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Business, Accountancy and Tax Related News

Invoice factoring – what is it and how can it help my business?

Cashflow is arguably the most important factor in the financial success or otherwise of a company. Cashflow measures the movement of money in and out of your business to see how much capital you really have to work with. The phrase “turnover is vanity, profit is sanity, cashflow is reality” is particularly relevant here. If you spend all your time worried about whether your turnover is high enough and not paying attention to your overheads (fixed and variable), both your profits and cashflow will suffer. If your outgoings, such as your payments towards your rent, utilities, and suppliers, are even a penny higher than your incoming sales, you don’t make a profit. Similarly, if you have £10,000’s out on invoice but there’s a bill you’re due to settle next week but your customers won’t recompense you until next month, you will have a serious issue if there’s not enough cash […]

Top three tips to deal with pay rise requests

Negotiating an employee’s salary is never an easy task, so it’s no wonder that many small business owners tense up at the thought of having that exact conversation. However, small business owners not only have their finances to think about when they are considering giving someone a pay rise. If you’re a small or even a medium-sized business, your team is never too far away – in fact, your company is probably very close-knit. To avoid upsetting one of your employees and creating an awkward atmosphere at work, you should make sure to handle a pay rise request appropriately. In this article, we guide you through the top three ways to properly deal with this situation… 1) Ask your accountant Whenever you are contemplating making any big financial decisions, we advise that consult your accountant. Your accountant should already be up to date with your current cash flow situation and […]

How these 3 Derbyshire Businesses took over the world

Every day, we speak to optimistic new business owners excited about what the future will bring. But, as time goes by, it can be easy for the day to day running of your company, managing staff, and juggling finances to cloud your view. If you feel like you’re starting to lose sight of your long-term goals for success, it can be challenging to keep your company on track. That’s why we’ve compiled some of our favourite underdog stories from the world of business. From a humble beginning, these three very different Derbyshire businesses all grew to dominate their respective industries. With the careful planning and the right support, there is no reason your business can’t be next on our list. Rolls-Royce From small mechanical business to the Best Car in the World Way back in 1904 Henry Royce, the owner of a small electrical and mechanical SME, decided to put […]

HMRC Update to Making Tax Digital (13th July)

HMRC Update to Making Tax Digital (13th July) Gone are the days of shoebox accounting. Millions of businesses across the country are already banking, paying their bills, and working with their customers and suppliers online. As more and more of our lives and business move onto the web, it makes sense that the taxman would also jump on the bandwagon eventually. Making Tax Digital (MTD) is HMRC’s initiative to completely revolutionise the tax system; ultimately bringing an end to self-assessment in the UK as well as many other well-established methods of reporting and paying taxes. Last summer, the government announced their timetable for MTD implementation and they stated that they planned on moving to an entirely digitalised tax system by the year 2020. While there has been plenty of confusion as to how MTD would be brought in, one thing was certain; introducing a brand new tax system across the […]

Why pay raises don’t equal performance increases

Your team is the most critical asset in your business. No matter how new or fancy your machines, computers or even robots are. Your team is the most vital ingredient to your business growth and survival. As business owners, we can forget this or take them for granted. After excessive automation at Tesla car factory caused delays, even Elon Musk admitted ‘humans are underrated.’ Yes, excessive automation at Tesla was a mistake. To be precise, my mistake. Humans are underrated. — Elon Musk (@elonmusk) April 13, 2018 As business owners, we are always looking for ways to improve the bottom line numbers of the business, and when we look at our team, we usually believe that to get the best out of them, we need to give them more money. Money has a short-term boost only, a bit like a shot of coffee. You can’t drink coffee all day every […]