track of how much cash you should have, either in the Company bank account or stored safely in a cash box somewhere.
- Invoices – if you are going to allow customers to buy goods or services and pay later then you will need to give them an invoice telling them how much they owe. This page allows you to keep track of the invoices you have issued and, most importantly, who has not paid.
- Financial Statements – Profit and Loss account and Balance Sheet, with a notes column to help you put the right information into the correct part of the statements.