accountants / 66 posts found
Keeping your cashflow strong in tough times
Small businesses are particularly vulnerable in tough economic times. When sales are slow, there are still overheads and salaries that need to be sorted. Pre-planning and being proactive can help you weather tighter economic periods and allow you to continue to thrive. Make sure you have a clear picture of your payroll, and any other planned expenses that will need to be accounted for. If there’s even a possibility that there could be a shortfall, it’s essential to meet this head-on. Whether this means talking to your supplier or creditors to figure out an arrangement, or compromising on other business [...]
Spring Budget 2023 – the key points for business owners
The Chancellor, Jeremy Hunt, delivered his first Spring Budget on 15 March 2023. Unlike the disastrous September 2022 ‘mini budget’, this budget won’t cause many ripples in the worlds of business and finance. In fact, it was a relatively dull affair, with few headline announcements for the average business owner to be concerned about. However, there were some incentives regarding capital allowances on equipment and investment in research and development (R&D), to help push the economy forwards. Summary of the main Budget announcements Whereas the primary aim of the Autumn Statement in November 2022 was to address the financial instability [...]
Bringing your cashflow processes into the digital age
Keeping on top of your cashflow is even more important during tough economic times. With a global slowdown on the cards, energy prices soaring and supply chain challenges, cash is likely to be tight over the coming year and beyond. Cloud technology and fintech apps, can give your business the best possible control over its cash. Why is cashflow so important? To keep your business operating, you need enough money coming into the business to cover your outgoings – with enough surplus cash to live on. When recession begins to hit, this can have a significant impact on your income. [...]
Cash is not Profit and Vice Versa
The purpose of a business is to make money, and that means you have to know the difference between profit and cashflow. Net profit is what you have left after you deduct all your business expenses from all your revenue. You change net profit only by changing the things that affect revenue and expenses. For example, if: You renegotiate with your suppliers, you may get stock cheaper, or carry less inventory Your staff engage with customers better, you can learn more about what they do and don’t like – and get more business You can roster staff differently, you may [...]
Setting KPIs and measuring performance
Once you begin trading, you’re faced with a new challenge – successfully managing the course of your brand-new business and making sure it’s a profitable enterprise. It’s easier to manage your startup’s sales and finances when you have access to the best possible information and data about your performance. Tracking specific metrics and key performance indicators (KPIs) allows you to see how you're performing against your targets – so you can take action to improve performance, sales, growth and profitability. But which KPIs should you be tracking? Sales and conversion rates An obvious metric to track is the number of [...]
Deep work – ditch distractions and be one of the focused few
With the development of technology and social media, distraction is the new normal. A recent study found that a typical office worker gets just 11 minutes between interruptions, while it takes an average of 25 minutes to return to the original task after an interference. In his book, Deep Work – Rules for Focused Success in a Distracted World, Professor Cal Newport suggests that serious professionals quit social media entirely. He defines deep work as "professional activities performed in a state of distraction-free concentration that push your cognitive capabilities to their limit". Here are five ways to get into what’s called [...]
Managing change in your business
Successfully implement change in your business Research by Kotter International found that more than 70% of change projects within a business fail. Why is this? The research findings show that employee engagement is the biggest factor. Whether it is a small change to one or two processes, or a company-wide change, it's common for staff to feel intimidated by it. So what can you do for successful implementation of change? Here are the principals from Kotter’s 8-Step Program: 1. Get the team onboard Build support and create momentum behind the changes you are making by communicating the benefits with the [...]
Review your expenses – and save yourself money
Running a business will always mean incurring certain expenses, or ‘spend’. There are always costs, overheads and supplier bills that mount up – and these expenses will gradually chip away at your cash position, making it more difficult to grow and make a profit. So, what can you do to reduce your spend levels? And what impact will this have on your overall margins, profits and ability to fund the next stage in your business journey? Getting proactive with your spend management Spend management is all about getting in control of your expenses – and, where possible, aiming to reduce [...]
Reduce your corporation tax bill by offsetting pension contributions
If you’re looking for ways to minimise your corporation tax bill, it’s worth considering if there are deductible expenses you can claim. One key area to think about is your director pension contributions, as these can be offset against your taxable profits. Pension contributions for directors of up to £40K per annum can be deducted from your taxable profits. With a tax saving of 19% of your pension contribution, this could potentially save you £7,600 per company director – a nice helping hand if you’re aiming to cut your tax costs. How do I offset my pension contributions? Being able [...]
How to safeguard your team’s mental health
The coronavirus pandemic has forced a significant amount of change and upheaval onto you and your team – in a very short amount of time. We’ve gone from ‘business as usual’ to closed offices, working from home and the full reality of isolation during an emergency lockdown. To combat this change, it’s important to take steps to care for your employees. Key ways to take care your teams wellbeing There’s no single solution when it comes to taking care of your employees’ wellbeing. For your people to cope with their new enforced remote working life, they’ll need to consider everything [...]