Tag: accountant

Why we ask for your ID

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As part of our onboarding process we ask all of our clients for two pieces of ID. You might be wondering why we need this and what we do with it afterwards? We explain it all here.

Why we need your ID

As we are a regulated accountant, we are required by our regulatory body (AAT) to hold two pieces of identification for all clients for whom we act. This is so that we can complete anti money laundering checks on all of our clients and ensure that all of our clients are who they say they are.

What ID do we need

We need two pieces of ID from you:

  • Photo ID – such as driving licence or passport
  • Proof of Address – Such as bank statements, credit card bills, council tax bills, utility bills or driving licence.

All ID must be in date and display your current name.

Note – you can use your driving licence for either piece of ID, but not both. If you are giving us your driving licence please also submit an additional piece of ID so that we can still have two pieces of ID for you.

How do we use your ID

We request your ID using our Karbon client portal. This is the most secure way of getting your ID to us and is preferred to email which is not as safe.

Once in our possession, we upload it to our secure cloud storage system, Sharepoint. It is never saved onto individual computers.

We will use your ID to confirm your identity during our anti-money laundering checks. If we have not met you face to face we may arrange a zoom call with you to make sure you are the same person as in your ID.

All of our systems are GDPR compliant.

When we’ll need you to update your ID

If you have changed your name for any reason, we will need an updated copy of your photo ID and proof of address with your new name. If you haven’t arranged for updated ID yet we can accept your marriage certificate or deadpoll document until you can obtain your updated ID.

If you move address, we will need updated Proof of Address ID. We understand that these can take a while to come through but if you can get them to us as soon as you have something, in these cases often bills are the first thing to come through, then we can get started on updating our systems.

We will check your ID once a year when we update your anti-money laundering check. If we find your ID to be out of date we will simply request that you send us an updated copy as soon as possible.

Why we love Xero!

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It’s no secret that we love Xero! It is the accounting software that we recommend to absolutely all of our clients. This is because we truly believe that it offers better features and useability than its competitors. Here are just some of the reasons why we love Xero!

1) Easy to use

Xero has made its interface very user-friendly and we find it easy to use on our end as well. This also makes it easy for us to teach you how to use it, to make sure that you get the best out of it and make sure your data is always accurate and up to date! We offer Xero training sessions to all of our clients at the onboarding stage so we can make sure you start off with it well, especially if you have never used it before.  Multiple users can be added who can all access the software at the same time.  You can also have different access levels for different team members so individuals can access or be restricted from certain parts of the software as appropriate.

2) Up to date reports

Using Xero means you will be able to access up-to-date reports that make it easy to understand how your business is doing. These are also able to be tailored to your specific needs for your company.

3) Cloud accounting

As with the majority of the other products that we love, Xero is cloud based! This means there is no need to save your documents to your PC and your data is backed up automatically and securely so you will never lose it. This also means that it can be accessed anywhere at any time, either via the web browser or the app.

4) Automatically brings in bank feeds

Xero can be set up so that it automatically brings in bank feeds from your business bank accounts and credit cards so your transactions are automatically bought into the software daily.  This limits the need for manual entries and means your figures are up to date in real time. This makes it easy for our bookkeepers as well as we won’t have to ask you for statements!

For a list of available bank feeds please see here.

We can help you set up your bank feed if you need, please just get in touch.

5) Integrations with other software

Xero also has over 1000 different apps, add-ons and integrations with software such as Dext, GoCardless, Stripe, Vend, Square, PayPal and more. Many of these apps can be set up to automate time-consuming tasks to make your admin easier!

If you need any help with setting up apps and integrations with Xero please get in touch.

6) Ahead of the crowd

Xero is typically always one step ahead of its closest competitors.  This can be in terms of reporting or keeping up with change in statutory requirements and legislation such as Making Tax Digital, Domestic Reverse Charge and even the Covid Furlough Scheme. It is constantly evolving and adding new features, particularly based on customer feedback on what features users would like to see implemented or ways existing features can be improved.

If you would like to find out more about Xero, transfer over from your existing software or try a free trial or demo please contact us so we can discuss!

How to use Karbon’s Client Portal

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Welcome to the 1 Accounts client portal! This portal is an online management system that allows you to easily and safely send, receive and store all of your accounting and tax information online.

What does this mean for you?

The client portal allows you to review and approve your accounting and tax information with the click of a button. It also allows you to view open and closed requests and any current requests we’ve sent to you.

Why are we doing this?

It’s a safer and more efficient way to handle your accounting and tax. It simplifies the process for you and allows us to serve your individual needs better. It also provides you with more flexibility, you can comment and ask questions directly in the portal. Your accountant is immediately notified and can take action. This eliminates the need for email and keeps it all together in one place, so you can review it at any time.

Review Tasks

You will receive an email with your tasks. Click on ‘manage checklist’ to access the tasks you need to complete.

You will automatically see all the tasks assigned to you for completion.

Please note: if you open this link on one device, and you’d like to access it on a different device, click the link again and it will ask you to “Send Access Link”. This will send another link to the originally sent email that will allow you to access it from the computer.

Comment, ask questions and upload files

You’ll be able to comment, ask questions and upload files on each of the tasks, which your accountant is immediately notified of and can take action.

Click Comment to comment or ask questions on a task or click upload files to attach files to a task. To add files to a comment click on the paperclip icon on a comment while composing.

Log in

By logging in, you’ll have access to all your open and closed requests, including current client requests that haven’t been completed. You’ll also have copies of documents you have uploaded, so you can keep track and easily find what’s been sent.

  • If you have a login, follow the instructions and log in (example A)
  • If you don’t have a login click the ‘create account’ button and it will ask you to create an account (example B).
  • If you forgot your password, click the forgot password link and follow the instructions (example C)
Example A
Example B
Example C

Once you have created an account, you can access the client portal at any time. Once you are signed in, you will be taken directly to the client portal which looks like this.

Magic Link

The main way you will access the client portal

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.

If you would like to learn more click here to get in touch.

Or feel free to use our chat box —>

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1 Accounts shortlisted for prestigious national award

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A commitment to supporting businesses through the pandemic has seen 1 Accounts shortlisted for a top national award.
We have been named in the top five of the prestigious Accounting Excellence awards in the Medium Firm of the Year category.


While acknowledging the growth of the company, the shortlisting is also testimony to the bespoke service provided by 1 Accounts over the last two and a half years.
Paul Donno, director of our family-run business, said: “Our team worked above and beyond during the pandemic – at a time when we were all trying to keep our loved ones safe.
“Because we are an online business, our staff were still able to provide the same high-quality service to our clients. But we wanted to do more than that so we supported their loan and furlough applications free of charge.

“It was something we felt we could do at a time when our clients needed all the help they could get just to stay afloat.
“We also held webinars for both clients and non-clients to support other local businesses. On the back of that, we have received a lot of client referrals and our business has grown by over 60% in the last two years.”

1 Accounts was named best new practice at the British Accountancy Awards in 2016 and Paul is hoping for similar success this time around.
“I am incredibly proud of their hard work and honoured, as a company, to be nominated for this award,” Paul said.
“To be shortlisted in the medium size category is testimony to how much we have grown in a short space of time.
“In 2016, we only had three members of staff, including me and my wife Jenni, and around 40 to 50 clients. Since then, we have grown to in excess of 300 clients and we are just about to employ two more people, taking us to 15 members of staff.”
The Accounting Excellence awards will be held on Thursday 8th September at a ceremony in London.

Press release & photo by Dave Gooderham at Gooderham PR.

Marriage Allowance

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As we are in the middle of wedding season, it’s worth reminding everyone about marriage allowance. This extra bit of tax relief could be especially helpful to people now during the cost of living crisis.

What is marriage allowance?

Marriage allowance lets you transfer 10% of your unused personal tax allowance to your husband, wife, or civil partner. This will then reduce their tax bill by that amount. It could be worth up to £252 a year!

Am I eligible?

To be eligible to marriage allowance you need to be;

  • Married or in a civil partnership
  • one partner earning below the personal tax threshold of £12,570 per year
  • The other partner earning below the higher rate tax threshold of £50,000 per year

Unfortunately you can’t claim marriage allowance if you are only co-habiting and not married or in a civil partnership.

How do I claim marriage allowance?

If you are a client of ours, mention that you would like to apply for marriage allowance when we complete your tax return. We can then help you sort this out.

You can also apply yourself by phoning the income tax helpline on 0300 200 3300 or by applying online. You will need your partner’s national insurance number for the claim.

There are some online firms that will charge you a commission for claiming through them, our advice is to stay away from these and to either claim yourself by contacting HMRC or through your accountant. We do not charge our clients extra for this. This will ensure you get 100% of what you are owed!

Can I backdate my claim?

When applying for marriage allowance you can backdate your claim to 5th April 2018! So if you have been eligible for marriage allowance since then, these tax years will be included in your claim and you could receive more money back.

If you are married and not already taking advantage of the marriage allowance then what are you waiting for! Make sure you apply to receive your tax refund.

Starting your own business after redundancy

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Facing redundancy can be incredibly challenging, but it could also be the perfect time to start a brand new career based on your interests, your lifestyle and your aspirations.
Does this sound too good to be true?
With these five steps, we can help you transform your redundancy package into your very own startup:

1) Take advantage of your notice period

Typically, you’ll need to work a notice period. Instead of worrying about what comes next, use this time to start planning your new venture!
Dive into research, enrol in training and network as much as possible. The sooner you can start, the better! After all, wouldn’t you prefer to plan for your future whilst you’re still on the payroll?

2) Develop a business plan

Success is all about strategy, so it is important to develop a business plan.
Every business plan will look slightly different, but the main areas you want to focus on are the:

  • Executive summary – create a brief overview of your business detailing what services you offer and what you intend to achieve.
  • Management bio – this is your opportunity to introduce yourself, your values and your professional experience.
  • Marketing plan – identify your target audience, USP and market competitors before explaining how you intend to attract your desired audience.
  • Financial plan – because you’re just starting out, your financial plan will be primarily made up of projections (sales projections, expensive projections, cash flow projections etc.). Make sure you’re thorough with your research if you intend to achieve accurate estimates.

Your business plan will become the blueprint for your company, so the more information you can include, the better – particularly if you want to attract investors!

3) Address any legalities

To establish a legitimate business, you need to fulfil certain legal requirements. Now, these requirements may vary depending on your business model and industry, so it’s always worth checking whether you need to obtain a specific type of permit or insurance.
You can find these answers by visiting the government website or checking with your relevant industry bodies.
It is also worth hiring an accountant early on to advise you on the financial aspect of your business.

4) Open a business bank account

This next point is directed specifically to our sole traders. Although you don’t have to open a business account, we strongly suggest you do. It will make your bookkeeping 10x easier! So unless you want to waste your time separating your expenses and risk receiving a penalty, you should seriously consider setting up a business bank account.
If you are starting a limited company this is also something you will need to do, however it is essential rather than it just being strongly advised.

5) Set yourself boundaries

Starting a business is an exciting endeavour. However, it can become all-consuming. So for our final point we wanted to discuss the importance of setting yourself boundaries and practising self-care.
Firstly, give yourself some grace. Redundancy is incredibly difficult to navigate, so try not to be too hard on yourself – especially during those early days.
And secondly, start as you mean to go on. Give yourself lunch breaks, take time off and allow yourself opportunities to relax. Only then can you avoid burnout and achieve sustainable growth.

When life hands you lemons, make lemonade


No one wants to be made redundant – but that doesn’t mean it has to be all doom and gloom. Instead, this could be the start of your exciting adventure into entrepreneurship! So take the chance, pursue your passion and totally transform your career. You may just find redundancy works in your favour.

Hiring an accountant could save your business!

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A lot of new businesses fail. A lot of old businesses fail. A lot of previously successful businesses fail. Why? Usually, it comes down to issues around finances.

If you’re starting a new business, or if you’ve been in business for years and are trying to grow your team and scale your company, hiring an accountant can help. Here’s how.

1) They help you become more tax-efficient

Tax isn’t easy. Legislation changes all the time and any delays or mistakes could be costly. With an accountant filing your taxes for you, you can have the peace of mind that it is all being done correctly and on time. Not only that, but it saves you a lot of time and resources AND it saves you money. Accountants can reduce your tax burden by identifying opportunities for deductions, and they can help you avoid any government fines.

2) They mitigate the risk of financial mistakes

Accountants know how to identify financial risks and avoid them before they become major problems. What this means for you is that you’ll never spend money you don’t have, you will save money in all the areas you can, and you’ll be more aware and better equipped to stick to a proper budget. Fewer to no financial mistakes means minimal losses and more profit!

3) They actively help you to grow your business

If you get an accountant on board in the early stages of your business, they will help you to develop a plan for growing your business in the right way. Not only that, but they will also ensure that your finances are handled correctly from the beginning so that it doesn’t take over everything else in the future. As your business grows, they will start to provide advice in other areas such as budgeting and financing; payroll and recruitment, cashflow forecasting and investments, and business strategy. They will work with you to ensure you have the financial capabilities and processes needed to work towards your business goals.

Survive and thrive!

Most new businesses fail because of financial issues, so don’t make the same mistake. Hire an accountant as early as possible and get the guidance and expertise needed to take your business to the next level. They will not only help you save money, but they can help you make money as your business grows too.

The 9 step guide to business development

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Here at 1 Accounts we are invested in helping your business develop and succeed. We find allocating some time each week to business development is the best way to really make sure that your business grows according to your plan.

Business development is:

  • any activity that is nurturing the future of your business, not the day-to-day tasks that tend to drain the majority of your time.
  • about nurturing the right relationships so that you can create opportunities for your business and attract loyal clients who value what you and your firm do.
  • highly valuable and is key to the long-term, sustainable success of your firm

So how do you do it and do it well?

1) It’s all about the client

Rather than sell at potential clients, focus on what they need. Always listen to them first and demonstrate empathy with their problems before ever talking about yourself and your firm.

2) Address their problems and fears

Now you know their specific challenges and worries, address them. What’s the biggest headache for your clients and prospects? How can you alleviate this pain for them? Again, talk to them about what keeps them up at night and listen. They’ll tell you all you need to know.

3) Solve their specific problem

If you already have a product or service that solves their biggest pain point, great! If you don’t, create something from scratch. Diversifying could open you up to a whole new target audience.

4) Think about your main offering

In a single sentence, sum up what you offer to your clients and this will be your brand tagline. Steer clear of things like “we give a personalised service” and be more specific. Do you take away a specific fear and help your clients sleep at night? Do you give them more time to spend with their family?

5) Differentiate yourself with your website and social media

You need to be spreading the word about how you can help your clients. Essentially, you need to be helping them to find you. Make sure you have a high-quality website that is SEO-optimised and has pop-ups offering valuable resources. You will also need to be regularly active on social media.

6) Build your brand

This takes time, but becoming an expert in what you do will reap the rewards. Use your tagline offering in everything that you put out there and produce content consistently. Whether it’s blogs on your website or posts on social media, create that emotional connection and you’ll see that people will engage.

7) Make it easy to get in touch

People will take the path of least resistance so make it easy for them to contact you. Contact details should be easy to find on your website and all call to actions should be clear throughout your marketing materials.

8) Nurture the relationship

So much business is lost through a lack of following up, so be there in front of your clients and prospects to build those relationships. Every blog post you’re sharing or newsletter you’re sending out should offer value; it should answer a question or solve a problem or inspire action. There is real value in regularly being in front of your clients, just as long as what you’re saying is useful to your target audience.

9) Focus on getting your existing clients to buy more from you

You already have a great relationship with your existing clients and they already like you, trust you, and know first hand the value that you offer. It makes sense then, to help them get more from you.

It really is as easy as 1,2,3…9

While business development is essentially sales, you need to always be thinking about who you are targeting and what they want to hear, rather than talking about yourself and what makes your firm special. What are their specific problems and aspirations? Using these 9 steps, you can get creative with your messaging and really stand out to your prospects.

Payments on account

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If you complete a tax return you may have to pay your tax twice a year. This sounds like it should be bad, but it can be a helpful way of spreading your payments throughout the year.

What are payments on account?

Payments on account are made twice a year and are payments that you make towards your next tax bill. It is a way of bringing the tax collection closer in line with those who pay their tax monthly through PAYE.

Who has to pay?

If the tax liability on your last submitted tax return was over £1000 then you will automatically be set up for payments on account.

When do I have to pay?

You pay twice a year with payment deadlines on January 31st and July 31st however you can pay before these deadlines.

How is it calculated?

HMRC will use your previous tax bill to estimate how much tax it thinks you will be paying next year. It will then half this amount and charge you this in January and July, so in the following January you only have to pay what is left over, if any, and potentially the next payment on account. If you have overpaid, you will receive a refund, or if completing your tax return close to the deadline it will be deducted from the next payment on account.

Can you reduce how much you pay?

If you think your taxable income will reduce for the following year you are able to apply to reduce your payments on account.  They can be reduced through your tax return or via an HMRC online account by either your agent or yourself.  Payments on account cannot be reduced by too much as if your tax liability is higher than the reduced amounts when your actual tax return for the year is complete HMRC will charge interest for the underpayments and potentially penalties.

If you have collated your information for the year prior to the July second payment on account deadline the filing of the actual tax return can replace the estimated tax due if the tax liability for the year is lower than the prior year.

New to self assessment? – watch out

If you are new to self assessment or have never paid payments on account before it’s worth putting money aside throughout the year so that you don’t get caught out.  This is because the first time you become part of the payment on account regime you could have to pay 150% of the tax liability in January.  This would be 100% of the tax from the prior tax return and 50% again for the following tax return. This first experience can feel like a shock, but it will make the next payment in the following January easier.  This is because you would have already paid 100% of the prior year’s tax to deduct from the total.

How to pay

Simply log in to your government gateway and follow the instructions. Alternatively you can pay by phone, bank transfer or a number of other different way. The details of this will be on the letter you receive from HMRC, or on the HMRC payment guidance online.

We hope this helps clear up some of the questions regarding payments on account. Your government gateway account will always show your upcoming payments so we really do recommend setting one up. If you have any other questions regarding payments on account just give us a call and we will be happy to help.

Is your small business struggling to make a decent profit? Here are six little known profit holes.

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With the economy as unpredictable as it has been lately it is essential for small business owners to take a good look at your overheads and cost of sales. Add into the mix the rising cost of labour, materials and shipping, and this exercise to examine your cost base may be the difference between your business having a good year next year or going under. This article will look at the 6 most common profit holes that many small businesses may have.

1) Pricing: Has it kept up with your costs?

It’s been a difficult few years and you may be thinking that your customers and clients can’t swallow an increase. Well, think again – If Starbucks and Costa Coffee can afford to still charge eye-watering amounts for a slice of cake and a coffee throughout the pandemic, then you can look at your pricing.
Often, the biggest profit hole we see with our clients is around a poor pricing strategy. Such as:

  • Are your sales team discounting too much in order to make the sale? Particularly for wholesale or bulk orders?
  • Have you kept your prices static whilst your costs have increased?
  • Are your prices in line with your cost base now, rather than when you were a much smaller business? For example, if your prices have not changed since you ran your business from the kitchen table, then it’s time to relook at your pricing.

2) Do you have a revolving door of employees?

Hiring new staff members is expensive; recruitment agency costs, training costs and senior management time spent hiring and training. Losing good employees is even more expensive – both in terms of opportunity cost and also the hit on morale when a good person leaves. If you do have an employee turnover problem, it’s time to take a good look at how to increase the levels of employee engagement in your business. Being very blunt here, you may look into the mirror to see if you personally may be part of the problem.

3) Software costs: Have you had a good look to see what you’re really using?

Those £15 a month per user type subscriptions really do add up over time. How many user licences are you still paying for but don’t actually need? How many of those pieces of software that you decided to try out are you actually using? If you used all the features of your core software, how many other licences or subscriptions could you ditch? You may find that a good look at your software stack could yield a large amount of ‘money down the back of the sofa’ each month.

4) Suppliers: Are they taking the proverbial?

This often happens when we’ve worked with a supplier for years and both you and they have got comfortable and complacency sets in. This cosiness could be hiding the fact that you might not be getting the service you require. Even worse, the prices you are paying might now out of step with the marketplace. Don’t let inertia and a desire to avoid conflict stop you from having a ‘state of the nation type’ conversation with the supplier.
In our experience, the first place to look at is your spending with marketing suppliers. Then your telephone and internet suppliers. Ask yourself; What are they really delivering? Do they need a shakeup? Our advice to you is if this resonates with you, have that conversation!

5) Not using automation – particularly in your financial processes

The cloud revolution which we keep harping on about has been a game-changer for not just accountants. The digital tools out there will help your business cut out so much physical paperwork and manual entry. For example, if you are a small cafe or pub you can now get great phone apps that will allow customers to place their orders from the table. Thus, improving the efficiency of your operation and waiting staff.
Using bank rules, email rules and other types of automation in conjunction with software such as Dext can reduce the time it takes to do your books or manage staff expenses. Why not have a chat with us to see where using apps and cloud-based software can take the grind out of your financial processes and systems?

6) Doing it yourself

How long does it take you to do stuff which should be outsourced or done by others in your business? This ‘doing it yourself’, particularly when it comes to things like bookkeeping or VAT returns, is often a false economy. Your time is much more valuable delighting customers and clients and running your business than puzzling over whether you can or can not claim VAT on your company car expenditure or that coffee with a client.
Using the right people and suppliers to free you up to do what you’re best at is often a great way to generate more profit. It goes without saying that we are always happy to talk about whether we are a good home for your bookkeeping and other financial processes.
If you address these 6 points in your business then you will be in a much better position to face whatever happens next with the economy.