AW Accountant in Kent

Running a business, my best advice…

I get to see many businesses and discuss their experiences throughout the year and the most successful ones are those that concentrate their activity on their core business

What is the core business?

It is so easy to describe your business within its sector as accountants, builders, cleaners for example  but this does not describe what you do.  It is only by being more specific that you can become more focussed not only in your marketing activity but also in the process by which you actually do the work.  Let us consider the builder as an example and the type of work they carry out:

• Commercial (as opposed to residential)
• Public sector (not private sector)
• Fit out (rather than new build)

If they deviated into a domestic new build a new skill set would be required and while they may be able to do the work the disciplines and working practices are different.  Suddenly the efficiencies are lost and this will impact on both profitability and ultimately cashflow.

This may be an extreme but it is worth looking at new ventures and seeing whether they are complimentary to current activity or running along a separate track altogether.  In summary my advice would be to:

• Differentiate your business
• Become a niche – you are not the same as the others
• Concentrate on that core activity

The advice above may not apply to your circumstances, so seek professional advice before taking any steps based on the information shown. If you would like advice in this or other areas feel free to call.  Alastair Wood, AW Accounting, Gravesend – Accountants who “speak your language”

Scanning and emailing documents

After helping out a client email some bank statements to a bookkeeper and an interesting chat with a document scanning company at the Be An Amazing Business Builder Show on Tuesday I thought I would share my views on scanning documents.  I come from a “less paper” background and have carried this over into my own business.  Apart from a few documents I am required to keep by my Association such as signed enagagement letters, all of my paperwork is electronic read more

What year end should I have?

Whether you have just started up a business or have been going a number of years there are a few factors which will influence what year end you choose:

• Date registered at Companies House: The default date chosen is the end of the month one year from incorporation, so if you incorporated on 4 February 2010, your year end would automatically be 28 February 2011.  You can however change this.
• If you did not start trading through the business until May, you may want to change the year end to April so it represents a full years trade read more

Get advice and plan early for the most tax opportunities

I have just signed up a client who has a limited company which he set up over a year ago although he did not start trading until the current tax tax.  From previous posts you will be aware that one of my recommendations for the biggest tax saving opportunities read more

Why you should have an accountant and how to choose one

As new research from business software and services provider Sage shows that

accountants are now seen as the most trusted source of business advice

for UK firms, we consider why you should have an accountant and how to choose one.

A qualified accountant is an experienced professional read more

Debt collection – how to make it easier

It is a common tale from business that they have tried all courses of action to recover debts, the credit controller is pulling their hair out and going through the courts is a waste of time and money.   I have recently met up with an agency that is dispelling this myth.  Once you have obtained Judgement, and if your debt is over £600 they will collect it for you, and in 2008 they collected 96p in every £1 of enforceable debts.  The steps are as follows, and for the latter part of the article credit goes to guest blogger The Sheriffs Office:

1. Small claims can be made on line using HM Court Service website, moneyclaim.gov.uk.  There is useful guidance on the HMCS website.
2. There is an excellent flowchart on p11 of the HMCS Guide for debt recovery for Small Businesses
3. Once Judgement has been registered by the court the customer is obliged to pay you, however this is where so many businesses stall and where The Sheriffs Office can come in useful read more

Thinking of going Limited?

My finance presentation to Mumpreneurs, in association with Buss Murton solicitors, highlighted the interest there is in the possibility of going limited.  While many small businesses have started off as sole traders they have evolved and grown to the extent that they should be considering whether this is the best structure for them.  I have recently been approached by a prospective client turning over £500k+ read more

Business expenses, what can you claim?

It might seem fairly obvious that you can claim any expenses associated with the business, but it is not always quite that straightforward,  and you might be missing some.  The Revenue rules are that the expense must be

wholly and exclusively

for the purpose of the trade. read more

How should I set up sole trader or company?

So you are thinking about setting up your own company or wondering whether you are trading through the best sort of company.  There are basically three types of company you can trade through and they all have their pro’s and cons.

Sole trader

This is the simplest way to work for yourself and there has been much discussion in recent months about people reverting back to sole trader status, or setting up as a sole trader in preference due to increasing company tax rates of which more later.  read more