I’m a Line of Duty fan and one of the things that really impresses me is their evidence packs. It’s like an enhanced audit file where everything they say has supporting documentation.
I only wish that my own business documented everything as well. I’m pretty good at making notes and writing processes but often create a second document rather than updating .
Do you document all your processes for yourself, for new starters, and for possible automation? Do you download all email attachments to a separate document management system? I’d love to get some idea of how everybody keeps their client/customer information and their standard operating procedures.
As a chartered accountant I have to make sure that, if anything happened to me, another qualified accountant could step in and keep Minerva Accountants ticking over using my procedures and notes.
Is your paperwork good enough? Would your business survive without you?
No matter what age you are it is still worth thinking about how you will save for your retirement. And I don’t just mean saving your teeth.
There are 3 main ways that your business can fund your retirement:
1. Increase value of business for sale
If you have a valuable business this can be sold at the point of retirement to fund your new lifestyle. Your business value will increase if it is highly systemised and not dependent on you.
2. Systemise your business for residual income
If your business is highly systemised you can step out of it or just reduce your hours and still have a generous income. Whilst we often coach accountants and business owners who want to sell up, two of them have been so pleased with the process that they have actually decided not to sell yet as the revamped business operates so smoothly and takes less of their time. It’s a bit like doing up your house for sale and then deciding that you like it so much that you won’t move after all.
3. Increase profits to invest elsewhere
Some businesses have limited sale value as they will always be dependent on the expertise of the owner. In this case it makes more sense to increase your profits to invest elsewhere. Your company can pay into a third party pension scheme or SIPP very tax efficiently or you may prefer to take your profits out now, pay the tax and invest in property.
Whichever way you choose to fund or retirement, and whether you use us to help you to improve your business or not, please remember to take care of your teeth.