Tag: accountant

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Business tips Finance Function Gym

Thinking of changing accountant but worried that it is too hard?

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Thinking of changing accountant but worried that it is too hard or you are too busy

I have seen this regularly, you are comfortable with your current accountant, they are not doing anything wrong as such, the accounts are submitted on time and you are compliant. But it has been playing on your mind that changing accountants might be worth it.

You have seen on social media that accountants can offer so much more than just keeping your gym business compliant. They can have a positive impact on your bottom line, provide advice, give you confidence in your business and save you time.

You put off changing as you think it will be a hassle, it will mean working with someone else and learning how they do things. It seems daunting and complicated when sticking with the status quo is effortless.

But you went into business to make a profit whilst helping people keep fit and healthy. So why stay with an accountant that is not helping your business more forward and achieve your personal goals?

These are some of the reasons I have seen for not moving accountants and maybe you recognise some of them?

  1. People think it is hard to change accountants, they don’t want the hassle, it feels like a huge task! It is just easier to stay put. 

  2. Their accountant is a nice person and they don’t want to upset them. Maybe they have even become friends (or friends on social media).

  3. They have been with their accountant for ages and know how they work.

  4. They are hesitant about change, it’s in our nature to keep things consistent

  5. They are concerned that the new accountant might not understand their business or be as good as their current one.

  6. Their accountant knows their business inside out and so they don’t want to spend time explaining it to someone new. 

  7. It is not a priority right now, they will look at it later but then something else comes along that is easier to deal with and the change never happens. 

  8. They just don’t know what to expect with a new accountant, what happens, how does it happen and how much does it cost?

Therefore they decide its best to stay put and not upset the apple cart. But we all know that life is about change and amazing things can happen just outside our comfort zone. 

A new accountant could help you to understand your vision, ask you the right questions and ultimately help you reach your goals. 

If you are not 100% happy with your accountant but still don’t move, this is what it could be costing you:

  1. Your time! If you don’t fully trust your accountant, you may spend time worrying, double checking and asking questions. An accountant should put your mind at rest and take that worry away from you.   

  2. Money – if your accountant doesn’t help you to find the underlying reasons why your business is not profitable enough then they are costing you money. We all know that simply getting “more sales” is not the answer to this complicated problem. 

You don’t want this and that is why you are looking around. Below I have outlined the process I follow and it’s actually really easy. I will do most of the leg work for you, so it’s easier than you think.

Once you have decided to move your financials to me, the process is: 

1.   E-sign the proposal and letter of engagement (the terms and conditions)

2.   Gather your personal and business information and set-up the direct debit

3.   You use our template to tell your current accountant that you are moving

4.   Then leave it with me to contact your previous accountant

5.   I will then handle the access rights with HMRC

6.   Then we can begin speaking specific numbers and how we can improve them. 

This will pretty much happen behind the scenes with me working with the old accountant to move your business finances across. Sometimes there can be delays but I will handle these as much as possible.

Right now, all you need to do is book in a discovery meeting via this link and have a free no-obligations meeting to help us both decide if we are a good fit and moving is the right decision.

If you would like to learn more about the process I follow for the discovery call and beyond then read this blog:  https://debbiebaileymoney.co.uk//how-to-get-started-with-southbourne-accountancy/

 

Curious about prices:https://debbiebaileymoney.co.uk//how-much-does-accounting-cost-for-gym-owners/

Why a local accountant may not be the solution to your problems: https://debbiebaileymoney.co.uk//choosing-an-accountant/

You use Xero, so do you really need an accountant: https://debbiebaileymoney.co.uk//do-you-really-need-an-accountant-for-your-gym-if-you-use-xero/

 

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

2. Download my free guide on “7 mistakes to avoid – to stop your fitness business running out of cash” https://debbiebaileymoney.co.uk//fitness-ebook/ 

3. Connect with me on social media: 

Categories
Business tips Gym

You use Xero in your gym business, so do you really need an accountant?

Do you really need an accountant for your gym business if you use Xero?

So, you have cloud accounting software in your gym business, your bank (or gym management software) feeds into the accounting software and the software makes suggestions for where to reconcile the bank. Therefore you feel like an accountant is a waste of money and confused about what they can offer to your business. 

Masses of information is available online via websites such as Xero guides and HMRC website, if you have the time, you think you can do it yourself. Why would you need an accountant then?

It is a fair question as when you are starting out, you will be looking to save money. Plus, you assume the software does all the work, so what is the accountant actually doing? Seeing the value might be a lot harder than seeing the value in a Facebook ad campaign or purchasing a new piece of equipment to dazzle the members.

If you ask other gym owners if you should have an accountant you will get a mixed bag of “No, it is easy, just a few clicks of a button” and “Yes, my accountant saved me hundreds in tax alone”.

So, as an accountant, I wanted to go through the reasons why your accounting software does not do everything you think it will and reasons why Xero alone is not the solution for you.

Why your gym business needs an accountant:

1.    Risk – you don’t know what you don’t know. Taxes are complicated and sometimes can appear a bit grey, so it takes years of learning and maintaining to do this well. Your mistakes are likely to be costly.

2.    Time – How much is your time worth to your business? For every hour that you are working on your accounts, you are not working on your business. 

3.    Stress – Do you enjoy keeping the accounts up to date and then worrying that you haven’t done it right? You may spend an hour a week completing the accounts but then spend an additional hour worrying that it isn’t quite right.

4.    Complication – Accountancy is still complex, whilst the software is always learning, it can learn the incorrect thing if you make a mistake. This can be complicated and costly to unravel. 

5.    Strategic advice – the accountant will be able to provide strategic advice on your future goals and identify opportunities to make more profit. Often when you are too close to the business it is difficult to see.

6.    Tax planning – with tax most of the benefits come from forward planning – how to extract funds from the business, how to reduce your tax bill, how to plan for the future with pensions and inheritance tax. It is impossible for you to do this, as you don’t know what you don’t know.

7.    Cost – an accountant is unlikely to sign off accounts that they have not prepared, so if you would like an accountant to submit your accounts, they will charge for the checking of the information.

I know an experienced gym owner who completed their own accounts and assumed as they had used an accounting system and that accounting system had suggested the entries that it was correct. When I questioned what stock they had, (as there were thousands of pounds on the balance sheet), they didn’t know how to respond, they said all they had was a few protein bars. The accounting system had made an assumption and the owner had agreed that assumption, it continued to make the same mistake. This led to a smaller loss being claimed than should have been.  

Reasons why you think you don’t need an accountant for your gym business:

·       Small gym – You have very basic transactions, only a few members and your bank feeds directly into your accounting system. Due to low member numbers you have the time to prepare the accounts with the help of the software guides. But even at low levels you can still make mistakes, do you know the difference between depreciation and capital allowances? Why does it matter where you code that drink you gave away to a member? 

·       Accounting background – you have either had some accounting training or held a junior accounting job – so you understand the basics of accounts. This will help you in the short term but did you really start your gym business to do accounts? Or did you start it for your love of fitness, weight lifting and helping people live longer lives?

·       New business – this will mean you don’t have the complications of inputting opening balances into the accounting system, uploading suppliers and client details. However, do you know how to set up the chart of accounts to capture the costs in the right place? Have you considered if going VAT registered could be beneficial to you? Getting the right foundations from the start will mean less stress and time wasted as you grow. 

·       Gym management software – your gym uses gym management software so you won’t need to register all your clients into your accounting software. You will still need to ensure the transactions are coded correctly in the accounting system. I took over the accounts for one business that wasn’t correctly accounting for VAT as they didn’t separate out the products/services at 20% from those at 5%. 

·       Below VAT threshold – you do not have the added complication of VAT rules and what VAT percentage you should be charging on the different products/services you offer. Registering for VAT is not a bad thing, it shows your business is growing, plus it may be beneficial to register for VAT even if you haven’t hit the threshold. Think of the 20% tax you pay on all that fancy equipment. 

·       Online help – Xero provides help guides and videos and HMRC have a whole host of information you can use. If you have the time to learn, then this could be a way of bootstrapping at the start. But bear in mind that Xero is not a person who is looking at your particular situation. They are leaving the decisions up to you. 

·       MTD – Xero is set-up for making tax digital and shows you a VAT report. VAT payments and refunds can be automated. However, as I mentioned above, mistakes can still be made. Xero will show you the VAT report with the information you have entered, but if that is not correct the VAT report will never be correct. 

·       Risk – You may pick the wrong accountant. Deciding which accountant to work with is a serious decision, that I know you won’t take lightly. It is important to speak to the accountant and see if you speak the “same language”, that you feel comfortable with them and that they have experience to help you. 

Here is why your gym business needs an accountant:

Not using an accountant can be likened to novice gym members going to your gym for the first time. They can work out the running machine on their own, they can copy the person before them, they can try to read the instructions provided. But unless they have an induction and on-going support they will not be able to do much more than that, at least not safely. 

There are lots of things they don’t know, so they attend their induction and your team offers advice and guidance during the day. The member may then pay for PT sessions to help build a plan and learn techniques. Sure, they could watch you-tube videos until the early hours and work out how to do it themselves, but they will probably never quite reach their goals. Their lifting technique will never be quite right as it’s hard to judge yourself.

For these reasons I recommend that you take a practical approach to your gym accounts:  do what you have TIME to do BEST and pay someone to do the REST.  If money is tight and time is plenty, then do more of the bookkeeping yourself.  Once your business reaches the point where your time is more profitably spent doing something (anything) other than bookkeeping then delegate that aspect as well.

 

Here are a few blogs that you can use now to start making decisions for your gym business:

Should you voluntarily register for VAT? https://debbiebaileymoney.co.uk//should-you-voluntarily-register-for-vat-for-your-fitness-center-gym/

 

5 common accounting mistakes that gym businesses make: https://debbiebaileymoney.co.uk//5-common-accounting-mistakes-that-could-hurt-your-gym-business/

 

7 signs that your business is leaking profit: https://debbiebaileymoney.co.uk//7-signs-that-your-business-is-leaking-profit/

 

A list of 32 ways to get value out of your business: https://debbiebaileymoney.co.uk//32-ways-to-maximise-extracting-value-from-your-business/

Categories
Business tips Cash Finance Function Tax Uncategorized

More money for your business – tax savings during covid 19

More money for your business than you know

Even with a little glowing light at the end this unimaginably long tunnel, it does feel like for 2021, things just managed to get worse. But we’re not here to spread doom and gloom. We want to bring hope and open your eyes to options that until now you might not have considered for your business.

More options than you realise.

You’re probably feeling like you’ve exhausted all of the support, funding and loans available to you. However, as Accountants and Advisors we have a duty to ensure our clients leave no stone unturned in these remarkable conditions we find ourselves in. And there are ways, many ways.

As expected, we have seen the government extend initiatives, pumping more money into the pot. Money to give businesses and individuals the necessary support to try and survive. But government support and loans are not the only options for businesses right now.


Cashflow from Tax Advice & Reliefs

We highlighted it back in March but still tax advice seems to be getting missed out of the opportunities. 

Now is the time to consider tax reliefs and advice for your business

And there’s a lot to consider – see the image and summary below:


Tax is a very real cost to businesses. To fail to reduce it, is to miss out on money that should
be working for you, in your business. Having an awareness of the tax consequences of grants and loans when using them is vital. You don’t want to walk into unexpected tax charges. But with the right advice you can identify major cash injections.


If you’re a business owner reading this, valuable tax savings could help counteract some of the damage you and your business are feeling right now. There are essential and popular advisory opportunities that can get money back in a relatively short timeframe with HMRC.


And tax savings don’t need to be paid back. No debt hanging over your head. Just money back
into your business. Take R&D Tax Relief as an example, you could claim up to 33%
of the costs incurred on activities that are considered eligible. This money
can be used for absolutely anything.

Don’t leave any stone unturned

Work with us, or your Accountants and Advisers, and do not leave any stone unturned. Don’t miss out on any opportunity for money back into your business when you’ve come this far.

Take a look at the image and summary, see if anything flags up for you. If they do, let’s talk.

We can help get you through this. 

 

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

2. Download our free guide on “7 mistakes to avoid – to stop your fitness business running out of cash” https://debbiebaileymoney.co.uk//fitness-ebook/ 

3. Connect with me on social media: 

Categories
Cash Finance Function Gym

7 signs that your business is leaking profit

7 signs that your business is leaking profit

.....and you need to hire an accountant

7 signs that your business is leaking profits and you need to hire an accountant.  

Accountants play an important role at various stages of the growth of your business. They can handle much more than just your payroll and tax returns. So, when should you consider hiring an accountant for your small business? 

Once you decide to start a small business of your own, you have to ensure all of its financial records are accurate. Unfortunately, being too frugal by trying to sort out your small business’s finances might most likely prove to be a costly mistake later and cause you to close shop. 

So you should observe if your business already exhibits these seven signs that it needs expert help now: Top 7 things to outsource now 

1) You are neglecting core business activities. 

At the start of a business you will probably “bootstrap” it, wearing every hat in the business to keep costs down. However, you need to question your ability and what your time is worth. If you value your time at £150 per hour and it takes you 10 hours a month to complete your accounts, that is £1,500 a month you are spending on completing the accounts.  

It is likely that an accountant may cost less than this and produce a more reliable result. Also, you can then use that time saved to go and generate £1,500 of revenue or more! You will be more focussed on the core revenue generating business rather than distracted with the accounts.  

This sort of simple calculation might be a sign that the cost of hiring an accountant is well worth it. 

You could consider outsourcing other tasks too such as marketing, your website, whatever you are not an expert at. For further ideas check out this blog on 8 things to outsource in your business:  

2) Your business is experiencing rapid growth 

Your business is growing, customers numbers are 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. 

More customers, more sales equals more paperwork and number crunching. It is helpful to have someone on board whose sole focus is on keeping the finances accurate but also keeping a track of your current growth and providing professional insight for growth in the future.  

Here is a blog on successfully growing your business: Successful growth 

3) You are not taking the salary/rewards you were expecting 

Are your currently taking a salary from the business? On top of that are you taking dividends – your reward for all the hard work and risks you have taken in building your own business. If not, is this because you are not making enough profit or is it because you don’t know your cash position and are unsure if you can afford to take money from the business?  

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. Look at this blog: Importance of Statement of Cash flow 

4) 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 x happens), to help you decide if to take on that extra member of staff? 

You may also want to measure key business metrics, such as the ratio of salaries and other employee payments to total revenue. An accountant can help here by managing your payroll and producing graphs so you can see how the ratio changes over time. 

A blog on why a virtual finance director can help your business: What is a VFD and how it can one help you? 

5) Revenue is on the up, but profits are not 

You have worked hard, sales are streaming in, but you are still not making a profit. This is can be common in business as owners are so excited about making a sale, they accept any price with whatever terms and conditions the customers want. If you do not have an agreed progress for pricing a product or service, you are susceptible to this. It is more likely that you will be negotiated down and devalue your service/product.  

It is important to look at the lifetime value of a customer and take action with those customers that are in real terms costing you more than they are making you.  

6) You need to raise money 

If your business is at a point where you’re looking for loans or investors, your company’s financial history will be a key portion of the loan application or investor proposal. 
 

You’ll want reports and financial forecasting that are professional and provide all of the relevant information, and an accountant can ensure you’re not missing any critical pieces or parts. 

7) You’ll need advice when you write a business plan 

Do you have a business plan or is in hidden away in a drawer never to be seen again? An accountant 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.  

Hiring a professional at this early stage will mean you get the benefit of their financial knowledge and advice right from the start. That could save you time and money compared with hiring one later. 

Make your business a success 

The truth is tapping into the expertise offered by a financial professional might be one of the most effective decisions you could make for your company. Your accountant can provide recommendations that will propel your business efforts forward and help you reach higher levels of success. 

We charge on a monthly basis and whether you take you seek help now or after the year end, the cost will largely be the same. However, by investing at the start, we will be able to ensure you are accounting correctly, have valuable information on a monthly basis, have monthly support, and ensure that you are operating in the most efficient way. Whereas if you hire an accountant after the date, they will be not able to help you make tax efficient decisions and if they need to fix past mistakes, it will cost more to correct these.  

 

Accountants can help you every step of the way 

As you can see, accountants can help you out during every stage of your company’s development. That doesn’t mean you have to hire one, but the right accountant should make life easier for you, so you can concentrate on what you love doing. 

Your speciality is running your business. Leave the financial detail to an accountant. 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 an accountant 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. 

 

2. Download our free guide on “7 mistakes to fix, to stop your fitness business running out of cash” https://debbiebaileymoney.co.uk//fitness-ebook/ 

3. Download the “32 ways to extract cash from your business” Here 

4. Connect with me on social media: 

 

 

Categories
Business tips Cash Finance Function

Management Accounts – what are they and do you need them?

Management Reporting - What is it and do you need it?

 

 As a limited company you know that you must file a set of accounts every year, it is a statutory requirement and something that doesn’t seem to provide you much value. You cannot make proactive quick decisions based on historic data that is now probably out of date.  

 

Yet a set of accounts can provide valuable information, allowing you to make good decisions based on current data, this is why large companies employ management accountants to work inside the business. These large companies will have up-to-date accounts every month, they will be able to spot any potential issues and react quickly to resolve them.  

 

Improving your businesses financial efficiency requires a clear overview of your key numbers, so you can track your performance and drive improvements. 

 

So, what are management accounts? 

 

Monthly management accounts are a snapshot of the financial health of your business. 

It is good practice to get into if you want to grow sustainably because you can plan based on real numbers and are equipped with the facts if you need to change course. 

 

The information included in a set of management accounts can vary as it depends on the needs of the business and it’s stakeholders but generally, they include: 

 

1) A profit and loss for the current year and a forecast for the next 6- 12 months.  

2) A Balance sheet and a forecast for the next 6 – 12 months 

3) Both of these will have comments explaining key numbers and possibly a variance to forecast or budget.  

4) A cash flow statement and a forecast for the next 6 – 12 months 

5) KPI (Key performance indicators) which are relevant to your company. 

6) Risks and opportunities which may impact the above forecasts and what you can do to mitigate those risks? 

7) Trends – What trends can you see in the numbers, how do these compare to competitors, is there any external factors impacting the numbers.  

 

6) Insights – So what? How can we improve the position above? What drivers do you have control over and how can you use them to change the forecast outcome? 

 

The purpose of management accounts is not to provide a whole load of extra numbers and data which really doesn’t make any sense and doesn’t help you to support the business. The numbers provide the data but the key part is understanding what those numbers mean to your business and what you can do to impact them.   

 

Smaller companies they may not be able to afford a full-time finance expert, but they can still benefit from this service with a part-time or outsourced advisor. Below are the benefits available from having regular management accounts.  

 

1) Helps to control costs: Month on month data will enable you to spot trends and anomalies. If one particular month stands out, you can dig down into the numbers and understand why. Some businesses continue to pay for items they longer use as they do not regularly review their costs.  

 

2) Spot potential problems: Is the debtor balance (amounts receivable) increasing without a corresponding increase in sales? If so, then this gives you a signal to look into unpaid invoices. Some management accounts include a review of unpaid invoices.  

 

3) Compare budgets and forecasts: This will help to understand if your business is moving in the direction you wanted it to. Are sales picking up as expected, if not, why?  

 

4) Understand the profitability of products/services: Overall, the business may be profitable, but wouldn’t it be useful to know if you had an unprofitable product or a high performing product that was generating most of your profit. This will help you to make decisions on what to focus on.  

 

5) Helps with financing: When seeking external financing the lender will often request a business plan along with current accounts and forecast data. This will greatly improve the businesses change of securing funding. It also provides the shareholders with reassurance that they can afford the finance repayments.  

 

6) Spot opportunities: Management accounts may highlight an excess of cash above and beyond the buffer you like to maintain. This could provide the shareholders will confidence in making that next investment.  

 

7) Cash Planning: Even though the business bank account may look healthy it is important to understand future cash commitments. Within the bank you will have cash set aside for Corporation Tax, VAT, supplier payments, payroll, stock etc which can cloud your understanding of the cash position. Forecasting will enable the business to see those payments going out and understand if there is enough cash to sustain the business or make those desired purchases.  

 

8) Aids risk management: By understanding what risks and opportunities can impact the businesses future, the shareholders can make decisions to mitigate those risks or have plans in place if those risks materialise.  

 

9) Tax Planning and Dividend Payments: When up to date information is available, a director/owner can plan with greater confidence when remuneration can be taken. Dividends can only be taken when a company has distributable reserves, so for less established or less profitable companies this will need careful monitoring, to ensure too many dividends are not taken through the year. 

 

10) Detection of Fraud: Regular accounts review will increase the possibility of detecting fraud. If long periods pass by without a financial review the wrong doings will remain hidden and it may become more difficult to uncover.  

 

11) Helps to identify seasonal fluctuations: It is important to understand and plan for seasonal fluctuations and align income and expenses as much as possible. Some expenses will continue even during a low season; therefore, the business needs to prepare and have cash reserves for this period. 

 

Management accounts put you in the driving seat of your business and mean you are no longer flying by the seat of you pants and relying on chance.  

 

If you’re looking to get in real control of your financial destiny, we’ll work with you to set up a management pack that puts you firmly in the driving seat. 

 

Talk to us about setting up management reporting 

 

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 Gym

How can gym management software help your business grow?

How can gym management software help your business grow? 

 

Whether you own a fitness facility or are considering opening one, choosing the right gym management software is key. Gym management software is not only for gyms but also, fitness studios, clubs, PT’s, dance studios, yoga studios, personal trainers etc.  

 

It offers an all-in-one software solution to run your business efficiently. As a fitness entrepreneur you often end up wearing many hats – marketer, accountant, sales person, administrator and everything else in-between. As your business grows you will find these hats harder to juggle, so why not let the software do some of the heavy lifting. 

 

Typically, you would expect the software to have features such as membership management, class bookings, payment processing and provide useful reports and insights. Some fitness businesses will start with a spreadsheet but this will quickly grow messy and can result in a poor member experience. If this sounds familiar then now may be the time to consider the benefits a gym management software solution offers, it can save you time, reduce your stress levels and improves customer satisfaction and importantly retention! We all know that customer acquisition and retention are the bread and butter of growing a successful fitness business.  

 

When deciding on what features the software needs to offer, it is important for you to assess your business needs, ask yourself: 

  1. What is my 5-year plan for the business – is it to grow?  
  2. Do I require my system to integrate with other software solutions such as video sharing, accounting systems, payroll systems, payment systems, email marketing systems?  
  3. What could improve my customer experience? Do they want an app, ease of payment, ease of booking? 
  4. Do I need it to manage staffing levels? 
  5. Do I need it to assist with client retention and acquisition? 
  6. How much time does it need to save me? 
 

Make sure that whatever solution you go for it solves YOUR businesses problems and propels your business forward. Don’t be dazzled by the features that will not help your business, focus on your needs and if the software offers that.  

 

Potential features of gym management software: 

 

Get cash into your bank: 

 Integrated payment processing: 

By having flexible payment methods such as direct debits, credit cards, cash…cheques…. you will reduce the friction points for when a member wishes to pay, this will result in more sales.  

Integrations into payment systems GoCardless and Stripe will reduce the need for you to spend time chasing payments each month. This saved time can be spent building the business.  

 

Chase up payment: 

You may find it embarrassing to call up members to chase payments or even to send the email, so why not have this automated. The software will email or text the member and you could even include a link to the app so they can pay via their phone.  

 

Automated payment reminders will also reduce the need to chase up late payments, the software will notify members when payment is due, if they are not on direct debit. 

 

If a member is behind on payments some software will give them the option to use the app to make one-off payments.  

 

It is all about getting the money into your bank account, after cash-is-king and without it you will not have a viable business.  

 

Spend more money: 

Members may be able to store card details against their account which means that your members don’t have to bring their card when they come to your facility! 

 

Marketing 

 

Marketing emails: 

The software will aid you in managing prospects, current members and members who have left. If you have a newsletter or a special promotion you can categorise contacts into groups and target them with specific emails.  

 

Social media integration: 

The software may include a social media integration such as a facebook pixel so you can understand where leads came from and how you can re-target similar people 

 

Retention 

 

Which members may leave: 

Data collected by the software will enable you to automate your retention policy, by understanding which members are not making the most of their membership you can contact them and help them understand the benefits so they do not leave.  

 

Celebrate milestones: 

Data in the system will allow you to automate reminders for things such as birthdays, membership “birthday” etc so you can send them an automated birthday email/text/or app message or even get a reminder to send out a birthday card in the post!  

 

Renewal: 

If a member’s membership is due to come to an end, you can send them an automated email to remind them to renew and reduce the risk of them leaving.  

 

Customer 

 

Ease: 

Reduce the friction for the member at all points of the customer journey, software and apps can ensure that members can join online 24/7, book classes easily, check how busy the gym is, make online payments and ultimately make the process seamless. If you enhance the member experience, retention is likely to improve and referrals may increase.  

 

An app will also allow you to keep in contact with members on the go. We are a nation of phone and app lovers so take your customer journey to where the customer is.  

 

Digital integration 

Make digital classes look more professional with integration to apps such as Zoom. The member will log in via the app which enhances your brand and increases that seamless customer journey. 

 

Brand 

From your website to the app, your brand is at the forefront of the customer experience so you will want to ensure that whatever software you select it can showcase your brand. 

 

Legal 

 

GDPR: 

This important regulation is about the safe keeping of personal data, you need to make sure that your clients’ data is processed lawfully and consent must be freely given, specific, informed, and unambiguous.  Your gym software should allow you to store and easily access by member, digital sign-up, waiver forms, PARQ’s and T&C’s. By having this all in one place if a member was to request access to all the data you hold on them (this includes emails) you will have a single source of truth and be able to handle the request quickly and efficiently. This will ensure the member is happy and GDPR regulators are happy. 

 

The member should be able to easily unsubscribe to your marketing emails, again by having this in one location and not having to maintain two records you can ensure you are not outside the law.  

 

Stock 

One way to increase profit within your fitness business could be to sell other items such as drinks, exercise clothing, snacks etc but it is important to understand the level of stocks. This assists your accountant and ensures that stock levels are never too low or becoming obsolete. Some software providers will have an automatic re-order feature which you can set to different levels on each item type.  

 

Staff management  

Some software providers will allow you to put rotas on the system, so you can manage staffing levels, keep staff informed of any changes and then link through to payroll systems for accurate payment to staff.  

 

Information to grow business 

The software should provide a user-friendly dashboard which makes it easy for staff to use and provides valuable insights at a glance. Such insights could include, employee costs, membership retention numbers, sales numbers, attendance rates etc. These important numbers will give you key information for growing your business and where you should focus your attention, making changes before it’s too late.  

 

By linking into your accounting system, you will have a reduce admin burden and your accountant will be able to provide value information such as which services are most profitable, forecast tax and advise how much money you can take out of the business. These financial numbers can then be used to ensure the smooth running of your business 

 

COVID-19 safe 

 

Access to the facility: 

Your software should aid you with the current plans to re-open indoor fitness facilities. Of high importance is making sure members feel safe to return to your facilities and one way of doing this is having a non-touch entry system such as a QR code or barcode card.  

 

Number of people safely using the facility: 

Your software should be able to track how many people are in the facility at any point in time, this is so you can ensure people are able to social distance. Some software providers will also allow members to understand how busy the gym is right now and on certain times or days. This will allow members to plan their visits without worrying about their safety.   

‍ 

In Summary  

 

Some things to consider when comparing software: 

  1. Costs – Are there set-up fees? Support fees? Additional transaction fees? 
  2. Ease – Is the system easy to learn? Will it be easy for members to use? 
  3. Brand – Does it show case your brand? 
  4. Security – Is the system secure for members details plus payments. 
  5. Features – Does it have all the features you need? 
  6. Growth – Can it grow with your business ambitions? 
Do not be dazzled by shiny features that you do not need and simply increase the cost of the subscription, focus on your business needs and find the best solution to fit those needs. You will need to have an understanding of your business’ future plans, what you want to focus on and therefore what features will really help you move forward.  

 

Without assessing your business needs, it’s more likely that you’ll make the mistake of picking software for the wrong reasons (shiny object syndrome).  

 

If you would like more help on understanding your business needs please get in touch.  

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

Why a cheap accountant is not the answer to your dreams!

Why a cheap accountant may not be the answer to all your dreams! 

So you have decided to delegate your business finances, this can be quite daunting as you might feel like you are losing control. You need to trust the person you are passing the baton to, trust that they will do a good job, keep you legal and care about the business’ success. So how do you decide which accountant to let into your business? 

Is it the cheapest accountant really the answer to your dreams? We all love a deal but consider this quote: 

“If you think it’s expensive to hire a professional, wait until you hire an amateur.” 

 At times there may be benefits to having a cheap accountant: 

  • The business will save money initially 

  • The business may get good service 

  • It is probably better than doing own accounts 

  • With modern technology the accountant can be based anywhere 

However, there are many consequences with having a cheap accountant: 

Availability: 

The accountant will only be able to provide limited support and will charge you extra for queries which means that you probably will not ask the question! 

Compliance only: 

Once the accounting year has finished you will hear from your accountant but surely you want to be able to have a discussion with your accountant, understand the key numbers on a regular basis. What use is it them telling you what happened in the business a year ago. 

Unqualified:  

Did you know that anyone can call themselves an accountant, there is no need to be qualified or have a certain level of experience? 

Training: 

If your accountant does not charge enough, they will not have the time nor the funds to keep up to date with current regulations. In the world of tax and accounts it is very important to complete to keep up-to-date with the latest changes. Did your accountant keep you up-to-date during Covid? 

Overworked:  

The accountant and the team will be overworked. In order to make a profit they will need to have a high level of clients and therefore be limited in the service they can offer.  

Advantages of having a more expensive accountancy service 

Proactive: 

As your accounts will be up-to-date, what use is it being told what happened in your business a year ago. You want to know what’s happening right now – what products provide the best margin? What marketing channels are delivering amazing ROI? 

Better training: 

The business is more likely to be able to provide the training as they will have the time and resources to invest in it. Therefore, ensuring that everyone is up-to-date on the latest changes.  

Tax savings could compensate for the higher fees: 

Provide help in situations such as coronavirus: 

The more expensive accountant will have had the time and energy to help your business with all the information coming out around the Coronavirus support. This is a time when the differences in customer service were highlighted.  

Commercial insights and analysis: 

One reason some accountants are more expensive is that they are investing the time to understand your business, get under the skin and provide commercial insights. A cheaper accountant will not do that because they don’t have the time and you are paying them to keep your compliant.  

When selecting an accountant, see it as an investment, an investment in your business’ future, your businesses growth and your sanity! Sleep better at night, enjoy your free time and let your accountant do what they do best.  

 

Do you need a proactive Accoutant? 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

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: