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3 Mistakes That Strangle Growing Businesses

3 Mistakes That Strangle Growing Businesses!

Businesses want to grow and help a larger audience, but too many make mistakes that cripple their growth. Even worse, they keep repeating them! Don’t do the same; avoid the blunders outlined below.

Hiring Toxic Personalities

Businesses hire more staff as they grow. But if they expand too quickly, they will feel pressure to fill positions on their team, even if the job candidates have a few personality flaws. While some people change, others don’t, and a few toxic personalities will poison your company culture.

This is why controlling growth is so important. Though it is hard to predict, you can create a game plan when you exceed your projections. Creating a team of healthy personalities is another priority. If you don’t, toxic employees will look for coworkers with similar values. If they can’t find them, they will try to hire them!

But what personalities should your company avoid? There are many, but micromanagers are one of the most common. Instead of letting their coworkers do their jobs, they bug them over minor details, sabotaging team goals. Managers do manipulate emotions as part of their job, but some abuse this power. They will try to ruin people with gossip, or tell bosses what they want to hear, even when they know it is terrible advice.

Instead, always look for team members that value their coworkers and employer, and have enough emotional maturity to find and fix their own weaknesses. They will become better team members over time, and will face problems even when it makes them feel uncomfortable.

Changing Your Product

Businesses always want to find new markets, and while they could woo customers in more places, creating new products is another way to reach a larger audience. Bringing a new product to market is an investment new businesses should consider, as long as they know the risks.

Instead of creating a new product from scratch, some businesses tweak their old ones. While this can work, change isn’t always an improvement. Testing your product with consumers will help mitigate risk, but tastes shift quickly; fads don’t stay popular forever.

Customers often develop an emotional connection to their preferred brands. Experimenting might feel like a betrayal of their trust, and it is almost impossible to win back a customer’s loyalty. Growing businesses don’t always have enough resources to create new products, and focusing on your successes might be your best strategy. You can even ask for customer feedback while you build capital.

Misinterpreting The Market

Demand shifts randomly. People don’t always know what they want, and why, and products soar and plummet in popularity for reasons no business can predict. Sadly, too many companies overestimate their brilliance, and pay for their arrogance when their predictions and investments fail.

Understanding your niche will help you create reliable strategies. Infrastructure helps; liquidating assets quickly is better than storing them indefinitely. The more time you spend learning the intricacies of your niche, the more money you will save when a strategy fails.

Keep in mind, too, that predictions fail both ways. Some companies don’t release products that would become hits, while others spend millions advertising obvious failures. Every miscalculation is an opportunity; learn and take advantage! For example, use a failed product launch to discover more about your core audience.

If your business sells great products and services, it will grow if you get out of the way. Every business should ponder the blunders outlined in their article; their customers’ happiness could depend on it.

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

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Is technology making you less efficient?

Is technology making you less efficient?

“For a list of all the ways technology has failed to improve the quality of life, please press three.”
Alice Kahn

If you feel overwhelmed by the sheer volume of technological gadgets out there, never mind apps and other digital “solutions”, you’re not alone. Technology sprawl and the rabbit hole of more and more information, available all the time, is making productivity—and healthy downtime—a real challenge for many of us.

Although we may be quicker at completing redundant tasks, more time is wasted managing all our different apps and technologies—and more of us live in a near constant state of distraction.

An epidemic of distracted workers

Maintaining focus on the job is increasingly difficult in the era of social media, chat apps, games, and the ability to search anything at any time—whether related to the task at hand or not.

Recent research shows that on average office workers switch between tasks roughly every three minutes. Half of those “task switches” were not because the phone rang or someone stopped by with a question—they were self-interruptions.

The same study showed that when an interruption is related to the primary task, it isn’t a problem for the worker to maintain focus when the interruption ends. But when people have to “shift their cognitive resources” to a new task, it takes longer to remember where they were, refocus, and regain momentum.

Online multitasking

Another source of distraction that costs workers time and energy is task switching on their computers. A University of California, Irvine study found that people who work at their computers switch between applications about 400 times per day.

If your team isn’t working across the same devices, platforms, and apps, imagine the increased inefficiency as workers waste more time dealing with incompatibility issues. For anyone moving between a number of decentralized apps during the work day the cost is mental exhaustion—which can lead to increased lack of focus and even less productivity.

Tools and tips for increasing efficiency

The fact is, no matter how much we’d like to improve our productivity, multitasking is a myth; most humans can only perform one task well at a time.

If you must use a computer at work, to help minimize the temptation to check Facebook or random search, give ShotClock, a monotasking app a try—or Freedom, an app that blocks all digital distractions so you can focus on just what’s in front of you.

Another tip is to batch email rather than reading and responding to messages continually. Sending email twice a day—once in the morning and again in the afternoon—will train people not to expect to hear from you instantly, creating more reasonable (and sane) expectations. For our own personal and collective wellbeing, no one can or should be available to work around the clock.

Perhaps most important of all, be sure to unplug and rest your mind each day. And be good to yourself by taking a health break each year. A week or two of time off, away from work email and other stress-inducing distractions, will do more to increase your productivity than any app.

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

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What’s the difference between a quote and an estimate?

What’s the difference between a quote and an estimate?

The nature of some types of businesses make it challenging to come up with a standard price list. For tradespeople and some freelancers, for instance, what’s required in terms of time, skill, labour, and materials frequently vary from job to job.

Offering an estimate or quote provides potential clients with a customised figure for what they can expect to pay, based on what will be required to complete a specific project.

Read on to learn the difference between estimates and quotes, and tips on how to prepare them like a pro.

Quotes
A quote is a legally binding fixed price a company prepares for a client; as such, they should always be in writing. A quote should summarise the work to be performed and include a detailed breakdown of all the costs and the final total, including taxes.

Once a business offers a quote and a client signs off on it, the price cannot change even if the job ends up costing more than originally anticipated. For this reason it’s important to always quote as accurately as possible, allowing ample time to complete the job and carefully pricing out costs for materials and labour (e.g. subcontractors).

To protect your business from ‘scope creep’, a quote should also stipulate that additional charges for extra work beyond what the initial quote covers will apply.

Estimates
Unlike a quote, an estimate isn’t legally binding and it isn’ a guarantee of what the actual work will cost. Still, it’s recommended that estimates also be provided in writing. An estimate is offered as a ballpark figure, based on the information available about a project at that moment in time. As such, it’s understood that the estimate is subject to an increase or decrease once the work begins.

Companies should take just as much care when providing an estimate as they would when drafting a quote. Ideally, an estimate should provide a number within roughly 20 per cent of the final price. It’s good practice for businesses to provide more than one estimate, to offer a range of options at different price points.

Tips for costing out jobs
For small businesses, it’s important to appear as professional as your larger competitors whenever you communicate with clients, but especially when negotiating the details of a potential project.

Be sure when you’re preparing your quote or estimate that you include the following information:

1. your business number
2. business contact info (phone, email, address)
3. a detailed summary of the work to be performed
4. a breakdown of costs (subcontractors, materials, time and hourly cost for labour)
5. the total cost
6. a timeline for the work and completion date
7. contract terms, including deposit and payment schedule

Another important bit of information to provide your clients when the quote or estimate expires. Many companies choose an expiry date of 30 days, to protect themselves from the possibility of rising costs for materials or other factors that may influence the cost of the job.

It’s worth repeating that you should always take care to state clearly in writing the terms of your quote or estimate, and offer a client the opportunity to ask questions before approving the work.

That way, both parties can avoid any misunderstandings about expectations and project costs before the work begins.

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

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Collaboration: 5 Reasons It’s Essential to a Growing Company

Collaboration: 5 Reasons It’s Essential to a Growing Company!

Many elements are vital to a growing company’s success. A financially-astute leader is one. A confident and motivated sales team well-versed in a company’s product and service line is another. But starting and growing a business requires more than employees with extensive functional skills and appropriate personal characteristics.

Growing a business requires collaboration – namely, the deployment of employees in a way that allows them to work together to problem-solve and act with a shared sense of urgency.

When this occurs, group members come to leverage the strengths of one another as they work to achieve shared objectives vital to the company’s growth. Also, mutual learning takes place, which increases the probability that each employee’s performance will evolve from good to better and then best. In turn, a company’s performance improves as well.

As collaboration occurs, teams leverage individual differences to produce exceptional outcomes. This knowledge sharing creates a learning enterprise in which employees more readily identify solutions to problems. As a consequence, the company may become more operationally and financially successful.

There are many reasons that collaboration has these positive effects, not the least of which is the ability of a company to make the best use of available skills.

Makes the Best Use of Available Skills

A collaborative environment makes a range of disciplines accessible on an as-needed basis, which leads to the efficient use of employee talent in a way that isn’t possible otherwise. Collaboration allows multiple individuals to participate in the completion of a task at hand, which makes it more likely that the right talent is available at the right time. With collaboration, tasks are completed more efficiently, leaving more time for a staff to concentrate on activities that contribute to company growth.

Facilitates Problem Solving

Collaboration allows a company to throw the most skilled resources at a problem, which may mean a solution is identified more quickly and more cost-effectively than might be possible otherwise. Leveraging the most appropriate resources means a team’s overall functional breadth and depth increases, which can improve the quality of a project’s processes and end products.

In addition, diverse and complimentary talent may enhance individual work processes as each employee becomes a part of a greater whole, which can positively affect a company’s culture. It’s the change in culture that contributes to new thinking, which may lead to new products and new ways to use existing products, each of which contributes to company growth.

Leverages Individual Differences

Asking employees with very different skills to collaborate to accomplish an objective leverages individual knowledge, strengths and capabilities and maximizes organizational potential. A team succeeds or fails according to the combined capabilities and commitment of the individuals involved.

Deploying a variety of unique strengths and skills advances a team’s understanding of a problem, which can lead to faster problem scoping and solution formulation, and more effective solutions.

Builds Company Knowledge

A group brings different perspectives to a problem at hand.  As individuals share their perspectives, each team member considers problems from multiple viewpoints and the person begins to think like the group.

Likewise, as each individual demonstrates a particular skill, other team members may learn these skills, which will be helpful when attempting to accomplish new goals. In effect, team interaction allows team knowledge to build up, like compound interest. In this way, a company leverages individual perspectives across the enterprise.

Creates a Learning Enterprise

Collaboration provides an opportunity to move beyond learning management systems and content to learning in context, which can be empowering to an entire team.

When two people work together, it’s inevitable that they share knowledge, which contributes to a culture that supports ongoing learning. Consequently, collaboration creates a safety net that protects a company from a lack of appropriate knowledge.

As an individual collaborates with others, his knowledge expands as does the reach of his knowledge. When this occurs throughout the organization, its knowledge boundaries expand leading to new opportunities and new ways of doing things.

Collaboration supports a company’s efforts to act with a shared sense of urgency by deploying employees with particular skills in a variety of ways. Collaboration is also an effective means of problem solving because it allows a company to leverage individual employee differences, evaluate employee efforts in the aggregate and create a learning enterprise. When problems are solved more readily, resources become available to achieve other company objectives, including company growth.

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

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Separating personal and business expenses

Separating personal and business expenses!

There are some things in life that go together well and others that definitely do not. Business and personal finances are in the category of items that should not be mixed. 

Although it may seem like a headache to keep them separate (who wants to manage all those bank accounts?) your life will be greatly simplified once you separate your personal and your business finances, especially your expenses.

Paperwork and taxes will be easier to manage and you’ll have a better idea of how much money you spend on your business. Here are some tips to keep your personal and your business expenses separate.

Understand the difference between personal and business expenses:

Most times, the line between personal and business expenses is clear. Any expense that is directly linked to your business earning an income is a business expense. If you buy something to be used for your business, it’s a deductible business expense. If you buy something to use privately, that’s a personal expense.

If something is mixed between business and personal, such as a laptop that you use partially for business and partially for personal use, you can only claim a deduction for the amount that you use for business. So if you use the laptop for business 75 percent of the time and for personal use 25 percent of the time, you can only deduct 75 percent of the laptop.

Whether you use something entirely or partially for business, you need to have a record of the purchase.

Open a business credit card and/or bank account:

Having a business credit card and/or bank account provides you with an easy way to not only keep your private and business expenses apart, it also gives you an easy way to track your expenses. When you use the same accounts for business and personal use, everything is mixed on the same statement and it can be difficult to determine (or remember) which transactions were related to your business and which were for your private life.

With business accounts you know that every transaction is related to your business and should therefore be deductible. You don’t have to search through every statement at tax time to highlight the deductible expenses because every transaction is business related.

You can also easily check your statements to see how much money your business is spending. That’s incredibly difficult to do if your business and personal transactions are all linked to one account.

Where possible, buy separate business items:

Depending on how small your business is, you may not be able to keep all items separate, but buying devices that are used for both business and personal use gets complicated. In an ideal world, you have a separate computer for home and work, a separate work and personal cell phone and even separate vehicles.

Having duplicate items for work and personal use makes it much easier to track expenses. Rather than determining how much of your cell phone bill you can deduct for business, you know that your business phone is 100 percent deductible. Same with your computer and your vehicle. It costs more (especially the separate vehicle) but it keeps your personal life separate from your business life.

Final thoughts

It can be tempting to try to write everything off as a business expense but don’t fall into that trap. Open separate accounts, buy duplicate items where you can and keep receipts of your business expenses.

If you’re unsure, talk to us to find out which activities count as a tax deduction and which do not. We can answer your questions and can even help you come up with a system to track your expenses.

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

How to get your life back in a seven-day-a-week business

How to get your life back in a seven-day-a-week business!

Small business owners already have a difficult and time-consuming job running their business. If their business is open five days a week, they usually need the weekend to catch up on paperwork, pay bills and manage any tasks they didn’t get to during the week.

For those with a seven-day-a-week business, there’s even less time off. They often feel the need to be onsite any time the business is open, to deal with unanticipated issues, help the staff out, and ensure all tasks are completed.

Being onsite seven days a week isn’t healthy or productive, however. It can cause burnout and result in errors being made. It affects the business owner’s personal life and quality of life, not to mention their overall well-being.

Here are three tips for getting your life back when you operate a seven-day-a-week business.

1. Hire a trusted manager

The next best thing to having you onsite all the time is to have a manager with authority similar to yours who can be onsite when you aren’t. Invest money in hiring a manager to deal with operations so you can take days off. Train that person to deal with any issues you anticipate and make sure they know and understand the business inside and out. 

Give them the authority to make decisions in your absence. It might take a little time to build up the trust with that manager, but when you have it, they will be invaluable to you.

2. Delegate tasks you don’t need to do

As a small business owner, you have regular duties that need to be done but could be better done by an expert. Doing them yourself takes up a ton of your time and forces you to be on the job-site more. Look at your tasks and determine which ones are eating up your valuable time. Could you hire a bookkeeper? An accountant?

Virtual assistants can now be hired to deal with invoicing, collecting payments and making phone calls on your behalf. That frees you up to deal with other tasks at your job-site, which means you may get your other duties done and find you have free time.

These outside service providers cost money, but they are worth the expense when you consider the time and energy you’ll save by not taking on those tedious tasks. 

Especially when you factor in the extra personal time you’ll have.

3. Start slowly

The worst thing you can do is wait until you feel you’re about to have a nervous breakdown before you think about taking days off. That increases the chances that you’ll need a day off at exactly the wrong time (during the busy season or when there’s a work-related crisis emerging!)

To get yourself comfortable with taking days off and get staff used to you being away, start slowly. Maybe take an afternoon off during the weekday that’s typically the slowest. When you’re comfortable with that, start taking a full day off here and there. After a while, you’ll be fine taking two days off, even during busier periods. You may not always have a five-day-a-week job, but at least you’ll be okay taking days off for yourself.

Final thoughts

You need time away from your business to maintain your sanity and stop yourself from burning out. Having trusted staff and expert service providers in place will help you take a break from your worksite and get yourself some personal time.

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

Three signs you’re addicted to work

Three signs you’re addicted to work!

Running a small business is hard work. Entrepreneurs know they have to put in long days and give up personal time in pursuit of success. There’s a line, however, between putting in some extra time and becoming addicted to work, and it’s important to know the difference between them.

Being addicted to work – (sometimes referred to as being a “workaholic”) can have serious negative consequences for your personal life and your health. Figuring out when you’ve crossed the line and taking steps to gain control over your work life-balance are vital to maintaining a healthy lifestyle.

Here are three signs you’re addicted to work.

You work far more than you intended to:

Most people have occasional days where they get caught up in work or a project keeps them at the office hours after they should have been home. That’s part of working. 

The problem is when those become the norm for you, when you’re frequently working 12- to 16-hour days and only going home long enough to sleep and grab a bite to eat.

Even if you have a bit more time than that at home, if you intended to work 40-50 hours a week and you routinely hit more than that, you may need to take a step back from work and enforce a 40-hour work week.

Ask yourself: How many hours should I reasonably work at this business? Am I frequently working more than that?

Your health is suffering:

If you are showing physical signs of stress, or if you are generally more unwell than in the past, it’s possible that you’re working too much. It may seem like a good idea to put in all the hours you can to make your business successful, but the consequences of poor health can be devastating for your company.

Your decision-making skills may suffer. You may find yourself unable to complete required job duties. You might miss important details, such as vital payments that are due. All have a negative effect on your organisation.

Working to the point of being sick is not a sound business strategy. You need time away from work to rest and recover, and give yourself something else to focus on.

Ask yourself: Do I generally feel healthy and energetic? Am I sleeping well? If not, you might need time away from the job.

You constantly cancel on people because of work:

Unless your small business involves actual life-and-death scenarios, there’s no need to constantly cancel on your friends and family for ‘work emergencies.’ Sure, they can happen once in a while. You might have an important deadline with a client or an urgent phone call with a supplier that pulls you away from your plans.

If you frequently cancel engagements with your friends and family (and if they’ve started complaining about it), there’s a chance you’ve become addicted to work.

Ask yourself: How many times in the past month have I had to cancel plans for something work-related that wasn’t actually urgent? If it’s more than a couple of times, you might need to rethink your work/life balance.

Final thoughts

Running a small business requires a lot of you, but becoming addicted to work increases the risk of burnout. Burnout can be catastrophic for a small business, especially if there is no one else to take over while you recover.

A better plan is to work only as much as you need to and to protect your personal time as much as possible. Listen to your body and the people around you when they tell you it’s time to stop. Enforce hard stops for workdays, after which you must go home. Hire a team that can handle your business while you’re not there, then trust them to do so.

Your business will be better for it, and so will you.

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

How to set payment terms if you’re a freelancer or contractor

How to set payment terms if you’re a freelancer or contractor!

Following up on late or non-paying customers is no freelancer’s favourite task. Which is precisely why you need to set payment terms up front (and in writing!) before you work with a new client or customer.

By communicating and agreeing on the non-negotiables for doing business with you, you’ll avoid awkward misunderstandings, frustrating disputes, and in most cases, the ugly hassle of debt collection.

These tips will help you pave the way for consistent cash flow by setting clear payment terms.

Minimum legal requirements:

As a business owner you are only required to include your business name and address on your invoices. But it’s in your best interest to include more information than the law requires.

It’s recommended that every invoice include:

1. The invoice date
2. Complete contact info
3. Payment instructions (i.e. acceptable forms of payment and when payment is due)
4. An itemisation of services

If you haven’t shared your payment terms in writing and a client won’t pay, you have little recourse. You won’t be able to charge a late payer interest on their balance owing, let alone engage the services of a debt collection agency.

In addition to including your payment terms in clear and simple language on every invoice, be sure to state your payment terms early on.

Send along your policies in an email, include them in an agreement or contract, and/or point new clients to the terms and conditions outlined on your website.

What to include in your payment terms:

It’s up to every entrepreneur to decide when and how much they need to be paid in order to operate a smooth, positive cash flow business.

As a starting point when setting payment terms, think of the troubles you’d like to avoid and how you could prevent them with the right policies.

In addition to when payment is due (i.e. on receipt of invoice, Net10, Net30) you might want to include:

1. Pre-payment requirements (i.e. a full or partial deposit)
2. Incentives for early payment (e.g. “Net30” means clients get a 2% discount on invoices due in 30 days if paid within 10 days)
3. Late payment fees (e.g. 2% on the balance, accruing monthly)

You might also include a description of the products or services offered, delivery timelines, a reminder of the terms of your agreement, and what will happen if either party doesn’t stick to the policies in place.

Final thoughts

For freelancers and contractors, requiring pre-payment in the form of a full or partial deposit can really help avoid the “feast or famine” cash flow cycle.

It can feel a bit intimidating to ask for payment before you’ve completed the work but think of it as a client screening process. After all, it’s only the ones who understand you are offering a valuable service and are willing to pay for it that you want to work with.

As a secondary benefit, when clients invest up front they understand they are working with a professional and act accordingly. And if it turns out you do have a few late paying customers from time to time, those deposits you’ve collected will ensure you have the cash to carry you through.

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

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Protect Yourself and Your Data – Proactive Steps for Living Safely in the Digital Age

Protect Yourself and Your Data – Proactive Steps for Living Safely in the Digital Age!

These days your personal data is everywhere, and that information is valuable to marketers, hackers and everyone in between. If you want to prevent the unauthorized use of your personal information, you need to take a proactive approach to protecting yourself and your identity.

You can no longer afford to be blasé about your data security – if you are not taking proactive measures to prevent the use of your personal information, you are opening yourself up to all kinds of problems. Here are some tips you can use to protect yourself and your data in this age of data breaches.

Check Your Privacy Settings on Social Media

There is an old saying in the tech world – if the service is free, you are the product. Nowhere is this more true than in the world of social media. Avoid the Facebook may be getting all the headlines, but other social media companies operate in the same manner, selling your personal data to advertisers and serving up targeted marketing messages.

While there is nothing inherently evil in targeted advertising, it can become obtrusive when bad actors get involved. If you want to protect your data from the next Cambridge Analytica, you can start by adjusting your privacy settings. Controlling the type of data that is shared, and who it is shared with, can go a long way toward protecting your privacy.

Designate an Online Shopping Card

Shopping online is convenient, but it is important to stay safe. With so much credit card data being stolen, it has never been more important to be proactive about protecting yourself and your money.

You can start by designating a single card for all your online shopping. Use that credit card whenever you shop online, then check your statements carefully for signs of fraud and unauthorized use.

Avoid Saving Your Credit Card Data at Shopping Sites

It may be convenient to save your payment information, but it is also risky. Avoid the temptation to save your credit card information and instead take the time to enter it each time you shop.

This proactive measure will protect you in two ways. First, it will prevent your credit card information from being revealed in the next data breach, but it will also reduce the impulse purchases that might otherwise wreck your budget.

Use Strong Security on All Your Devices

Your online security is only as strong as your weakest link, so make sure all your devices are well protected. From your tablet to your smartphone to your laptop, make sure you have strong antivirus and malware protection on every device you use.

Implementing strong security and keeping it updated is one of the best things you can do to protect yourself from the next data breach. Think of your online security as a chain, one that requires the robust participation of every link along the way.

Data breaches are inevitable, and the bad guys keep coming up with new ways to steal your personal information. If you want to protect yourself in this dangerous digital world, you need to take a proactive approach, and that means building security into everything you do online.

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

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