Business Accountant

Getting off the treadmill...

2012-01-29T07:28:00.000-08:00

We've all heard the saying that business owners should work 'on their business, rather than in their business'. Yeah right, that's fine I'll just go in and do a few strategy days this week, ignore all my e-mails and calls, ignore the urgent client work in my in-tray, leave the staff to fend for themselves and I'll do strategy. Sorted. Well, maybe not. The idea is great, but the practice when bogged down in the reality of day to day business issues, is more challenging.

The answer I think (and hope, because that's what I'm doing) is to have a plan. My plan, to implement over a period of a few years is to make the business work perfectly well without me. My first step has been to appoint a practice manager. A few months in, I wonder how we ever managed without one. All the work I used to do relating to our financial administration, client engagement, contract renewals etc etc is now covered by our Practice Manager. So that means I've now got all this free time when I finish early or do strategic stuff? Well no, actually I've been busier than ever . It has been our silly season though so I guess without this change I would have either sunk under the pressure of work or some things would just not have got done. So what's next? Well, phase 2 of making the business work without me is to gradually pass on most of the technical work I still find myself doing. That will take time, better systems will need to be set up, staff will need to be trained but with a plan and the right team in place it can certainly happen.

So when that's done I should be left with more time for business development and looking at ways to provide a better service to clients. I may even be able reduce my hours and work a normal 40 hour week rather than 60 or 70 hours. So I'm on the way, I have a plan and I'm going for it. Strategy days and smaller in trays here I come...

Networking working...

2012-01-18T10:55:00.000-08:00

I'm in a 'hard' networking group where the main objective is to build trust with your fellow members so they can pass you referrals which leads to new business. That's great - it works and the benefits are clear and measurable. I have also gained other benefits from being in the same group which are less tangible but have helped enormously with my business development. I have a network of like-minded business owners who I can ask informally (or formally if they act as our suppliers) for advice and support, I have to think about how to market myself and my business and I meet a steady stream of visitors who are potential customers. But with networking it can sometimes be the unexpected which delivers the biggest benefits.

One of my best networking 'surprises' came from someone I met at a corporate event I went to several years ago which was hosted by a bank. I met a chap there who worked in a specialist area of accountancy and business support. We didn't talk about work on the day but exchanged cards and stayed in touch afterwards. Every few months or so we would meet up for a coffee or a meal and chat about our businesses. Paul always made it clear I could call him any time for informal advice about his specific area of expertise. Initially,that's just what it was - informal advice. There was no hard sell, just advice, given freely with no apparent expectation on his part of anything in return. A real 'giver's gain' ethos which I really appreciated. Gradually, we started to work together on a more formal basis and Paul's firm helped out some of my clients and contacts. More recently he introduced me to one of his colleagues who is a principal at one of their London offices. We are following a similar path of occasional meetings and informal exchanges. Step by step we are starting to work together on joint assignments. For me and my firm the potential benefits are immense. Our small practice now has a growing link with a top 20 UK accounting practice. That helps us punch well above our weight and came from a chance meeting at a corporate race day. Now that's networking working...

Decisions, decisions...

2012-01-11T02:35:00.000-08:00

A recent study has found the secret of true happiness. Apparently its all about following your gut instinct, making your mind up and being satisfied with the choice you have made. People who make decisions on this basis are called 'satisficers'. At the other end of the spectrum are 'maximisers'. They agonise over decisions and are terrified of making the wrong choice. Even when they have chosen a course of action they then stress about whether they have made the right decision and waste time and energy thinking about what might have been.

So that's easy then. Follow your gut and stay happy. Yes well, but I guess that depends to an extent on how effective your 'gut' is. If your instinct is right most of the time things should work out well in the longer run. But what if it's not? It could be a downward spiral from one lousy decision to another.

My first thoughts are often a bit 'off the wall' and its only when mulled over and bounced off a few wiser counsellors that the eventual more sensible options take shape. I find that the older I get the more I dislike making poor decisions. Maybe that makes me a 'maximiser' but I don't feel unhappy or lack commitment (which is another trait of maximisers). Gut feel is also not terribly collaborative. What if your gut suggests a different path from your colleagues or workmates? Unless your persuasive skills are very strong you may end up unpopular, lonely, or both. Collaborative decision making is partly about reaching consensus but also about trying to achieve the right decision - maximising one might say? So each to their own I think. The initial 'gut feel' can often be right but there is no harm in my book with a bit of mulling, consulting and dithering before the final decision is made.

Running Blind

2012-01-05T13:44:00.000-08:00

I'm a keen runner and try and get out 2 or 3 times a week. Nothing too taxing - just a gentle jog for 2 or 3 miles. The other day I went out for an early morning run with my mate Ron. 'I'll meet you at 6 and we'll do a 6 miler'. 'Why not?', I thought. Its a bit further than I usually go but it will do me good. I staggered out of bed at 5.45 and ambled down to meet Ron. "I thought we'd try an off-roader', he said. Mmm...Ok I thought, but as well as being cold and wet, it's pitch black. Perhaps anticipating my reservations, Ron said, 'I've got my head torch'. Well that's fine then. So off we went. The first part of the run was in town so no problems there. Then we turned off into a park. Head torch on and that went ok. Next, right off road following a dark, wet river bank. It was quiet (apart from the occasional screeching water bird) and a bit spooky. Without my running buddy and his head torch there is no way I would venture along this path. We made our way along steadily, avoiding puddles and overhead branches and reached our turning point. The way back was easier and we soon reached the road and what for me was normal running territory.

As with running, in business it can be a big help to have a buddy. Someone to help show you the way ahead, avoid the pitfalls and maybe take you out of your normal comfort zone. The best of the best - Warren Buffet and Bill Gates both had trusted advisors they used as sounding boards to support them with their business development. In my experience, many small business owners do not follow their lead. Maybe it comes down to cost or maybe wanting to feel they are in control but I feel this is often an opportunity missed. One plus one can often make more than two with the right advisor. This could be a business coach, accountant or just an experienced business person. The important thing is a good fit and empathy between the business owner and the advisor. Get this right and potential benefits should more than outweigh any costs.

On self-scanning and Victor Meldrew

2011-12-24T03:25:00.000-08:00

Now I'm no technophobe. I have apps on my iPhone and I'm comfortable using e-mail, facebook, twitter etc... but I hate using technology at 'point of sale'. I had a Victor Meldrew moment in the supermarket today. Huge Christmas queues at the checkouts and all I needed was a pot of cream. Ah ha... the Customer Service desk was free...I'll pay there I think. 'Can I help you sir?'. 'Yes, I'd like this pot of cream'. 'Can you go to the self scanning till please sir'. 'I don't want to use the self scanning till. I want someone to take my money and give me a receipt'. 'I'm busy at the moment sir'. Doing bloody what I thought (but didn't say it)? I then stormed off to pay at the tobacco kiosk. Its not just self scanning in supermarkets, its buying train tickets or paying for fuel as well. I'd prefer to deal with a sales assistant rather than a machine.

It made me think about my own accountancy practice and how we deal with our customers. Sure, we have customers who want the 'self scanning' option. They want to do their own books and just want our help to do the year end accounts and tax work with minimum fuss. That's fine with us. We also have customers who want us to 'do the lot'. 'Look', they say, 'I don't want to worry about any of this financial stuff. I want you guys to do everything. tell me who to pay and when and make sure we stay on track'. Equally that is fine with us. In fact we prefer this option as it helps us to get to know our customers and their businesses better and we can provide an enhanced service. We don't want any 'Victor Meldrew' moments in our office.

Franchising for everyone?

2011-12-11T07:17:00.000-08:00

I'm an avid reader of business books. In the 8 years or so I've been running my business I must have averaged about one a week. That's a lot to take in. I have to admit that I don't get to the end of every one and only a few manage to make it into my personal 'hall of fame'. High on this exclusive list is Ron Baker, the Value Pricing guru. Also on the list are Michael Gerber of E-Myth fame, Felix Dennis, Michael Denny and Julian Richer. So you can imagine my excitement (or maybe you can't?) when I heard that Michael Gerber's new book is called, 'The E-Myth Accountant'. A book by one of my favourite business authorities about my own business sector. If this doesn't appear in my Christmas stocking I think I will be treating myself to it to browse during the quieter moments of the Christmas break. A bit sad I know, but each to their own as they say.

I believe this book will highlight some differences between Mr Gerber and Ron Baker. The basic premise behind the 'E-myth' is that any business can and should be run like a franchise - standard processes and an operating manual to run the business efficiently. Ron Baker speaks of 'effectiveness' rather than efficiency and believes that professional firms should focus on developing their intellectual capital. He also advocates getting rid of timesheets and eradicating the 'billable hour'. It will be interesting to see how the E-Myth Accountant deals with these issues.

Despite the possible differences in approach I think both gurus will keep their place in my hall of fame and help to shape my business development in the coming years. The E-Myth gives a great roadmap to any business owner to move towards working on their business rather than in their business. I will still pick this up every now and then and check I am not getting too bogged down in the nitty gritty of my business. Ron Baker's message to professional service firms to develop their knowledge and deliver value to their customers is becoming more relevant as my business moves from adolescence to maturity. So there is room in my world for both Mr Gerber and Mr Baker and I'll keep looking for other business authors to add to my shortlist.

www.base52.co.uk

One happy punter amidst the Autumn gloom

2011-11-30T11:35:00.000-08:00

Not a good day for George.

Growth forecasts down, borrowing falling slower than forecast, cap on public sector pay rises to name just a few of the gloomy headlines from George Osborne's Autumn Statement.

One line in the small print caught my eye though, ' Business rate holiday relief for small firms extended to April 2013'.

Holiday relief! Extended!

Accountants are supposed to know all the new legislation changes and I do my best to keep abreast...but this one passed me by. Maybe I was on holiday or had an exceptionally busy time when this was first announced, but anyway, I missed it.

I did know about Rate Relief and like many small firms I have benefited from a 50% cut in rates for some time now. I had noticed that the council had stopped taking their direct debit for rates but I thought this was a blip and eventually I would pay a 'catch up' amount. But no! A holiday means exactly that. A complete break. So now I understand the holiday extends from October 2010 to April 2013. Like a good accountant I was providing for the missing direct debit but now I can take the benefit in my December accounts. Now that's a nice Christmas bonus. Ok I know this is selfish and parochial but it made me happy and I'm sure other small firms will benefit too. So well done on this George.

A cut in corporation tax would be nice as well but that's probably asking a bit much when we owe £127bn. Now what should we spend our rates windfall on....

http://www.base52.co.uk/ard/merge_doc.asp?AID=786&MergeFile=autumn_statement_2011.htm

Christmas day - a taxing time?

2011-11-26T10:51:00.000-08:00

845! That's the number of people who filed their tax return on-line, on Christmas day last year.

Well why not? Christmas dinner finished, pots in the dishwasher, I know - I'll just get that tax return done...or maybe not.

Tax returns are like Census forms. You know it is in the drawer waiting for you, you know what needs to be done, but getting round to it is another matter.

Engaging an accountant to help you with your tax return can make things simpler and may save you money as well. At Base52 we send a first request for our clients to gather their records together at the start of the tax year in April. We then send gentle reminders until we receive the records. If there are any gaps or queries we resolve these and we compile a draft computation and return to review. As part of our process we ensure that our clients gain from any available reliefs or allowances and help them to save tax where possible.

We seek authority to deal directly with HM Revenue & Customs on our clients' behalf so things are as simple and trouble free as possible for them.

Once everything is approved we file the returns on-line and advise our clients how much tax is due and how and when to pay this. That's it. Job done for another year. Ideally all done and dusted before the summer so you can enjoy Christmas without having to file that tax return at the last minute.

So if you find your tax return is becoming a headache, why not let your accountant do the legwork for you?

www.base52.co.uk