Category: Business Help

Why do we ask for your bank statements?

Posted on | by Jade Donno

Depending on which service you are on, you will find that you receive requests from members of our team asking for copies of your bank statements.  You may receive different emails from different team members depending on the work they are undertaking for you.  Whilst we try to eliminate asking for the same information on multiple jobs sometimes there are instances where information is requested more than once.  This may be sent as part of an auto request from our system, then again manually by an individual looking at your records in real-time.
We would like to clarify why you are asked for these and why it is so important they are provided to us when asked.

Why do we request copies of your bank statements?

We request copies of your bank statements to check the balances in your accounting software are correct and that all transactions have been correctly accounted for.  Many of you will have ‘bank feeds’ from your bank accounts which feed transactions directly into your accounting software.  Whilst bank feeds are usually reliable there can be instances where they drop out for security purposes or there are blips where transactions are missed or duplicated by the feed.  In order for us to spot these errors in a timely manner, and to ensure your records are always as accurate as possible, we will ask for copies of your bank statements for a given period or as at a given date to check.
If entering transactions from your bank account manually into your accounting software without bank feeds there is always a larger risk of errors – if you would like to discuss bank feeds with us or you need any help with this please get in touch.

When will we request copies of your bank statements?

Depending on your service levels with us or the nature of your business you will get asked for statements at different intervals.  This could be in relation to the following jobs:

  • Bookkeeping service (once a month)
  • Monthly Review (once a month)
  • Quarterly Review (once a quarter)
  • Year-end accounts – 3 months before your year end as a 9 month ‘Health Check’ and again once your year-end date has passed
  • Sole trader accounts and tax return – annually (unless you have our sole trader bookkeeping service)
  • Ad-hoc – if we (or you) notice there has been a problem with the bank transactions or feed we may ask for copies at unusual intervals

How do you upload your statements for us?

You will receive an email from us that looks something like the email on the right.
To upload your bank statements, you need to click on “manage checklist”. The next page will ask you to input your PIN. If this is the first time you have done this process then you will be asked to create one. If you have forgotten it, there is a link underneath to reset it.


You will then be taken to your checklist where you can upload your statements. You will also be able to see the due date, exactly what we need from you, and be able to send us a message using the comment function. There is no “submit” button, but once everything is uploaded we will be able to access it at our end and will be notified that you have uploaded your statements.
The system we use is called Karbon and it is completely cyber-secure and GDPR compliant so you do not need to worry about your information.

What happens if the bank balance in your software does not agree to your bank statements?

If we complete your bookkeeping we will identify and correct any bank issues as part of our service at no extra charge.
If you complete your own bookkeeping we will help you identify the difference.  We can complete any corrections for you for a fee (on request), or alternatively you can complete the corrections yourself. If you complete your own bookkeeping we would advise you check the bank balances in your software to the bank statements weekly ideally or monthly at the latest to make sure any error are picked up in good time. If you need any help with this or are struggling with your bookkeeping please get in touch.

teamwork

Minimum Wage Update 2022

Posted on | by Jade Donno

With costs going up across the board it is unsurprising that the national living wage is also being increased. However, for businesses, particularly small ones, this could have a dramatic effect on wage bills going forward.

From April 1st 2022, the minimum wage will be increasing from £8.91PH to £9.50PH. This is a 6.6% increase on salaries. There are also increases in the lower age brackets, please follow this link to find out full details – https://www.gov.uk/government/publications/minimum-wage-rates-for-2022 

We encourage you as a business to sit down and review what you are paying your staff, particularly if you have people close to the new minimum or if you are wanting to attract new team members. Keep in mind that £9.50PH is now an entry level salary and if you are wanting to attract high quality candidates you may want to pay them more than this. It is also sensible to look at what your competitors are offering in terms of salary. A good place to start is the supermarkets who are currently hiring at £11 PH.

Work out a plan of if and how you need to increase your team’s wages and then implement the changes by the 1st of April.

KPI blog

Setting KPIs for your business: 6 tips

Posted on | by Jade Donno

KPIs (Key Performance Indicators) are metrics that tell you if what you’re doing is working or not. As you can imagine, this makes them incredibly important for productivity and business growth.

How do you know that you’re on the right track to achieving your goals if you don’t measure progress?

How do you know that you’re doing exactly what you should to get to the place that you want to be?

The short answer is, you don’t.

If you want your team to work more efficiently and if you want to actually reach the goals that you set out for your business, you need to start setting and monitoring the right KPIs. Here’s how.

1) Set KPIs for everyone

Regardless of the size of your business and team, you need to set KPIs for each team member. Metrics allow you to measure performance and improve it, so don’t be tempted to not set them at all.

2) Don’t set too many KPIs

This is a big mistake that many business owners make. Avoid this. Less is more when it comes to improving performance, as too many goals affect focus. Aim to have no more than 5 KPIs for each team member.

3) Choose KPIs that are relevant to the businesses overall goal

KPIs need to directly link to the demands of the individual’s role and what the business is trying to achieve, so look at your business plan. Where is the business going? What are the key figures that you need to know and measure?

4) Agree on these with each individual

Once you’ve chosen the KPIs for each individual, sit down with them and agree on them. Set your expectations but also explain how they will support the business by achieving these targets. The more you can show them how they contribute to the overall success of the business, the better.

5) Measure and monitor KPIs

It’s not enough just setting KPIs, you need to measure and review them. Setting and monitoring KPIs is an essential business development task, so schedule in time to review this data every month. When you do, you’ll see what tweaks you need to make to improve productivity and move the business forward.

6) Review and reset these every quarter

As your business grows and changes, your targets will be out of date. Make sure to review them with your team every 3 months so that you can update them and ensure they are still relevant. During this time, give your employees feedback, seek out their views on what is working or not working, tell them how the business is performing, and discuss what they can influence to move the business forward.

Start getting results by setting KPIs

Don’t just set arbitrary goals, set KPIs too. If you do, and you track them and monitor performance, you’ll soon see if you’re getting the results that you want. If you’re not, then the great thing about KPIs is that you can identify that something isn’t working a lot sooner. All it takes is another tweak here and an improvement there, and you’ll find what works best for you and your business.

quiz

The Self-Employment Quiz: Can You Make It Work?

Posted on | by Jade Donno

Self-employment can be a great option for people who want to spend more time with their family or want the freedom and independence that come with running their own business. But is it right for you?

To find out, take this quiz:

**Answer each question with a Yes or No

1) Are you confident in your skills and expertise?

2) Do you have skills and passion for the business you’re considering?

3) Do you enjoy working alone?

4) Do you have good time management skills? (E.g. can you juggle multiple tasks and responsibilities at the same time?)

5) Are you self-motivated and disciplined enough to work without someone telling you what to do? (E.g setting your own deadlines)

6) Are you confident in your ability to take on a variety of roles—marketing, business management, accounting, etc.?

7) Are you a quick learner and do you like to learn new skills?

8) Do you find yourself coming up with and pursuing new initiatives?

9) Can you handle making decisions on your own when things get tough?

10) When things go wrong, are you able to pick yourself up and problem-solve?

11) Do you have the knowledge and skills to make your own product or service?

12) Do you know how to promote yourself so that others will buy from you?

13) Would you be comfortable reaching out to a network of peers or contacts to establish meaningful and lasting relationships?

14) Are you able and willing to forego your paycheck in the early years, in order to earn income from offering your own products and services? (E.g. Can you live without an income until your business reaches breakeven?)

15) Are you willing and prepared to work long hours in the beginning?

16) Are people in your life aware of the effect a drastic change in your lifestyle, career path, or financial stability may have?

17) Can you live with high levels of uncertainty?

18) Are you resilient? (E.g mentally and emotionally)

19) Are you resourceful?

20) Do you regularly set and accomplish personal goals?

Give yourself a point for every Yes answer and give yourself a mark out of 20. If you scored 16-20, you have the best chance of success if you choose to become self-employed!

If you answered “no” or “maybe” to a lot of the questions, self-employment might not be the right path for you or you might have some work to do before it’s the right time.

By no means is this self-employment quiz the decider for whether you choose to run your own business or not. However, it is based on the qualities, skills, and traits you will need to become a successful entrepreneur!

If you want to go for it and become self-employed, look at where your ‘No’ answers are. If you know you’re not good at managing money, consider getting an accountant or bookkeeper for your small business as early as possible. If you’re not comfortable with networking or sales, take some online courses and start practising little and often.

Even if these are not qualities or skills you have a natural proclivity for, you can plan to cultivate them over time.

surprised face

7 Ways an Accountant Can Save You Money

Posted on | by Jade Donno

In today’s competitive business world, it is not uncommon for people to do their own bookkeeping and accounting. There are many reasons why this is done – the most common being that you can save money doing so. Of course, saving a couple of hundred pounds is an enticing prospect, but there are actually many more ways in which hiring the services of one will help you make money instead. Here are 7 ways an accountant can save you money:

1) They free up your time

Time IS money, so the more time you free up doing your bookkeeping, taxes, and financial statements, the more time you can dedicate to the tasks that will actually generate money for your business.

Not to mention that it will take you a lot longer to do all your finances than a professional anyway. Why would you waste your time when you could be doing what you do best and what you actually enjoy?

2) They help you be more tax-efficient

Accountants can help you save money by being more tax-efficient. This means claiming what you can, obtaining loans if you are entitled to financial support, and maximising the tax deductions you are entitled to.

3) They help you avoid fines and penalties

You need to file your taxes correctly and you need to do this on time. With legislation changing all the time, this isn’t easy, and you could be leaving yourself vulnerable to penalties and charges, simply because you didn’t know.

By hiring an accountant, you can always be reassured that you’re filing on time and that your taxes are correct. You can have peace of mind that you won’t get a surprise letter from HMRC and you don’t even have to deal with them at all if you don’t want to.

4) They identify opportunities for growth

Accountants keep your records up-to-date so you will always know the figures of your business. At a glance, you’ll be able to see how you’re performing, what’s coming in and what’s going out, and also your liquidity.

There is power in data! For example, your accountant can help you ascertain how long you could survive if there was a recession, where you can cut down expenses to save money, and where you should be delegating most of your budget if you want to grow.

5) They assist in gaining funding

It takes a lot of time to secure financing from banks and as we said previously, time is money. Your accountant can help you secure loans and financing really easily from creating a business plan and helping you budget to applying and assisting you in the loan process.

6) They advise on investments

If you’re interested in investing, an accountant can help you understand different investment options. From stocks and money markets to real estate and investment vehicles, they can show you how you can grow your money and which opportunities are the best for you and your business.

7) They offer invaluable business advice

As well as accountancy, accountants can offer business guidance to help you increase your chances of success. They can help you build a business from the ground up; they can help you with goal setting and planning, budgeting and forecasting, and pricing to increase your profit margin. This isn’t even everything that’s included in their advisory services so make sure to take advantage of their knowledge.

Spend money to make money

While you can save a couple of hundred pounds doing your own books, you won’t save as much with an accountant and you could actually end up losing a lot more. With an accountant on your team, you can save both time and money while having the reassurance and peace of mind that you’re making sound business decisions for your future.

piggy bank

10 tactics to make sure your invoices get paid.

Posted on | by Jade Donno

Wouldn’t life be simple if you could guarantee that your invoice would get paid on time every time? Sadly, this isn’t always the reality. With the economy coming out of recession, there is a very clear and present danger that your business invoices may not get paid in a timely fashion. Here are our best tips for getting your invoices paid:

1 . Invoice promptly

The longer you take to invoice someone, the more likely the bill won’t get paid. Of course, no invoice normally means no payment… Do you remember the early days of running your business? When you were amazed that some business owners got lax with their billing? Then, you get busy servicing your customers and clients and the admin slips. Before you know it, you become that business owner who has become slow to invoice.

If you are finding that you are getting behind on your admin, then give us a call. We can take care of your bookkeeping and other financial processes to leave you free to run your business.

Cloud accounting software such as Xero, include the feature to do recurring invoices. So, where you have a regular repeating invoice for the same amount with a customer, use this recurring invoice feature to cut down the chance of missing an invoice.

2 .No billing surprises

The more unexpected a bill, the more likely it won’t get paid. If a project is going to occur some extra expense or cost, always talk to the client or customer promptly about it. If you just crack on with it and don’t tell the customer about the unexpected cost coming their way, you risk getting into a payment dispute.

Before you bill someone, always make sure that:

  • They are aware and expecting the bill
  • They have agreed to pay the bill

3. Set up a Direct Debit or payment mandate for your customers and clients

If you have regular customers, getting a direct debit mandate signed from them is a great way to be more in control of when they pay you. GoCardless is an inexpensive direct debit solution that integrates well with the likes of Xero. Our team can help you set up Direct Debit for your customers.

4. Make it easy to pay your invoice

This is such a simple one but easily missed. Make sure you are removing any barriers to pay your bill. Such as:

  • Including a ‘pay now’ button linked to a payment gateway on your invoices. For example, Xero will do this for you with your Stripe account. Some customers may be happy for you to type in their card details over the phone using this option.
  • If you visit the customer on-site, then have the means to take payment whilst you are on site. E.g. with a card machine. Technology is such that you can easily connect a gadget or download an app to your phone to take card payments. No need for an expensive and bulky card terminal.
  • Including your bank details on the invoice. (You will be surprised how many businesses and tradespeople don’t do this).
  • Offer your customers the option to do a bank transfer, set up a direct debit or pay by credit card. If possible, try to avoid offering the option to pay by cheque as getting to the bank can take time.

5. Ask for payment before you start working for the customer or client

There is no rule saying you can only invoice after you start work for a client. In fact, we will ask for payment upfront for some of our services, such as a client wanting a one-off tax return. If you (or your customers) are not happy with a 100% upfront payment, why not ask for a deposit to get the work started?

6. Build a relationship with the accounts payable team at your customer

It always helps to be nice to the person at your customer’s business who actually pays your bill. The stronger the relationship you have with them, the more chance your invoice gets paid promptly and without being ‘delayed’. This may not be your direct contact. It could be someone in their finance or accounts payable team. So, who in the customer’s organisation is responsible for accounts payable? Can you get their name and contact details to help ‘ease the way for your invoice to be paid’?

7. Understand your customers’ accounts payable process

Do you need a PO number on your invoice? How does the invoice need to be addressed and who too? What needs to be on the invoice for it to be paid promptly? Who at your customer’s organisation needs to sign off the invoice before it will be paid? Who in the customer’s organisation is responsible for accounts payable? And can you get their name and contact details to help ‘ease the way for your invoice to be paid’?

When a finance department is preserving cash for a business, they will reject an invoice for payment for the smallest reason.

8. Put in place a process for unpaid invoices

For example, this could include a series of communications when the invoice is issued. Then a call or email the day before the invoice is due to see when it is going to be paid. Then a series of calls or emails a number of days and weeks after the invoice is due to be paid.

Most accounting systems such as Xero will have a feature for automated reminders for invoices. If you need more than the basic invoice chasing that this software will provide, consider using a more sophisticated credit control tool such as Chaser.

9. Consider offering a payment plan for customers who have built up a large unpaid debt

Most customers want to pay your bill. But sometimes stuff gets in the way. So consider offering a payment plan. Getting paid over 6 months in instalments is better than not getting paid at all.

10. Stop work if your invoices don’t get paid

We see this regularly. Where a business owner carries on working for a customer in the hope that the invoices will get paid eventually. The debts pile up and may never get paid. You’ll be surprised how quickly your unpaid invoices may get paid if you stop working for a client.

What is a Registered Office?

Posted on | by Jade Donno

What exactly is a registered office?

A registered office is the address which your Limited Company is registered to. This is a legal requirement for all companies that are incorporated in the UK and you cannot form a company without one.

This address will be placed on the public record and will also serve as the legal postal address for letters from Companies House, HMRC, and all other government departments and agencies. It must be a physical postal address that is in the same UK jurisdiction in which your company is registered.

What is a correspondence address?

All directors and persons of significant control for your company will also have to provide a correspondence or service address. This serves a similar purpose to your company’s registered office in that it will be where HMRC, Companies house, and other government agencies send important post, and will be displayed on the public register. We usually recommend keeping the correspondence address the same as the registered office address, however it can be different it you wish.

Can I use my home address?

You can use your home address as your registered office, however if you rent your home you may need permission from your landlord. You should be aware that by doing this your personal address will appear alongside your company on the public register, so we do not recommend this for privacy reasons.

We believe that your company will also look more professional if you are not using your home address as your registered office.

Where else can I use for my registered office?

You are able to use anywhere as your registered office providing you have permission from the property owner. Here are a few ideas of spaces you could use:

  • Your own office space
  • An external company that provides this service.
  • Your home (although we wouldn’t recommend)

If you are a client of ours, you are able to use our office address. This is included in all of our limited company services.

What is a Confirmation Statement?

Posted on | by Jade Donno

Have you heard your accountant talking about your confirmation statement and been puzzled by what it is? Are you wondering about who needs to file one, when, or how?

Wonder no more! We have all the answers for you. Read on below…

What is a confirmation statement?

A confirmation statement is a yearly statement that is sent to companies house to confirm that all the information they hold about the company is correct and up to date.

This video from the government’s website contains a good overview.

Who needs to file a confirmation statement?

Every Limited Company or Limited Liability Partnership (LLP) needs to file a confirmation statement, even if they are dormant or non-trading. Sole traders and companies that have been officially struck off do not need to file a confirmation statement.

When is my confirmation statement due?

Your confirmation statement is due annually, usually around the same time as your company incorporation date. When you register a company, your 12 month review period starts. Your first confirmation statement will usually be due 14 days after the end of this 12 month review period.

You can file a confirmation statement early, if you have had some changes to the company for example. When you do this, you will start a new 12 month review period and the next confirmation statement wont be due for another 12 months.

You can check when your confirmation statement is due by searching for your company on the companies house register.

What happens if I don’t file my confirmation statement?

You will not receive a fine for missing your filing deadline, however if you do not file your statement within 14 days of the end of your review period, your company and its officers may be prosecuted. Your company can also be struck off the register for failing to file a confirmation statement.

How do I file my confirmation statement?

In order to file your confirmation statement you will need your company authentication code and your login to companies house. The government’s website has more information.

There is good news for all 1 Accounts clients however as this is included in all of our service packages! We will need to confirm with you that no details have changed (we may know this already) and you will receive an email from us once it has been filed and accepted by companies house.

What information needs to be updated?

We will have to confirm the below details are still correct before we file so we may contact you to make sure there have been no changes that you haven’t told us about. However, if you do make a change, please make sure you tell us!

We will need to confirm the following details before we file your confirmation statement

  • Company directors and shareholders are the same
  • People with significant control are the same
  • Company’s registered office is the same

You can also update the following information at the same time as filing your confirmation statement:

  • Standard Industrial Classification (SIC) code
  • Statement of capital
  • Trading status of shares
  • Exemption from keeping a PSC register
  • Shareholder information

What if nothing has changed?

If none of your company information has changed then a confirmation statement saying that nothing has changed still needs to be filed so Companies House know the information they have is still correct.

If you have any questions regarding confirmation statements please let us know! We aim to make this process as easy and stress free for our clients as possible.

Our Covid-19 Policy for returning to the office

Posted on | by Jade Donno

Even though there are no longer any legal covid-19 restrictions in England, here at 1 Accounts we will be keeping some measures to ensure the safety of our clients and staff.

This is especially important to us as not all of our team members have been double vaccinated yet so we want to make sure they remain as safe as possible as we return to the office!

What we’re doing to stay safe

We are planning a staggered return to the office, with most staff members moving to a hybrid work week which will include some days in the office and some days working from home. We will be making sure we are all testing ourselves weekly with lateral flow tests and will not come to the office if we receive a positive result. As we have managed for over a year with the majority of our team working from home we believe that our service will remain the same and we will be able to continue with the same level of service you expect from us.

We are keeping many Covid restrictions inside the office as well. We are maintaining social distancing and have had a 1-way system in place in the office to avoid people having to be in close proximity when passing each other.

For visitors to the office

For visiting clients we have hand sanitiser available and we are asking you to please wear a mask while inside our main office. If you have scheduled a meeting with us, you will be able to take your mask off once we are sat in the meeting room if you are comfortable doing so.

With Covid-19 cases still rising, we are being cautious about our response and will be monitoring the government and medical advice. If our response changes in any way we will be sure to let our clients know. We ask our clients to please be understanding and adhere to these requests as safety of our team and clients is our biggest priority.

how to build your business

How to build your business (not your workload)

Posted on | by Jade Donno

If you want to build your business (not your workload) and you want to spend time on doing the things that will actually grow your business, you need to stop being a ‘busy fool.’ This means no more firefighting through the days and spending most of your time doing things that don’t contribute to your overall goal.

To build your business, you need to take control of your time and use it wisely. Here’s how.

Invest in the right workflow tools

There are bound to be inefficiencies in your existing processes, so identify them. Where are the bottlenecks in your processes? Can you automate any manual tasks?

One of the best ways to start working slicker is to invest in the right workflow tools. They can make management, collaboration, tracking progress, and daily operations so much more efficient.

Prioritise high-value work

To stop spending so much time on unnecessary tasks, start prioritising effectively. Use the Urgent Important Matrix to do this.

Group your tasks into 4 quadrants:

  • Q1: Urgent and important – these are emergencies that arise (e.g. missed deadlines, complaints, technical failures, pressing problems etc).
  • Q2: Important but not urgent – these are the tasks you need to do to grow your business (e.g. goal setting, growth planning, networking, self-development, business development etc).
  • Q3: Urgent but not important – these tend to be interruptions that take up the majority of your time (e.g. phones, texts, emails, unproductive meetings and reports etc).
  • Q4: Not urgent and not important – these are distractions that cause you to procrastinate and have no value to your business (e.g. personal phone calls, social media, excessive or irrelevant emails etc).

Once you’ve grouped your tasks, you will know what you need to focus on and what you need to avoid.

Delegate low-value work

Now you have identified tasks that need to be done, delegate the low-value work to your team so that you can focus on the ones that require your level of skill.

If you delegate effectively (i.e. delegating authority as well as tasks), you can be reassured that the day-to-running is ticking along while you’re focusing on the tasks that will grow the business.

Schedule time in the diary for business development activities

You need to invest more time in quadrant 2, doing the planning and budgeting and development activities that will grow your business. You know this, but if you don’t schedule it into your diary, it won’t get done.

If you prioritise these tasks and delegate the rest, you will have time to sit down and focus on them. You just need to find the best days and times where you can work productively and without any interruptions.

Build your business

It really is as simple as that. To build your business, not your workload, you need to follow these 4 steps. When you do these consistently, you’ll find that each day follows a much calmer formula:

  1. DO – those important tasks that need to be done today.
  2. SCHEDULE – the important but not so urgent tasks, so that they will get done.
  3. DELEGATE – the urgent but not so important tasks.
  4. AVOID – the non-urgent, non-important tasks.