9 Aug 2023
School holidays can be tough on small business owners. Balancing work and holidays can be tricky, especially when you and your team want to take some time off with family. You want to be able to keep the business running smoothly while getting some time out.
That’s where hiring a bookkeeper comes in. As a small business owner, you might think that you can’t afford to outsource bookkeeping tasks, but a bookkeeper can save you time, money, and stress. Here’s how.
A good bookkeeper helps you stay on track with your finances
Regular bookkeeping is important, even if you think of yourself as just a small business. Your bookkeeping is the foundation for monitoring your sales, expenses and profits, but also your cash flow and your progress against your goals.
Hiring a bookkeeper during the holidays means you can keep track of your finances while you’re gone. A professional bookkeeper can record and reconcile transactions, process invoices and payments and handle payroll for you. They can also identify potential bottlenecks in cash flow and spending patterns to help you adjust your budget accordingly. Additionally, a bookkeeper can also help you prepare financial statements and tax returns, saving you from returning to work knowing you have to quickly turn around a VAT return.
A good bookkeeper provides valuable business advice
Your bookkeeper is also a business owner, and a great confidant for discussing your business goals and challenges. A good bookkeeper can help you identify areas where you can save money and make suggestions for increasing sales. They can also help you identify potential problems in your cash flow. It’s hard to delegate when you want to know everything about your business, but imagine the peace of mind of having a finance expert’s eyes on your business while you’re taking a holiday.
A good bookkeeper helps you prioritise your workload
During the holidays, there’s always a temptation to either do nothing or keep working and not spend time with your family. You didn’t start your business so you could become a bookkeeper, and engaging a bookkeeper to handle your financial tasks can help you prioritise your workload so you can just do what you need to do, and enjoy time with your family.
A good bookkeeper saves you time and money
It’s hard to think that hiring an additional person into your team is going to save you money, but bear with me. Engaging with a bookkeeper to handle tasks that aren’t your specialist area will save you time and money, and here’s how. Not doing these tasks yourself will free you up for the work you’re really meant to do in your business – where there’s a much better return on your time investment. Compare hiring a bookkeeper for £500 per month with meeting clients for your new projects generating £5000 per month. Are you better off to forgo the £5000 and spend your time bookkeeping, or to earn an extra £4500 in your business this month?
How about if you took half of that time you would have been doing the bookkeeping off as holiday instead? You’d still be £2000 better off this month – just by hiring a bookkeeper. This is maths that makes sense.
Add to this how a bookkeeper can usually save you costly mistakes in your bookkeeping and you’ll never question the value of a bookkeeper again.A good bookkeeper gives you peace of mind
Knowing that a professional bookkeeper is managing your finances not just while you’re away but every day of your business gives you limitless peace of mind. You can always be confident that your business finances are up to date and in good hands, so you can get on with running your business armed with the information you need to make good, timely decisions.
Conclusion
Hiring a bookkeeper isn’t just a good move for the summer holidays, it’s a great move for the life of your business. It allows you to focus on what you really need to do as a business owner and take a break while everything financial happens smoothly behind the scenes. You don’t have to worry about falling behind in your financial tasks, and you can trust that a professional is managing your finances. By leveraging the expertise of a bookkeeper, you can focus on spending quality time with your family and return to your business recharged and ready to tackle new challenges.
If you’d like to speak to us about how we can support your small business, book a free consultation here.
8 Aug 2023
Small businesses often put off hiring an accountant until they’ve grown bigger, but that’s a mistake that can actually delay growth. The services of an accountant extend beyond simply minimizing your tax bill, although that’s an undeniably valuable advantage. In addition to saving you time and money, a good accountant helps you to manage your cash flow, plan ahead, make smart decisions and reduce any risks to the financial health of your business. Here’s why investing in a quality accountant beats the DIY route every time.
1. Save Money On Your Tax Return
Let’s start with the most obvious advantage of hiring an accountant: to save money in taxes. Filing your taxes is notoriously complex and even a small, innocent mistake can result in a hefty fine. Chartered accountants train for years in order to be able to complete this process accurately, so doing your own return puts you at risk of making expensive mistakes.
Furthermore, a qualified accountant will have up-to-date knowledge of tax breaks, loopholes and business incentives to save you a sizable sum of money that you can re-invest in scaling up. If you do your own accounting or go with a very cheap firm, you’re unlikely to benefit from these savings.
2. Free Up Valuable Time
In addition to saving you money, an accountant will also save you a lot of time that you can put to far better use. As a small business owner, it’s vital that you keep accurate financial records and stay on top of your accountants. However, it’s equally true that your efforts are most valuable when concentrated on your area of expertise. Hiring an accountant allows you to ensure that your accounts are being managed well whilst allowing you to focus on growing your business.
3. Startup Advice
As mentioned, many small business owners are reluctant to hire an accountant in the beginning stages. However, an experienced accountant will be able to provide valuable advice during the startup stage that can accelerate your growth on areas such as:
- Key financial risks
- Budgeting
- Financial forecasting
- Growth
- Funding
- Tax incentives
- Overall financial health
Hiring an accountant from the very beginning can help you build a solid financial foundation to ensure that your business is around for many years to come. They can advise you on which legal structure to choose and offer unbiased, constructive criticism of your business plan. It’s also worth noting that an accountant-approved business plan is more attractive to prospective investors.
4. Manage Cash Flow
Managing your cash flow well is essential to the growth of your business. Poor cash flow management is a serious threat to even the most profitable businesses, so it’s very important to get it right. Accountants are experienced in managing cash flow and can produce regular forecasts to ensure that you always have enough funds to continue operations as you scale up and market conditions change.
5. Growth Management
A quality accountant can help to fund and manage the growth of your business. Firstly, an experienced accountant will help you to identify sources of funding and present your case to potential investors. Additionally, they can also help you manage sudden growth spurts and ensure that they don’t overwhelm you and damage the financial health of your business, as is often the case.
6. Market Knowledge
It pays to hire an experienced accountant who knows exactly where your company is positioned in relation to your market sector. You can leverage this knowledge to create your unique selling point, price your services appropriately and gain a competitive advantage. In short, an experienced accountant allows you to benchmark your company which is incredibly useful for growth.
An Accountant Is An Investment
It pays to hire a high quality, proactive accountant. Whilst there are many cheap services out there, you’ll see the greatest return on investment from hiring an accountant who has the time, knowledge and experience to grow your business. A good accountant will do everything they can to not only save you money on taxes but to provide valuable advice, manage your cash flow and secure the financial health of your business for years to come.
Did you know we’ve also got a free downloadable eBook dedicated to the most common profit draining mistakes made by small businesses. Check it out here.
Book a free consultation here, to learn more about our accounting services.
4 Aug 2023
Money leaks in your small business eat away at your profits without you even knowing about it. Even if your business seems to be in great financial health, you should regularly check for leaks to ensure that you’re not unwittingly wasting money. Plugging money leaks can help to reduce your spending and thus boost your profit margins without too much extra work on your part. Here are the most common money leaks to look out for, and how to fix them.
1. Online Advertising
It’s easy to let advertising fees get out of hand. Social media pay-per-click fees may seem small, but they do add up and can present a significant money leak for your small business. Keep a close eye on any social media or Google advertising campaigns to ensure that you’re not running up a big bill. It’s also important that you regularly review the effectiveness of these adverts. If they’re not bringing in business, they’re a wasted expense.
2. Subscriptions
At some point, we’ve all signed up for a free trial with no intention to continue, then forgotten all about it and ended up paying. Other times, we stop using a service but forget to cancel the subscription. It’s all too easy to let your business leak money this way, but it all adds up. Review your subscriptions regularly and promptly cancel any that are no longer benefiting you.
3. Power Usage
Small mistakes like leaving the lights on overnight and forgetting to switch off devices may not seem like a big deal, but over time they can seriously eat into your profit margins. It’s important to get into good energy saving habits and encourage your staff to do the same.
There are many other ways to cut down on electricity usage, such as investing in insulated blinds or switching to energy-efficient lightbulbs. Although these changes do present an upfront cost, they will save your business a significant amount of money in the long term.
4. Office Supplies
It’s easy to go over-the-top with office supplies, so take some time to assess what is and isn’t necessary. Thousands of multicoloured sticky notes are fun, but they’re hardly a necessary expense. Furthermore, many businesses waste a lot of money on printing, which is easily avoidable in the age of cloud-based software.
5. Credit Card Fees
Being lax with your credit card payments is a surefire way to create unnecessary costs. By clearing your balance each month – or at least as much as possible – and paying attention to any annual or hidden fees involved, you can save your business money and boost your profit margins.
When signing up for a credit card, don’t get distracted by the attractive rewards. Make sure that you read the fine print and understand the fees before you choose a card. This will help you to use your card wisely and avoid any money leaks.
6. Smartphone Bills
If you’re not keeping a close eye on your smartphone bills, you could be paying a lot more than necessary. Make a habit of reviewing your charges every month to ensure that you and your staff aren’t exceeding your plans. Take a close look at your usage, too, because you could be paying for more than you’re actually using. It’s also worth shopping around regularly too to see whether or not you could benefit from switching plans or providers.
It Pays to Plug
By plugging these common money leaks, you can cut down on costs without making any real sacrifices. Regularly checking for leaks helps you to make your business budget go further, so make sure you don’t grow complacent. Get into the habit of regularly performing basic checks to maintain a healthy profit margin and prevent your business from losing money.
Did you know we’ve also got a free downloadable eBook dedicated to the most common profit draining mistakes made by small businesses. Check it out here.
Book a free consultation here, to learn more about our accounting services.
1 Aug 2023
Tax season can be a stressful time for freelancers. There are many steps you need to take in order to make the process as smooth and easy as possible. In this blog post, we will go over how to prepare for tax season so that your taxes are filed on time, with all necessary documents included.
#1 – Track Your Income
The first step in preparing for tax season is tracking your income. The best way to do this is to keep a careful record of your invoices and payments all year round. However, if you have neglected to do this then now is the time to get your books in order.
#2 – Track Your Expenses
In order to determine if you owe money or will receive a tax return, it’s important that you keep track of your expenses. As mentioned above, if you have neglected to do this then now is the time.
The best way to stay on top of expense tracking is to do it little and often. Cloud accounting software is a great option, allowing you to easily access your financial data from anywhere.
#3 – Understand Your Deductible Expenses
It’s important to understand what expenses you can deduct from your taxes. Tax rules are notoriously complicated, so it’s best to consult a qualified accountant for assistance. You don’t want to miss out on lucrative deductions and tax credits.
#4 – Organise Your Accounts
It’s important to be organized when filing your taxes. You need to have all of the necessary documents at hand, including bank statements and invoices.
You should also make sure you are up-to-date with any deadlines for submitting forms or information.
You can use cloud accounting software to easily organize your account information, as well as provide you with reminders for filing deadlines.
#5 – Plan Ahead
It’s important to plan ahead and make sure you can complete your taxes as soon as possible. This will allow for the maximum amount of time to file all necessary documents, such as tax returns or information forms.
#6 – Use Cloud Accounting Software
There are many great cloud accounting options out there, including Xero and Quickbooks. These options will allow you to easily track your income, expenses, deductibles, accounts and filing deadlines in one place. They also make it easy to receive reminders about upcoming deadlines.
#7 – Choose the Right Accountant
It’s important to choose an accountant that specializes in working with freelancers and understands the ins and outs of your industry. An accountant who is qualified and experienced will be able to guide you through the tax process, ensuring everything is filed properly on time. They will also save you money by finding you all available deductions and credits.
Of course, an accountant is not just for tax season but should be a part of your year-round financial planning. Whether you are filing taxes for the first time, or have been freelancing for years, having an accountant can help save money and stress throughout the entire process.
Summary
By following these steps, you can ensure that your taxes are filed on time with all necessary documents included. By taking the time now to stay organized and plan ahead, you’ll be able to enjoy a stress-free tax season!
Book a free consultation here, to learn more about how our tax services can support you.
20 Jul 2023
As a small business owner, it’s crucial that you manage your expenses well. In fact, Fundera found that 20% of all small businesses fail within the first year, so it’s vital that you develop good money management habits right from the very beginning. Small businesses tend to have smaller profit margins, so it’s essential to keep careful control of your costs. Here are five easy tips on how to better manage your expenses so that you can maximise your margins.
1. Start Immediately
The majority of businesses incur costs before they officially launch. It’s important to keep a careful track of your expenses before you even open your doors, be they virtual or physical. Even the smallest costs can really add up over time! No business owner wants to pay more tax than strictly necessary, so set yourself in good stead by carefully recording your expenses right from day one.
2. Open a Separate Business Bank Account
Opening a separate business bank account makes it infinitely easier to keep track of your spending because it avoids the risk of confusing business and personal transactions. You cannot claim personal expenses as business costs, and such a mistake on your tax return could result in a significant penalty. Furthermore, having a separate business account ensures that you won’t overlook any transactions and end up paying more tax than you should.
3. Use Accounting Software
Online accounting software makes it easier to manage your spending. Many programs allow you to upload pictures of your receipts and invoices and then organise them accordingly. This will save you a lot of time and prevent you having to manage a mammoth backlog of records all at once.
Furthermore, accounting software will provide you with a clear picture of your spending and even allow you to understand which costs generate the most significant return on investment. This is actionable data that will allow you to cut costs where necessary and focus more on profit-generating activities.
4. Create a Clear Budget
Creating a realistic business budget that you can actually stick to is an important step in managing your expenditure. You will then be able to monitor your performance against this budget and adjust it when necessary.
In order to create a realistic business budget, you must first calculate your income, then determine your costs and work out your profit from these figures. This will tell you how much you can afford to spend and allow you to set a cap on your expenditure. Be sure to review and update your business budget regularly; an outdated budget is of no use to anyone.
5. Take the ‘Little and Often’ Approach
Let’s be honest: as a small business owner, bookkeeping is unlikely to be your favourite task. Treat it like a household chore and take the ‘little and often’ approach. Spend a little time each day or week to record your expenses and measure them against your business budget. This will give you an accurate idea of what you’re spending right now and allow you to fix any potential problems before they spiral out of control.
Summary
Conscientiousness is the key to prudent expense management as a small business owner. By being proactive about bookkeeping from the very beginning of your business, you will find it much easier to manage your spending. A clear understanding of where your money is going is crucial if you want to cut costs. Furthermore, by creating a realistic business budget, you effectively devise a roadmap for spending that will make it far easier to make smart decisions when it comes to expenses.
Book a free consultation here, to learn more about how our accounting services can support you with expenses, and more.
17 Jul 2023
New processes that aren’t yet proven within a company need to be handled with care. Documenting them is the best way to keep track of aspects that work right and those that don’t.
Process documentation can help you understand the effectiveness and if your processes require some adjusting. A functional business process should be easily repeatable and reduced to the smallest number of steps to benefit company efficiency.
When it comes to automation, well-documented processes will be much easier to translate. However, documentation can take up significant time and effort, which is why the following steps will prove quite useful.
1. Define the Process
Naturally, the first step in documenting a process is precisely defining its purpose and the benefits it brings. You should have a clear idea of what the process will bring to the table, how it will be used, and when it will be necessary.
Once you’ve defined those essential aspects, name the process so that its function is evident from the title.
2. Determine the Scope and Boundaries
There should be an outline of everything that falls under the process and what’s excluded. The lines that define the scope of a process are sometimes blurred, which is why it’s crucial to make them as well-defined as possible.
Your process’s boundaries will further specify the details of the project’s scope. That’s why you should define the start and end points and signals according to the previously outlined aspects.
3. Define the Expected Results
It’s not enough to broadly determine what a process should do. You should also have particular results in mind and precisely explain what the process should produce.
When it comes to expected results, being as exact as possible will be essential in future testing and provide valuable insight for adjusting and optimising.
4. Identify the Resources
Once you know what a process does, what it entails, and what results it should produce, describe every resource necessary to get the expected result.
Make sure to note the primary and secondary resources and fill out the list with additional entries according to individual steps.
5. Plan and Organise the Steps
Discerning all necessary steps will require careful examination with a focus on functionality. Either start from the initial process trigger or the endpoint and work out the sequence step by step.
Once the steps are clearly defined, re-examine if each step is indeed necessary and follow each other in the best possible order.
6. Determine the Responsible Personnel
Note which person will be responsible for what task, referring to them by job title. Make each individuals role clear and understandable, leaving no room for different interpretations.
7. Predict Exceptions
Note every conceivable situation that could deviate from the process and specific tasks and outline the steps to take in such cases.
Of course, it might be impossible to think of everything. But the more exceptions you predict, the easier it will be to address them and adjust the process.
Make Your Process Well-Documented
With clear and detailed documentation, your processes will be understandable for everyone involved and easier to automate.
While it’s necessary to devote time and attention to documenting each process, following these steps will make the task more straightforward and future revisions more accessible.
Would you like to learn more about processes? Book a free consultation here.
