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Regarding the process of proving financial viability, is there any distinction made between financial turnover and profit? For example if you re-invest income back in the business can it still be used towards the financial tests?
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Financial Tests
Started By
Earthworms
, 20 Mar 2010 00:10
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#2
Posted 20 March 2010 - 00:43
surreydodger
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- Book Owners
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- 1,208 posts
Agricultural Planning Advisory Service
- LocationWest Sussex
Hi Earthworm,
It is the profit figure that will ultimately be used in the financial test. If you choose to re-invest your profit (this will go in the accounts as 'capital introduced) it will not affect the profit figure. Turnover has little bearing unless you can show exceptional costs which would not re-occur in the future and thus your profit figure will be higher in the following years.
It is the profit figure that will ultimately be used in the financial test. If you choose to re-invest your profit (this will go in the accounts as 'capital introduced) it will not affect the profit figure. Turnover has little bearing unless you can show exceptional costs which would not re-occur in the future and thus your profit figure will be higher in the following years.
