Other income and costs
There is one more category to consider – the things which are outside of normal trading operations, such as interest, exchange rate gains and losses, investment income from equity stakes in other companies, and taxation. These are usually shown as ‘after thoughts’ in the profit and loss account – as explained in Chapter 14, which is also where I will review the related accounting issues.
I am sure that you are always asking how to cut the company’s tax bill. It does not need to be said that you need to consider the tax implications of all financial transactions. Interest paid and received should be assessed in relation to cash balances – make sure that borrowing is controlled (Chapter 19) and that any idle balances are ...
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