Sunday, 23 March 2014

Moore Street The Last Stand? Documentary

Moore Street The Last Stand?

Directed and edited by Marcus Howard. Moore Street was the last stand of the Volunteers who fought in 1916. Numbers 18 to 19 Moore Street are threatened to be demolished despite some of the rooms in question having historical significance. In place there are plans for yet another shopping centre for Dublin while destroying elements which could have historical and tourism potential for future generations. Interviewees including relatives of those who fought in 1916 are asked about the disputed historical significance of these houses and if they have a message for Minister for Arts, Heritage and Gaeltacht Jimmy Deenihan.

Tuesday, 18 March 2014

Main types of Forecasts and Budgets

Main types of Forecasts

In business we need don’t like surprises...

Sales Forecast

A sales forecast is a planned target of obtaining sales revenue. To do this a company uses their own previous sales data, market research of target audience and examining the competition. For start up companies it becomes more difficult due to they have to previous sales data to base their projections on.

Take for example a supermarket company Woolmart, they expect to generate an increase of sales by 10% in America and the rest of the world. To do this they look back on previous year’s sales and see where an improvement can be made. If they think they can increase sales in April, the company might use extra advertising or sales promotions to entice customers into their stores.

To learn out how to improve sales forecasting check out this link:

Cash Flow Forecast

A cash flow forecast predicts the target of obtaining cash for the business avoiding liquidity problems in the future. It is an estimation of how much cash flows in and out of the business. One advantage of a cash flow forecast it that it helps to identify problems of not having enough cash for future months. Once identified a bank overdraft can be set up to help with the cash flow.

Here is an example of a company having problems with cash flow. The furniture company OKEA has lent too much credit to its customers for the month of April. This means that while OKEA's financial records of profit will look reasonable there is not enough cash to be in a healthy position. Just because there is profit does not mean there is cash.

Remember that while we are living in an increasing credit world cash is still king!

Learn more of cash flows by checking out this link:

Cash Flow Analysis - Understanding The Statement Of Cash Flows Part 1 


Uploaded by on Oct 5, 2011

Cash Flow Statement 

Uploaded by on Sep 18, 2010

To learn more about how to prepare a cash flow forecast, check out this link:

Main Types of Budgets


                                                                      The Enforcer of Budgets?

Master Budget


A master budget is a financial plan that sets out targets for production of goods, the level of sales, the amount allocated for expenses. A master budget comprises of different budgets from different departments. These include the sales department, purchases department the payroll department and many more.
The budget is usually presented by monthly or quarterly periods of the fiscal year.

To learn about more of a master budget check out this link:

Cash Budget

A cash budget is an estimation of how much cash will come in and go out of the business. It can be carried out for the year, month, weeks or days. However if you are making a budget for a few days the business is in some trouble.

The cash budget is important to carry out operations such as paying wages, electricity bills and interest on loans. The budget determines how much a business can spend in a period of time. In other words the business must be able to pay their bills. The budget can also help the business with regards to giving credit to its customers. It can help determine how much credit can be given to customers.

Here is an example of a cash budget:
Assume no credit has been given or received. Only cash has been used.

Assume the company The Bugle Ltd. has a cash balance of €100 brought forward for the month April, the company can create a cash budget:

Cash Balance                                        100
Expected Cash Receipts Sale                        5000
Total Cash                                                             5100

Cash Payments
Wages                                                          3000
Electric Bills                                                 700
General Expenses                                       500
Advertising                                                      50
Total Cash Payments                               4250
Cash Balance                                 850

The company expects to make €850 cash for the month of April and will be brought forward to May.

For a more detailed look on a cash budget check out this link:

Sales Budget

A sales budget is a financial plan that expects a certain level of sales for the budgeted period. This helps predicts how many products will have to be made in order to make a certain level of sales. The sales budget determines the price and how many units will be produced to make a sales target.
The budget also helps to keep the allocation of selling expenses, marketing expenses and advertising expenses on budget to achieve targeted sales.

To learn more about how a sales budget works follow this link:

Responsibility Accounting - Sales Budget

Uploaded by on Aug 18, 2011

Friday, 7 March 2014

Ballyhea Says No marching into Year 4 Documentary

Directed and edited by Marcus Howard. On March 2nd 2014 Ballyhea Says No began their 4rth year marching against the bondholder bailout and the issuing of the promissory notes which every man, woman and child in Ireland has to pay for decades to come. Various communities, groups, independent politicians and individuals came out on a very wet Sunday at 10.30 in the morning to show their support. This video features interviews with Diarmuid O'Flynn and Fiona Fitzpatrick of Ballyhea as well as speeches by Luke "Ming" Flanagan, Joan Collins, economist Constantin Gurdgiev, Catherine Murphy and Peter Mathews who also attended. Numerous individuals from various austerity groups declared that they are running for election in May 2014.

                Ballyhea Says No marching into Year 4

                                                  Directed and edited by Marcus Howard

Sunday, 2 March 2014

Accounting Concepts

"It is a capital mistake to theorize in advance of the facts"

-Author Conan Doyle, "Sherlock Holmes"

Bruce Springsteen “The Boss”

To be The Boss of accounting you need to know the major concepts of accounting. To master these concepts puts you firmly on the path to becoming a successful Accountant. Whatever you do in accounting you will always be able to refer back to these concepts no matter what.

The Going Concern Concept

Leonard Cohen still going strong

A Going concern is an entity such as a business that will continue trading for the foreseeable future. This means the company has the liquidity i.e. cash to continue trading.

Going concern is a significant concept with regards to the valuation of assets.

For example a company, P. Moore’s Telescopes sell and make lenses for its telescopes. In 2011 it bought a special machine to make better quality lenses at a cost of €50000 which will last 10 years. This would be put into the balance sheet at €50000 or the cost less the deprecation for example 10% so it would be €45000. As long as the business continues trading as a going concern the machine is valuable for the next decade.

However if the business is in trouble the machine could possibly be not worth €45000. It might have to be sold off at less than its value in the balance sheet of €25000. The loss of €20000 will appear in the income statement.
With the concept of going concern it is assumed the business will continue trading which allows the business to value assets at cost less the deprecation.

Check out this link to learn more about the concept of going concern:

The Prudence Concept

Prudence is a valuable concept to know inside out to become a great Accountant. This states that assets and incomes are not overstated and liabilities and expenses are not understated. In order words we do not expect gains and we provide for foreseeable losses.

For example a company, Trulli Ltd. expects it debtor not to pay their debts for the month. Trulli Ltd. decides to make a provision just in case its debtor does not pay its debts. This is known as being prudent.
The concept of prudence is also called the concept of conservatism.

Check out this link to learn more about the concept of prudence:

The Accruals Concept

This is also known as the matching concept. The concept of accruals states that a business matches its expenditures with the expected income it generates. In order words, don’t account on a cash flow basis.

For example a company, Ponosanic has an electricity bill for April. The figure for the bill will be recorded in the April Income Statement. If the company waited until the end of September to pay  and record the bill it would distort the view of accounts. It would show the there was no expenses for the electricity for April but there would be an increase in September along with Septembers bill for electricity. The company must record the expense when it has occurred. As stated above the expenditure must be match with the income during the month of April in which the bill occurred.

Here is an example of sales on credit. A company, Sany Inc. make sales on credit from its customers. The sale is completed and is treated as an income for the company. The company does not wait for the cash from the customer. This would distort the accounts if they waited for the cash from the customer.

Check out this link to learn more about the Concept of Accruals: