Category: Finance Function

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Business tips Finance Function

How to get the most out of Xero from the start.

When you start using Xero, you’ll wonder how you ever managed without it. 

We’re big fans here at
Southbourne Accountancy and know how happy clients are when they can see their cash flow situation whenever they want, send online invoices, pay bills and run their businesses more effectively. 

While we set up the basics for all new Xero clients, there are key features you’ll want to know about from the very beginning so you can spend more time on your business and less time on your accounting. We’ve listed some of the most important below and encourage you to browse all the walk-through videos and all the starting out support articles. 

Understanding the dashboard
Get to know the Xero Dashboard that displays all of your most important financial information, including money coming in and going out, invoices owed to you and bills you need to pay. Find out how to use the dashboard, customise it, and find shortcuts for daily tasks.

Video walk-through | Support article

Confirming settings
Here’s where to go to confirm or update that all your contact information, social media links, tax rates, and Xero users are accurate. You can also add your company’s branding to invoices, quotes and other documents here.

Video walk-through | Support article

Attaching files
With Xero Files, you can access your documents from anywhere. Find out how to upload, organise and attach documents to your invoices and quotes.

Video walk-through | Support article

Connecting bank accounts
Xero’s all about making tedious tasks easier so Xero connects straight to your bank so your transactions feed in automatically. Here’s how to set things up.

Video walk-through | Support article

Setting up Payroll

With easy-to-use payroll software and online accounting, you can organise all your business information in one handy place. We would always recommend to have an experienced payroll person to process the payroll due to changing regulations, however the software will enable you to track payroll easily. 

Video walk-through

If you need any help, just give us a ring or email. We’re all Xero-certified so no question is too simple or complex.

 

1. Book a call with me: https://debbiebaileymoney.co.uk//contact-us/

2. Download our free guide on “stopping your fitness business running out of cash” https://debbiebaileymoney.co.uk//fitness-ebook/

3. Download our free Coronavirus support guide: https://debbiebaileymoney.co.uk//coronavirussupport/

4. Connect with me on social media:

https://www.linkedin.com/in/southbourneaccountancy/

https://www.facebook.com/debbie.hancockSA

Categories
Business tips Cash Finance Function

Is forecasting still relevant in uncertain conditions?

If you are always looking in the past, you will limit the insights you can gain. Forecasting switches your focus; it encourages you to take a forward-looking view of your business and to look down the road to identify your future threats and opportunities. This enables you to proactively create a plan for your business’ future.  

Forecasting enables analysis of your business finances so you can project sales, cash, revenue and profits. This enables you to have control of your business. But how can you forecast accurately when no-one knows when a vaccine will be available or when businesses will be able to re-open?  

Even pre Covid-19, we were living in a world which was facing rapid change and uncertainty, markets would move simply because Trump had put out a tweet about trade agreements, there were elections, BREXIT and fast pace changes in technologies.  

Forecasting can help you to understand where your business will end up if you do not take action. If you do not pivot, create revenue streams, reduce costs, delay costs or seek assistance from the government or banks. Where forecasting falls down is that we are in uncertain times and how can we possibly forecast what we don’t know? This is where scenario planning is really useful.  

Scenario planning goes one step further than forecasting, it provides a structured away to identify a range of possible outcomes, then estimates their impact and identifies actions. This can lead to risk planning, where the business considers the likelihood of an event happening and the impact if it happens. By doing this, businesses can begin to understand how they can mitigate the risks or mitigate the impact if that risk does occur. I.e. pre covid-19 a company which had a good cash balance and crisis plans in place they would have been able to react quickly to the situation. No business would be fully protected but with a solid cash reserve they would have felt more comfortable than other businesses. 

In this time of incredible uncertainty, here are tips on how scenario planning can provide key insights.  

What-if: 

Scenario planning will let you run different scenarios with different drivers, so you can see how the business may change over time. You can compare options such as when your business may re-open or what is the impact on revenue if capacity is restricted to 30%, 50% or 60%. This will be invaluable information when defining your next strategic move. 

Results: 

From the scenarios the business will identify actions it needs to take, this could be in the form of a plan that they can follow if a certain risk comes to light. Or it could be an action they take now to reduce the likelihood of a risk happening or the impact if that risk did occur. I.e. they may take out insurance against a break-in or employee injury themselves at work.  

Understanding the potential actions: 

If the management had a crisis plan or business continuity plan, they could have swiftly in acted that plan. This may have involved what needs to happen so employees can work from home, how best to contact employees and what key employees are needed on site to secure assets.  

A sense of confidence can be gained by having a structure in place, sometimes people may panic but by having the structure in place it may calm employees and ensure the correct actions are taken. Hot-headed or panicked decisions will most certainly not lead to the desired outcome.  

Understanding how to restart: 

Businesses can identify actions required to restart the business. They will be more likely to identify different actions and prepare us for having to take a different course of action to the one we assumed we would take.  

Funding: 

If a business is seeking funding such as CBIL’s they will need a forecast to demonstrate that they can afford to loan and have considered the impact of repayments on their future business. A scenario plan will re-enforce that the business has considered different options and can still afford the loan even if different situations arise. 

Talk to us about the benefits of scenario planning  

If you want to get in control of the future of your company, come and talk to us at Southbourne Accountancy. Forecasting and scenario planning will help to identify the future threats and opportunities – and create a proactive strategy to improve the performance and stability of your business. 

1. Book a call with me: https://debbiebaileymoney.co.uk//contact-us/

2. Download our free guide on “stopping your fitness business running out of cash” https://debbiebaileymoney.co.uk//fitness-ebook/

3. Download our free Coronavirus support guide: https://debbiebaileymoney.co.uk//coronavirussupport/

4. Connect with me on social media:

https://www.linkedin.com/in/southbourneaccountancy/

https://www.facebook.com/debbie.hancockSA

 

Categories
Business tips Finance Function

8 things to outsource in your business

Top 8 things to outsource in your business 

Are you looking to scale your business? Then you will need to work more “on it” and less “in it”. Thanks Michael E.Gerber for that snippet of advice! But how can you do that if there are only 24 hours in a day? You need to find a way to leverage your time and outsourcing your least favourite tasks or the least time efficient tasks could be the way forward.  

What type of tasks could you outsource? 

  • Repetitive tasks: Data entry is a good example of a highly repetitive task. You or your in-house employees can then concentrate on the tasks which have a greater impact. 

  • Specialised tasks: IT support could be a good example. You need specialised support for your network and software, but you do not need a full-time employee. Plus it could be a good cost saving as employees can be expensive once you include national insurance, pension, holidays, sick pay etc.  

  • Expert tasks: An accountant or Finance Director is a good example of a position requiring a high level of expertise, but that you can still easily outsource. An FD may be a luxury for a smaller business that it simply cannot afford or justify, however they would really benefit from the expertise. Therefore, outsourcing this as a part-time position solves this issue. 

Things you should consider outsourcing in your business: 

  1. Digital marketing. 
    I think at this point having a social media presence, however small, is almost imperative to any business. If this is not a strength of yours then consider outsourcing it, there are many small businesses out there and freelancers who are very knowledgeable and will be much more efficient. The other option is to use a scheduling app such as buffer. 

  1. Graphic design. 
    Your brand is a key reflection of your product offering. If you don’t have the skill, software and time to do this well, you’ll potentially damage your brand. 

  1. Scheduling and administrative tasks. 
    A Virtual Assistant can be a great asset and will help you manage anything from your appointments to flights, emails and beyond (virtually anything admin). At a lower level, consider adopting software that’ll automate or minimise processes, such as self-booking appointment apps where your clients can schedule a meeting with you, e.g. Calendly. 

  1. Website development 

  2. Services such as WordPress, Wix and others make it quite easy to create your own site, but usually it’s better to go to the professionals to create a great site that looks good while also moving fast. They will understand how to make a website which google likes and ensure it is suitable for all formats such as computer or mobile. 


  1. Payroll. 
    This task is best left to the professionals, there is a lot of changes to keep up with. Outsourcing payroll will minimise the risk of inadvertently getting it wrong, while saving you time and, most likely, reducing the cost of this task. Utilising a payroll product is another great option. 

  1. Bookkeeping. 
    Do you spend your evenings or weekends completing bookkeeping? Spending your precious time googling, “how to account for selling a fixed asset?” Does the stress of these tasks piling up occupy your mind? Outsourcing these tasks (and the stress) to someone else can be liberating and cost-effective. 

  1. Virtual Finance Director 
    A Virtual FD can provide an outsider’s perspective that can breathe new life into your business, they can provide a unique perspective and be a sounding board for ideas.  Sometimes employees may be too close to the business and not see the wider picture. They will help you get to grips with the health of your business.  

Tempted to start outsourcing some of your tasks to free up your time? We can help by taking the last three roles off your hands! We work

with a number of our clients in this way, allowing them to focus on what they do best. 

While outsourcing takes a little bit of setting up, it’s worth the short-lived pain for massive gain. Concentrate on what you are good at and where you can have the most impact on the success of your business.  

Work to your strengths, outsource the rest! Need help? Get in touch. 

Do you need perspective on how you can work smarter? We can help!  

2. Download our free guide on “stopping your fitness business running out of cash”  https://debbiebaileymoney.co.uk//fitness-ebook/ 

3. Download our free Coronavirus support guide: https://debbiebaileymoney.co.uk//coronavirussupport/ 

4. Connect with me on social media: 

 
 

Categories
Business tips Finance Function

Why businesses fail without good bookkeeping

Why businesses fail without good bookkeeping

Don’t drive your business blindly – ensure your business is viable.  

Bookkeeping is the recording and classifying all the financial transactions in your business. It’s keeping track of what your business spends and what your business receives 

Excellent bookkeeping is essential to any business and contributes to one of the top reason’s businesses fail. Yes, Cash is King but without good bookkeeping how can you possibly know how much cash is going in or out of your business? A cash forecast is a complete waste of time if the data you are putting into it is nonsense. 

Stop blinding driving your business and take action now, ensure you have good financial records. Not only is this key to having a good business, it is also a legal requirement to maintain accurate records!  

Still not convinced then keep reading: 

Tax – will be a nightmare 

It is a requirement of HMRC that you file a tax return each year, yet every year business owners across the UK are scrambling to get their paperwork together. Is this you?  

If you do not keep accurate records it is likely that you will miss key business expenses and therefore pay MORE tax. Good records enables good tax planning. 

The tax payment happens every year, so wouldn’t it be nice to know before the deadline how much you need to pay? Excellent bookkeeping will bring you one very important step close to this. You can even start to forecast what the payment might be and start to put aside an amount every month.  

Imagine having all your financial information ready for tax time and instead of looking in your email inbox, various cloud accounts and folders in your office, it could be all in one central place (yes, I mean accounting software with invoices and bills stored in the software).  

Peace of mind – Don’t let your health be impacted 

Not knowing if your business is profitable, if you can afford to withdraw dividends and if all your hard work is paying off can play heavily on a business owner. They can feel like they have the weight of the world on their shoulders. Do you ever wonder if it is all worth it? 

As a business owner you have so many things to organise, surely worry about bookkeeping is not top of your list? 

Having your financial records organised will allow you to sleep peacefully at night, you will not have to feel anxious when it comes to year end. This will allow you to have the head space to work ON the business and focus on whats important to you.  

So take back control – get on top of your bookkeeping.  

Cash in your bank – don’t hit a cash crisis.  

Organised financial records will enable you to understand the cash flowing in and out of your business. You will be able to see exactly what you spend on (is it worth it?) and where you earn money. With a clear picture of how you spend you can really begin to take control and grow your business. 

Do you pay your suppliers on time? Could you have a better working relationship with those suppliers, maybe secure a discount if you paid earlier. If you pay your suppliers on time they may be more willing to help you with quick turnarounds on stock.  

Have you been paying for services even after you have stopped using them? Maybe you have been doing this for month. Yes I have seen this, the business is completely unaware of the fact that they have been paying out thousands unnecessarily.  

Do you receive payment from customers on time? By having accurate up-to-date records you will know who owes you money and how much. This will put you back in control and ensure the cash is sat in your bank and not theirs! You will understand who are the serial late payers. What can you do to get them to pay on time? 

Cash is king and good bookkeeping ensures you can successfully track it. 

Do not wait until the business is unable to pay for something critical, take action now!  

Budget 

A budget is a financial road map for your business, it helps you to plan for future expenses and understand when you can afford to invest in some of those larger purchases. When your accounts are correct it makes it easier to review your income and expenses. This in turn will make it easier to create a useful budget.  

Organisation – reduce anxiety  

Bookkeeping is the organisation of financial information which is very important if HMRC decide to select your business for an audit. It is much less stressful if you can simply show HMRC your cloud accounting software, with all your records nicely organised. This will give them confidence in the numbers you have filed.  

It is not only HMRC who will be keen to see tidy accounts, if you are looking for investment or a loan, these stakeholders will also expect you to be able to present financial accounts, forecasts and budgets. All of which you need accurate data to be able to produce.  

Business Analysis – make good decisions 

Do you know which product or service is your highest performing or do you simply guess? 

Excellent bookkeeping will enable you to analyse the business. You will be able to see which product/service is bringing in the most revenue, which is contributing to the overhead costs (such as rent) and which product/service is costing you money.  

In order to make the best decisions possible, you need to have access to all available information. Bookkeeping provides this information. 

With better information you can make better decisions.  

Profit and Growth – in business to make a profit 

Is your business profitable or not? The income statement is a key document for understanding if you are making a profit. Bookkeeping is important as it feeds the income statement. Without good bookkeeping it will be impossible to know how well (or not) you are doing.  

By having accurate monthly accounts you will be able to track your income and expenses overtime. This will enable you to identify trends. Which month was your most profitable? Why was it more profitable? What did you do that month that was different to previous months?  

By understanding the trends you can start to compound the positive actions and reduce the negative actions. 

Investors – don’t let them run for the hills  

 

If you are looking for investment then it is key to be able to quantify the value of your business, financial statements will do that. Investors will want confidence in their investment and the balance sheet, income statement and cash flow statement all present the value of your business.  

The key to accurate and reliable financial statements is excellent bookkeeping.  

If you were a potential investor, would you have more confidence in the business that had an organised system for financial records or the business that took a month give provide the information due to poor bookkeeping?  

Fraud – don’t let fraudsters raid your bank 

Keep accurate records will help to combat fraud, if someone hacked your business bank account, would you know? It is your responsibility to check transactions and report fraudulent activity.  

Legal requirement! 

It is a legal requirement as a director to ensure that accurate financial records are kept for the business. Failure to comply can result in a fine and disqualification as a director. You must be able to provide information on all money that was received and spent, debts the company owes, stock the company owns etc.  

Do you believe me now? 

As you can see, bookkeeping is the foundation to many other important aspects of your business. Make sure your foundations are right and you will have a better chance of having a study business. 

If you need to implement a bookkeeping process, consider hiring a professional to help. Bookkeeping can be complicated, even classifying a single transaction can be unclear and this could be a costly mistake.  

Consider trying the bookkeeping services Southbourne Accountancy offers. No longer would you have to worry yourself about your company’s books. Leave it to the experts! Contact us today and ask yourself: How will I use bookkeeping to benefit my business? 

Contact us

1. Book a call with me: https://debbiebaileymoney.co.uk//contact-us/

2. Download our free guide on “stopping your fitness business running out of cash” https://debbiebaileymoney.co.uk//fitness-ebook/

3. Download our free Coronavirus support guide: https://debbiebaileymoney.co.uk//coronavirussupport/

4. Connect with me on social media:

https://www.linkedin.com/in/southbourneaccountancy/

https://www.facebook.com/debbie.hancockSA

Categories
Business tips Finance Function Insuranace

Insuring your fitness business

As a business owner, it’s essential that you protect yourself, your business and your clients’ by taking out an adequate, industry-specific insurance policy. It is better to be safe than sorry and protecting your business with the right insurance allows you to guard against risk and claim compensation for any losses. This is an intelligent business decision and not an unnecessary cost. Make sure you have the right policies for your business and review them annually. Auto-renewal usually costs more and the natural or size of your business may have changed, which may impact the premiums or terms of the insurance. 

Insuring your business 

It’s not just fire or theft that you have to consider, insurance can provide coverage for many different situations. Such as accidents in the workplace, injuries to clients through oversight or error, stock or premises damage, data breaches and some even protect against business interruption and supply chain breakdown. So, insurance isn’t just about peace of mind, it can also be the difference between rebuilding your business or putting up the closed sign. This peace of mind allows you to concentrate your attention on what you do best, making an impact through health and fitness. 

Importantly, you should be aware that it is a legal requirement to have certain insurances in the UK such as employers’ liability insurance if you employ people or commercial motor insurance if you have commercial vehicles. 

Before you buy any policy, it’s important to take the time to understand the fine print. Be sure to provide accurate information to the insurance company as any missing information could invalidate your policy. Also, some insurance companies will not cover for certain activities, so it is important to check that you are covered for anything you foresee doing in your business. 

Types of insurance and why you need them? 

Due to the natural of the fitness industry, it is likely that no single policy will cover all your business risks 

Professional indemnity 

If you are providing tailored solutions to your clients, you are offering advice and like any exercise, handing out advice comes with risks. Professional indemnity insurance covers the cost of compensating your clients for financial losses which may results from negligent services or advice. 

Public liability 

Public liability is vital to ensuring your business stays in good shape should an accident occur. It will protect you if any members of the public make an incident claim against your business such as if they fell down the stairs. 

Business insurance 

Facilities and equipment cost money and are valuable to the running of your business, so it is worth considering business insurance to protect you against loss, damage or theft. Business insurance can also provide cover for any consumables you stock. You should consider buildings insurance, contents insurance and business interruption insurance. 

Product liability insurance 

If someone is injured by a faulty product that your business supplies, designs or manufacturers, this insurance will protect you against the cost of compensation someone who is injured by that product. 

 Who to buy from? 

Business insurance is available directly from an insurer, or from a specialist broker through the British Insurance Brokers’ Association (BIBA). 

If you would like further business advice for your fitness business then please do get in contact with me. 

Categories
Business tips Cash Finance Function

Virtual Finance Director – what is one and do you need one?

Virtual Finance Director, VFD, outsourced advisor, management accountant, finance business partner – there are so many names and descriptions to contend with in the finance world, so what is a Virtual Finance Director?

Smaller businesses often face the same challenges as larger businesses, but they cannot always afford a full-time Finance Director.  A Virtual Finance Director is a business advisor, a sounding board and provides financial insight at a smaller cost than a Full-time FD.  

Having someone with financial expertise, together with commercial and business experience, can be vital to the success of your business. Finance Directors are vital for all types of businesses and unlike an accountant, who focuses on the past, they look to the future. They assess the past and financial performance of a business but with the major bonus of looking forward and using the information to plan for the future.   

In this short blog we will outline the benefits of having a Virtual Finance Director: 

Saves money 

A Finance director is sometimes considered a luxury that smaller business simply cannot afford or justify, however would really benefit from. A Virtual FD solves these issues as they work part-time and do not have the additional employee costs such as benefits, pension and recruitment fees!   

A new way of looking at things 

A Virtual FD can provide an outsider’s perspective that can breathe new life into your business, they can provide a unique perspective and be a sounding board for ideas.  Sometimes employees may be too close to the business and not see the wider picture.  

Commerical insight 

Having worked in and with businesses we are able to provide commercial knowledge that other accountants may not be able to provide, if they haven’t worked within a commercial business. 

Allow you to work on the business not in the business 

Do you find yourself worrying about the small things, the day-to-day running of the business, looking at reconciliations or chasing invoices? You should be concentrating on the wider business strategy; you should have the freedom to have a day off if you want. A VFD will give you the time and freedom to do this. You can concentrate on your area of expertise and your reasons for starting the business. 

Process and systems  

It is important to have right systems in place to support business growth; you cannot successfully continue to grow if you do not have a handle of your numbers. By having the right systems in place, you will be able to have a real time view of your financials and we will be able to provide forecasts, cashflow and management accounts. This will enable you to see the bigger picture and make smarter decisions for the future of your business.  

Just having Xero in place will not provide all the answers, are you using it correctly and maximising its benefits. Do you have the right apps connected to really benefit your business? 

Cashflow  

Identify any shortages and excesses so you can invest and expand at the right time.  

Financing advice 

Sometimes business require extra capital investment and it is important to identify best type of finance dependent on your business’s requirements. That is why it is important to work with a broker to get the most suitable deal; most businesses will simply speak to their bank which may not provide the best rates or most suitable finance options.  

Signs that your business is ready for a Virtual Finance Director 

Growth 

Your business is growing, customers numbers and increasing steadily but do you have the right foundations for growth? At the beginning it makes financial sense to do everything yourself but as the business grows, things start to slip through the net, now is the time to seek outside help.  

Cashflow 

Do you know your business’ cash position, or do you simply check the bank each morning (ok each week) with a squint and hope it’s positive? Most businesses fail due to poor cash management, so now is the time to concentrate on your cash position. You will need to look at the future ups and downs so you can make smart decisions with regards to your business.  

Not getting the right financial information 

Can you trust your data? You may have an accounting system in place but is it providing accurate, up-to-date information that you can make sound business decisions on? Are you able to use the data for scenario planning (what-if analysis), to help you decide if to take on that extra member of staff? 

Future plans  

Do you have a business plan or is in hidden away in a drawer never to be seen again? A VFD will help you to make the most of a business, looking at real numbers which you can track you process against. A business plan will give you focus and direction for the business.  

Too much time spent working in the business not on the business 

Strong processes and controls, getting the right systems in place, reducing admin, giving peace of mind, freeing you up to work on the business strategy 

Key aspects of the role: 

  • Handling of all the usual FD duties but work remotely and on a part-time basis 
  • Cashflow management including a rolling cash flow forecast 
  • Preparation of an annual budget 
  • Attendance at board meetings  
  • Preparation of monthly management accounts and analysis 
  • Discussion of business performance and offer financial insight  

A Virtual Finance Director is particularly suited to forward-thinking start-ups and established businesses where financial expertise is the best way to assist its continued growth. 

Is the time right you for to get a VFD and get focussed on your business? Book a discovery call today and find out how Southbourne Accountancy & Business Services can help you. Our service ranges from monthly or quarterly board views to management reports, our aim is to match the level of support with your business needs. This support can be flexed as an when needed.  

Categories
Business tips Finance Function

Why choosing a local accountant is not always the best option

Why choosing a local accountant is not always the best option

Does location matter? 

The era of searching for an accountant in West Sussex, in Southbourne, in the next street is gone. The constraints of location no longer exist. As in every other service, accountancy`s gone digital! Yes, throw away those paper ledgers and move forward to the digital age. 

However, many people still restrict themselves to a local accountant, when what matters really is the value an accountant can provide to your business. Good accountants will help your business grow, so it is not a decision to take lightly, they will know the ins and outs of your business. They will be your sounding board, an outsourced partner, someone you can trust and someone who will help you make decisions. 

Online software 

Cloud accounting means that your accountant can view real-time data at the same time as you – anywhere in the world! It’s easy to hold meetings through video conferencing software such as Zoom, and with digital signatures and online document safes, it means you can select an accountant based on their knowledge and experience. You can find someone who really understands the specifics of your business or industry.  

Relevant expertise 

Why have a local accountant when you can select an accountant who has the experience and knowledge of working with businesses of your size and structure, even better one that has worked in a similar market sector as your business. So, don’t just listen to those referrals at networking events, do some research (i.e. have a spy on social media, maybe LinkedIn, see who they are connected to, if your personalities would gel) and find an accountant who checks in with your regularly and can help your business prosper.  

Categories
Finance Function

#Classof2019

Debbie Hancock
Shine a light on your business finances and get in-depth insights with Xero outsourced accounting services. Schedule a FREE consultation at Southbourne Accountancy

Southbourne Accountancy & Business Services has been selected as one of the four accountancy firms who will form part of the #classof2019 AccountingWeb series. 

Debbie Hancock the founder of Southbourne Accountancy & Business Services went along to the inital meeting in Bristol where the firms were grilled on their passions, aims for their first year and the future of accountancy. 

To read more on this series please click the links on the right and head over to the AccountingWeb site. 

Class of 2019: Meet accountancy’s newest stars.

Class of 2019: How to choose a name for your firm.

Class of 2019: No accounting for taste – the podcast!

Class of 2019: How the Class of 2019 started their practices.