Research Highlights the Importance of Holidays for Business Owners

New research from business comparison service Make It Cheaper has indicated that 29% of business leaders are reducing their holiday time this year, citing financial worries and lack of trust in their staff as the main reasons.

Worryingly nearly 60% of those who were interviewed said that they recognised the risks of not taking time off work at some point during the year and openly admitted that they fear that they could be affected by stress or exhaustion.

Lack of Trust

Many small business leaders and sole traders fear that their business may suffer if they leave the business in the hands of someone else and take time off for themselves. Being able to leave the business in the capable hands of a trusted employee is a luxury that many believe they do not have.

If this is something you can relate to, it is important to remember that a lot of the admin side of the work can be outsourced to a professional bookkeeping service that can keep on top of the financial and accounts side of your business whilst you are away. Do not ignore these types of services, as they are there to help in situations such as these.

An Importance Balance

It is important that there is a balance between work and leisure time. If you are tired or worn out you will not be able to perform to the best of your ability and ultimately this could harm the business more than taking the odd holiday throughout the year.

Professional Help

Seeking help and advice from professionals is vital for every small business. If you genuinely believe that you cannot leave the business in the hands of an employee, using an outsourced professional office assistant service is the best answer. These services can take the strain and leave you free to relax and enjoy a well earned break.

Exploring the bookkeeping services out there that are designed to help small business in a similar position is vital to the long term success of your company.

The Different Ways of Paying your Staff

Paying staff a fair wage on time is a vital element of business, no matter the size of a company. Failure on the part of the employer to pay staff can have catastrophic consequences for employees, many of whom rely heavily on being able to get paid so that they can keep on top of bills themselves. If your business struggles to pay staff on time, the problem must be rectified by looking at local bookkeeping service that will be able to assist you each month.

But what is the best way to pay staff? Is it more advantageous for your business and staff to pay hourly or a salary? Are there business advantages of paying one way or another?

Paying an Hourly Rate

An hourly rate of pay means that your staff will be paid a set amount for each hour that they work. There are many advantages to this method. If for some reason an employee does not complete a full week’s work, they do not need to be paid. Also, if a staff member is not required to work in certain periods of the year, you will not be left paying for a member of staff that you do not actually need. This method allows for flexible hours to be worked and is relatively easy to calculate.

On the other side of the coin however, paying an employee hourly requires their monthly hours to be calculated manually each month.

An experienced bookkeeper will be able to keep on top of hours worked and make sure that your staff are paid on time and exactly what they are owed. These services can save you valuable time so are worth investigating.

Paying an Annual Salary

Paying an annual salary is perhaps the easiest way of paying staff. Paying a salary is easy to calculate: a fixed annual amount is evenly spread over the payroll months. Due to its simplicity, it is time friendly and saves on administrative costs. Employees also benefit from knowing exactly how much they will receive each month, allowing them to plan ahead financially.

However, the problem of a salary is it does not take into account overtime. Working out and then paying overtime can take away some of the time saved by having a salary pay scheme.

Additional Help and Advice

Paying your staff is extremely vital. Whichever way you pay your staff, it will take up a considerable amount of time each month. One way to overcome this problem is to employ an outsourced bookkeeping service who will take away the hassle of multiple calculations and working out tax and National Insurance contributions. These services can make a huge difference for pushed employers.

How to Get Your Bank Lending to Your Business

Loans awarded to small businesses are being slashed according to figures released in the past week (12th August 2010). Despite banks such as RBS and Lloyds recording monster profits, they are being accused of not supporting Britain’s 4.5 million small businesses. New lending to this sector has fallen from an average of £991million a month in 2008 to £564million in 2010 - down 43per cent according to figures published in the Daily Mail.

But there are ways in which small businesses might be able to secure a business loan from prudent banks. Presenting themselves as a reputable business that is on a sound financial and business ground will go a long way to securing the funding required. But what are banks looking for in a business in order to award finance?

Solid Customer Base

If your customers are themselves good, reliable businesses then the banks will feel secure in knowing that they will be unlikely to default in payments to you, and in turn you will not default on repaying them. It is well worth investigating a good bookkeeping service who can keep a detailed record of all your customers and the dealings you do with them to present to your bank.

A Well Presented Business Plan

With the help of a local bookkeeping service, create an easy to read, straightforward business plan that lays out exactly where the business is, where it is going and how it can get there. This will make the business look professional and will show the lenders the sound financial position of the business.

Approach the Banks in a Strong Position

It is important to plan ahead in business. Remember that banks are risk averse and are much more likely to lend with the business in a strong position rather than one acting out of desperation. Banks will be happy to lend, in theory, to businesses that are showing growth or a potential for growth.

If these three rules are followed, the chances of banks lending to your business should be increased. All of this can be achieved, especially with the help of a qualified bookkeeper who will be able to provide quality management accounts so that you and in turn the lender will know exactly where your business is and where it could go financially.

With banks being prudent during this economic downturn, make sure your business ticks the essential criteria boxes for which the banks will be looking.