The Pros and Cons of Bitcoin

Throughout the recent recession, entrepreneurs have been constantly looking for ways to improve efficiency, cut costs and ensure their businesses survived. Although we are told that the economy is recovering, this is not the time to relax efforts in this respect. One of the innovative ways that some owners of businesses operating beyond their own localities is to use Bitcoin as an option for payments and receipts. For most people, though, Bitcoin and how it works is still something of a mystery.

Some outsourced bookkeepers have been intrigued by Bitcoin and looked into it so they can discuss it knowledgeably with their clients. While there are a number of advantages to using the Bitcoin system, there are also risks that need avoidance measures. As long as robust security policies and procedures are in place, a Bitcoin system could be a valuable asset to many small businesses.

Advantages of Using Bitcoin

If you decide to add Bitcoin to your payment options for customers, it’s still a rare enough phenomenon to be a perfect opportunity to get some publicity. When you let your local press know and announce it on social media platforms, it will be followed up and your business will get plenty of exposure. You will be recognised as innovative and up-to-the-minute.

To take advantage of this, you need to make sure you have the knowledge to answer questions about it and can provide helpful quotes. Adam Twidell, founder of private jet firm PrivateFly, said, "The private jet market is all about fast turnaround, and processing bank transfers or clearing credit card payments at short notice can slow things down. With Bitcoin we can easily make a £20,000 payment at midnight when the banks are shut … For us, offering Bitcoin is about increasing customer choice, improving efficiency and embracing the latest technology…”

As well as being fast, Bitcoin is an economical system that cuts out the cost of currency exchange and card processing. You just need to sign up online for a Bitcoin wallet, which acts like an online bank account. This is linked to your physical bank account so that transfers can be made. Then you should sign up with a payment processor to manage your transactions. Fees for this are much cheaper than bank charges or those from credit card companies.

Risks in Using Bitcoin

The most obvious risk is that of computer hackers. That’s why you need to take really robust security measures. Bitcoin transactions are transparent and publically available, and will leave a really good audit trail. If you want privacy, you should learn how to use different Bitcoin addresses with this in mind.

Another risk is that the value of Bitcoins is still constantly fluctuating so you are advised not to keep them for long. Most transaction processors will convert them on receipt and pass cash to your bank account.

As long as you take the measures to avoid these risks, Bitcoin should bring business benefits. Many small businesses have taken the plunge as you will see if you search online via CoinMap.org or similar sites. Your outsourced bookkeepers will be interested to discuss Bitcoin and see what you think about it.

Making the Most of your Time

How do you organise your working day? Do you make a list of things to do and religiously follow it? Or do you find that most activities roll onto the list for the next day?

To avoid this you have to discipline yourself. There are so many tempting distractions right in front of you on your desktop. Of course you know all about this, but it’s worth giving yourself a pep talk about it every now and then. Here are some of the worst time wasters that your outsourced bookkeepers have recognised in their clients’ work habits.

Compelling but Unnecessary Distractions

If you stop what you are doing each time an email pings in, read the new missive and then take more time to reply to it, you then have to get back into the mind-set of the job in hand, by which time you’ve probably lost 10 or 15 minutes out of your day. It is far more efficient to concentrate on one thing at a time, so get on with the job and make time for emails later. If something is really urgent the sender would be more likely to telephone than email.

That brings us to those phone calls. If you don’t have the luxury of a secretary to field your calls, it’s sensible to use an answer-phone system. If you are concerned about missing any urgent calls, use one which allows you to hear the caller and decide if the call should be answered immediately. Schedule time for the ones you need to make but never pick up the receiver without knowing what you want to achieve from it. If necessary take a few minutes beforehand to think this through. Time invested like this can make the call briefer and more productive.

Social media can also be a huge time waster. While it’s necessary for some businesses to use it for marketing purposes and to follow trends that will help you make informed business decisions, it’s also easy to get sucked in while the minutes tick by. You really should plan the time you can give to it, and make sure you stick to it.

Planning to Make the Most of your Time

Those clients your outsourced bookkeepers note are the most successful are those who review their achievements at the end of the working day and draw up a plan for the next one before they leave. If you are not one of them, give it a try. You’ll start tomorrow well prepared for the day to come so that you can get even more out of it.

New Ideas to Combat the Late Payment Problem

Many small businesses are still having difficulties caused by late payments for goods and services supplied to other organisations. If this is a problem for you, you may, like many other small business owners, be reluctant to charge the interest and compensation that is legally allowable by the Late Payment of Commercial Debts (Interest) Act 1998. This is understandable because you need to maintain relationships and get more business.

According to Simon McVicker, director of policy and public affairs at the Association of Independent Professionals and the Self Employed (IPSE), late payment to small businesses “jeopardises financial security and damages reputations”. Recognising the severity of the ongoing problem, IPSE has recently launched a report with their proposals for solving it.

The Voluntary Code is Ineffective

Some of it will seem very familiar to your outsourced bookkeepers. With them, you probably recognise the argument that the Prompt Payment Code is not currently effective, and it needs a much stronger commitment from both the public and private sectors. For example, why is it not mandatory to have signed up if you are a supplier to the government or a local authority, or are trying to become one? Those at the end of the line supplying them are so often the ones who have to wait the longest for their remuneration.

Making Late Payment Illegal

Other aspects of the IPSE report are more radical. Some large organisations will only take you on as a supplier on their own terms, which may be 60 or even 90 days as standard, regardless of the terms and conditions normal to your business. IPSE would like to see this outlawed. Current legal sanctions have little power, so it proposes that no payment terms should be longer than 30 days, and that it should be illegal to pay more than 30 days late.

Not only that, but another proposal is to have an automatic fine applied if a payment remains due when it is 60 days late. This could be up to 10% of the total cost of the contract.

IPSE also proposes a Small Business Conciliatory Service to help resolve disputes out of court, providing free advice, or formal mediation services for an economical price. Your outsourced bookkeepers are not the only ones to recognise that small businesses desperately need help when they are up against major enterprises with so much more in financial and human resources.

If you agree with these proposals, you should add your voice to that of IPSE whenever any lobbying opportunities come your way.