Till systems have changed since I had a little cash register as a child. These days they usually run on a tablet. They may include an integral card payment system or have a small palm sized device attached. The local Clover salesman did a good job in the area and we help clients to keep their VAT and stock records using the software. It integrates into Xero and other bookkeeping apps to save time and minimise errors by typing numbers from one system into another.
Xero in your hand
As accountants we’re usually sat in front of a computer and use Xero that way.
But as a business owner I’m out and about working from all sorts of places and I love the Xero apps.
The main Xero app is great for uploading receipts for expenses. Just snap and code as you go. If I receive any invoices by email I can forward them to my Xero files email address and then finish off coding when I get a moment or when I get back to the office.
I can raise invoices on the go. If I’ve written an article for you on the train I will usually raise the invoice from my phone at the same time.
I can reconcile my bank each morning I’m away so that my clients don’t get automated chasing emails when they’ve just paid me by bank transfer, card, or direct debit.
But, most importantly of all, I can see my profit in my hand.
The other Xero app I use on my phone is Hubdoc. This is like Dext but free to Xero users and perfectly adequate for us or any client with lower volumes of invoices. It’s another snap and go app. If you can take a photo of your kids on your phone then you can use Hubdoc. We capture the receipt instantly before it gets lost and then do the coding later from a proper screen/keyboard.
Xero Go is a new app for small businesses. This has the same invoice upload functionality and bank rec but there is an additional charge for raising sales invoices. It suits small landlords or those with a separate invoicing system. As an accountant we can still help our small clients but they don’t need to pay for the full Xero package.
What other useful apps do you have on your phone?
Tax Tip
Don’t forget that corporation tax rates increased to 25% from 1 April this year for business profits over £250,000. If your profits are below £50,000 then you still pay tax at 19%. If your profits lie between £50,000 and 250,000 then you pay a marginal rate of 26.5%.
So how does this work if your year end isn’t April?
Say you have profits of £300,000 for the year ended 30 September 2023. 6/12 of your profit will be taxed at the old rate of 19% and 6/12 will be taxed at the new rate of 25%.
Although we have software that works this out for us we still do a quick calculation to double check that we have input everything correctly.
Is remote working right for you?
Gone are the days of everybody in the office. Since covid most businesses operate some sort of hybrid system but I’ve been working remotely since 2017 and, although my old business had physical premises, we all had the ability to work remotely since 2012. We also all work different hours to suit our lifestyles.
So how do we make this work?
• We run a paperless office. All clients have access to a secure portal or they can email things if they prefer. Most clients are on cloud based software and they can upload invoices etc using Dext or Hubdoc.
• All our software is cloud based and we can all access documents remotely on our shared Onedrive.
• We have a virtual office where we can receive mail from HMRC which is scanned for us to log into our system.
• All engagement letters, accounts, and tax returns are signed electronically using XeroTax or our secure portal.
• We all have VOIP (voice over internet protocol) phones which can be answered via an app on our laptops or on our mobiles.
• We all have laptops rather than PCs so we can work when travelling. (Although I find it much easier to have two screens when I’m in my home office)
• Our calls all come into a central answering service who act as our receptionist and distribute calls to named individuals or according to who is working that day.
• We have a shared email address where everybody can see what is going on. These are flagged by colour to indicate who needs to deal with them.
• All incoming emails are automatically copied to the client account on our practice management software, Accountancy Manager. When a client calls up, or when we are working on their accounts, we can see what emails and notes have been made throughout the year.
• All deadlines and tasks are held on Accountancy Manager so that we can see who is working on what.
• We have an online meeting at 9am each morning for whoever is working that day. We discuss what we will each be working on and if anybody needs information or help
• We have a face to face (where possible) planning meeting and brunch once a quarter to plan the next 90 days.
• We don’t have a printer. On the very rare occasions when we need to print something (usually a letter to HMRC) I have to take it to the local post office on a USB stick. This is the only thing that isn’t easier!
• We contact clients by email, telephone or Zoom depending on their preference.
Remote working gives us all the benefit of better work-life balance and saves us commuting time. For me it means that I can work around the country when busy with speaking engagements or ICAEW meetings. The money saved on offices is invested in modern software to improve communication and efficiency within the business.
Do you prefer to work remotely or from a shared office?
An accountant you can trust
The latest Edelman Trust Barometer was published on Wednesday to coincide with Global Ethics Day and revealed a significant increase in trust in Chartered Accountants in the wake of ongoing economic uncertainty.
The research, commissioned by ICAEW in conjunction with Chartered Accountants Worldwide (CAW) and other professional bodies, found that globally trust in Chartered Accountants has reached 85% and is the only profession – aside from nursing – to have seen an uplift in trust. In England, 89% of respondents said they trusted Chartered Accountants
What a fabulous accolade, thank you to everybody who trusts chartered accountants like Minerva.
Hope isn’t a business strategy
I see too many businesses set up full of hope but not much of a plan. We run strategy days for all sorts of business owners, including accountants, where we look at the following:
- Services offered and what problems these solve
- Business size and growth objectives
- Geographic scope
- Target market and competitors
- Unique selling points
- SWOT analysis
- Financial plan (high level)
- Personal objectives of the owner
It is particularly important that you know how to identify your ideal client, how to approach them, and how to serve them so that they keep you coming back for more and referring you to everybody they know.
Once you’ve got this knowledge you need to ACT on it because hope alone won’t get you the business that you want.
So go ahead and think about your strategy or book a strategic planning day with us.
Tax Tip
When we complete annual accounts here at Minerva we carry out a simple tax review for all our business clients. We can then contact them if we think they’re not taking advantage of all the obvious reliefs:
- Would they be better off (financially) as a limited company or a sole trader/partnership?
- Do they need to register for VAT? Would there be any benefit to registering voluntarily?
- Does their spouse or child work in the business or could they be a shareholder?
- Salary, dividend, pension? Are they taking £ out of their business in the most tax efficient way possible?
- Are they approaching the £50-60k band for repaying child benefit?
- Do they need to be saving for a pension? (Our All In Place review goes into this in more detail)
- Should they receive interest on money that they have loaned to the business?
- Are they claiming for use of their own home for business purposes?
- Are research and development tax credits applicable?
- Could they register for EIS/SEIS to encourage investors?
How to tell if your prices are too low
If you’re crazy busy all of the time, not just at peak periods, then it is probably because your prices are too low. You can either increase prices to make fewer but more profitable sales or you can raise your prices enough to increase your workforce.
The other way to know that your prices are too low is if nobody ever says “no”. If everybody you quote says yes, or if nobody bounces when they see your prices on your website, then you probably have scope to increase them.
Tax Tip
EIS/SEIS refer to the (Small) Enterprise Investment Scheme. This can be a tax efficient way to invest in a small business or for other people to invest in your business. The idea is to help early stage start ups to raise capital.
Individuals can invest up to £100k per year in qualifying companies and receive up to 50% back in tax relief. There are also benefits for capital gains and inheritance tax relief.
The difference between spending and investing
Oscar Wilde once said that “The cynic knows the price of everything and the value of nothing” and this is often true of accountants who are associated with cost cutting.
Here at Minerva we prefer to see spending as investing. What do we get in return for the cash?
As a small business ourselves working for small business clients it is important that every pound we spent generates future value. It’s why we invest in things such as marketing, training and business coaching (yes, as well as being a qualified business coach I also see the value of using a coach myself). These are things that many business owners see as overheads but, spent wisely, that can help to generate future profits through growing your business or operating more efficiently.
What is your wisest investment in yourself or your business?