Recruiting and retaining your team

There is a skills shortage in most industries at the moment, so it is more important than ever to look after your team. 

Ways that you can help your people to enjoy working with you 

  • Salary – this is an obvious one, but people rarely leave just for salary 
  • Flexible working – what hours would suit them? Do they really have to work full time office hours? 
  • Remote or hybrid working – where would they like to work? With modern technology do they have to travel to a single location to do their work?  
  • Workplace – if your team do come into a central workplace how can you make it nicer? 
  • Listen – do your team feel able to talk to you? Do you operate annual (or more frequent) appraisals? 
  • Training – this can be a great way to invest in your team to do their current job better or even to take on more responsibility 
  • Promotion – can you offer career progression for your team? It’s not always possible in small businesses but worth trying to expand their roles if possible 
  • Gifts – you can give your staff small gifts and experiences (but not cash or similar vouchers) for up to £50 six times per year and claim the tax on these. (Do check the full details of what you can and can’t provide) 
  • Entertaining – you can provide entertaining of up to £150pa as a business expense but any more than this and you pay tax on the full amount. 

Any other ways that you look after your team? 

Still reinventing the wheel?

Today I’m borrowing a quote from Mark Twain

“There is no such thing as a new idea. It is impossible. We simply take a lot of old ideas and put them into a sort of mental kaleidoscope. We give them a turn and they make new and curious combinations. We keep on turning and making new combinations indefinitely; but they are the same old pieces of coloured glass that have been in use through all the ages.”

I love being an accountant and working with lots of different businesses within lots of different industries. This, along with running my own businesses (an Minerva Accountants and a speaking/coaching business) gives me a wealth of practical ideas for business improvements as well as all the books I read.

Where do you get your ideas from?

Tax Tip

How to take dividends – tip 2

It’s not unusual for a married couple to hold shares in a company and each of them is entitled to receive dividends on those shares. But it is important that dividends are paid to the correct shareholder.

Whilst dividends can be paid into a joint account, they should NOT be paid into an account that does not belong to the shareholder. In other words, H’s shares must be paid into H’s bank account or H+W’s bank account and W’s shares must be paid into W’s bank account or H+W’s bank account.

Don’t reinvent the wheel

Over the years we have built up a collection of helpsheets and explanatory videos. This is because I am lazy (although I prefer to think of it as efficient) and hate doing the same thing again and again.

If a client asks a question that we think may be asked a second time then the team don’t just answer the question once but they, or I, write a helpsheet so that we have a library of resources to help instantly.

What do you do to save time?

Tax Tip 

How to take dividends 

I see too many directors helping themselves to company cash and calling it ‘dividends’. But every payment out of the business should be accompanied by some sort of paperwork (or digital equivalent). For dividends you will need: 

  • Review of management accounts and forecast to demonstrate that their will be sufficient funds left in the business to cover future debts (HMRC are particularly keep on this!) otherwise the dividends are illegal 
  • Sufficient post-tax profit to cover the dividends (another reason they may be illegal) 
  • A minute of the board meeting voting for the dividend 
  • A tax voucher for each shareholder. 

We have templates for the last two and we can advise you on whether your bookkeeping is good enough for the first. Hint: if it’s not up to date then it can’t possibly be adequate. 

That which we call a rose by any other name would smell as sweet. Or would it?

I HATE it when people shorten my name! This isn’t the same as mishearing or misreading it but deliberately abbreviating it. My son, by contrast, hates it when people lengthen his name because they assume that it is a contraction of another common name.

Names are important to us. They are part of our identity.

This is why it is so important to remember people’s names. But what do you do if you have the memory of a flip flop?

A brilliant tip that I picked up is to repeat their name three times.

Beetlejuice. Beetlejuice. Beetlejuice?

This is what I try to do at networking events:

  1. When you are introduced to somebody it is simple to reply with “Nice to meet you Beetlejuice” (or whatever their name is)
  2. Then ask them a question using their name eg “where are you from, Beetlejuice?”
  3. Then introduce them to somebody else eg “Lydia, can I introduce you to Beetlejuice?” (This gets you brownie points for being a good networker too)

Tax Tip

Director’s responsibilities

Whilst it might feel good to be the director of your own company you have several responsibilities as directors under the Companies Act 2006:

  1. To act within their powers (in the articles of association etc)
  2. To promote the success of the company for the benefit of its members as a whole ie not benefitting one member above the company eg by allowing one director/shareholder to take out more dividends/loans that the company can afford
  3. To exercise independent judgement – you can take advice but must decide for yourself
  4. To exercise reasonable care, skill and diligence eg using a chartered accountant or professional bookkeeper if you don’t have those skills in house
  5. To avoid conflict of interest
  6. Not to accept benefits from third parties
  7. To declare interests in transactions

How to buy yourself more time

Having taken over a small practice I have been able to see the time saved by good practice management software.

We use Accountancy Manager but any decent practice management software will offer similar services

  1. A simple spreadsheet upload of all client standing data and services so everything is in one place (the PA from the new practice kindly provided this in the form of multiple spreadsheets which we merged)
  2. Engagement letters generated based on the services provided
  3. Engagement letters and accounts signed online
  4. Clients can update any missing information and changes of address in their standing data
  5. Automatic requests for missing data eg proof of ID or a UTR
  6. Recurring tasks set up automatically for each service
  7. Adding our own internal deadlines for tasks eg 3 months for accounts and 2 weeks for VAT returns rather than the 9-10 months and 5 weeks for the statutory deadlines.
  8. Automatic records request emails generated from those tasks and deadlines (all templates can be modified to suit your personal style)
  9. Time recording as the new practice still uses hourly billing
  10. Marking a task as complete automatically sets up the next occurrence
  11. Automatic links to Companies House to keep deadlines etc updated
  12. Generating confirmation statement reminders and submitting from within the software (a small handling charge on top of the Companies House fee)
  13. Tracking emails between clients and team members so they don’t have to CC me on everything
  14. Central repository of all information which helps as all the team are part time and even I am juggling two businesses.

It hasn’t been perfect (I’ll share my learnings/improvements separately) but it has been relatively smooth.

This technology has freed me up to ‘meet and greet’ the new clients as tech is still no replacement for human relationships.

Tax Tip

Higher income child benefit charge (HICB)

If you are receiving child benefit this may be restricted from £50,000 and withdrawn completely from £60,000. With two cliff edges to avoid here are a few things that you can do to legitimately reduce your income.

  1. Pensions. You (or your company) can pay up to £60,000 per year into your pension. This will save tax but can also reduce your income below the relevant limit. The downside is that this money is tied up until retirement.
  2. Charitable donations. Most people give to charity throughout the year but do take care to giftaid it where you can. These donation can save you tax if you are a higher rate taxpayer and also be used to reduce your income below the relevant limit.

Why it may be best to stay small

Small is beautiful. It’s also less hassle and much more agile.

As the sole director of my business I can hold my board meetings in the shower and, if I come up with a bright idea, I can often have it implemented by evening.

The downside of a small business is reduced cover for holidays and sickness. Especially if your business is just you. On the other hand even the best team will take up your time in managing their time and workload.

Before growing your business beyond you it is worth considering whether this will best suit your personal goals. Instead of taking on more clients and higher overheads you could look at taking on better clients and providing them with more profitable services. Before recruiting staff you could investigate software and other automation.

Bigger isn’t always best.