Booklet E- Types of outflows
Cash purchases
Items the business purchases, pays for them at time of transaction.
Credit purchases
Items the business purchases, pays for them at a later date.
Rent
Regular payments made to a landlord in exchange for a premises.
Rates
Are a tax on property used for business purposes.
Salaries
Is a fixed regular payment to an employee typically paid monthly.
Wages
Similar to a salary but usually based on hours worked eg £10 an hour.
Utilities
Includes electricity, gas, water usage and costs.
Purchase of assets
Buying non-current assets that a business is likely to keep for more than a year eg vehicles, machinary.
Value of added tax
Businesses that must pay VAT to government
Bank interest paid
Interest that is paid due to borrowing money.