About this process

  • Department: Finance
  • Responsible: Managing Director
  • Accountable: Managing Director
  • Consult: Managing Director
  • Inform: Board
  • Date created: 01/08/2019
  • Date last updated: 01/08/2019

Our commitment to creating a sustainable business.

Step 1 of the process

Both in Barclays and in Xero, each account has the name and % cash allocation split. E.g (note these may change, so below is only examples).
    • OPEX 64.5% (TAP 55%)
    • Tax 15% (TAP 10%)
    • Profit 8% (TAP 20%)
    • Owner Comp 12.5% (TAP 10%)

When we receive income, it should go into our Income account (acc. Ending 6508) although some e.g. HubSpot commission or Westminster where it is difficult to change via Procurement pay into acc ending 1468 - the OPEX account.

Fortnightly (unless cash is required) calculate the cash allocations.

    • E.g. receive £10,000 
      • OPEX - £6450
      • Tax - £1500
      • Profit - £800
      • Owner Comp - £1250
Go into Barclays transfer the money to each account.

Step 2 of the process

On the last Friday of the month, transfer the salaries for Becky / Eric / Vaughn back to OPEX for the salary run.

Step 3 of the process

Quarterly review of cash allocations to assess whether these can be moved towards TAP (Target Allocation Percentage).  Use forecasts, and Becky, (WOW if Becky is not here to assess.) 

 

Topics: Finance Processes