Solid Accounting,Bookkeeping, Consultancy...

What to expect from your accountant

When you start up in business it is tempting to think that you don’t need an accountant, that figures should be fairly straightforward and that preparing your own accounts is one easy way to save money.  Very soon the reality of complex legislation and time consuming HMRC returns sets in and the thought of using an accountant becomes more desirable.

 

The fact is that using an accountant can save not only money but time thereby allowing you to concentrate on your business.  But with so many accountants available just how do you choose which accountant will suit you best?  After all, standard accountancy services including Accounting • Bookkeeping • Payroll • CIS • Self Assessment • Tax Returns • VAT Returns are offered by most accountants.  So what sets one accountant over another?

 

At Solid Limited we never lose sight of the fact that we are there to serve our clients not the other way round.  We continuously strive to work to our three founding aims and believe our clients have the right to expect us to meet these goals at all times.  Our aims are:

 

To provide personalised accountancy solutions

We understand that your business is your business and that every business is unique.  For that reason we work with you to identify the level of accounting support that is right for your business.  As your business grows we are there to provide the changing levels of support that you need.  For example as your turnover grows you may move into the VAT bracket or may take on staff and need help with payroll calculations and returns. 

 

Whatever your needs, the important thing is that the solutions offered and associated charges are right for your business so if you don’t need VAT services then we won’t charge you for them.

 

To provide a superior level of customer service

There are far too many business relationships in this world which depend on a reference number and little else.  We believe that the relationship between client and accountant cannot work in this way and will only succeed when it is based on true partnership.  The deeper understanding we have of both you and your business the more we can help you to succeed. 

 

Understanding only comes through regular dialogue and meetings.  This helps us to help you to remain on top of your changing accounting needs as well as enabling us to be proactive in bringing marketplace and regulatory changes to your attention.

 

To provide all the advice and support our clients need

Following on from providing superior levels of customer service comes the need to provide advice and support to help our clients to understand and grow their business.  Our clients know that they can contact us at any time for support and guidance.  As part of this support package we offer free access to and training in the “KashFlow” software accounting package.  This provides you with an accounting package whilst at the same time helping us to monitor and manage your accounts.

 

Of course, the worry is that advice and support may come at a price.  We understand the need to monitor and control costs and how this might affect business decisions.  Because of this we offer fixed price or fixed monthly support packages.  That way you know how much you will have to pay and there will be no surprises.

By meeting our founding aims we are confident that Solid Ltd is providing its clients with not just basic accountancy but a partnership that will grow and develop as the business develops.  We believe you have the right to expect this from your accountant whether you are a one man band or a larger organisation.   Whilst it is naturally in our financial interests for you to succeed, we take it as a point of pride to help you to grow a strong business which will be there for years to come. 

This week's round up of accountancy and business news

30^TH May is tax freedom day

According to the Adam Smith Institute in 2011 we have all worked for the Tax man from 1 January to 29 May, a total of 149 days and three days longer than in 2010.

http://www.citywire.co.uk/money/tax-freedom-day-dont-work-for-the-man-any-longer/a495481

 

Late paid PAYE, a cautionary tale

Although penalties for late payment of PAYE commenced in April 2010 it is only now that the full impact will start to be seen.

http://www.accountingweb.co.uk/topic/tax/late-paid-paye-ticking-bomb/500793

 

Company cars advisory fuel rates

HMRC have published new advisory fuel rates to take effect from 1 June.

http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

 

Do SMEs want to borrow

As the big 4 banks come under fire for failing to meet lending targets the chairman of the UKs newest bank says demand just isn’t there

http://www.thisismoney.co.uk/news/article.html?in_article_id=535064&in_page_id=2

 

Financial Ombudsman compensation limit increased to £150,000

The FSA have increased the claim limit to £150,000 from £100,000 as part of a package of measures designed to drive up standards

http://www.citywire.co.uk/money/financial-ombudsman-compensation-limit-increased-to-150000/a495445?ref=citywire-money-latest-news-list

 

Fraud against the Government soars

According to the KPMG fraud barometer fraud against the Government has soared by 142% in the last 3 years with tax fraud leading the way.

http://www.kpmg.com/UK/en/IssuesAndInsights/ArticlesPublications/NewsReleases/Pages/Public-exchequer-plundered-as-Government-targeted-fraud-soars.aspx

 

Disguised Remuneration legislation is too complex

The Chartered Institute of Taxation has hit out at changes to the new disguised remuneration regulations as being too complex.

http://www.contractoraccountants.com/2011/05/25/chartered-institute-of-taxation-hits-out-at-hmrc/

30^TH May is tax freedom day

According to the Adam Smith Institute in 2011 we have all worked for the Tax man from 1 January to 29 May, a total of 149 days and three days longer than in 2010.

http://www.citywire.co.uk/money/tax-freedom-day-dont-work-for-the-man-any-longer/a495481

 

Late paid PAYE, a cautionary tale

Although penalties for late payment of PAYE commenced in April 2010 it is only now that the full impact will start to be seen.

http://www.accountingweb.co.uk/topic/tax/late-paid-paye-ticking-bomb/500793

 

Company cars advisory fuel rates

HMRC have published new advisory fuel rates to take effect from 1 June.

http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

 

Do SMEs want to borrow

As the big 4 banks come under fire for failing to meet lending targets the chairman of the UKs newest bank says demand just isn’t there

http://www.thisismoney.co.uk/news/article.html?in_article_id=535064&in_page_id=2

 

Financial Ombudsman compensation limit increased to £150,000

The FSA have increased the claim limit to £150,000 from £100,000 as part of a package of measures designed to drive up standards

http://www.citywire.co.uk/money/financial-ombudsman-compensation-limit-increased-to-150000/a495445?ref=citywire-money-latest-news-list

 

Fraud against the Government soars

According to the KPMG fraud barometer fraud against the Government has soared by 142% in the last 3 years with tax fraud leading the way.

http://www.kpmg.com/UK/en/IssuesAndInsights/ArticlesPublications/NewsReleases/Pages/Public-exchequer-plundered-as-Government-targeted-fraud-soars.aspx

 

 

Disguised Remuneration legislation is too complex

The Chartered Institute of Taxation has hit out at changes to the new disguised remuneration regulations as being too complex.

http://www.contractoraccountants.com/2011/05/25/chartered-institute-of-taxation-hits-out-at-hmrc/

This week's round up of accountancy and business news

Nil-debt businesses receive threatening letters

HMRC have been sending out letters threatening bailiff visits to businesses which owe no tax.  The letters appear to be automatically generated and sent to firms which have failed to send a nin-payment submission to HMRC.

http://www.accountancyage.com/aa/news/2072385/businesses-receiving-threatening-hmrc-letters-nil-debts

 

ICAS calls for legislation to ring fence customer cash

The call to safeguard customer money in the event of a collapse has caused considerable discussion with some experts worried this could create cash flow problems and even precipitate collapse.

http://www.accountancyage.com/aa/analysis/2072390/ringfencing-customer-deposits-harm

 

HMRC looking at single compliance check process

From mid May HMRC are trialling a new compliance check process based on a 4 tier system.

http://www.tax.org.uk/media_centre/LatestNews-migrated/SCP

 

Check if you should be registered for VAT

HMRC have announced a crackdown on businesses which trade above the VAT threshold but haven’t registered for VAT.  If you are unsure about VAT applying to your business contact your accountant for advice.

http://nds.coi.gov.uk/clientmicrosite/Content/Detail.aspx?ClientId=257&NewsAreaId=2&ReleaseID=419593&SubjectId=36

 

Warning to banks to treat small businesses equitably

As Bank of England figure show that loans of £20m attract average interest rates of 1.78% against a rate of 3.69% on a £1m loan, calls go out to banks to treat small business loans more fairly.

http://www.contractoraccountants.com/2011/05/19/banks-must-treat-small-businesses-fairly-says-oakeshott/

 

PAYE complexity puts businesses off hiring employees

Two thirds of SMEs are put off hiring employees by the perceived complexities of PAYE administration.  Passing the work to your accountant could be the answer.

http://www.smallbusiness.co.uk/homepage/1625043/business-startup-paye-puts-smes-off-hiring-employees.thtml

This week's round up of accountancy and business news

HMRC taskforce looks at restaurants

The Chartered Institute of Tax has welcomed HMRC’s latest crackdown on restaurants in London followed by those in the North West and Scotland.

http://www.tax.org.uk/media_centre/LatestNews-migrated/HMRCtaxevasiontaskforcessupported

 

Over £1 billion in overpayments stopped in 2010/11

The Chancellor has announced that more than £1 billion in incorrect and fraudulent payments were withheld in the 2010/11 tax year.

http://nds.coi.gov.uk/clientmicrosite/Content/Detail.aspx?ClientId=257&NewsAreaId=2&ReleaseID=419423&SubjectId=36

                      

HMRC publish revised PAYE timetable

HMRC have published a revised timetable for IT companies which are preparing online submission programmes. 

http://www.accountancyage.com/aa/news/2070934/hmrc-publishes-revised-rti-timetable

 

Applied for Olympic tickets – make sure your bank account has funds

Those who were successful in applying for Olympic tickets will have the cost deducted from their accounts anytime from now until 10 June.  Keeping spare funds in the account will avoid bank charges.

http://www.moneysavingexpert.com/news/shopping/2011/05/ensure-youve-got-the-cash-as-olympic-ticket-payments-start

 

Decade of pain forecast for High Street…

With families hit by inflation and increased taxes forecasters predict a decade of pain for the high street.  http://www.thisismoney.co.uk/news/article.html?in_article_id=533615&in_page_id=2&ct=5

 

…Meanwhile ICAEW urges businesses to review costs with their accountant

Re-examining the fundamentals of products and services could pay in the long term.

http://www.contractoraccountants.com/2011/05/10/cost-saving-ideas-can-win-the-day-for-contractor-accountants/

 

How to get a grant

Although less prevalent than a few years ago, grants are still available and this guide starts you on the right path.

http://www.smallbusiness.co.uk/channels/small-business-finance/government-grants/guides-and-tips/1620928/how-your-business-can-get-a-grant-in-2011.thtml

This week's round up of accountancy and business news

Urgent reminder for employers

HMRC have issued an urgent reminder for employers to submit their Employer Annual Returns online by 19 Mary or face a penalty.

http://nds.coi.gov.uk/clientmicrosite/Content/Detail.aspx?ClientId=257&NewsAreaId=2&ReleaseID=419393&SubjectId=36

 

Banks accept PPI ruling

The British Bankers Association has announced it will no longer fight the High Court Ruling on PPI mis-selling.  Those in line for compensation could include the self-employed and people with pre-existing conditions.

http://www.moneysavingexpert.com/news/reclaim/2011/05/banks-throw-in-the-towel-on-ppi

 

NI holiday take up lower than estimated

Only 3,000 businesses have applied for NI contributions relief in the 6 months to end March 2011 against an expected take up of 132,000.

http://www.accountancyage.com/aa/news/2068915/nic-holiday-low

 

Banks still failing to lend to business

The Forum of Private Business claims that small businesses are not only failing to secure bank finance they are also unable to even negotiate a starting point.

http://www.contractoraccountants.com/2011/05/04/lending-to-small-businesses-should-be-decided-at-local-level/

 

Corporate Insolvencies continue to rise

Accounting Firm Baker Tilley has released statistics showing that corporate insolvencies have risen by 22% in Q1 2011 when compared to the previous quarter.

http://www.smallbusiness.co.uk/channels/small-business-finance/news/1622343/insolvencies-rise-among-smes.thtml

 

Credit card rates at 13 year high

According to Moneyfacts credit card rates increased by 2% in the first few months of 2011, leading to an average rate of 19.1%, the highest in 13 years.

http://www.totallymoney.com/news/index.php/2011/05/credit-card-rates-hit-13-year-high/

 

Public sector workers receive premium salaries

A recent survey has revealed that public sector workers receive between 4% and 20% more than comparable workers in private industries.

http://www.thisismoney.co.uk/news/article.html?in_article_id=532835&in_page_id=2

5 things to do before you set up a business

Napoleon once famously referred to the UK as a nation of small shopkeepers.  Although times have changed with international business threatening in some places to take over our high streets, the tradition of small business and entrepreneurship still stands firm.  It is in partial recognition of this that one of the key aims of the Government is the encouragement of new business with various measures being introduced in the last Budget to encourage business and enterprise.

Despite this Government encouragement the grim statistics still show a high rate of failure within the first three years of a new businesses life.  However, there are 5 key areas that anyone thinking of setting up a business should concentrate on and these will considerably enhance the chance of success.

1. The Idea

Avid watchers of Dragons Den will be familiar with the scenario of a potentially wonderful new product being turned down flat as not likely to make money.  It is a common human trait to become wildly enthusiastic about a new idea with that enthusiasm overriding common sense.  Unfortunately, our family and friends are the first recipients of the idea and they will encourage it out of love and friendship. 

The sad truth is that not every idea will make money.  Sometimes this is due to the market already being saturated.  Add in the cost of the product or service being more than the selling price and the level of demand being low and you finish up with an idea that will not make money.  

The key to understanding this first potential hurdle is in depth research and detailed cost planning.  Research among local businesses, by stopping people in the street or within local business networking groups.  Wherever possible engage the services of a reputable research organisation and make sure that the research covers the product and price.

2. Marketplace

Even if your initial research shows that people would buy your product or service at a cost effective price, you can’t assume that you will instantly gain access to a worldwide audience.  For example, you may have invented a gadget to ensure cakes always rise.  If there is already a similar gadget on the market then the market may be saturated.  Your product or idea would need to have an added twist to make it saleable.  Again research into the marketplace will give you guidance.

3. Prospects

Following on from marketplace comes the likelihood of potential customers coming to you.  This does involve more research.  You need to understand what will attract customers and what would entice them away from existing suppliers.  This research will include a look at pricing as well as terms and conditions.  Equally important as identifying how you can attract clients is the identification of what will put clients off.  For example, a slower delivery time or onerous terms and conditions will put clients off.

4. Competition

From your research on marketplace and prospects you should have built up an idea of existing businesses which offer the same or similar products or services.  Mystery shopping these businesses will give you further insights into their strengths and weaknesses.  Depending on the business sector some potential competitors will gladly give their time in giving you hints on starting up your business, others will not.

Never forget that existing businesses will have built up a loyal customer base and are in a good position to hold on to those clients.  To break into their marketplace you need to understand their strengths and weaknesses, their unique offering and make sure that you can offer something different which will attract clients away.  This does not mean just offering a cheaper price.  Often this will only lead to your failure and too cheap a price will not attract clients.

5. Finances

Go through your finances with a fine tooth comb and take advice from your accountant.  Particularly when offering a service you should expect to invoice monthly and to wait at least another month to be paid.  This means that cash flow is critical with outgoings in at least the first two months not covered by income. 

An accountant will be able to give you advice not only on managing your day to day finances but on the best way of financing your business; using rent, lease or purchase.  If you need to approach a bank for finance the bank will expect to see a good cash flow forecast and business projections and your accountant can help in drawing these up.  Treating your accountant as a quasi partner in your business planning will stand you in good stead for the long term.

This week's round up of accountancy and business news

HMRC getting tough on Time to Pay requests

Nearly 10% of time to pay requests were refused in the first quarter of 2011, compared with just 4% in the corresponding period last year.

http://www.accountancyage.com/aa/news/2046632/pay-requests-refusals-increasing

 

Plumbers, Gas Fitters & Heating Engineers targeted by HMRC

Letters will start arriving shortly from HMRC reminding plumbers, gas fitters and heating engineers that they have until 31 May to register an intent to disclose unpaid tax or face investigation.

http://nds.coi.gov.uk/clientmicrosite/Content/Detail.aspx?ClientId=257&NewsAreaId=2&ReleaseID=419288&SubjectId=36

 

Buying goods – why credit card could be best

A recent ruling by the Financial Ombudsman Service that credit card companies are jointly liable for faulty goods bought using a credit card is good news for those struggling to get shops to take responsibility for refunds.

http://www.thisismoney.co.uk/credit-and-loans/credit-cards/article.html?in_article_id=532163&in_page_id=53936

 

Business confidence remains weak

A report by the FPB indicates that business confidence remains weak, particularly in areas which rely heavily on public sector money.  On the plus side fewer businesses expect to make staff redundant.  Consulting an accountant before taking on or losing staff might help to give a new perspective on best use of business finances.

http://www.contractoraccountants.com/2011/05/03/business-confidence-weak-in-areas-reliant-on-public-sector/

 

Getting ready for pension reform

87% of SMEs have yet to draw up plans for coping with compulsory employer pension contributions whilst two thirds have yet to review executive pensions in the light of pension tax relief changes.

http://www.smallbusiness.co.uk/channels/small-business-finance/news/1620343/smes-not-planning-for-pension-reform.thtml

 

Do you know what commission is charged on your investments?

57% of people are not aware of the level of commission charged on their investments according to a recent survey.

http://www.ftadviser.com/FinancialAdviser/Advisers/Industry/IFAFirms/News/article/20110428/80531e4a-69c8-11e0-8cf2-00144f2af8e8/Customers-still-ignorant-over-investment-charges-survey.jsp