Business Advice from Chartered Accountants

The Institute of Chartered Accountants of England and Wales (ICAEW) recently initiated a Business Advice Service, with many of its member firms agreeing to offer free consultations to potential entrepreneurs looking to set up a business. The network of accountancy offices involved across the country is 3,200 strong, so everyone should be able to find one nearby.

There’s always something to worry about when you are running a business. Nigel Hastilow is director of enterprise at ICAEW. He referred to common worries such as keeping accounts up to date, and wondering whether there will be enough cash in the bank to cover the monthly wages bill, and said: " … We want to help small businesses to succeed and our members all over the country are offering a free, no-obligation consultation which could help deal with some of these hurdles standing in the way of business success…The ICAEW Business Advice Service has been set up to help companies address these and other issues."

Free Business Advice Events

Together with the British Bankers Association, ICAEW has designated week commencing June 25^th 2012 to be Business Advice Week and organised over 30 free events around the country. Their seminars and other networking events will focus on topics dear to every entrepreneur’s heart, such as accessing finance, getting a good start and growing a business.

There are a number of events in London and the South East, including:

·         June 27^th at 7 pm at Twickenham Stadium – topic: finance raising

·         June 28th at 6 pm at the Ivy Hill Hotel in Chelmsford – main topic: presenting a proposal for finance

·         June 28^th at 6 pm at Chartered Accountants’ Hall in London – topics: access to finance, business plans, better business finance and an overview of government initiatives

One will also be held at Croydon on another evening during the week with date and time yet to be confirmed. It will be aimed especially at small businesses wishing to accelerate growth.

Networking Opportunities

You can’t lose by going along to one of these. You may learn something that could benefit your business and you’ll certainly have opportunities to meet other business owners, potentially helpful organisations, bankers and perhaps business angels. You can find out more and make bookings at the ICAEW website.

Don’t forget though, that your outsourced bookkeepers can often help you with any accounting concerns you have. You don’t always need to involve a chartered accountant.

Do you Have the Right Bank Accounts?

If you haven’t reviewed your bank recently, and considered whether you might get a better deal elsewhere, think about doing it now. If more small businesses did this more often, and acted on their findings, we might all start getting some additional value from our banking service.

Your Level of Importance in The Bank’s Customer Portfolio

Are you a high priority for your bank, or are their preferred customers in a different league from your business? Don’t be afraid to ask questions about this, as well as looking at their marketing materials. Have you outgrown the customer profile they are targeting, or are you actually too small to matter? When was the last time your account manager called you or suggested a review of your account structure? Or do you not get calls like that at all?

A Benchmarking Exercise

When you check out other banks, of course you will compare transaction charges, but there may be a number of other ways they can help you with money saving ideas. Set up meetings with potential account managers and judge how interested they are and how proactive they are likely to be. The questions they ask will give you clues.

If they ask whether you export or do business in foreign currencies, you could be offered holding accounts for monies in those currencies and an information service about exchange rates so that transfers to a sterling account can take place at the time you would get most financial benefit. If you are concerned that a current account operates at close to zero, or to your overdraft limit, they might offer automatic movements between accounts to avoid additional costs. If they ask about the possibility of mergers or acquisitions, they may know of other companies seeking a partner or a buyer. A proactive account manager will network on behalf of his or her customers, making appropriate suggestions and introductions.

Ensuring a Smooth Transition

You’ll also need to be confident about how the transition will be handled. How much will the new bank be involved in this? How much of the organising will they undertake? How will they take over your payroll payments, your standing orders, direct debits and other payments to suppliers. Will it be a gradual process or happen overnight? How will they make sure it all goes smoothly?

Ask your outsourced bookkeepers for their opinion. They will see all levels of banking service during the course of their work for other clients.

E-marketplaces: the Latest HMRC Campaign

Each campaign of HMRC is, as you probably expect, a focus on a particular area where people have been avoiding paying their taxes or are unaware that they should. The campaigns are publicised on its website so you can take a look at the areas they’ve covered in the past and what is coming up, as well as what campaigns are current.

The campaigns give tax payers a window of opportunity to come clean about where they might not have paid enough, and to pay up without incurring serious penalties. Meanwhile they are investigating so they can bring criminal charges against those that don’t own up to additional income received in the last six years.

Are you an E-market Trader?

The current campaign is about people who trade on e-marketplaces, such as eBay. Now don’t freak out: that doesn’t mean everyone who has auctioned or sold anything on-line. It means people who trade on these sites to make regular extra income. So, if you sell your cast-offs or unwanted birthday presents now and then, it doesn’t count. But if you regularly go to car boot sales or trawl the adverts in your local newspaper for items you could buy to make a profit, watch out.

The Campaign Stages

If you want to declare extra income, rather than get found out, you have to go through two stages, each with a deadline. Stage 1 is to notify HMRC that you will be doing so. The deadline for this is very soon. This window of opportunity closes at midnight on June 14^th, so you need to do it as soon as possible.

After that, you have three months to work out your extra income and the tax due, inform HMRC and pay up. So this deadline is September 14^th. If you are unable to pay by then, you may be able to pay by instalments, but this would have to be negotiated.

How to Notify HMRC

The Revenue have an e-markets Disclosure Facility Helpline at 0845 601 2944 which will accept your notification. Or you can do it on-line via a form on the website. If you prefer, you can print out the form and send it in by post.

You don’t have to do it yourself. Your accountant can notify for you, or the agent who deals with your tax affairs. Your outsourced bookkeepers could help with the notification and sorting out the extra income to be declared and the extra tax to be paid.