Business basics — answers to your common retail problems

Cash books
Question Why is a cash book necessary if I operate mainly with cards and cheques?

Answer In business terms “cash” is money in any form, not just notes and coins. A cash book is a record of cheques issued, cheques received, standing orders, direct debits etc.

The nature of cash books varies from business to business, many are held on CD or part of accounting systems software. All are designed to keep tabs on money actually paid in and actually paid out. Money due to be spent or received is recorded elsewhere.

The “petty cash book” — a record of miscellaneous spending from the till or pocket is often ignored, but much of this expenditure can be claimed against tax and often includes an element of VAT, so there is much to be said for seeking and keeping receipts.

Flexible working
Question A new employee with children aged eight and ten has applied for flexible working to attend school activities. Does she have a right to this?

Answer Not at present. The right to flexible working is currently limited to parents of children under the age of six (or 18 for disabled children). However, the Government is keen to extend this right to parents of older children and is seeking views on this.

Updates can be found on the Department for Business, Enterprise and Regulatory Reform website.

Misleading advertisements
Question What are the differences between “misleading” and “comparative” advertising?

Answer An advertisement can be misleading if it contains a false statement of fact, creates a wrong impression or makes a promise when there is no intention of keeping it.

It is comparative if, either explicitly or implicitly, it identifies a competitor or goods or services offered by a competitor.

The trouble arises when an advertisement is misleading or takes advantage of the reputation of a trademark or trade name. Several bodies, including the local trading standards service, will take court action where necessary.

A fact sheet on the subject is available from the Office of Fair Trading (telephone 0845 722 4499 ext 7211).