Tag: business advice

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Should you be delegating more? 

The answer is almost certainly yes.

There are certain things that only you can do in your business but there is probably a lot of admin or other work that can be delegated to somebody ‘cheaper’ than you.

When coaching busy clients I recommend that they keep a timesheet for a couple of weeks. This can be on paper or using one of the free apps such as Toggl.

At the end of the fortnight look at all the work that isn’t profitable.

-If it is for a client should you be charging more or perhaps somebody else can do the work instead?

-If it isn’t customer work then is it the sort of thing that somebody else can do instead (next week I’ll talk about who you might delegate to)

-If it is work that you don’t enjoy then it might make sense to delegate it anyway. This is the main reason we encourage clients to delegate their bookkeeping to us as we can do it faster, and better, and we have people who actually enjoy the work.

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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? 

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Tax tip

Paperwork (or the digital equivalent) is important

If you are running a limited company it is important that you don’t take any money out of the business without the correct paper trail. The company is a separate legal entity from the director/shareholder. It’s a bit like taking money out of your mother’s purse without permission.

The sort of paperwork you would need is:
– Salary needs a payslip
– Dividends need a minute and a tax voucher (contact us if you need a template)
– Interest payments (if appropriate) need a form CT61 filed with HMRC
– Expenses should be accompanied by receipts and a mileage log
– Pension payments should be paid directly to the pension provider

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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?

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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?

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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)
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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
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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.

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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.

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More than one tool in your toolbox

When it comes to improving your business you need to have more than one tool in your toolbox.

Although we often start with getting the pricing right we also like to look at other things. My books give you some examples of these but they are broadly:

Efficiencies – implement systems, checklists, automation and delegation

People – get the right people in the right place, suitably trained and equipped, and all pulling in the right direction

Marketing – a baseline level of marketing going on at all times so that you have clients/work already lined up for quieter periods

What else do you do to improve your business?

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