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• 15/09/2015 17:29

  Do’s and Don’ts of Handling your Business’s Bookkeeping

  As a business owner there will be tasks that aren’t exactly the most exciting thing to be doing. Well actually there will be plenty of tasks that aren’t very exciting, but this is what you signed up for when you decided to become a business owner. It’s quite often the case that the most mundane tasks are the most important. One of these tasks is bookkeeping, and it’s something you should make sure is done efficiently. Here are some of the do’s and don’ts of handling your business’s bookkeeping.

  DO

  

  Look after your paperwork

  If you’re one of those people who have paperwork lying around all over the place, then you might want to have a tidy up. All you will be doing is making your bookkeeping ten times harder, and a scavenger hunt for one tiny receipt is never fun. Use a separate area like a box or drawer to keep your paperwork safe.

  Get into a routine

  Put some time aside each week, and get into the habit of using this time to go over your books. Once you get into a routine you will find it easier to stay on top of things.

  Keep petty cash receipts

  This is one of the most common problems with businesses today, people tend to forget about petty cash and it will make life more difficult for you when you balance your books. Anytime you use petty cash make sure you keep a receipt, even if it’s just a quick trip to the shops.

  Make each of your invoices unique

  Bookkeeping will be an absolute nightmare if your invoices aren’t in order. Make sure you’re using a system so that each invoice is numbered uniquely. Not only will this keep your books in order, but it will also make a specific invoice easier to find if you need it for any reason.

  Hire a qualified bookkeeper

  A lot of business owners are reluctant to hire a professional bookkeeper, and prefer to keep everything in house. Hiring a bookkeeper will cost you money, but it will pay for itself in the long run. Whilst a professional handles your books efficiently you can concentrate on other important tasks, making your business run more effectively as a whole.

  DON’T

  

  Over complicate your paperwork

  You can use a relatively basic system with your paperwork, as anything overly complicated will just make it more difficult to understand. If it’s too complicated to understand then it could cause you problems in the future, as it may look suspicious.

  Throw away what could be important

  This might sound like a bit of a no brainer, but it happens more than you would think. Make sure you keep hold of all receipts and paperwork from the bank. Throwing it away or simply misplacing it could prove to be troublesome in the future, especially if that piece of paper turns out to be important.

  Get behind with your bookkeeping

  As it says above in the do’s section, make sure you get into some sort of routine, but it’s probably best you hear it twice so you don’t forget. Don’t get behind with your bookkeeping; catching up with forgotten paperwork won’t be fun. If you find it difficult to stay on top of your bookkeeping, then this is where a professional could prove to be a useful investment.

  To be efficient in business you need to be organised. At the time bookkeeping may seem dull and boring, but knowing your books are in order will give you the peace of mind to be able to concentrate on other aspects of running a business. Often aspects other business owners begin to fall short on purely because their bookkeeping has been slack, or organised poorly.

• 28/08/2015 09:00

  Your Business Continually Evolves and So Should Your Business Plan

  Evolution is a slow but continual process. Even though it doesn't feel like it, nearly everything in the world is evolving right now. Landscape, climate, society, technology, animals, people, you, us. It's all changing every second of every day. It's only when you look back into the past that you notice how it's all so different.

  

  Business is no exception. Any business owner or entrepreneur worth their salt constantly has those wheels and cogs turning in an effort to improve their business. Most owners may dust off their official business plan once every few years, but if you really want to see progress, you should review it regularly.

  Finances

  How often do you compare your actual financial report to the one proposed in your business plan? Once or twice a year? Less than that? Think again. You should be reviewing it every time you crunch the numbers in your cloud accounting software - hopefully, you're being more vigilant with this duty.

  So say you carve out time to do the books once every two weeks or once a month. While going over the numbers, take the chance to compare your actual financial report to the planned report. Make charts and graphs if it helps put the differences in perspective. Do the real numbers line up with the projections? If not, you need to brainstorm strategies to achieve this. It might take the form of adjusting the budget or releasing new products. Do what you feel is right to attain your business goals.

  Market

  When's the last time you evaluated your ideal market? When you first went into business for yourself and pitched the plan to investors? Like all things, the market changes over time so every few months research the trends of your ideal market and customer base. Then adjust accordingly.

  For instance, the ideal market for a beauty salon circa 2007 could be middle class women seeking trendy hairstyles imitating the likes of Scarlett Johansson and Halle Berry. Fast forward to 2015, the era of the Hipster. Not only women, but men now seek stylish haircuts. They want anything from dapper crew cuts and fades to ombre lobs (long bob). The beauty salon which hasn't evolved its techniques to supply the demand will lose potential clients.

  Strategy

  Sticking to your original business strategy may have negative effects in the long run, especially if you're not seeing improvement. The strategy you chose worked for you father and his father before him. But with the new advancements of the 21st century, their "tried and true" method may not be best for your business.

  Of course, it takes a lengthy period of observation to determine if any business strategy works. If after a year or two, you don't see progress, it's time to hatch a new plan or reinvent the original strategy.

  It's important to realise remaining resolute to the initial business plan could lead to stagnation. Optimism and determination are great - in healthy doses - but check in with reality every once in awhile to see if you need to make changes to achieve success.

• 27/07/2015 14:11

  Even Businesses Run From A Couch Need Accounting

  Web based startups are the future of business. They smash through traditional business strategy, paving a yellow brick road for anyone who has dreamed of starting their own business - or wanted to visit the land of Oz.

  You’ve always dreamed of earning a living by doing what you love, knitting socks and jumpers for the locals in Kent and beyond. With the advent of online storefronts, your dream has become a reality. Allowing you to run your business from home, sitting comfortably on a brand new couch.

  You’ve got all business matters under control, or so you think. Numbers have always been pesky little devils that torture you. You’ve given accounting and bookkeeping a shot, but you’re not 100% certain you did it right.

  You’re just starting out, so why bother hiring someone to do it for you? What could possibly go wrong by doing it yourself? If you’re not good with numbers and don’t know the ins and out of tax law, A LOT can go wrong. So yeah . . . perhaps it’s time to hire a professional accountant.

  Accountants in The Flesh

  With all of the things you can do online, finding an accountant should be no problem. You may want do this the old fashioned way though. You may find their contact info online, - or in a phone book for a real old school approach - but you want to meet this person in the flesh.

  Getting an accountant in Medway seems the best solution. Plus, it’ll allow you a chance to explore Gillingham’s  business park - with it’s Emerald City-ish feel. You’re almost guaranteed to find your perfect accountant here.

  Handsome faces will explain business related taxes in a manner you can easily understand and provide you with a custom service plan that suits your needs.

  Cloud Accounting

  Maybe you prefer to stay at home when it comes to bringing others on your team. That’s okay. Cloud accounting can easily - and professionally - take care of your needs.

  Some accountants offer cloud based services so there’s no need to travel to their office. They can do this by using accounting software such as Xero. If navigating new programs isn’t your strong suit, they’ll help you set the account up and show you how to use it as part of the service.

  A variety of services may be offered ranging from business newbie to business conglomerate. Aside from the accounting software, your accountant can help you with payroll, year end and quarterly taxes, and possibly personal tax returns.

  So go ahead and give yourself a pat on the back because you’re no longer a scarecrow without a brain or a lion without courage. Now you really have got it together - well business affairs at least. With the assistance of a professional accountant, your business can reach new heights. Every man, woman, child, cat, and turtle in Kent will be donning your hand-crafted knitted goodies - or whatever it is you offer the world - in no time.

• 21/07/2015 21:24

  Good Reasons You Should Invest in a Pension

  Retirement to many people is something that seems a long way down the line. Which means they will have no cause for concern about it anytime soon, especially if they will need to find the extra cash to do so each month.  Although it may be a while off yet it doesn’t mean it’s any less important, so why not set yourself up for a comfortable retirement. It's important to get some solid advice from a professional financial adviser or accountant. Here are a few reasons why investing in a pension is a smart move.

  

  The state can be unreliable

  When it comes to your retirement fund the state pension plays an important role, but relying on it completely wouldn’t be wise. When you’re retired you will want to be living comfortably knowing that you have saved enough money, and for a lot of people the £113.10 a week isn’t nearly enough to do so. Even with that amount going up to around £148 in 2016 it still won’t be enough for people to live a luxurious lifestyle.

  Unless you’re close to retirement it will be difficult to work out exactly what age you will be when you’ll be able to receive your pension. As people are now beginning to live longer, the age that you can receive your pension will only get higher.

  By having a private fund that you will be able to receive when you’re 55, you will be giving yourself a retirement that will be a lot more flexible and comfortable when it comes to spending.

  Saving national insurance

  Some businesses will give you the chance to pay into your private fund through a ‘salary sacrifice scheme’. This works by taking a payment and putting it into your pension fund before it is taxed. This will reduce your income tax as well as your national insurance contributions.

  It will pay a sum to your loved ones
  The majority of work place pensions will pay out a lump sum to your loved ones if you die whilst working, which is tax-free. This will usually be around three times what you earn. For tax purposes a death-in-service benefit will usually not be included in your estate for inheritance.

  You won’t be able to spend it all

  Generally speaking you can’t have access to your pension until you’re 55 years old. You won’t be breaking any laws if you do so before, but you will be hit with a 55% tax charge. By leaving your money alone for as long as possible you are giving it plenty of chance to keep growing. With other large fund accounts such as an Isa that you do have access to, it is easy to spend it all when you decide you fancy buying a new car or taking the family on holiday. With your pension it’s not as simple as that and it just makes more sense to leave it alone.

  Something important like a pension should be handled properly to suit your needs, and find you the right option depending on financial capability. It’s always worth seeking out some specialist advice whether you are planning retirement or already retired.

• 20/07/2015 11:52

  First blog

  Our new blog has been launched today....welcome.

  We'll be putting up lots of advice on how to start and run a business effectively. Covering the kinds of choices you'll need to make and information you'll need to keep.

  We want to help you by giving you the inside tip and sharing our past mistakes in the hope that you'll avoid them.

  Stay focused on it and we will try to keep you informed. You can read new posts on this blog via the RSS feed.