Peter Kelly a member of HCBA Co-authored this exciting new business book for SMEs. This book is a highly readable set of principles and actions, which will convert readily into increased performance and profits in your business. Entrepreneurs can sometimes struggle to meet the goals they have set themselves and may need help to create the high performance business of their dreams. The aim of Entrepreneurs Succeed with Us is to help such entrepreneurs get to grips with difficult to identify and resolve business-critical issues and kick-start growth plans to achieve their goals. These may include a successful exit strategy. The book has been written by a team of highly capable professionals who appreciate the pressures of an entrepreneur's day to day and longer term problems. Its content is designed to help them recover from difficult situations by getting to the root causes of their sleepless nights. Entrepreneurs Succeed with Us addresses a range of key issues that face all … [Read more...]
Why Do You Need a Finance Director?
Where to start? The FT top 250 companies all employ a Finance Director (FD). This is a dedicated finance professional who looks after the finance function of the business. The Finance Director is usually a Qualified Accountant. Not a bookkeeper who keeps the records and not the firm of Chartered Accountants who do the audit, if required, and give tax advice. The Finance Director manages all the financial aspects of the business. Here are some questions you should ask yourself: Do you understand the financial statements that your bookkeeper or accountant produce for you? Do you understand how to write a business plan? Do you understand the difference between Profit and Cashflow? Do you know the right questions to ask new Investors, Banks, HMRC, Companies House? Do you know how to deal with Investors? What method are you using to calculate your Prices? Do you know you annual and monthly break-even points? Do you know how to get information from your finance … [Read more...]
UK Compaines Are Missing Out on Claiming R&D Tax Credits – Are You One Of Them?
How to pay less tax in a few easy steps – it’s not rocket science but it does require some development activities! UK companies are missing out on claiming Research and Development (R&D) tax credits which means this great tax reduction scheme is under-utilised in the UK, compared to other European countries. If your company is using science or technology innovatively to create new or improved products, processes, systems or services, for yourselves or for your clients, you may well qualify. The average claim value for small and medium sized companies in 2011 was £43,000 and since then the rate at which a company can claim has been increased. “Literally thousands more companies qualify and they just don’t realise it.” Watch this video on three thing to look for to identify research and development for tax credit claims... http://youtu.be/GQfy82FiDaw The words research and development conjure up images of men in white coats in laboratories making scientific breakthroughs and … [Read more...]
UK Companies Are Missing Out on Claiming R&D Tax Credits – Are You One of Them?
How to pay less tax in a few easy steps – it’s not rocket science but it does require some development activities! UK companies are missing out on claiming Research and Development (R&D) tax credits which means this great tax reduction scheme is under-utilised in the UK, compared to other European countries. If your company is using science or technology innovatively to create new or improved products, processes, systems or services, for yourselves or for your clients, you may well qualify. The average claim value for small and medium sized companies in 2011 was £43,000 and since then the rate at which a company can claim has been increased. “Literally thousands more companies qualify and they just don’t realise it.” Watch this video on three thing to look for to identify research and development for tax credit claims... http://youtu.be/GQfy82FiDaw The words research and development conjure up images of men in … [Read more...]
How Safe Is Your Cash With A Bank?
Having money in your bank is safe? Well maybe not! Since Carr vs Carr in 1811, when you deposit your money with a bank they create a debtor account and you become an unsecured creditor of the bank. However, UK financial institutions with a banking licence are covered by the Financial Services Compensation Scheme (FSCS), which is designed to protect your deposit if the bank were to become insolvent. The limit is £85,000 per person. So for a joint account cover of £170,000 is available. If you have more than these amounts in a bank or building society account do make sure you spread it around amongst other banking licence institutions to protect yourself. However, one thing to be aware of is that this limit is per banking institution - not per individual bank, so Lloyds and Cheltenham and Gloucester come under the same licence. As an example, recently the Co-op bank has been in the news since Moody’s downgraded it’s credit rating to “junk bond” status. Within the same banking … [Read more...]
Fall in the Euro after Eurozone Recession Continues
The euro fell across the board last week after the release of economic growth figures showing that the Eurozone economy had remained in recession for a record sixth consecutive quarter. Andy Scott, premier account manager at foreign currency exchange brokers HiFX, said: “As a collective, the economy of the 17 member countries contracted by 0.2% in the first three months of 2013, following a fall of 0.6% at the end of last year. The euro fell to a six-week low against the dollar, below 1.29, and fell by around 0.75% against the pound. “Most of the individual country figures were worse than expected with France, the euro area’s second-largest economy, back in recession for a second time in the past four years. Italy’s recession continued for a seventh consecutive quarter, contracting by a further 0.5%. Germany narrowly escaped recession with growth of just 0.1%, which was less than expected, with the figures for the end of last year also being revised lower to show a contraction of … [Read more...]
Selling Your Business – Seminar 5th June
Whether you plan to sell your business now or in 20 years you will benefit from attending our informative seminar on Exit Planning. You will find out how to assess the value of your business now, and what to do to increase that value. It is an opportunity to learn about the way to prepare your business in order to obtain the maximum value when you wish to sell it. Ideally you should start planning your exit about three years before you wish to complete it. The strategy to increase the appeal to a potential buyer is significantly different from that used for business growth. Everyone present will be able to comment on anything they have heard, and to question the panel and the other delegates. Hear from experts the best ways to maximise the value of your business Make your own contribution to the discussions Hear more about Metro Bank – the first High Street Bank to open in over 100 years Enjoy some light refreshment whilst networking with other like minded local … [Read more...]
FSB Says That March Freeze Costs UK Small Businesses £174m
More than half (55%) of UK small businesses have been impacted financially by the recent prolonged cold weather, costing them £174m, according to the findings of a new survey from the Federation of Small Businesses. The research showed that around six in 10 small businesses were impacted by the cold snap and that loss of demand (30%) and closures (26%) were the common impacts. Of those who closed or temporarily stopped trading, an average of 2.2 days was lost. Furthermore, around 27% of firms had staff absent for at least one day. The FSB says that, on average, each business lost £1,580. In addition to the effects of the cold snap, one in five businesses also said they had been negatively impacted by the flooding in 2012. Mike Cherry, the FSB’s national policy chairman, said: "We may finally have turned a corner into spring, but it's been a long haul, following the coldest March in 100 years. While a few businesses have managed to take advantage of the weather many have found … [Read more...]
FSB Says That March Freeze Costs UK Small Businesses £174m
More than half (55%) of UK small businesses have been impacted financially by the recent prolonged cold weather, costing them £174m, according to the findings of a new survey from the Federation of Small Businesses. The research showed that around six in 10 small businesses were impacted by the cold snap and that loss of demand (30%) and closures (26%) were the common impacts. Of those who closed or temporarily stopped trading, an average of 2.2 days was lost. Furthermore, around 27% of firms had staff absent for at least one day. The FSB says that, on average, each business lost £1,580. In addition to the effects of the cold snap, one in five businesses also said they had been negatively impacted by the flooding in 2012. Mike Cherry, the FSB’s national policy chairman, said: "We may finally have turned a corner into spring, but it's been a long haul, following the coldest March in 100 years. While a few businesses have managed to take advantage of the weather many have found it … [Read more...]
Government Funding – SMEs get £70m
Small and medium-sized businesses (SMEs) are set to receive a £70 million lending boost as part of government action to increase the availability of finance. Three new lenders – Market Invoice, URICA and Beechbrook Capital – will share more than £30 million of government funding to offer SMEs alternatives to traditional bank lending. They have committed to attracting additional funding from private sector investors, with the total expected to boost the pool of credit available to SMEs from the three lenders by more than £70 million. Business Secretary Vince Cable said on 22 March: “A lack of access to finance is still choking off too many small businesses, preventing them from growing, taking on new staff or investing in new equipment. “We are taking a range of actions to support SMEs and shake up business finance markets, including through the new business bank. “Today’s £30 million announcement is an important boost for non-traditional lenders with creative and … [Read more...]
Finance for Growth Seminar in Winchester
Are you a business looking for finance to grow but are uncertain of what sources would be right for you? If so, these FREE seminars are for you! Enterprise M3, the Local Enterprise Partnership for the wider M3 corridor, is hosting a seminar aimed at helping businesses both understand and access new and established sources of business finance. During this seminar, you will: Gain a valuable understanding of what you need to do to prepare for investment. Explore what types of finance are right for your business at this particular stage of its life cycle. Find out about the range of new and established sources of finance currently available to the market. Sources of funding covered in the seminar include: crowd funding (debt & equity), invoice financing, equity funding such as venture capital and business angels and export finance. Date: Tuesday, 19 March 2013 Time: 9 am to 12 noon (Registration from 8.45 am) Venue: Winchester City Council, Walton Suite, … [Read more...]
LGBA Participation in Finance for Growth Seminars
Are you a business looking for finance to grow but are uncertain of what sources would be right for you? If so, these FREE seminars are for you! Enterprise M3, the Local Enterprise Partnership for the wider M3 corridor, is hosting two seminars aimed at helping businesses both understand and access new and established sources of business finance. During these seminars, you will: Gain a valuable understanding of what you need to do to prepare for investment. Explore what types of finance are right for your business at this particular stage of its life cycle. Find out about the range of new and established sources of finance currently available to the market. Sources of funding covered in the seminar include: crowd funding (debt & equity), invoice financing, equity funding such as venture capital and business angels and export finance. LGBA Member Peter Kelly presenting on Crowdfunding. Details of the seminars: Date: Wednesday, 6 February 2013 Time: 9 … [Read more...]
Research and Development Tax UK Credits – Are You Claiming?
Research and Development Tax Credits in the UK has been uplifted each year for the past three years and are now at a record high level and are a great benefit to eligible Small and Medium Sized Enterprises (SME). The interesting fact is that many SMEs are not claiming when they could and should be. The R&D tax relief or credit is against corporation tax you have paid, or if you made a loss it is a cash credit at a reduced level. The current claim rate is at 125% of spend Currently the benefit is 125% of the value of your eligible spend on R&D. That means if you spend £100,000 on R&D in 2012 you can put an extra £125,000 against your corporation tax - saving you £25,000 in tax that you would otherwise have to spend! Usually the critical factor for a small business is understanding the scope of what can be claimed in terms of eligible projects and then writing a technical justification to support their claim for R&D Tax Credits. Misunderstandings... Some … [Read more...]
Sharia Finance
Islamic finance is a market worth over £ 1 trillion and UK banks are keen to break into this marketplace. Sharia finance is derived from the religious text of the Koran. It follows three basic rules: Devout Muslims must not be involved with markets that are considered sinful, such as gambling, alcohol, tobacco, arms, cinema, pornography or anything to do with pig meat. They must avoid taking risks, such as investing in hedge funds and spread betting It bans the payment of interest. In other words you are not allowed to create money by money. This rule makes it hard to use Western banking products such as loans, mortgages and savings accounts. Trading and investing for profit is permitted, but on the basis of partnership, in which the risk and profit are shared between two parties. This means that if you put money into accounts in Islamic banks you do not earn interest but you earn a profit share in the activities of the bank. If you want a loan to buy a car you are not given … [Read more...]
Forensic Accounting
Forensic Accounting is a branch of accounting that describes the work of an accountant who investigates and reports on the financial activities of a business or individual with the aim of producing information for the settlement of disputes. Forensic means “suitable for use in a Court of Law.” Some of the uses of Forensic Accounting information are:- Economic damages calculations, losses suffered from a tort or breach of contract. Post Acquisition disputes such as earnouts or breaches of warranties Bankruptcy, insolvency and reorganisations Fraud Business Valuation – Going and gone concern. Computer forensics and discovery. Family disputes for the valuations for divorce etc. A forensic accountant will: Collect all the data. Data preparation and processing Analysis of the information to produce information. Reporting the findings of the investigation. An example of forensic analytics would be to review … [Read more...]
With Banks Not Lending What Alternative Sources Of Funding Are There?
This is the question that many SME’s are asking in ever increasing numbers. If the Banks will not lend to them who will? The answer is that there are many alternative sources of funding that many people are totally unaware of. There are even some products from main stream lenders that seem to be forgotten. Here are just a few examples, but remember these are ‘alternative’ sources and as such are more expensive than High Street lenders. … [Read more...]
What Government Funds Are Available to SMEs To Help Growth?
There are a number of funding options that are sponsored by the Government through the Department for Business, Innovation and Skills (BIS). Enterprise Finance Guarantee Scheme (EFG): The EFGS replaced the successful SFLG Scheme, it is a loan scheme that has been designed for SME’s that meet the criteria, to obtain loans even if they do not have any security to back the loan. The lender is provided with a 75% from the government. 45 approved lenders have signed up to the EFG programme. Be aware, however, that all lending decisions are made by the provider and not the government and many lenders are still asking for personal guarantees from the borrowers even though they have a 75% guarantee from the government. Loans are available from £1,000 to £1,000,000 for SMEs with turnover of less than £45m. It is important to understand that these are not the most popular type of loans with the banks, due to their risky nature. … [Read more...]
SME's and Cash Flows
It’s tough being a SME especially when it comes to cash. Banks are restricting their lending especially to SME’s and when they do lend charge interest rates well above that extended to the large corporates. The average interest rates for loans less than £1 Million are double that for loans above £20 Million (N Blake Economic Advisor Ernst & Young). Corporates further put pressure on their SME suppliers by paying suppliers on average 34 days after term dates (range 30 to 90 days). In the UK late payment is endemic despite an EU directive for all companies to pay within 30 days and a public sector commitment to pay invoices within 10 days. Ask any SME owner dealing with Government (Inst. of Credit Management). Yet the SME sector is significant as proven by some statistics: SME’s comprise 59.1% of private sector employment 48.6% of private sector turnover Turnover in the SME sector is £3.2 Trillion! They employ 22.5 Million people (Dept. for Business Innovation & … [Read more...]
SME’s and Cash Flows
It’s tough being a SME especially when it comes to cash. Banks are restricting their lending especially to SME’s and when they do lend charge interest rates well above that extended to the large corporates. The average interest rates for loans less than £1 Million are double that for loans above £20 Million (N Blake Economic Advisor Ernst & Young). Corporates further put pressure on their SME suppliers by paying suppliers on average 34 days after term dates (range 30 to 90 days). In the UK late payment is endemic despite an EU directive for all companies to pay within 30 days and a public sector commitment to pay invoices within 10 days. Ask any SME owner dealing with Government (Inst. of Credit Management). Yet the SME sector is significant as proven by some statistics: SME’s comprise 59.1% of private sector employment 48.6% of private sector turnover Turnover in the SME sector is £3.2 Trillion! They employ 22.5 Million people (Dept. for Business Innovation … [Read more...]
Dividends – Some Pitfalls
Many directors of Small and Medium sized Enterprises (SMEs) which are limited companies take both a salary and dividend from the company with salaries set at a tax effective level. This is acceptable to HMRC and should not give cause for concern. The salary itself should be treated in the normal way via the payroll system and normally is. However with dividends it’s a different story. And here problems start to arise. Not only from a compliance perspective but also because of tax issues arising. In terms of compliance for a dividend to be valid it needs to follow certain rules. These are: There must be sufficient reserves in the accounts for the dividend amount to be covered. Where dividends are paid in the current year based on income from the current year the dividends must be after tax profits. The directors must have reasonable grounds that sufficient after tax profit exists. Reasonable grounds are not just an extract from Sage or other accounting software. The … [Read more...]
