Category: Business

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Implementing a CRM system in your business 

Once your business outgrows you and a few contacts on your phone it is worth implementing a proper CRM (customer relationship management) system. 

  • Register with ICO (Information Commissioners Office) and pay the necessary fee. This will vary with the size of your business but starts at £40 per year. Ensure that you record all the ways that you will use personal data. 
  • Choose a CRM system that suits your business needs. Do you want to track prospects or to hold more detailed information for existing customers. DO you need to include tasks and workflows? Do you want it to integrate to your emails or a a bulk mailing system? 
  • Give all your team access to add, update, and generally use the system. This will ensure that they are informed before all client contact. 
  • Regularly update and maintain customer data. This is one of your responsibilities under GDPR but it also makes sense for the business to hold the lates information 
  • Use CRM analytics to improve customer relationships and to track which marketing campaigns are most effective 
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Tax Tip – Recharging expenses vs disbursements 

If you pay for something on behalf of your customer and then invoice it to your customer you may be able to treat it as a disbursement. This will be an advantage if the supplier doesn’t charge VAT or if the customer can’t reclaim VAT.  

When invoicing disbursements to your customers you don’t add VAT and you can’t claim VAT on the purchase because you are acting as an agent. 

A disbursement must meet 8 conditions. VAT: costs or disbursements passed to customers – GOV.UK 

Most business purchases are expenses, not disbursements, and you should add VAT to the amount that you invoice to your customer. You can also reclaim any VAT that you pay your supplier. The amount you charge your customer is a commercial decision so it may be the cost, or the cost plus a mark up, or any other amount that you agree. 

Some examples of costs that are usually recharges and not disbursements: 

  • Train ticket to visit your client or to travel as part of their job. You should add VAT to any recharge because the flight is for you and not the client. 
  • If recharging postage to your customers you should add VAT even though postage is usually exempt. 

The most common recharge we see is mileage. You can claim the standard mileage allowance (usually 45p but see mileage rates: https://minervaaccountants.co.uk/tax-tip/tax-tip-38/) and reclaim any VAT on the fuel element. When recharging this to the client you would add VAT to the rate (which may be 45p or something else) that you have agree with them 

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How to get funding for small businesses

A compelling business plan – we’ll cover this in a separate article

Track record of success – if you have a successful business it is much easier to find investment. Showcase your achievements and get third party evidence in the form of profitability, awards, and testimonials. The lack of a track record is why it is harder for startups to get investment. Success of your founders in other fields will help.

Highlight your unique selling proposition (USP) – what makes you unique? How are you different from your competitors; preferably in ways that they can’t easily replicate.

Growth and profitability prospects – have a viable plan and, preferably, a pipeline.

Build a strong online presence and network – this is becoming more and more important as people seek validation online or from their network before purchasing or investing.

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Till systems with stock control 

Gone are the days of huge cash register full of … cash. These days most banks charge to bank cash (if you can find a branch) and HMRC definitely prefer electronic payments and traceability which leaves cash based businesses mainly desirable for money laundering. 

These days businesses are moving towards a simple tablet loaded with software like Clover that tracks stock as well as sales and card receipts. No more cashing up at the end of a long day. No more counting pennies and trying to agree everything to the z-listings. Instead the bookkeeping for sales, receipts, and stock is automatically linked to your accounting software with Xero effort. 

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Why bookkeeping software will help with MTD 

MTD (Making Tax Digital) will require businesses to keep digital records and to make quarterly submissions to HMRC. Clearly using bookkeeping software will help businesses to comply with these requirements but there are all sorts of other benefits that will help to offset the cost. 

  • Professional looking invoices (and quotes) emailed to your clients 
  • Recurring invoices emailed to your regular clients automatically 
  • Link to your till system to save you keeping scraps of paper and Z readings 
  • Links to your bank statements to save you typing in the information manually. Linked with AI to suggest the bookkeeping 
  • Link to card payment system so that you can get paid before leaving site and no need to chase invoices 
  • Link to DD collection system so no more debt collections calls 
  • Scan your bills and expense receipts and use AI to suggest the bookkeeping 
  • Remote access for client, accountant, and bookkeeper to keep everything up to date and to access that information 
  • Up to date information at your fingertips for management decisions, dividends, and loan applications 
  • Up to date information for cheaper/faster year end accounts preparation for shareholders, investors and loan/mortgage applications 
  • Link directly to loan application systems for faster finance 

Exactly what is available will depend on the cloud software that you choose but these are all fairly common features so why would you spend more time trying to work around the requirements? 

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Show me the money 

Spring seems to have brought renewed optimism and, in spite of macro economic conditions, many of our clients are looking at expanding their businesses. Business confidence in the Southwest is generally positive. 

Here are some useful links for businesses seeking finance in the Southwest. 

  • Founder Catalyst creates all of the legal paperwork and helps founders to manage investor engagement. 
  • Meet the Funder South West – Engine Shed and British Business Bank collaborate to share conversations with funders. 
  • Considered Capital is a great place to start if you’re not interested in equity funding. 

We are also happy to make introductions amongst our client base and other connections where appropriate so do let us know if you’re seeking finance or fancy investing yourself. 

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Tax Tip – MTD for self assessment 

The Spring budget announced an extension of the MTD scheme to £20k income businesses from April 2028. The limit applies to your total income (not profit) from sole trader business and rental properties. 

We are encouraging our clients to be ready from April 2025 so that we have a year to get used to the quarterly deadlines and keeping up to date digital records. For any clients that we put onto the scheme early we will have access to a dedicated MTD team to iron out any glitches.  

The official dates and limits are: 

April 2026 £50k 

April 2027 £30k 

April 2028 £20k 

TBC limited companies  

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How to avoid burnout 

We seem to live in a real hustle culture where working longer hours is seen as a good thing. As you know I’m a great believer in using technology or delegation to work more efficiently in a shorter period of time. But sometimes we still go through intense periods of work. 

  • Set yourself realistic goals and timescales. Unless you have a TARDIS you can only do so much in a particular time period so you may have to settle for 80%. Decide which 80% is the most important. 
  • Take regular breaks throughout the day to eat properly and exercise or just walk around the block (in daylight hours if possible but moonlight is better than nothing) 
  • Practice self care and relaxation techniques. I find that repetitive exercise doesn’t just help my body but also gives my mind an opportunity to relax and unwind. Exercise endorphins are also legal drugs! Don’t make yourself work harder than you would expect of your team. 
  • Recognise the signs of burnout early and change your behaviour sooner rather than later. 
  • Get support from colleagues or a business coach to help you set realistic goals and to give you some accountability. One of my coaching clients had a goal to lower her golf handicap which meant getting out to play/practice regularly.  
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Tax Tip

As we go into the new tax/payroll year don’t forget to tick the box to claim your Employment Allowance to offset your employers’ national insurance. From 2025/26 this is a maximum of £10,500 per year.

Most small companies can claim unless:

  • You have just one director and that director is the only employee above the secondary class 1 NI limit (currently £5,000pa from 2025/26)
  • If you have a group of companies then only one company in each group can claim the allowance.
  • If more than half your work is in the public sector then you can not claim the allowance.
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How much cash should I keep in my business?

Another question to which the accountants answer is … it depends.

It depends on your cashflow forecast and the likelihood of all the money coming in on time. Next week I’ll give some tips on what to include in your cash flow forecast if you’ve never done one before and also some software recommendations if you need to prepare regular cash flow forecasts.

The general guideline is to keep instant access to a minimum amount that is enough to cover 3 months of costs.

If you’re a pre-revenue startup dependent on funding (common in the tech sector) then you will also want to track your run rate. This is the number of days’ cash that you have in your business. Work out your average daily costs and divide your cash balance by this amount.

If you are holding over £50k on deposit then Allica Bank are currently offering some good deals (they’re not paying me any commission 😉)

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