Summer Exam Flashcards
P60
- A form an employer give to an employee at the end of every tax year
- Contains details of gross pay including PAYE, PRSI and USC
- employee can use it to claim tax refund
- or as evidence to claim social welfare
- Proof paid PRSI
Two tax credits a person is entitled to
Married Single Widow Blind PAYE tax credit Age tax credit
Effect of being highly geared
Debt > Equity
Have to pay high interest
Effect of being lowly geared
Debt < Equity
Lose control of the business
How could management use the net profit percentage
Lower expense cut expenses
Find new distributor for purchases
Why would a company prepare a cash flow forecast
So see when they’d are going to be low in cash and when they cash to spare
Act as a Financial Control Mechanism
How can a business deal with a financial problem in the forcast
Take out a loan
Move expenses
Arrange bank overdraft
Outline two main features of the PAYE system
Multiply net wage by PAYE rate
Take away tax credits
Span of control
Is the number of employees that report directly to the manager
The number of employees a manager can effectively supervise
Outlin two factors that can effect a managers span of control
Wide (can supervise a lot of employees effectively)
Narrow (can only supervise a few employees at a time)
P45
- form an employee gives to an employer when they leave the job
- Contains PAYE, PRSI and USC deducted from gross wage from the start of the year
- used to claim social welfare benefits
- must give to new employer to ensure tax recorded correctly
Strategies for managing change
Manager leads by example
Manager must communicate with employees
Manager must train employees
Manager must allow employees to participate in change
Benefits of stock control
-The firm will not lose sales
Money will not be tied up with too much stock
No shortage of raw materials for production
