I’ve been working away in the frozen North aka Manchester. On one of the days I had a break between speaking engagements so I borrowed a desk from another forward thinking accountant, the lovely Stuart Hurst. We exchanged a few ideas on how we could each improve our accountancy businesses and look after our clients better.
Collaboration beats competition every time.
Who do you collaborate with?
The beauty of integrated apps
As you know I’ve just been on holiday. We stayed in 3 different towns/cities on the edge of the map! I had to download three different German maps to my satnav in order to drive a total of about 5 hours.
This made me think about how wonderful it is to use integrated applications for business (because I often think about my business when I’m not busy working in it!)
We are a Xero based firm so there are over 1,000 integrated apps available in the official app store and other unofficial ones too. The ones we use most are:
Gocardless – raise an invoice in Xero and it automatically collects the direct debits and matches the payment to the invoice so it saves bookkeeping time too.
Dext/Hubdoc – clients can scan/photograph/email invoices to upload them into Xero (also QBO or Freeagent) where they, or we, can do their bookkeeping. Dext is the most expensive but saves much more time with their OCR (optical character recognition) and machine learning changing the roll of the bookkeeper to checking rather than typing.
Clarity – this is a big hit with clients as we can help them to see their numbers in a simple format and decide how they want to grow their business. The software uploads the latest info from Xero (also Sage or spreadsheet) so that we can discuss the current situation and improvements. It then helps to prepare an action list for the client.
These are the most valuable integrations that we use. What do you have on your list?
Tax tip
Payments on account can add a large chunk onto the amount of tax that you have to pay. If your income is likely to be lower next year than this year then it may be worth reducing your payments on account and we sometimes do this for clients who are winding up their sole trader business or who are going through a hard time. But BEWARE! If you reduce your payments too low and the final tax bill comes out higher then you will have to pay interest on the shortfall. This is to discourage people from reducing their payments too far.
Success is not a solo sport
I like to think that I work hard but nothing that I have achieved has ever been done alone.
Both Hudson Accountants and now Minerva Accountants owe a lot to my fabulous teams. When starting out I learned so much from other accountants and coaches who generously shared their ideas and experience.
I have used a fabulous business coach to help me clarify those ideas and apply them to my own business. And to hold me accountable for getting things done!
I’m pretty sure that my books wouldn’t have won the awards they did without the skill of my publisher gently helping me to share my expertise in my own words but also in a form that is easy for you to read.
As a parent I was fortunate that my children had a wonderful father and, although I chose the traditional female role of primary carer, he did a lot to support me.
I’m currently doing Couch to 5k for the umpteenth time to recover my running fitness after my operation earlier this year. It’s the first time that I’ve done it with a group of people and it has been great for keeping me motivated on rainy evenings.
To everybody who has helped me along the way, a big thank you.
But what can I do for you? I provide individual and group coaching sessions which have helped clients to develop award winning businesses themselves. And, for those just starting out we have free webinars each month.
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?
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?
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.
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?
Making flexible working work
One way to recruit and retain good staff is to offer flexible working. Flexible in terms of hours and location.
Many people are uncertain how to make the change to remote working and struggling to recruit high calibre people. At Hudson Accountants we offered flexibility over hours and, to a lesser extent, location but Minerva Accountants is fully remote. So how do we do it?
Cloud software is a necessity but the less obvious key is to have good communication.
1. We use a shared inbox. As long as you use the hello@minervaaccountants.co.uk email address anybody can pick up the query or task even if the regular CAM (client account manager) is off. If it will wait until their return we use coloured flags to allocate the emails to a particular person. As well as ensuring that the best person can help with your enquiry it also reduces our digital footprint.
2. Emails are also logged by Accountancy Manager so that they are available to the whole team. We can each follow conversations. For this reason we prefer emails but notes are added of any telephone conversations.
3. We use a central receptionist to answer and allocate all telephone calls. We use VOIP (voice over internet protocol) and Webex phones to enable remote working.
4. We have a brief online call at 9am each morning to discuss what everybody is working on and if they need somebody else to do something to help them.
5. We meet up (in person if possible) once a quarter to review the results of the last quarter, plan our next three months’ targets, and spend a little time chatting.
Do you offer flexible working?
Tax Tip
Don’t forget to claim the VAT on business mileage.
You can’t claim VAT on the full 45p but you can claim on the fuel element. You can find out the current fuel element Advisory fuel rates – GOV.UK (www.gov.uk)
For instance my care has a fuel rate of 14p. This means that, for every mile, I can claim 14p *20/120 = 2.33p in VAT. There is no VAT on the remaining 31p as that is deemed to be for insurance, maintenance, wear and tear etc.
All you need to do is to keep a VAT invoice* (not a credit card receipt please!) for fuel around the date of the journey ie when you you fill up before or after the trip.
*If you’re interested then it’s because the 45p is an allowance and EU/UK law states that you can’t claim VAT on allowances. The EU did one of their usual accommodating moves and agreed that, as long as there was a valid VAT invoice for fuel around the same date (eg filling up before or after the mileage) then the company could claim VAT on the fuel element of the 45p.