Author: Megan Davies

5 ways to manage health cashflow!

We cannot stress further the importance of properly managing your cash flow to ensure the smooth running of your business. However, in times of crisis such as the ongoing COVID-19 pandemic, this becomes more than important– managing your cash becomes a necessity for survival.

If you are experiencing cash flow troubles, here are five things you can do to manage your cash flow better.

Check your expenses. Now is the perfect time to review where your money is going and check which expenses can be minimised or eliminated completely. Re-evaluate your expenses and decide which ones are essential and should stay, and which ones can be trimmed down or cut altogether.

Negotiate your debt.
Initiate a discussion with your lenders if interest only or deferred payments on outstanding debts is possible.

Reduce your rent.
There are some government-backed rent assistance schemes which subsidise a portion of your rent and/or require landlords to waive part of it. Aside from this, you can further reduce your rent by checking if it makes business sense to move to a smaller space, close down other offices or stores that are not performing well, or move to a more affordable commercial space within your budget.

Request for more flexible payment options.
It never hurts to ask, especially if you’ve been transacting with your vendors for a long time and you’ve established a certain level of mutual trust and confidence. You can request for more flexible payment options or longer payment terms.

Tap into available credit lines.
Take advantage of available lines of credit and place the funds in interest-bearing accounts.

Assessing your cash flow is fundamental to gaining a better understanding of your business’ financial health. As cash flow experts, we can do your monthly, weekly, or even daily cash flow statements. This gives you visibility on where your cash comes in and goes out to, as well as allows you to plan ahead.

Got a question about your business? If you are looking for Fulham accountants or a tax advisor in London, get in touch!

e: office@londonaccountants.co   t: 0203 137 9791

Kind Regards,
The Team at London Accountants

Ways to make a difference whilst making money.

Gone are the days when an entrepreneur was expected to be entirely focused on making a profit. 

Obviously, earning money is important to being sustainable and therefore staying in business, but it’s possible to both earn a profit and make a positive difference in the world around you, too.

There are great reasons for doing so. Making a positive difference contributes to the greater good. It can also boost employee morale for people to know they work for a company that gives back. Consumers like to shop at businesses that give back, too. 

According to a Nielsen study, up to 66% of global consumers are willing to pay more to purchase from companies that are dedicated to making a positive difference.

It’s called social entrepreneurship, which means running a business that has a charitable component.

So, how can you have a positive impact while making money..?

Start by building your business model around it:

The first step is to look at your business, its mission, and values, and determine the best ways for you to contribute. Any type of business can give back – those that sell products can contribute those products to local or international organisations that need them. Some businesses can contribute financially or with infrastructure aid. Others find ways to donate their time or expertise.

Whatever you choose to do, it needs to fit and be sustainable within your business. Don’t contribute so much that your business suffers.

Here are some ways your business can make a difference:

1. Contribute financially

Not every business sells a physical product that can be donated, but that doesn’t mean you can’t help. Choose a cause that’s important to you and partner with an organisation to give them a portion of the proceeds from every transaction, or certain types of transactions. You can do this on an ongoing basis or as part of a limited time engagement.

2. Encourage your clients to contribute financially

You could have an even bigger impact by hosting a fundraising event in which your business matches all proceeds donated by your clients. Email your clients with a link to donate through and tell them you’ll match them – or contribute a certain percentage for each pound they donate. Doing so can drastically increase the amount of money raised.

3. Contribute your time

Not everyone can afford your services, but that doesn’t mean they couldn’t benefit from your advice or knowledge. 

If you have specialised expertise in an area, consider partnering with a local organisation to host free workshops for people in need. You could give a workshop on financial literacy or ways to pay down debt more quickly, for example.

If you already host workshops and charge participants to join, consider offering a free spot or two to a relevant organisation so they can choose to have someone attend. You’ll be doing good and helping them at the same time.

4. Pay your employees to contribute their time

Your employees may want to help out but don’t have the time or financial ability to do so. Consider giving your employees a paid day off to contribute their time, or pay them to host workshops. You’ll not only be helping a worthwhile cause, you’ll be showing your employees you support them, too.

Final thoughts

Making a difference doesn’t have to interfere with earning a profit. The two can even go hand-in-hand. What’s important is that you choose causes that are important to you and your employees, and you build a charitable vision that makes sense for your company.

Just remember that it’s okay to make money while you’re doing good. Your business needs to be sustainable, so make decisions about giving back that work with your business.

If you are looking for Fulham accountants or a tax advisor in London, get in touch!

e: office@londonaccountants.co   t: 0203 137 9791

Kind Regards,
The Team at London Accountants

Tips for switching off during the summer holidays

 

The summer season is almost here, and with it comes time to relax, focus on family and friends and take stock in what is really important in life. Unless you’re a small business owner. Every small business owner knows that being away from the office can be just as stressful as being in it.

Phone calls from employees dealing with a minor crisis will pull your focus from your family, or your time laying by the pool will be taken over by business talk. Your mobile phone will constantly chime with the sounds of urgent text messages and emails that must be dealt with. Clients will need your attention.

It’s easy to let business take over personal life, but as a small business owner it’s vital that you get some time away from work.

Here are some tips for helping you switch off during the holidays…

Shut down entirely for the week

If your business can be shut down for a week, consider closing. Your employees will love the time off and you won’t be bothered with urgent texts about something that just went wrong at the office. This time is generally not as productive for workers anyhow, as they all want to get home, be with loved ones, and celebrate the summer.

Just make sure you give your clients some notice that you’re closing up. Good clients will respect your decision and even encourage it.

Have someone trained to deal with your absence

A big headache for small business owners is constant calls from employees who can’t carry out basic tasks or make decisions. If you plan on taking time off but are leaving the business open, have someone senior available to answer questions or take over duties other employees can’t.

Make sure employees are prepared for situations that could arise, but they can fix on their own. Can they use someone else’s computer if theirs dies? If a client calls with a crisis, which staff members can deal with each situation?

Assign one or two people (not you!) to be contact people in case staff needs assistance and give those two people strict instructions about when they can contact you. You don’t need phone calls on your days off because someone doesn’t know how to work the coffee machine…!

Resist the urge to plan meetings during this time

When a client comes to you just before you take your days off and requests a meeting over the holidays, it can be difficult to resist that urge. That meeting, however, will take up time and space in your brain aside from the actual meeting time. You’ll prepare for it, you’ll think about it, you’ll plan what to say. If the meeting doesn’t go well, it will affect the rest of your days off.

Instead, push the meeting until after your holiday. Unless the situation is dire, an extra week won’t hurt. Or ask another worker to attend the meeting for you.

Final thoughts

If you’re taking time over the summer, really do take time. Don’t take time off but then spend that time constantly checking for work-related texts and emails or attending meetings. Put your phone away. Stop checking your email. Set an outgoing email that lets people know when you’ll respond to their messages and change your voicemail to note your days off. That way you can rest, relax, and enjoy your break.

If you’re a small business owner, you’ll need this time to restore your energy. Now go hide your phone!

If you are looking for Fulham accountants or a tax advisor in London, get in touch! We can help bring balance to your business.

e: office@londonaccountants.co   t: 0203 137 9791

Kind Regards,
The Team at London Accountants

Why sign a non-disclosure agreement?

Your trade secrets are invaluable – after all, your “secret sauce” is your competitive advantage, the thing that makes your business unique and special.

A non-disclosure agreement (NDA) offers a means to protect valuable company information from being shared with the public or leaked to competitors. An NDA – also known as a confidentiality agreement – specifies that another party cannot share proprietary information without your consent. 

Some examples of proprietary information include company data, records, intellectual property, and software.

For small business owners, NDAs are a good idea when you hire a new employee, bring in a business partner or consultant, or sign on with a new supplier or vendor.

 

The ABCs of NDAs!

Now that you know why confidentiality agreements are important, here’s what you need to know about drafting one.

A non-disclosure agreement should include the following information:

– The relevant parties – does the agreement apply to an individual and your company, or your company and another organisation?

– The protected information – is the agreement all-inclusive or is there specific confidential information the signee is not permitted to share?

– The time frame – when does the agreement take effect and for what period of time? Some business owners choose to draft agreements for an indefinite period after employment is terminated.

– The geographical scope – does the agreement apply locally, nationally, internationally?

– The injunction clause – this is a must so your company can take legal action should there be cause to believe a signee may disclose protected proprietary information, or has done so.

– The consequences – what are the terms if an individual violates the confidentiality agreement (e.g. who pays for legal expenses, the penalties for breaking the agreement).

You can get a sense of what an NDA looks like by searching for free templates online. However, it is highly recommended that you consult with a solicitor before signing a confidentiality agreement with another party. A poorly written legal contract may be difficult, as well as costly, to enforce.

If your company’s proprietary information is valuable enough to protect in writing, it’s worth the expense of doing it right. Consider having a well-written, legally-binding NDA in a place a cost-saving strategy for your business.

Final tips:

– Be as specific and detailed as possible about the sensitive information you want to protect in a non-disclosure agreement. The description of the protected information – who owns it, what can and cannot be shared, and for how long – will be essential if you find yourself taking an employee, business partner, or organisation to court.

– Take measures to keep sensitive data safe from unwanted eyes. Lock up files, use secure passwords, keep work files off personal devices, avoid sharing confidential information by email, and reinforce best practices for appropriately sharing sensitive data among staff, including temporary outsourced workers.

– Be extremely judicious about sharing company secrets. Once confidential information is out, you may be able to seek legal compensation but you can’t make the information that was shared secret again.

It’s impossible to put a price tag on what may have been lost when a NDA has been breached. The best policy for entrepreneurs with a trade secret? As best you can, for as long as you can, keep your secrets to yourself.

If you are looking for Fulham accountants or a tax advisor in London, get in touch!

e: office@londonaccountants.co   t: 0203 137 9791

Kind Regards,
The Team at London Accountants

How to Avoid Costly Inventory Problems

Inventory is the lifeblood of your business. It is the largest asset on your balance sheet and your company’s biggest revenue-generator.

It goes without saying that poorly managed inventory can do serious damage to your bottom line. Businesses without clear strategies for streamlining the in and out flow of goods will have trouble meeting their customer’s demands and will see mismanaged stock corrode their profits.

Follow these tips to ensure your business doesn’t fall prey to common (and costly) inventory problems.

Implement a system for accurate stock tracking:

Whether you have a modest stockroom or a large warehouse, it’s important to know precisely when products are coming in or shipping out, so you’re able to re-stock efficiently.

– Factor in lead time when calculating your basic stock, so you don’t run out of a product before new supplies can be delivered “ disappointing your customers and missing out on revenue opportunities.

– Implement an automated inventory management system to track fill rate and inventory returns for all products, and get a better handle on exactly how much stock you have at any given time.

Avoid excess inventory:

Excess inventory is a financial drain on your business in more ways than one. It costs money in extra overhead, increases insurance costs, and reduces your liquidity (not to mention the space taken up by extra merchandise could be better allocated to more profitable products).

Here are a few ways efficient inventory management can help avoid the problem of dead stock:

– Don’t purchase large orders of stock simply because they’re being offered at a discount. It might take much longer than anticipated to sell the products and turn a profit – in the meantime, your order gathers dust in your storage room.

– Calculate and stick to a realistic safety margin so you only buy what you are reasonably sure you can sell. A good system for tracking sales and profits(and checking it often) is essential to making better buying decisions.

– Liquidate your overstock by selling products at discounted prices. You also might consider returning excess inventory to your vendor (it may be worth it even if you have to pay a re-stocking fee).

Prioritise your inventory needs:

You can avoid inventory mismanagement by putting better systems in place to prioritise your inventory needs. You should always know which products have the highest turnover ratios and ensure those items are always on hand.

One approach is to divide your inventory into three groups (A,B, and C) based on their dollar impact on your business . You’ll get a clear sense of which items to purchase more of and avoid needlessly tying up cash stocking up on the non-essentials.

Final tips for better inventory control:

If you’re looking into switching to or upgrading your accounting software, look into a solution that includes inventory pricing and availability features. And be sure to invest in training to ensure your staff knows how to use inventory tools – and has a firm handle on overall inventory management practices.

With enhanced customer data at your fingertips, your business will earn a reputation for personalised service. You’ll be able to respond quickly when a customer calls with a question about a product or an order. And you’ll be able to suggest substitutions and offer valuable add-ons based on their buying preferences, so up-selling becomes a snap.

How will you use accounting software to grow your small business?

Savvy business owners take the first step toward better profitability when they stop thinking of accounting software as simply a financial management solution and start thinking of it as a comprehensive tool for business growth.

You may be surprised at the many ways accounting software can help you better serve your customers or improve your sales strategies when you look at its true potential.

Now that you have a handful of ideas for making better use of your accounting software, what will you do differently to enhance customer care, improve your profits and continue to grow your business?

If you are looking for Fulham accountants or a tax advisor in London, get in touch!

e: office@londonaccountants.co   t: 0203 137 9791

Kind Regards,
The Team at London Accountants

How an accountability group can help your small business succeed

It’s one of those tricky balancing acts most business owners struggle with – how to spend as much time on their business as in their business.

An accountability group can help you strategise for future growth and set goals that move your business forward. Most importantly, checking in with other people on a regular basis to report on your progress makes it much more likely you’ll take action and get things done.

Whether you decide to join a group locally or meet over the internet, sign up for a paid group or set one up yourself, the key to success with an accountability group is consistency.

Learn more about how to organise an accountability group and make yours a success:

Best practices for accountability groups

It’s a good strategy to keep your group small – three to six members at most. A small group means you can keep your meetings short and still have time for everyone to check in, and there are fewer schedules to accommodate when setting up meetings.

These 8 tips will help you set up an effective group:

– Search your network to find members who will actively participate. Look to local business meet ups, social media groups, and your contacts from networking events, conferences, etc.

– Although members don’t need to come from the same industry or be in exactly the same place in their business, it’s important everyone is committed, like-minded, supportive, and focused on problem solving.

– Schedule regular meetings. Meeting twice a month can work well for accountability groups. Every two weeks gives members enough time to accomplish their goals, and it’s often enough to stay motivated but not so often it’s tough for members to make time for.

– Build time in the agenda for everyone to share progress and bring new ideas or challenges to the table for discussion and feedback.

– Be supportive and flexible. If a member doesn’t achieve his or her goal, help them set a new or revised goal for next time.

– After sharing progress, let these two questions guide the meeting each week: “What is the most important goal for my business right now?” and “What steps will I take to achieve it?”

– Ask how you can help other members. Sometimes we all need a sounding board, other times advice; sometimes we don’t know what we need until someone jumps in and offers!

– If members aren’t able to meet, stay accountable to each other. You can share progress by email to avoid missing a meeting and losing momentum.

Final thoughts

Keeping your business plan up to date can help you stay focused on your big picture goals, and set strategies that tie in with your overarching plans. If it’s been a while since you’ve updated your business plan (or you don’t have one), these free templates can help.

If you find it difficult to set smart goals, try starting with the end result and work backwards. This article on backward goal-setting can help you break each goal down into more manageable parts.

They say there’s an app for everything – why not an app to help set goals that get results? Try GoalBuddy.com to help you keep track of the goals you set for your business – and any other area of your life.

If you are looking for Fulham accountants or a tax advisor in London, get in touch!

e: office@londonaccountants.co   t: 0203 137 9791

 

Kind Regards,
The Team at London Accountants