Not too much, not too little, but just right.
If you’re reading this then you’re probably like me and read/watch a lot of other business advice books and other resources. Some appear to repeat the same ideas and other appear to offer exactly the opposite suggestions and sometimes it can be hard to figure out what is right for your business.
Should I invest in this course/software which will all but guarantee success or should I save my money and bootstrap? Although I’m generally in favour of wise spending I often have bootstrap moments.
Should I work longer hours just to ‘get ahead’ or would I be better off spending quality time resting like an athlete recovering from a sprint. After all, you can’t sprint a marathon.
You are not the same person as me and your business is not like mine. Mentoring can only get you so far by sharing my expertise. That’s why I’m so pleased that my qualification is coaching AND mentoring. People come to me for my expertise as a mentor who has been there, got the t-shirt and even written the book but the coaching techniques help me to focus on YOUR business for maximum impact. Together we can stop any prevarication, financial waste, and work out the best strategy and actions for your business.
When you’re running your own business it’s too easy to get bogged down in the day to day which is why I also use a business coach to help me view my business more objectively. So far, so good.
What else do you do to devise your business strategy and to keep on track between too much and too little, too sweet and too salty?
I want you to pay more tax
If you make more profit you will usually end up paying more tax BUT you also get to keep more for yourself so everybody wins.
Whilst Minerva Accountants is mainly about the compliance work of keeping businesses legal and providing management information the main business, Hudson Business Advice, is about helping business owners to build a better business.
Whether you want more profits, more time, or to increase the value of your business prior to sale you need to do the same sort of things,
– Systemise the business so that it can run independently of you and can be scaled more easily
– Automate where appropriate as this will minimise manual errors and save time
– Let go and delegate, whether to employees, outsourced services, or experts
You can come along to our free webinars or join me on one of our courses or group or individual coaching. The accountability ensures that you will take action to improve your business. And pay more tax.
Late payment? It’s just not good enough!
Most of my clients pay me by direct debit on a monthly contract but I recently took on a speaking engagement at short notice to help somebody out. It was a substantial fee but there wasn’t time to take a deposit so I squeezed in 4 days of preparation, rehearsal, travel, and delivery before I finally invoiced the full amount.
When the due date passed I sent a polite automated reminder from Xero and then rang the organiser in case there was a problem with the invoice. Just as well because it turned out the bookkeeper had paid the wrong person!
Mistakes happen and the other supplier who received my payment had immediately notified my customer. But the company hadn’t bothered to contact me to explain or to offer any apology.
This made me ‘a bit grumpy’ but I got even grumpier when I had to keep chasing each week. This was definitely not a business that I wanted to work with again. I always pay my own suppliers promptly as they are usually small businesses like mine.
So, as the law allows, I raised an invoice for interest on late payment of 8% over base rate plus £70 debt collection charge. Eventually the original invoice was paid and, after further chasing, the penalty invoices were paid too.
Even if people know that they are entitled to claim this interest and debt collection charge not many people actually bother. And many cancel the interest once the main invoice is paid. Why?
It is important to ensure that small businesses are paid promptly and part of that is making it more painful for the defaulters than for the unpaid victims. Let’s all make sure that we charge interest and collection fees so that we gradually get larger businesses to comply with their agreed payment terms.
Details of your payment rights are here.
Paperless at last!
Finally we’re a 100% paperless office. A nice man came and took all my archives for bulk shredding yesterday. I’m now giving away so much stationery that I’ve accumulated over the years of three businesses.
Top tip with going paperless is to start TODAY as the old stuff will work its way out in 6 years and you can get it all securely shredded in bulk as we did. We didn’t waste time and money scanning paper just to archive it. The fact that we’ve never looked at them since shows that this was the right decision.
We scan anything coming in and save it in the appropriate client or admin file. We sign everything online and have Signable for anything that doesn’t get signed through our accounts/tax software.
I have no printer. In an emergency I can take a USB to my local post office and pay 50p per sheet. (It makes me laugh that ICAEW needed to approve my letterhead before granting my practising certificate.)
What’s holding you back from going paperless? Or have you already done it?
Pricing for the hassle factor
I’ve just received an email from my web hosting company to say that they will be charging me more.
The reason is that two of my websites use software that is about to become obsolete so the hosting company will charge me an extra support fee from 5 February unless I upgrade.
This software has a two year life so I’ve already upgraded it once with the help of the hosting company (Fasthosts provide much better support for the tiny monthly fee that I pay them and they’re lovely to deal with). It’s not too difficult but I imagine that many people just ignore a simple message that their site will be unsupported. This way I have a financial incentive to make sure that I do the upgrade promptly. And, if I don’t, the hosting company get some extra income as they’d probably end up sorting out the mess anyway.
Which reminded me that, although Minerva Accountants is supposed to be a Xero only business, we do have one client using an older cloud bookkeeping software with less functionality. This means that we’re unable to offer as good a service. Of course I justified it to myself at the time but now, with the benefit of hindsight, I realise that I was wrong and should have followed my own advice! So I’m going to offer to help my client to migrate to Xero for a better service or to increase the fee to support an ageing app.
Where have you broken your own rules and regretted the lack of efficiency? Should you correct this even if it means losing the client?
How about joining one of our strategic planning days to streamline your business for 2023?
This year we’re running two (although you can join either one). Fri 27 January will be for any business and Wed 22 February will focus on accountants/bookkeepers. Find out more here.
Connecting with people
Have you read ‘The 5 Love Languages’ by Gary Chapman? He talks about the 5 main ways that people demonstrate their love and how they prefer to receive love. It can be applied to all sorts of relationships including parenting. My favourite is acts of service, so I like to do things for people I care for, hence the cooking. I’m not a great gift giver so those thoughtful people who show affection by giving beautifully wrapped gifts probably think I’m a bit reserved.
As always we need to understand how other people view the world so that we can communicate with them in a way that they understand.
How do you make big decisions?
Some people make quick decisions and some people prefer to take their time. Some people make good decisions and others not so good. In my experience the amount of time taken to reach a decision doesn’t show much correlation with the quality of the decision.
When faced with big decisions what do you do?
I usually make a list of pros and cons to be sure that I’ve considered everything and then discover that the length of each list reflects my subconscious preference. So, for me, this is a mixture of a head and also a heart decision.
I can work out any numbers but, like most accountants, I can usually make those numbers support my decision by tweaking the assumptions. This is why I don’t believe it’s worth spending too much time on projections because I can control the inputs to get the results I want. On paper at least. (It is still worth doing rough projections to ensure that you’re not way off target)
When it comes to business decisions I compare the possible outcomes with my initial business objectives to see which will get me closer to my goal. This has proved to be quite reliable in the past.
Another way is to spend 24 hours imagining that you’ve taken option A. This helps you to clarify the implications of that choice as well as to understand how you are likely to feel. Then spend 24 hours imagining that you’ve taken the alternative. This gives insight into which choice will make you happier.
How do you make decisions? Logically or following your gut instinct?
Why Monday morning made me sad
I recently decided to make a concerted effort to stay on top of my emails. Not an Inbox Zero exercise where you just hide them in different folders (I tried it and out of sight is definitely out of mind for me) but actually dealing with them. As part of this exercise, I started measuring how many emails I have in my inbox when I log on in the morning and how many I have at the end of the day. Of course more emails come in throughout the day too but I don’t currently measure these.
It is quite alarming how many emails come in outside of conventional office hours!
Some of these are automated or from clients and colleagues in different time zones or people who, like me, choose to work odd hours but most are not.
And far too many people were working over the weekend so my inbox was jammed when I logged on on Monday morning.
If you’re one of these people and you’re working through necessity rather than choice then I really wish that we could talk. I’ve always run my businesses on an average of 25 hours per week and it breaks my heart to see people working long hours and missing out on family or personal time when I know I can help them.
We have all sorts of options from individual coaching to group coaching and online courses. If you’re really strapped for cash then I run free webinars and write books but frankly, most people don’t take action without a coach of some sort to motivate/nag them.
Have a look at hudsonbusiness.co.uk to see what we have available for accountants/bookkeepers and other business owners and make your business work for you in 2023.
Confidentiality comes as standard
When I joined ICAEW as a trainee accountant sometime back in the dim and distant past I signed up to a code of ethics. Like most accountants I take that code of ethics very seriously as I believe it is part of being a professional. Amongst other requirements was confidentiality. Everything is confidential so the extent that ICAEW suggest that I shouldn’t even share the names of my clients without their permission, let alone information about their business.
So it was quite a surprise when a prospective client asked me whether our conversations would be confidential. It felt a little like somebody asking whether I like tea (I’m a self-confessed tea addict). It is something so ingrained that I hadn’t even realised that lay people may not know this.
Which got me wondering what else we don’t share as we take it for granted.
We’re so busy focusing on what differentiates us from our competitors that we forget some of these other positives that are shared by many of our competitors.
Anyone can call themselves an accountant, but ‘chartered accountant’ is a protected title in law. I’m proud that I’m not just a chartered accountant but a Fellow and also an elected member of ICAEW Council helping to shape the future of the profession. But we need to make more of this.
Most professional accountancy bodies have similar codes of ethics whereas unqualified accountants or those not belonging to any professional body are not bound by any such code but dependent on the individual’s personal integrity. We’re supervised by our professional bodies so clients have recourse if they believe that we have failed to live up to those standards. We are required to undergo checks to ensure that we are ‘fit and proper’ persons. And we are also required to have professional indemnity insurance in order to protect our clients in the event that we make a mistake.
I have also signed up to a code of ethics as a member of the PSA (Professional Speaking Association) which means that I pay for copyright to use pictures on any slides so that the event organiser won’t be sued. Similarly for any music and videos I use in my talks. It’s not something that most speakers think about and they may not even realise the importance of paying royalties to the creators of those media.
What mundane things do you do instinctively to protect your clients? Can it become part of your marketing?
I am strong but I am tired
| It happens to most of us at some point. November seems to be a busy month for me these days and I’m getting used to it. In the same way that December was busy when I ran a bigger accountancy practice alongside having to do all the family and school Christmas stuff. Many accountants extend this busy period into January too. There may be other busy periods in your life due to business or home peaks. If you know they will only last for a short period then it is okay to power on through. (It is NOT okay if busyness is the norm!) It is okay to feel tired. It is not a weakness. So here are a few tips to get through busy periods. Not all of them will be possible but hopefully one or two will help you. 1. Plan ahead and clear the decks as much as possible beforehand 2. Update your systems and processes in the quiet periods to make your busy period as easy as possible. This is why we run two strategic planning days in the new year. January for business owners and February for accountants (Check out our website or reply to this email for more info) 3. Learn to say “no”. If it doesn’t have to be done in your busy period then say “no” or “later”. 4. Balance your whole load. If you are having a busy period at work then be gentle with yourself at home. Your family can survive on oven meals for a short period and they may even see it as a bit of a treat. Your housework will also wait for you or get your kids to help out (it’s probably better than nothing and will train them for later life) 5. Ask for help. This may be from family, friends or employing extra help. 6. Buy extra time. I have two wonderful cleaners who work wonders on my home once a week so that I am free to get on with my work or to do something for me. 7. Try to take some rest and time for yourself. Even in your busy periods try to take at least one day off for you each week. And remember that working late will leave you too tired to work productively the next day so better to finish a bit earlier and get a good night’s sleep. 8. Remember to eat, sleep, hydrate and exercise to keep yourself as strong as possible. 9. Find a way to relax quickly. What are the quick, simple pleasures in your life? I like a bubble bath or a walk by the sea or a massage (anyone else get tense shoulders hunching over their desk?). None of these need to take much longer than 30-60 mins but they make a world of difference. Please feel free to send me any other tips for this list. |