Category Archives: Business

by | May 13, 2013 · 11:13 am

5 Reasons Why Your Business Should Have a Budget

5 Reasons Why Every Business Should Have a BudgetAs a small business owner do you have a budget for the next twelve months and if not why not?

  • It doesn’t have to be complicated. A simple budget is easy to put together and if you have been trading for a while you can use last year’s accounts as a guide.
  • By comparing your actual results to your budget as you go along you can quickly identify potential problems and take prompt action.
  • Having this simple management information will make you feel more in control of your business and will give you confidence when making financial decisions.
  • If you need to renegotiate your overdraft with the bank they will be impressed if they see that you have some decent management information.
  • The more you study the financial performance of your business the more scope you will see for measuring different aspects of it. In turn this will allow you to manage your business more effectively.

Westbury accountants can advise on all aspects of management accounting including the preparation of budgets and forecasts.

Nicola Pearson – Partner

Westbury Accountants and Business Advisors is an accountancy practice based in London. Westbury have been providing Accounting and Tax solutions to small and medium sized businesses since 1936. Talk to the team at Westbury on 0207 253 7272 or visit http://www.westbury.co.uk.

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by | April 19, 2013 · 10:14 am

Four Reasons Why Age is No Barrier to Entrepreneurship

summlyA few weeks ago, it was reported that a 17-year-old IT whizz-kid had sold his ‘app’ business to Yahoo for a reported $30m.  This seemed to reinforce the view that it was the young technology-savvy who were the entrepreneurs of today.  But is this the really the case?

In an interesting article in the Financial Times in April, the journalist, Gillian Tett, pointed to studies which proved just the opposite.  Apparently a study in 2004 showed that during the 1990s the most common age grouping for entrepreneurs was 25-34.  But a more recent study showed that 34% of budding entrepreneurs were aged 35 to 44 and 29% between 45 and 54.  Only 18% were under 34.

But what is not too clear is the reasons for this.  So I suggest 4 possibile causes:

  1. Whilst the profile of the ‘model entrepreneur’ would seem to be someone with a fairly high level of tolerance to risk, typical of a younger more carefree person, perhaps those who start businesses when they are very young also fail quickly, and maybe the older take a more cautious approach and test their ideas more carefully ending up more successful because of it;
  2. It was found that quite a few entrepreneurs appeared to have tested out working in a larger environment before making the decision that they wanted to be on their own.  So they learned more corporate skills were more savvy about what is involved in running a business;
  3. Maybe the experience of working in the wider sector gave them exposure to many different types of businesses and helped them to generate and nurture their new entrepreneurial ideas.
  4. Perhaps having worked in other sectors gave them the confidence to go out on their own.

So maybe it is true that more new businesses are started by the young, but perhaps the latter have a higher rate of failure and the more successful entrepreneurs are those of more mature years.

If you are thinking about starting up, take a look at our Business Startup services.

Keith Graham – Managing Partner

Westbury Accountants and Business Advisors is an accountancy practice based in London. Westbury have been providing Accounting and Tax solutions to small and medium sized businesses since 1936. Talk to the team at Westbury on 0207 253 7272; or visit http://www.westbury.co.uk.

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by | April 8, 2013 · 11:02 am

7 simple steps to improve staff morale

motivationAs a business owner, do you find that that sometimes your staff lack morale? If you do, you must remedy this as soon as possible, as this would have a direct impact on the running of your business. After all, people spend most of their time at work, so it is important that they are looked after.

By following these simple steps, your staff will be happier and in turn this will improve your business productivity:

  1. Hold regular staff meetings, listen to them, and address any issues they have.
  2. Give them incentives to work harder, for instance by introducing performance related bonuses.
  3. Encourage your staff to progress in your business.
  4. Let them know that their efforts have been appreciated – a simple thanks does wonders.
  5. Offer flexible hours, or even allow staff to work from home – this is especially useful for mothers.
  6. Introduce dress down day every Friday.
  7. Treat your staff, whether that be cakes, drinks after work, or even the occasional lunch.

By following these simple steps, you will soon see a happier team. After all, your staff are your firm’s greatest asset!

Sonal Thakkar – Supervisor

Westbury Accountants and Business Advisors is an accountancy practice based in London. Westbury have been providing Accounting and Tax solutions to small and medium sized businesses since 1936. Talk to the team at Westbury on 0207 253 7272; or visit http://www.westbury.co.uk.

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by | March 21, 2013 · 11:13 am

Three Useful Sage Reports

Sage ReportsPreviously I have written about the importance of good bookkeeping. In this blog I will outline three very useful Sage reports to assist you and your business.

1. Aged Debtors

This report can be found by clicking the reports button in the Customer module.

These reports and especially the aged debtors (detailed) are very good for credit control.  They will not only show which customers owe you money but will also show how overdue the payments are.

This information can allow you to focus your attention on collecting your oldest debts saving you time and hopefully improving your business’s cash flow.

Good cash flow is essential to the survival of any business large or small.

2. Aged Creditors

This report functions in the same way as the aged debtors report but instead can show you at a glance to whom you owe money.

Prompt payments to suppliers are essential if you wish to maintain good trading relations with your suppliers. The credit terms they offer to you can be withdrawn!

By looking at these reports you can make sure you make your payments on time to preserve preferential trading terms.

3. Bank – Unreconciled Transaction Reports

This report found in the reports section of the bank module will quickly show you the transactions that have been entered in Sage, but not matched against the bank statement.

Regularly reviewing the unmatched items will allow you to:

  • Spot cheques that you have written but where the payee has not banked the cheque.
  • Transactions entered into sage in error.
  • Explain the difference between the bank balance in sage (cashbook figure) and the balance on your bank statement.

If you need help with your bookkeeping, please get in touch.

Jonathan Cohen – Audit Team

Westbury Accountants and Business Advisors is an accountancy practice based in London. Westbury have been providing Accounting and Tax solutions to small and medium sized businesses since 1936. Talk to the team at Westbury on 0207 253 7272; or visit http://www.westbury.co.uk.

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by | February 28, 2013 · 10:04 am

3 Benefits To Your Business From Good Bookkeeping

good bookkeepingWhen being briefed before starting work on a new audit or set of accounts one of the first questions I always ask is – who does the bookkeeping?

Bookkeeping is the process of recording all the day to day transactions of a business.

The reason I ask this question so early is because good bookkeeping makes the preparation of accounts and conducting an audit so much easier. We can quickly see what has gone on during the period, where we need to focus our attention and prioritise the order of our work.

There are benefits to managers of businesses as well as their accountants.

3 benefits of good bookkeeping:

  1. Good bookkeeping will mean you can easily track the cash collected against sales invoices you have raised. Collecting cash is essential to protect the liquidity in a business.
  2. Regular bookkeeping will allow you to see if there is any information missing – by setting aside time each week or month to summarise your bank transactions you will know if you have received all your bank statements or not.
  3. By carefully looking at your payments you can be sure that you aren’t regularly over paying any of your suppliers.

 If you need help with any of the above please get in touch with us.

Jonathan Cohen – Audit Team

Westbury Accountants and Business Advisors is an accountancy practice based in London. Westbury have been providing Accounting and Tax solutions to small and medium sized businesses since 1936. Talk to the team at Westbury on 0207 253 7272; or visit http://www.westbury.co.uk.

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by | January 17, 2013 · 10:30 am

Is Retail Dead?

high street shoppingThe recent, but not unexpected, demise of HMV, closely following a similar fate for Jessops, has rekindled (if it were not already live) the debate about the future of the high street.  It has to be said that the first couple of weeks of January have historically been the time when retailers who were suffering, would call it a day, once they had some decent Christmas sales under their belts.  But in present times, what we are seeing is not one or two isolated incidents but a continuing trend of failures brought about by:-

  • the general state of the world economy; and
  • the seismic change in consumer behaviour/shopping patterns caused by the growth of the Internet.

If you pursue the internet argument to its logical denouement, you would conclude that there will not be a need for any shops in the future and that we will all buy everything online.  But is that really likely to happen?  There are those that argue that we are in such a period of change that no one really knows where the balance between physical and virtual shopping lies.  They suggest that whilst retail parks will continue to thrive, the high street will become populated by restaurants, coffee bars, niche retailers, convenience stores and those retailers who are able to ‘attract’ actual customers who not only browse but actually buy rather than going home to do that online.  These changes are likely to continue to exert downward pressure on retail rents and therefore property values – those very values which underpin a good proportion of investment and pension funds performance.

Another possible trend arising from these developments could be that, where manufacturers and processors in the UK have until now distributed their product through wholesalers and retailers to the end consumer, they might use the Internet to ‘cut out the middle-man’.  In other words, more pressure on retailers and less need for them and wholesalers as consumers buy from the factory door.  All the factories need to do is to ensure they have the appropriate skill sets, distribution arrangements, etc.

And for those who think that trading on the Internet is easy, and the solution to all our ills, think again.  Running a virtual business still depends on being able to sell the right products or services at the right price to the right customers.  And this is why, based on our experience, many businesses will need even more the support of their professional advisers.

Westbury have a team dedicated to advising growing businesses on their development plans. For more details call Andy Gittins or Nicola Pearson.

Keith Graham – Managing Partner

Westbury Accountants and Business Advisors is an accountancy practice based in London. Westbury have been providing Accounting and Tax solutions to small and medium sized businesses since 1936. Talk to the team at Westbury on 0207 253 7272 or visit http://www.westbury.co.uk.

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by | December 20, 2012 · 10:00 am

Investing in UK Property – Opportunity or Minefield?

property-investmentUK property has always been attractive to overseas investors who see the underlying stability of the UK economy (despite the problems in recent years), the growth in value of quality property, and UK’s fairly-transparent ownership laws coupled with steady and sometimes spectacular returns, as the place to invest their surplus funds.

But the purchase of UK property is not so straightforward and in years spent specialising in advising those in the property sector, I have refined my questionnaire of the key considerations:-

  1. Are you clear of your intentions in respect of the property in question – is it a pure investment, are you planning to hold it for the long or short-term, are you developing it for your own use or for subsequent sale?
  2. Which is the right structure to use? – a company (offshore or onshore), personal ownership or through a partnership or LLP, a limited partnership or a trust?
  3. Is it residential or commercial, or a mixture?  Is it currently used as commercial but has potential to be converted to residential?
  4. VAT is a major consideration.  Have all aspects been considered and have the necessary actions been taken prior to contracts?
  5. Stamp Duty Land Tax may be an issue, has this been considered and have alternative structures that may mitigate this been taken into account?
  6. What is the likely tax impact on exit?  Will the property be subject to Income Tax or Capital Gains Tax, or possibly a double charge to both Corporation Tax and Capital Gains Tax?
  7. Does the cashflow work?  Are borrowings tax-efficient?
  8. What happens on distribution of profits to co-owners, joint-venture parties?
  9. Is there a potential Inheritance Tax problem caused by direct ownership of property in the UK?
  10. How is the rental income taxed and can it be paid directly to you?  What expenses can be deducted?

And the biggest question of all – have you taken appropriate professional advice prior to signing any documentation that may compromise your position?

Keith Graham – Managing Partner

Westbury Accountants and Business Advisors is an accountancy practice based in London. Westbury have been providing Accounting and Tax solutions to small and medium sized businesses since 1936. Talk to the team at Westbury on 0207 253 7272 or visit http://www.westbury.co.uk.

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by | November 12, 2012 · 11:16 am

A Simple Tip To Improve Your Productivity

Do you ever go into work with every intention of clearing your to-do-list that is forever getting longer? Me too! Or rather I used to.

I have learnt to deal with this by scheduling in regular appointments on my calendar.  These are not meetings, but simply tasks that I have to work on.  When my colleagues see that there is an appointment in my calendar then I am not to be disturbed – no phone calls – nothing. This gives me an opportunity to get things done and keep on top of things otherwise I will get swamped with my ever increasing to-do-list.

This is not easy, especially for others who work with you, but it is important to train them that whatever it is they need you for can wait. And the best way to do this is to ensure that the “do not disturb” time period is fixed everyday.

To make it easier for your colleagues to understand, include them in your plans and try it out for a week.

Sonal Thakkar – Audit Team

Westbury Accountants and Business Advisors is an accountancy practice based in London. Westbury have been providing Accounting and Tax solutions to small and medium sized businesses since 1936. Talk to the team at Westbury on 0207 253 7272 or visit http://www.westbury.co.uk.

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by | November 8, 2012 · 10:30 am

Inspirational Business Lessons from Marks & Spencer

Marks & Spencer (M&S) is an iconic British retailer that offers quality goods and value for money. The retailer’s longevity is both commendable and an inspiration. The company was established in 1884 but its success has not been without challenge.

The unstinted success story of this household retailer came to a halt between 1998 and 1999. The deterioration sent shock waves throughout the market, as retail analysts and shareholders alike were taken by surprise.

The company’s share price plunged and its profit before tax fell from more than a billion pounds in 1997 to a mere £145 million in the year ended 31 March 2001.

Facing immense difficulties, the retailer went on to achieve significant growth, only to meet further gloom as the credit crunch took hold in 2008. Despite the economic downturn that severely impacted the high street, M&S remained resilient and implemented a restructuring plan.

So what can businesses learn from this household name?

Learn From Your Mistakes

For the sake of the long-term future of your business, acknowledge mistakes and seek to rectify them.

M&S closed a store in Boulevard Haussmann, Paris. In predictable French style, the people took to the streets in mass protest at the closure. A new store was launched in 2011 to a huge awaiting crowd at Champs-Elysees. The expansion in France continues.

Perhaps this is a good illustration of the retailer’s 1953 slogan: “The customer is always and completely right!”

Meet Challenges by Implementing Change

All businesses will at some point face difficult times which will lead to dissatisfaction in terms of achieving objectives. However, without dissatisfaction, there is no motivation. Commitment to implement change, despite resistance, is an essential driving force to overcome challenges.

M&S discontinued unprofitable fashion lines, announced its new “Per Una” range and launched an online shopping service in 1999. Hard decisions were taken to close failing stores in 2009 and 2010. The retailer’s determination to pursue change turned the company’s fortunes around.

Seek Opportunities

When facing difficult times, it is very easy to focus on the negatives. However, look outside the box and create innovation.

M&S in recent years has benefited from high-profile advertising campaigns for its clothing range. The participation of Dannii Minogue and Twiggy generated considerable publicity.

In terms of its very popular food products, the “dine in for 2″ weekend campaign and its “Simply Food” range have been a great response to the economic downturn as customers spend conservatively.

The stoicism of this great British retailer demonstrates how it is possible to encounter tough challenges in business. However, it is the response to such challenges that dictate success or failure.

Elizabeth Zeisel – Audit Team

Westbury Accountants and Business Advisors is an accountancy practice based in London. Westbury have been providing Accounting and Tax solutions to small and medium sized businesses since 1936. Talk to the team at Westbury on 0207 253 7272 or visit http://www.westbury.co.uk.

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