Plan for the end now (in a positive way)

Earn more, spend less or just get more i.e. time

We felt it only right to highlight again the fact that wages are going up and specifically the minimum and living wage is rising from 1 April 2022 for which you can find more information here.

This in itself present an opportunity to forecast what the year ahead might look like cost-wise and give you an opportunity to see how best you deal with this.

If you would like some assistance with preparing this forecast click here.

Setting up to sell/exit

We are having increasing numbers of conversations around business owners and have a fantastic white paper that we can share to:

  1. Help you set up successfully for sale
  2. Share why many people get it wrong
  3. Help show you how you could actually “grow” your own buyer

For a copy of this just click the link Selling/Exit Whitepaper Please

Family

We all know this but it still shocks us a little when we type the fact that we often spend more time with work colleagues than we do family.

Have you ever assessed the culture of your business though; factoring in those internal and external to it.

We did a fantastic exercise alongside a client of ours that ultimately led us to establish our values for which if you click the link below and we will happily share these with you.

Can I have a copy of the Tennick Accountants values

Takeaways

One of the biggest downfalls when it comes to running a business is the lack of planning when it comes to exiting it which subsequently results in only 1 in every 2,222 business owners exiting when they want, with how much they want.

Start planning ahead now to improve these statistics and we can help.

P.S. More information on our
client awards very soon …

Get more now

Are you getting what you need?

We are all getting more e-mails than ever and we are constantly looking at how we can add more value to our regular bulletins so have slightly tweaked the format for this month.

We are splitting the content into shorter and more “punchy” sections so you can jump into those which are of greatest interest value to you and will save you time looking for the “golden nuggets.”

Save me tax

Did you know there are three different elements to the tax advice and support that we provide and for which greater attention can be paid?

Click on the image below to find out more.

Make me more money

We have mentioned this before on a previous newsletter; with reference to inflation, but have you thought about this:

“Money left sat in your bank account is COSTING you money.”

Given the current rate of inflation, I don’t believe there are any banks currently paying interest in current accounts that exceed the current rate of inflation so; with it left sat there, as each month passes it worth less than the day it was put in.

What should you do? Speak with an IFA. Don’t have one? Get in touch with us by clicking here and we will contact you.

Help me focus on what matters

We started this end of month newsletter saying how a deluge of e-mails and content is meaning that people are struggling to see the woods for the trees.

The amount of information at people’s finger tips often leads to what is commonly known as “analysis paralysis” so basically you don’t know where to start, so don’t start.

We have some great overview reports that we are sharing for no cost up until the end of March for those on our bookkeeping package so let us know if you would like yours.

If we don’t do your bookkeeping, get in touch regardless and we’ll send you a template report based on demo data and a bit like Bullseye show you would could have won; or could still get in the future …

Yes please I’ll have a business overview report click here

Improve my cash flow

One of the most common issues we find whereby businesses could improve their cash flow is by changing the way in which they quote.

Whilst it is quite easy to factor in those costs directly attributable to a sale, it is more difficult when it comes to those overheads you incur regardless i.e. insurance, rent etc.

Quick tip

Go through your overheads for the past year and work out what these equate to based on the number of working hours there is in a year for you i.e. the hourly costs of these same overheads.

Start then applying this hourly overhead rate; with a mark-up to future quotes and see what difference this makes.

This is rough and ready; and not perfect, but is better than nothing and it will provide a great platform to build from.

Make sure you start with this gradually to get your confidence in adding it and in the calculation itself or just a few clients. We are here to help where needed.

Takeaways (everybody loves one, Indian would be my choice)

  1. Look at tax from one of three angles to think of it more proactively.
  2. Don’t have spare money in the bank costing you money, have it make you money.
  3. Draw from your figures what matters the most and we have a great report to help so get in touch for what this could look like.
  4. When it comes to improving cash flow; start with looking at how you quote for work. Then, take this a step further and monitor your REAL profitability per job thereafter.
P.S. More information on our
client awards very soon …

32 ways to extract value from your business

32 ways to extract value, tackle rising costs and reduce tax

Many business owners and individuals will now be faced with challenges in the year ahead including:

  • rise in living costs/subsequent rise in wages
  • rising inflation
  • increased taxes
  • repayment of government-backed loans
  • rising cost of debt

In this month’s bulletin we’re going to specifically focus on rising taxes and wages and some things for you to consider.

Tax (a quick fix)

There are 32 ways to extract value from your business; or at least this is what we have reduced it down to.

Want to do a quick tax health check on your business? Click here and we’ll send through a checklist for you to fill in.

Wages (and another way to save tax)

For many we are approaching the time when wage rises will be discussed and with the rising cost of inflation pay rises of 5% upwards may commonly be asked for by your team and that is just to maintain their standard of living rather than being seen as a pay rise.

There are ways to counter-act this in terms of providing your team with benefits they have not had previously whilst reducing tax at the same time.

Still not clicked the link above for that checklist and just want to drive straight in; then click here for our template 32 ways to tackle rising costs; whilst reducing tax.

P.S. More information on our
client awards very soon …

Kick off the new year with a bang

Time to do something

We know that so many people were busy leading up to Christmas so many people might have missed what we first out prior to Christmas so we thought we would share again some key points for those sneaking in a bit of work time late December.

Yes I know we did say we wouldn’t send an end of month newsletter out but I sensed some might need this so scheduled this one in advance.

Operationally

Want to work less and achieve more in your business?

Head over here to take a read.

Financially

Improve your finances with our book recommendation again – ‘Profit First’ by Mike Michalowicz whereby he speaks about going back to basics.

We’ve summarised some of the key points if you want to take a look here.

Want to be a bit more proactive and hit 2022 with a bang?

Why not join those who have already committed and jump onto our workshops where we take the points above and convert them into actions to help you work less in your business and ultimately exit sooner and with more money.

I know what I’d be asking for off Santa but I am an accountant and a little bias.

I’d love to know more about the workshops

P.S. Don’t forget our office is closed from
24 December 2021 and we reopen on
Tuesday 4 January 2022

Marginal gain %

Marginal gains – 1% can be all that it takes! (Part 1 of 2)

When Sir David Brailsford took over the British Cycling team in 2002 as performance director, we had only won 1 gold medal in our 67-year history.  Add to that, in 110 years, no British cyclist had ever won the Tour de France and top bike manufacturers refused to sell bikes to the team for fear that it would damage the company’s reputation!

All of that changed from 2004 onwards when the British Cycling team won two golds at the Athens Olympics followed by 7 out of 10 gold medals at both the Beijing Olympics in 2008 and London in 2012.

British Cycling riders then went on to dominate the Tour de France, winning six of the following seven Tour De France.

Improve component parts

This extraordinary success has been well documented but how did they achieve it?

Sir David Brailsford was credited with introducing one the most talked about ingredient of this success – the philosophy of ‘marginal gains’. By breaking down everything that went into competitive cycling and finding ways to make small, 1% marginal gains to every component part, an aggregated increase in overall performance was achieved.

Marginal business gains

What worked for the British Olympic Cycling team can also work for you and your business.  Not by breaking down everything that goes into competitive cycling, but by breaking down everything that goes into running a successful business and finding ways to make small, 1% marginal gains that lend towards success.

We have been practicing this philosophy in business ourselves for several years and we bring the approach to life in the different elements of our ‘Insight’ client support package.  Brailsford used data to analyse and redesign the bike seats to make them more comfortable, whilst discovering that rubbing alcohol onto the tires would give a better grip. He re-imagined the secondary impact that small actions could have.

Reimagine your business insights

Now imagine you started looking at your numbers slightly different and made some minor changes to the way you think about them i.e., rather than looking at staff as an expense, consider them a knowledge base upon which you can quickly establish flaws in processes that with improvement, could improve profitability.

We applied this scenario to our own business by internally drilling down to profitability per transaction for work completed. But we didn’t stop there, because we went on to look at the staff member doing the job, the industry in which the client was based, the nature in which the work was received and time of the month it was received i.e., was it always at the end of month?

There were so many areas ripe for subtle changes right at our fingertips that might be otherwise be ignored because of their minimal isolated benefit. But by combining multiple improvements together, the impact began to feel more monumental.

Facing realities

We had to really challenge ourselves as well and face some brutal realities. For example, by tracking phone calls we were able to identify and develop significant improvements to the way clients were handled. By enabling the team to answer queries at the first point of call, we gained both time and cost efficiency as well as alleviating the frustration of being passed around for the client – just being honest! We also started adding more answers to the most commonly asked questions on our website to reduce phone call volume and move towards the ambition of delivering a hybrid 24/7 service for clients for time when the office is closed.

Where are your 1% improvements?

What information do you already have at your fingertips which; with some assistance, you could turn into 1% improvements in your business? Sometimes you just need a fresh approach or new set of eyes to help build out and identify the key metrics and drivers within your business that are most likely to identify change that will help drive your business forward.

Getting profit the right way round

On behalf of the whole accounting profession, we are so sorry we got this the wrong way round!

Income – profits = expenses

Watch video: Getting your profits out first and your expenses last

Okay so you you might be thinking us a little bit mad here but hear us out as we explain this within our very first operational newsletter.

We as human beings surprise ourselves in terms of operating within our means.

Think about this – have you noticed how much we get out of the end of a toothpaste tube compared with when it is full – “just one brush then I’ll open the new one.”

Let us also think about some simple tricks to be more healthy:

  1. Want to eat less – try using a smaller plate
  2. Want to eat more healthily – start with the vegetables on your Sunday dinner rather than the meat and Yorkshire pudding
  3. Want to maintain this – get into a routine and get rid of temptation i.e. buy less alcohol, crisps and chocolate

Okay so we might give a little leeway on the last one.

By looking at the facts and figures in a different way can make a massive change to your business and we ask this of you from a business perspective:

“Do you know your top 10 customers based on activity?”

“Do you think additional sales is the quickest and biggest way to grow your business?”

If you start digging a little deeper with the second point; you might actually find you grow your sales by additional marketing but actually suffer on the bottom line as this group of customers is of a lower margin or even loss-making!

So how else are we going to help?

As we’ve mentioned in the video above we are going to subtly start asking of you; and in turn have you ask yourself, different questions to those you might have historically expected your accountant to ask.

We are embedding this into our processes, have been building out a “flagging system” within certain packages and will start talking more at a business level rather than just a financial level so that you the business owner are not left with the “scraps” as profits but instead start working up the food chain in your own business.

The data beneath the video is available for all clients who currently use Xero so if you want to have a discussion around your data then if you can just click here and answer a handful of questions then we will be in touch.

Want to know what potential is yet to be realised in your business? Mention that through the link above and we’ll even share a report on that for you.

Speak to the team about your goals and vision. We'll tell you how we can help you make them a reality.

Are you looking to work with a strategic accounting partner to help shape your business’s future? We’d love to hear from you