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?
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.
Okay so neither this year nor this Christmas is perhaps going to turn out as we expected but that doesn’t stop us from taking time to reflect.
This month we thought we would merge our usual operational/financial newsletters we spread across the month and give you some things to think about going into a well-earned festive break all together given that a lot of people will be wrapping up soon for the Christmas.
Operationally
So it might feel like groundhog day with all of the recent announcements but operationally we must keep pushing to be stronger and more resilient and we have a fantastic blog on our website around the four pillars any successful business should have in place.
If any of you are after some reading over the Christmas, we fully recommend ‘Profit First’ by Mike Michalowicz whereby he speaks about going back to basics.
Whilst further lockdowns might be on the horizons; and the likelihood of further Government support remains uncertain, it does not stop an individual or business owner going back to basics to reduce wastage when it comes to finance and strengthen their overall cash flow position.
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 have an apology on behalf of all accountants – we have been getting it wrong for far too long and we are all sorry; profit first is the way forward.
This is WRONG:
Sales – Expenses = Profit
This is RIGHT:
Sales – Profit = Expenses
Business owners often leave themselves last. We take home whatever money is left over after all other expenditure; we are often first into work and last to leave, and as a result we are the one’s that think about our work life balance last.
Not anymore, as we share some core principles to help you turn this all around by putting yourself and profit first!
Four Core Principles
The four core principles to getting right what you previously got wrong in your business are:
Use smaller plates
Serve sequentially
Remove temptation
Enforce a rhythm
Using smaller plates
As human beings we have a habit of being able to justify more of something quite easily.
How is it that we can fill a 4-bedroom house having moved from a two-bedroom small flat? (or it that just me?)
Why do we need a large SUV when the average car journey is just 8.4 miles?
More importantly, when we try to cut down on something, it is often difficult to sustain it.
For example, it is really easy to say “I am going to start eating less” and it can be easy initially but tough to sustain.
From a financial perspective, it might be easy to make savings initially but how long can you keep it going?
The same can even apply to time.
However, we can often be resourceful when we want to be.
So consider this:
“If you want to eat less, use a smaller plate”
How long do we all make that last bit of toothpaste last when we come to the end of tube?
Apply this thinking to business:
Reduce your budget in areas of expenditure and measure both how much you can save and what impact this has elsewhere
Reduce your working hours and keep track of whether you can actually get more done in less time – if you do then stick with it
Serve sequentially
I don’t know about you, but I love a good Sunday dinner and I can promise you that two things I never leave are the roast potatoes and the Yorkshire pudding. I can also pretty much guarantee that if I leave anything it would be the vegetables. Until, of course, I became a parent and realized I must set a better example!
For those who have kids, you will have heard them claim to be full and as a result are unable to eat certain things on their plate. More often than not, it is the vegetables. Particularly sprouts!
Consider this:
“Eat the contents of your plate in a different order and see what (and how much) is left when they are full.”
If we consider this from a business perspective and go back to the formula we shared at the start:
Sales – profit = expenses
From sales revenue that we receive in, we first take out a calculated amount of profit and then start to manage expenses. When you take this profit first approach, it is interesting to see how much more effective we are at managing expenses within a finite budget.
Remove temptation
As humans we are drawn to things we know we shouldn’t have. It is human nature.
If something “bad” is visible or easy to reach, we are far more likely to succumb to it. I always tell my wife to not buy crisps or sweets because then I know I won’t touch them.
The same goes with time. I have been notoriously guilty in the past working beyond 5pm simply because I can. I “allow” tasks to take longer, and I “allow” myself to start more work than is actually necessary.
You can spend more on “running expenses” and work those extra hours but it will mean you have less money to take home to spend on the family. And because of those extra hours worked, you miss another bed-time and meal time with the kids.
Try focusing on the following:
Go through all your expenditure and entirely cut out anything that you don’t need!
Track how you spend your time in an average week and identify things you either don’t need to do or could spend less time on. Aim to find 5 hours in total. Follow my “D” rules when assessing time:
Ditch the task
Delegate it to somebody else
Do it if it really needs to be done by a certain time
Dither – please don’t – you’ve cost yourself enough time and money already!
Enforce a rhythm
Feel the rhythm, feel the ride, get on up, its bobsled time!
*That will be the only reference I make to the film Cool Runnings.
It is all good and well having a routine/rhythm but what if somebody trips you up in the 100m sprint and you miss the Olympics because you didn’t take aversive action? (**definitely the last reference to Cool Runnings!).
To truly make sustainable changes in your business you must put in place a sustainable rhythm that can withstand several bumps along the way.
Once you get things right, you need to recognize them and repeat them more often. When you get things wrong, don’t dwell on it but instead reflect and learn from it but don’t repeat them.
Now you’ve got the four core principles to putting profit first:
Use smaller plates
Serve sequentially
Remove temptation
Enforce a rhythm
We would love to hear what changes you implement based on the ideas in this post and the difference it has made in your business and personal lives.
"We have used Graeme and his team for over 8 years at the writing of this testimonial and the service we receive is exceptional. They are extremely professional, proactive and approachable"
Stuart Moy – Managing Director of Arcot Grange Developments Limited”
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
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy
Privacy Overview
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
PRIVACY NOTICE
The Data Protection Act 2018 (DPA 2018) and the General Data Protection Regulation (GDPR) impose certain legal obligations in connection with the processing of personal data.
Graeme Tennick & Co Limited T/A Tennick Accountants is a data controller within the meaning of the GDPR and we process personal data. The firm's contact details can be found on our website at www.tennick.co.uk with Graeme Tennick being the Data Protection Officer.
We may amend this privacy notice from time to time. If we do so, we will supply you with and/or otherwise make available to you a copy of the amended privacy notice.
Where we act as a data processor on behalf of a data controller (for example, when processing payroll), we provide an additional schedule setting out required information as part of that agreement. That additional schedule should be read in conjunction with this privacy notice.
In addition to the information detailed below within this privacy notice; and upon request, we can supply a more detailed breakdown of:
sources of data
information stored
purpose
computer program/processing/storage
access/security
deletion policy
The purposes for which we intend to process personal data
We intend to process personal data for the following purposes:
to enable us to supply professional services to you as our client
to fulfil our obligations under relevant laws in force from time to time (e.g. the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 ("MLR 2017"))
to comply with professional obligations to which we are subject as a member of the Association of Chartered Certified Accountants
to use in the investigation and/or defence of potential complaints, disciplinary proceedings and legal proceedings
to enable us to invoice you for our services and investigate/address any attendant fee disputes that may have arisen
to contact you about other services we provide which may be of interest to you if you have consented to us doing so
The legal bases for our intended processing of personal data
Our intended processing of personal data has the following legal bases:
at the time you instructed us to act, you gave consent to our processing your personal data for the purposes listed above
the processing is necessary for the performance of our contract with you
the processing is necessary for compliance with legal obligations to which we are subject (e.g. MLR 2017)
the processing is necessary for the purposes of the following legitimate interests which we pursue e.g. investigating/defending legal claims.
It is a requirement of our contract with you that you provide us with the personal data that we request. If you do not provide the information that we request, we may not be able to provide professional services to you. If this is the case, we will not be able to commence acting or will need to cease to act.
Persons/organisations to whom we may give personal data
We may share your personal data with:
Companies House and HMRC
any third parties with whom you require or permit us to correspond
any third party software companies whom will better support us in delivering an improved service with respect to those pieces of work covered within our letter of engagement; a full list of which can be provided upon request
subcontractors
an alternate appointed by us in the event of incapacity or death
tax insurance providers
professional indemnity insurers
our professional body (the Association of Chartered Certified Accountants) and/or the Office of Professional Body Anti-Money Laundering Supervisors (OPBAS) in relation to practice assurance and/or the requirements of MLR 2017 (or any similar legislation)
If the law allows or requires us to do so, we may share your personal data with:
the police and law enforcement agencies
courts and tribunals
the Information Commissioner's Office ("ICO").
We may need to share your personal data with the third parties identified above in order to comply with our legal obligations, including our legal obligations to you. If you ask us not to share your personal data with such third parties we may need to cease to act.
We may also pass your details on to other third-party organisations who may in turn contact you whereby we feel it would be of benefit, but will only do so having first notified you of this and having sought your agreement prior to this.
Transfers of personal data outside the EU
Where personal data is transferred outside the EU; which is common with many software companies, further information can be supplied upon request as to the specific measures taken by these companies to make this process GDPR-compliant.
Retention of personal data
When acting as a data controller and in accordance with recognised good practice within the tax and accountancy sector we will retain all of our records relating to you as follows:
where tax returns have been prepared it is our policy to retain information for 7 years from the end of the tax year to which the information relates
where ad hoc advisory work has been undertaken it is our policy to retain information for 2 years from the date the business relationship ceased
where we have an ongoing client relationship, data which is needed for more than one year's tax compliance (e.g. capital gains base costs and claims and elections submitted to HMRC) is retained throughout the period of the relationship, but will be 7 years after the end of the business relationship unless you as our client ask us to retain it for a longer period.
Our contractual terms provide for the destruction of documents after 7 years and therefore agreement to the contractual terms is taken as agreement to the retention of records for this period, and to their destruction thereafter.
You are responsible for retaining information that we send to you (including details of capital gains base costs and claims and elections submitted) and this will be supplied in the form agreed between us. Documents and records relevant to your tax affairs are required by law to be retained by you as follows:
Individuals, trustees and partnerships
with trading or rental income: five years and 10 months after the end of the tax year
otherwise: 22 months after the end of the tax year.
Companies, LLPs and other corporate entities
six years from the end of the accounting period.
Where we act as a data processor as defined in DPA 2018, we will delete or return all personal data to the data controller as agreed with the controller annually at the termination of the contract.
Requesting personal data we hold about you (subject access requests)
You have a right to request access to your personal data that we hold. Such requests are known as 'subject access requests' ("SARs").
Please provide all SARs in writing marked for the attention of Graeme Tennick.
To help us provide the information you want and deal with your request more quickly, you should include enough details to enable us to verify your identity and locate the relevant information. For example, you should tell us:
your date of birth
previous or other name(s) you have used
your previous addresses in the past five years
personal reference number(s) that we may have given you, for example your national insurance number, your tax reference number or your VAT registration number
what type of information you want to know
If you do not have a national insurance number, you must send a copy of:
the back page of your passport or a copy of your driving licence
a recent utility bill.
DPA 2018 requires that we comply with a SAR promptly and in any event within one month of receipt. There are, however, some circumstances in which the law allows us to refuse to provide access to personal data in response to a SAR (e.g. if you have previously made a similar request and there has been little or no change to the data since we complied with the original request).
We may not charge you for dealing with a SAR.
You can ask someone else to request information on your behalf – for example, a friend, relative or solicitor. We must have your authority to respond to a SAR made on your behalf. You can provide such authority by signing a letter which states that you authorise the person concerned to write to us for information about you, and/or receive our reply.
Where you are a data controller and we act for you as a data processor (e.g. by processing payroll), we will assist you with SARs on the same basis as is set out above.
Putting things right (the right to rectification)
You have a right to obtain the rectification of any inaccurate personal data concerning you that we hold. You also have a right to have any incomplete personal data that we hold about you completed. Should you become aware that any personal data that we hold about you is inaccurate and/or incomplete, please inform us immediately so we can correct and/or complete it.
Deleting your records (the right to erasure)
In certain circumstances you have a right to have the personal data that we hold about you erased. Further information is available on the ICO website (www.ico.org.uk). If you would like your personal data to be erased, please inform us immediately and we will consider your request. In certain circumstances we have the right to refuse to comply with a request for erasure. If applicable, we will supply you with the reasons for refusing your request.
The right to restrict processing and the right to object
In certain circumstances you have the right to 'block' or suppress the processing of personal data or to object to the processing of that information. Further information is available on the ICO website (www.ico.org.uk). Please inform us immediately if you want us to cease to process your information or you object to processing so that we can consider what action, if any, is appropriate.
Obtaining and reusing personal data (the right to data portability)
In certain circumstances you have the right to be provided with the personal data that we hold about you in a machine-readable format, e.g. so that the data can easily be provided to a new professional adviser. Further information is available on the ICO website (www.ico.org.uk).
The right to data portability only applies:
to personal data an individual has provided to a controller
where the processing is based on the individual's consent or for the performance of a contract
when processing is carried out by automated means
We will respond to any data portability requests made to us without undue delay and within one month. We may extend the period by a further two months where the request is complex or a number of requests are received but we will inform you within one month of the receipt of the request and explain why the extension is necessary.
Withdrawal of consent
Where you have consented to our processing of your personal data, you have the right to withdraw that consent at any time. Please inform us immediately if you wish to withdraw your consent.
Please note:
the withdrawal of consent does not affect the lawfulness of earlier processing
if you withdraw your consent, we may not be able to continue to provide services to you
even if you withdraw your consent, it may remain lawful for us to process your data on another legal basis (e.g. because we have a legal obligation to continue to process your data).
Automated decision-making
We do not intend to use automated decision-making in relation to your personal data.
Complaints
If you have requested details of the information we hold about you and you are not happy with our response, or you think we have not complied with the GDPR or DPA 2018 in some other way, you can complain to us. Please send any complaints to Graeme Tennick.
If you are not happy with our response, you have a right to lodge a complaint with the ICO (www.ico.org.uk).
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
