Tag: businessgrowth

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How to automate your business processes 

Start by identifying the most repetitive tasks, or the repetitive steps of larger tasks.  For us that is the accounts production, bookkeeping, onboarding new clients, and chasing client records. 

Choose the best tools for you. This may not be the same as for another business. For instance, we wouldn’t use the same tools as a large accountancy practice as we have fewer clients, a smaller team, and our clients’ needs are much simpler. 

We use (mainly) Xero for our client bookkeeping which means that we can use Hubdoc, Apron, or Dext for our clients to upload their invoices digitally. XeroTax fits smoothly onto our Xero clients or we use Xero Ledger for those clients not already on Xero. We have two different working papers for limited or unincorporated clients. The danger with small clients is that the checking can often take longer than the actual accounts production so we try to simplify this as much as possible. Onboarding, and the interminable task of chasing clients for records, is done through Bright Manager. 

Train your team to use the software. Xero provides free training and certification for accountants which enables us to get the most out of the software. We create our own training videos for clients. Bright Manager has some training but we rely more on our own internal videos. 

In line with our continuous improvement mindset we keep trying to get more out of our existing automation and to keep an eye out for other automation that can help us. 

Automation is great but never forget to have a human being available when necessary. 

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Plan your business like a marathon 

Building your business isn’t a sprint but a marathon. It takes a bit of planning. 

  • Plan – find a plan that is right for you. Right for where you are now, where you want to be, and how much time you have available 
  • Track performance – what KPIs will show that you are on track? These should be things that you can control such as how often you train each week, rather than how fast you will be by a certain date. How many times do you need to show up on line each week? How many networking events? How long do you need to write for each day (and do you take weekends off?) to complete that book? 
  • Track your progress – each time you run a longer distance or a faster time record this PB (personal best). In business this might be tracking your GRI (gross recurring income), your record month of sales, number of clients, average fee etc. 
  • Invest in the right equipment – a good pair of trainers (and the right sports bra) can make your training so much more comfortable. Have the right people and technology to maximise your chances of success. 
  • Running partner/group – these will provide moral support, accountability, and they will run alongside you as you each focus on your personal goals 
  • Coach – as an athletics coach as well as a business coach I can’t recommend this highly enough. Somebody with technical expertise, moral support, and accountability will help you get to your destination faster. 
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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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Why do we have an annual price increase?

Once a year we increase our prices across the board. This is in addition to increasing/decreasing prices as clients increase/decrease the services that they need from us. As most of our clients are on annual fixed price agreements that they pay monthly they aren’t affected immediately, others are increased from 1 April.

But why do we have an annual price increase?

We have a fabulous team and I want to make sure that they are rewarded accordingly so we pass on the same increase to them as a pay rise. Our software and other costs increase throughout the year so we need to ensure that we cover these in order to retain our margins and stay in business.

As business advisers we also advise our clients to review their own prices annually.

If costs are tight it can be tempting to cut corners on the necessary work or to take on too many clients in order to cover our fixed costs. The resulting reduction in service would not be in the best interests of our existing clients.

When was the last time you reviewed your prices?

If you’d like more information about how to go about reviewing your prices then have a look at our pricing course.

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How to create a budget for your business

How to create a budget for your business

Businesses and individuals with plans are more likely to achieve those results. But how do you go about it?

  1. Personal objectives – the objectives of owner managed businesses are often a subset of the owner’s personal objectives.
  2. Business objectives – what do you need from the business to meet your personal goals?
  3. What products/services do you have to sell?
  4. Who is your ideal customer?
  5. What do you know about your competition and how you can differentiate yourself from them?
  6. Sales plan – what and how much do you need to sell? Is this realistic?
  7. Investment plan – What investment do you need to make in staff, training, marketing, equipment, and technology
  8. Will this achieve the desired results?
  9. What actions do you need to take (and when) in order to stay on track to meet your goals?

You can do this on your own but, if you’d like more help, then we have a budget workbook and accompanying videos.

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Do you really believe your CSR?

Happy new year! 

Sustainability. Do you do anything about it or just talk about it? 

Current breakfast view is offices that have their lights on 24/7 (even over the Christmas shut down) when nobody is there. I’m far from perfect myself but this seems like an easy action. 

We moved into the centre of Bristol in time for Christmas. This enabled me to make some positive changes. 

I have sold my car! It’s a big lifestyle change and I’ll still need to hire a car sometimes (Enterprise run a car club where we can hire by the hour/mile). Public transport is far from perfect but I’ve always preferred to use it (or to walk/cycle) when possible. That’s now much easier in the city than it was in rural life.  

We also have incredibly fast broadband so, while I can walk/train/bus to more meetings in person, it is also easier to run online meetings. Since covid more people have a suitable set up for this and Minerva Accountants is run remotely (apart from our 90 day planning sessions which are usually in person). I like seeing people face to face but a Zoom/Teams call saves lots of travel time which also increase productivity. 

I know I’ve still a lot to improve as I do like to travel but I’m keen that we shouldn’t miss the easy things. Are there any simple improvements that you can make? 

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How to work faster 

Why do some people work faster than others? Sorry, I have no idea but I did hear of a study that discovered that manual work rates could double between slow and fast workers. The more complex the work, the higher the multiple so that a software engineer might be 16 times faster than a peer.  

When I set up my first accountancy business my plan assumed that everybody worked at the same pace as me. When I started recruiting (good) staff I found that this wasn’t the case and that I was a lot faster than others. I had to adjust my business model accordingly. We still keep approximate timesheets to track individuals’ work rates for planning purposes. 

So how can you help slower workers to speed up? 

  • Have proper processes so that everybody knows the most efficient way to do things 
  • Training and processes help people to get started sooner on each task with less planning time 
  • Help them to find the best time of day and working environment for them to do their ‘deep’ focused work and fit simpler tasks around this 
  • Build in controls and reviews so that faster work doesn’t become sloppy work 

When building your business cost model consider cheaper, slower trainees/junior staff vs more expensive but faster qualified/senior staff. When could you use different staff? 

Plan your work and your resource accordingly. Most of our accounts work is carried out by other members of the team and I only review it. This also means that all year end accounts have the benefit of at least two sets of eyes. BUT if a client needs something quickly, I often do it myself. The costs are passed on to the client if the extra speed is needed because they have delayed. 

Any other ideas on how to speed up work rates? 

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Are you running a profitable business?

Are you sure?

What if you had to replace your own time with a suitable qualified/experienced alternate salary? Would you still be making a profit then?

Whilst I’d like to think that the answer is ‘yes’ there are a few reasons why it might not be the case.

  • You might be prepared to accept a lower ‘salary’ (perhaps a mix of salary and dividends) in exchange for more flexibility or being your own boss. Make sure that you don’t lose more income than you are intending.
  • You might be in a start up or growth phase of your business when you are working longer hours than expected. Make sure that this doesn’t go on too long or you may burn out. If you’ve been in business for over three years and aren’t happy with your profitability per hour then it may be time for some business advice.

I see far too many business owners (including accountants!) earning less than minimum wage. You may be doing something you love but you also deserve to earn a living from your work.

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Tax tip

Furnished holiday lets 

Back on 6 March the Conservative Spring Budget announced the FHL (Furnished Holiday Lettings) scheme but failed to included it in the Finance Act. 

On 29 July the new Labour government confirmed that they would proceed with this by publishing a policy paper and draft legislation. This is still not law but likely to become so. The key points are: 

  • Withdrawing capital gains tax relief on gains from trading assets 
  • Withdrawing corporation tax capital allowances  and allowing replacement of domestic items relief 
  • Restricting finance charges and interest to basic rate of income tax 
  • No longer including FHL income when calculating relevant earnings for pension relief 

There is anti-forestalling legislation to prevent advance action between 6 March 2024 and the effective date on 2025. This means that it is probably too late to take any action to mitigate the tax impact but please talk to us if you are affected. 

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What do you value?

Struggling to write this today as I hide in a café in the village while a house clearance company dispose of 14 years of my life.

But I’m a natural optimist (and the future is looking very good once I’ve waved goodbye to the memories here) so it’s easy to see the silver linings.

I’ve always believed that people are more important than things and so it was a no-brainer that I would choose to run my first business on just 25 hours per week so that I could spend time around my kids as they were growing up. I also worked from home until the team grew beyond 5 people and we had to take on external offices in the next town.

Working on limited hours meant that I soon became an acknowledged expert on how to run my business as efficiently as possible and it’s something that I love to share with accounts and business clients through coaching and courses. Which is how my second business was born.

Seeing my possessions go out of the door (some to new homes via a charity, and some to the dump) is hard but they are just objects compared to the family, friends, staff, and clients who ate around my dining table or shared their dreams in my offices.

What are your most precious memories? Does your business allow you to do what you want to do?

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