Explain the difference between capital and revenue items of expenditure and income for a business Essay Example

Explain the difference between capital and revenue items of expenditure and income for a business Essay Example Explain the difference between capital and revenue items of expenditure and income for a business Paper Explain the difference between capital and revenue items of expenditure and income for a business Paper In FF the capital income will come from the investors that own FF(Future Fashion). Investor’s money is used to buy things that will stay in the business for a medium to long period of time – FF’s premises, vehicles or equipment. These are called fixed assets. When FF sets up a business, Capital Income might also be used to buy opening stock, but as the business develops, stock should be paid for by sales income. The sources of capital income available to business owners are influenced by the type of Business.Sole trader: Sole traders are people who own a business by them self, they will have to find all the capital income for the business on their own by things such as personal loans. Sole Traders often invest their personal savings into a business or borrow from the bank using their personal assets, such as their house to secure a loan. Sole Traders take a big risk when they do this as they are ultimately responsible for the debts of the business. Being a sole t rader can also limit the size of the business but all the profit made from the business can be kept by the sole trader. This would not affect FF; as they are not a sole trader.Partnership: Partnerships are when two or more people join together to make a business as partners. Each partner would be expected to contribute towards the capital income, hence increasing the potential amount of money available. Partners will share all decisions made in the business as-well as the profits made. Loans that are taken to start the business are still secured by the partners’ assets, so this is still a high risked operation. This would not affect FF; as they are not a Partnership.Shares: A company is when a business is registered with companies’ house and issues shares to its shareholders. The shareholders and owners of the business will all have to contribute towards the capital income for the business. Shareholders will receive voting rights and the more shares they own, the great er their ability is to influence decision making. Shareholders are rewarded a share of the profits for their investments in the company/business. FF consists of different shareholders who contribute towards the capital income. These shareholders have voting rights and the more shares they own, the greater their ability is to influence decision making. These shareholders are rewarded a share of the profits for their investments in FF.Loans: A loan would be a sum of money that is borrowed to a business or business owners from a bank. The loan will be a lump sum which we then have to be paid back every month at a set amount. Most loans often last five years, although longer loans can be arranged, but these would be longer and charge more interest. When taking a loan the business would have to pay the fixed amount even if they haven’t made a profit. The banks are also not guaranteed to lend money to a business, so the business would have to justify how the money borrowed would be spent and, more importantly, how they can afford and repay it. The bank loan will have to be secured using an asset that belongs to the owners such as a car or house. This means if the business fails to meet payments, the bank can reclaim the asset. FF will not need to loan money from the bank as they have shareholders who generate the capital income for them.Sales: Sales is money that comes in from the sales of goods and services, for example, FF will make money when customers come in and buy products. Sales turnover is therefore determined by the prices charged and the number of customers. Sales can be either cash sales, or credit sales.Rent Received: A business that owns property and charges others for use of all or part of property will receive rent as their main source of income. FF does not rent their buildings so this won’t apply to them.Capital ExpenditureExpenditure is money spent by a business and can be split into two categories; capital expenditure and revenue ex penditure. This is used to buy capital items, which are assets that will stay in the business for a long period of time. Capital items are fixed assets and intangible assets, as explained below.Revenue IncomeRevenue Income is the money that comes into the business from performing its day-to-day function which would be selling goods or providing a service. The nature of the revenue income depends on the activities that the business does to bring in money, sources of that can be; sales, rent received, commission receivedTrademarks: A trademark is a symbol, logo, brand name, words or even colour that sets apart one business’s goods or services from those of its competitors. FF’s logo is a key influence because it is very well known and can build brand loyalty.Commission Received: A business may sell products and services as an agent of another business. This will mean that they sell other business products on their behalf and for each sale they make a small percentage of the sale. This percentage is called commission.Fixed AssetsFixed assets are items owned by a business that will remain in the business for a reasonable period of time. These are shown on a business’s balance sheet and include land and buildings, office equipment, machinery, furniture and fittings, and motor vehicles. These are sometimes referred to as ‘tangible assets’ because they can be touched.Most fixed assets will lose value over time and for this reason they are depreciated. This means that each year their value in the balance sheet is reduced in order to give fair value of the asset.IntangibleAn intangible asset is something owned by the business, that cannot be touched but adds value to the business. Intangibles that exist within businesses.Goodwill: When you buy an existing business, its name and reputation will already be known and it may already have an established customer base or set of clients. FF do not use good will as they will open up their own new stores.Patents: A patent is the legal protection of an invention, such as a unique feature of a product or a new process. This means that FF can patent their products which are unique from other people’s products; which will mean that people cannot copy the idea.Revenue ExpenditureRevenue Expenditure is when you spend money on a day-to-day basis. These are the expenses incurred by a business that are shown on the profit and loss account. These types of costs incurred vary from different businesses, some on the common types include:* Administrative costs – In FF, administrative charges are for things like postage, printing and stationary, which might include items such as business cards, headed paper and order books* Staff costs – Staff costs is the money FF will spend on their employees, FF must pay all their employees for the work that they do. FF must pay Salaries, Wages, Insurance, Pensions and for any Training required.* Selling and distribution costs â €“ If FF is to survive it must make enough sales to cover all its costs. It must be able to attract customers to come and use their products and services. There are two crucial functions that carry additional costs. Selling and distribution costs include: Sales Staff Salaries – Many businesses will employ workers with specific responsibility for sales. This might be a sales representative who travels around trying to generate sales, sales assistances who help the customer or accounts managers who look after regular customers. Sales staff receive a commission-based salary, meaning the more they sell, the more they can earn.Carriage of sales – This is the cost FF must pay of getting the sale to the customer and can range from something as simple as an envelope and a stamp or courier delivery to something much more complex with bulky or fragile products or even products being shipped to another country. Some business might make the customers pay this charge by quoting a sales price plus postage and packing costs. Marketing – This covers a whole range of costs for FF associated with attracting the customer and convincing them to make a purchase. Possible marketing costs might include advertisements, promotional literature, promotional events, point of sale materials and so on.* Finance costs FF do not operate on a cash-only basis – they are likely to accept payments by cheque, card or direct bank transfer. They are likely to make payments in the same way. This means FF must have a bank account. Banks are also businesses and they too want to make a profit so they charge for their services. Finance costs to a business can include Bank charges (business charge for every transaction made) and Loan and mortgage interest (Banks charge interest on loans and Mortgage)* Purchase of stock – FF will require stock as they are providing goods and services. When FF is first started up it is likely to buy stock with cash as it will not hav e built a reputation, but then when it gets more well known it may be able to buy stock in credit which FF can do now. Bigger and more established business may be able to drive the cost of stock when buying in larger quantities, there are other costs related to stock such as insurance and storage costs.

Part Time Summer Jobs for Teachers

Part Time Summer Jobs for Teachers As the weather warms up, it can be tough to tell who’s looking forward to summer the most: the students or the teachers. but two or three months off can be a daunting proposition when bills still need to be paid, or you’re seeking to keep busy during the summer months. What options are there for teachers looking to work over the summer, and how can you access those opportunities? There are plenty of openings for teachers to pick up extra money and experience over the summer. If your school district offers summer school classes, that’s a perennial option, but there are also lots of opportunities just beyond the school parking lot.Now, more than ever, teachers are in demand for a number of seasonal careers, because they bring not only specialized knowledge to all sorts of educational settings (or non-educational, if you truly want and need a break), but also lots of great people skills that translate across disciplines. Let’s explore some of the best options for teachers who want to keep working through the summer.1.  Professional development  2.  The great outdoors  3.  Thinking outside the box  Professional developmentYou can take the teacher out of the classroom, but can you ever really take the classroom out of the teacher? There are many opportunities to keep the pedagogy flowing over summer break.TutoringMany kids need help with their schoolwork year-round, whether they’re in summer school or just working to catch up before the next school year. Tutoring is great because it has flexible hours (typically arranged directly with the student and his or her parents), and often allows teachers to work close to home, if not in the home. These days, tutoring has moved from living rooms and libraries to the internet, so teachers can tutor students and earn extra money from anywhere (you can even work with students from that well-earned beach vacation spot). Tutoring also allows you to keep those classroom skills in figh ting shape, especially in areas where kids frequently need extra help (english, math, science, and computers). Some great resources for getting started in tutoring include:Tutor.comThe institute of reading developmentWebwise tutorsFlexjobsTest prep tutoringIn addition to subject-specific tutoring, there are lots of opportunities to work with students prepping for the sat and act. Companies like Kaplan test prep and Princeton review are constantly hiring tutors, class instructors, and exam proctors who can help students study, practice, and strategize for their upcoming exams. the companies typically offer training in specific exam prep, though personal experience comes in handy, especially if you’re not so far removed from being that sat student yourself. They generally need stable, experienced professionals with flexible schedules to meet student needs.Teaching in the communitySummer programs often need experienced teachers to step in and work with students over the summer, in non-traditional schools and programs. These may include community and youth centers, healthcare facilities, or adult learning centers. Teachers who can work with special needs students are especially in demand, even when school’s not in session.Going back to collegeNo, not for keggers and sleeping through 8 a.m. classes (i know, i miss it too!). Many colleges and universities offer summer programs for pre-college students, and need academic and administrative staff on site. These are located all over the country, so be sure to check higher-ed schools near you for teaching and staffing opportunities. Or if you’re willing to travel and live on or near campus, you can use it as a working vacation with new scenery. some examples of these kinds of programs:Johns hopkins center for talented youth summer programsSummer studyWorking with English language learnersTeaching English as a second language (ESL) is another great opportunity for teachers looking for seasonal or par t-time work. It may involve one-on-one tutoring for adults trying to improve their English language skills, or teaching courses. your local community center, community colleges, or government may offer classes over the summer, so check with them to see what openings are available.Working with adults may be outside of your usual teaching comfort zone, but many teachers find it to be a rewarding experience outside of school hours. As with tutoring, there are also opportunities to work online with students, outside of a traditional classroom setting. Or if you’re feeling extra adventurous this summer, you could teach English abroad. Opportunities abound, stateside or otherwise!Related:  21 Part-Time Jobs That Pay More Than $20 Per HourTeaching online college courses Like tutoring, teaching college-level classes has gone high-tech. remote teaching jobs are all the rage, and it’s something you can do close to home. Schools like University of Phoenix, Southern New Hampshir e University, and others recruit well-qualified online instructors from all over the country. These classes typically allow for a flexible schedule, and allow you to teach from anywhere, as long as you have a strong WiFi signal.The great outdoorsIf you’re looking forward to summer because you get to spend it outside of those classroom walls and soaking up nature, there are ways to parlay your teaching skills into outdoorsy-type jobs as well.Summer campDespite what pop culture may have led us to believe, kids do learn more than basic popsicle stick crafts at camp. Many camps (either sleep-away camps or day camps), especially ones that specialize in specific subjects (like stem/technology), often seek teachers to teach classes, but also to act as camp counselors who work with kids on social, physical, and educational activities.LifeguardingAs a teacher, you already know what it’s like to be responsible for people, and to keep an eagle eye on the goings-on around you. Why not take that vigilance and sense of duty to the beach or local public pool? If you’re a strong swimmer and are certified in first aid (or willing to take the necessary classes), this could be a way to spend the summer outdoors while earning extra money.Thinking outside the boxMaybe you don’t want to do anything related to teaching for the summer, to give yourself a true break and recharge for the upcoming school year (august comes so fast, doesn’t it?). If you’re looking for paying opportunities outside of the teaching arena, there are always options for someone with great people skills and organizational skills.Local sports and cultureIf your town has museums, historical centers, or outdoor arts venues, there may be seasonal employment opportunities in the box office, giving tours, or working at events. You might roll your eyes at seasonal tourists, but they could actually be your ticket to a fast-paced summer job if you live in an area that draws lots of visitors over the summer. Besides, jobs like these often come with free access to games, plays, concerts, or other events, which is a great perk any time of year. If you have a major or minor league baseball team near you, check the team’s website for any seasonal game-day jobs. after all, what’s more â€Å"summer† than hanging out at the ballpark?Related:  Show Me the Money: 8 Good-Paying Part-Time JobsAnimal instinctsIf you have a dog, you already know that you’ll be spending a good deal of your time outside- so why not turn it into a business for the summer? Or if you don’t have a dog of your own and enjoy canine company, what could be better than hanging out with a dog buddy and then dropping him off at home? And getting paid for it? Dog walking and pet sitting businesses can be very profitable, especially if you live in or near an urban area. And unlike students, pets are unlikely to give baloney excuses about humans eating their homewor k. Social media can help you spread your (temporary) pet whisperer brand far and wide, until school starts back up again.Freelance writing and editingWe all have that great american novel inside us somewhere, right? What about articles, blog entries as well? Summer could be a great time to kick off your freelance writing or editing career, if you have awesome language skills (English teachers, looking at you. Math teachers who always secretly wanted to write, also looking at you!) and the desire to start your own business, writing and editing could be a great way to spend the summer. If you’re unsure of where to start, sites like the freelancers’ union and the write life have a roadmap for you. Once you’re up and running, you can wade into resources like mediabistro’s freelance marketplace and look for paying gigs in writing and editing.As the clock ticks closer to that final bell of the year, are you ready to make it a great summer with exciting new oppo rtunities? good luck, and i’ll expect a full essay on what you did over your summer vacation, due on my desk by September 1.More jobs available  Ã‚  Apply here