Raw 03 - November 2008 - (Page 74)

RAW JMB ACCOUNTING 10 WAYS YOUR ACCOUNTANT CAN HELP BOOST YOUR BUSINESS Do any of the following feelings apply to you? dread the annual visit to my Accountants.” “I worry that questions will be asked which I don’t understand.” “I am confused by Accountant’s jargon.” “I breathe a sigh of relief on leaving their office.” “I If any of the above ring true, you are not alone. JMB Accounting have been looking after businesses since 1981 and recognise that the ‘Accountant’ is often perceived as scary but necessary. Reading this article should dismiss some of those fears and show how, with effective communication and planning, your Accountants can help you to move your business to the next level. Your Accountant can: 1. Give advice on Bookkeeping, Payroll and Systems • Suggest ways to improve/computerise your bookkeeping. • Advise on time saving routines (wiping out any possible duplication of tasks). • Offer an outsourcing service (releasing some of your time) • Or a supervisory service – checking data entry at regular intervals • Maybe offer discounted accounting software such as Sage, install and set up. Although perhaps considered a tedious exercise, keeping the books straight is a necessary evil. It makes you concentrate on the business and in particular, the finances. Ignore this procedure at your peril! Good bookkeeping can inject enthusiasm into the running of a business, watching sales grow can be hypnotic! Payroll is inevitable as you grow, but needn’t become a burden, and systems can make or break a business so get them sorted!. 2. Analyse In Depth All Income and Expenditure should be monitored regularly and compared month on month. Think before buying – do I need this? Breakdown each cost to discover anomalies or unnecessary spending… Advertising. Track the source of every lead or customer. A high readership is worthless if your target market isn’t reading that particular magazine or paper. Monitor and test to avoid wasting money. Experiment (cautiously) with other methods of advertising. Try to think of other angles to find or convince potential customers. Telephone. Use the internet to discover the best price for your particular usage. For example, the telephone company www.18185.co.uk offer calls to USA (fixed and mobile) for .05p per minute plus a 4p connection charge. It’s easy to register, there’s no set up fee and bills are emailed. Using ratios, margins and comparisons, your Accountant will be able to pin point areas of concern and make cost-saving recommendations. 3. Keep you informed of current Government legislation Your Accountants may well be showing all the Tax Rates and Changes on their website, however, you could always ask that certain information relevant to your business be sent to you via email as soon as available. For instance the Capital Allowances have been totally revamped and there is now an Annual Investment Allowance of £50,000 for every business from April 2008. This means that the purchase of items like computers, furniture etc. up to £50,000 effectively reduce your profit by the amount spent in that year. In most cases this will dramatically reduce the tax bill of growing businesses. 4. Give advice on Buying Decisions Common dilemmas are: Should I buy or lease my car/van? Is there a certain tax-efficient time to update the computers or a large piece of machinery? Where should I obtain finance from? Other than verbal or email advice, there might also be factsheets on your Accountant’s website along with other information to help grow your business. 5. Prepare Budgets and Cashflows Use and act on these regularly to help your business keep on track. Over zealous spending or the need for extra finance (eg: replacing outdated equipment) are easier to sort if discovered early. Impress the bank manager by your forward thinking. If unsure how these work, your Accountant can set them up and advise how to update and look at any variances. They can also help liaise with your Bank. 74 millionimpossible.com http://www.18185.co.uk http://www.millionimpossible.com

Table of Contents Feed for the Digital Edition of Raw 03 - November 2008

Raw 03 - November 2008 Contents Bradley Chapman Rachael Elnaugh Linda Klassen-Brown Heidi Weir Mark Asquith Emma Thompson Chris Wright

Raw 03 - November 2008

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