PAH Accountants

It is not often I get one of those inspirational moments to write a blog on a topic; however, an enquiry yesterday made me want to talk about this topic.

The enquiry: “I’ve been freelance for 20 years and usually make a reasonable gross profit. We’ve found a great mortgage deal. Perfect! *BUT* they won’t take my income into consideration at all unless I provide 3 years’ audited accounts

As you can assume from the term Bribery Act it essentially is a piece of legislation that has been produced to counter bribery from taking place within an organisation. Moreover the act also includes businesses that you deal with. It is this aspect that will become a significant issue for many business owners.

What the Bribery Act will increase is the potential prosecution of corporations based in the UK however it has been noted that the Bribery Act does have the potential to also have a positive impact on UK corporates in the long term.

The legislation states that an organisation must be able to convey they have quality controls in place and controls that go to other companies the business deals with such as suppliers, customers, contacts etc. As this is new legislation it does mean that a business may have to alter the way they have ‘done business’ for decades which to some

It has long been the common conception of accountants that they are merely number crunchers and form fillers. But is this really what they do? It could easily be argued that the external accountant of a business is the most valuable adviser to that business. The numbers in the Financial Statements can tell a lot about a business and its financial position.

Factors your accountant can advise on

Particularly in smaller owner managed businesses, the client focus of the accounts is on how much tax is there to pay at the end of the year and, more importantly, can this be reduced as much as possible.

Whether the business is making a profit or loss is usually obvious; however, is that profit analysed any further. Are profits being reinvested to build the business or drawn out immediately by the owners? Are drawings being made in excess of profits, therefore,
putting the business in a negative cash flow position?

Often in reality the Balance Sheet is the most important factor on a set of financial statements. This shows the true position of the company at a point in time. The Net Assets on a Balance Sheet should really reflect how much a business is worth; however,
this can often be

Hi all, welcome back from me an the team (yes, team). I haven’t blogged for a while, hence the title of the post. So what has been going on?

Well, it really has been a manic few months for the practice. Due to a significant amount of growth I have moved out of the glorified shed (my cabin in the garden) and into an actual office unit. This has taken a considerable amount of effort, not necessarily the moving but the little extras that you need – Telephone and Internet (BT broadband problems), Carpetting (fitters delayed planned date for 3 days), filing (wanted to get my admin up to scratch!), Electricity (bombarded with calls as they knew I was moving in!).

But now things are getting back to normal. I mentioned the word team above. This is another change in the practice. Claire (my wife) has been working with me for a while, generally 4 days per week; however, she has always had an arrangement with Wadworth that she goes in there and covers for people when they are away – she has been there since July! I can however, officially welcome Hannah White to the team. Initially on one day a week she will be coming along and sorting my administration, some basic bookkeeping and keeping me organised (a mammoth task).

So as you can see the practice is moving in an upward direction. It is also becoming more systemised. From now on you should see a much better and more organised practice with even more added value being given to clients.

In addition to the above we have won an award. The bookkeepers network have voted me in their inaugural awards as the Most Innovative Accounting firm for 2011. It is a fantastic achievement and really reflects the hard work that is put in to perform the best for our clients.

So there you have it, a brief update of what is going on with the practice at the moment. I look forward to catching up with you all at somepoint – and I am still available to chat.

Phil Hendy

Within the UK VAT system there are situations that can occur where businesses will have to pay VAT to HMRC before they have been paid by their customer. This can be an absolute nightmare for cash flow within a business.

This is where bad debt relief can really help a business out. Where the business has accounted for the output VAT and paid it over to HMRC, but not yet received payment from the customer, it can claim a reimbursement for the outstanding amount. Small businesses really ought to be utilising this as

HM Revenue and Customs (HMRC) are on the lookout in 2011 for small business tax under payments and tax evasion with the HMRC’s introduction of making tax compliance spot checks on small United Kingdom businesses.

These compliance spot checks are one of the last things that small UK businesses need as they try to battle the poor economic climate that exists today. What is expected is that roughly 50,000 small UK businesses will be visited, closely examined and if their books do not meet the minimum standards set then they could end up facing a fine of up to £3,000 which for many small businesses could be devastating.

The reason for the compliance spot checks is because

Many companies take the unfortunate view that breaching health & safety is rather like getting a corporate parking ticket – an irritation; mildly expensive; but something which can just be put down to experience.

They couldn’t be more wrong.

A conviction for a health & safety breach is not only a criminal matter (and individuals as well as companies can be prosecuted) but it can also cripple the company’s ability

Claire and I today attended the FSB Trade Fair at Salisbury.

It was a great event, although a bit quiet on the people front.

This was a fabulous opportunity for us to get to know a few more people in a community where we don’t have a

As a great supporter of environmental issues, PAH accounting are always looking at ways businesses and individuals can help the environment. This months guest article is contributed by Chris Mattos of Randall and Payne accountants and explores the issue of Solar Panels. Not only are they very green but they could make a great business investment.

SOLAR PANELS – A BUSINESS OPPORTUNITY?

Whilst sitting on a sunny beach in Devon and enjoying the hottest April since records began, I hazily reflected that we weren’t barking up the wrong tree by highlighting the benefits of solar panels to our clients. This article looks at the business opportunity, briefly highlights some of the financing options and discusses the tax implications

It is absolutely essential for any business to be making a profit. It’s not always simple, especially in this current climate. Using my experiences of self employment and recent issues that have arisen with clients and contacts, I have identified some key ways that a small business can improves its profitability.

Review your charge out rates and pricing structure

Many small businesses, and in particular start-ups, are charging lower fees to try and win a client. Be confident with your