Preparing for the Unexpected with a Disaster Recovery Plan

Whatever size business you run, wherever you run it from, it is imperative you have a Disaster Recovery Plan. ‘Disasters’ don’t just mean catastrophes like floods or fires. Anything that can bring business to a halt can be classed as a disaster.

Things like adverse weather conditions that hold staff back from getting into work, public transport strikes that do the same, police incidents or terrorist alerts that block access to your premises, power cuts and telephone or broadband outage. All of these can prove disastrous because they will stop you serving and communicating with your customers.

How long could you continue without your data, systems or telephones?

Imagine not being able to access your operating systems, data, files or telephone lines. How long do you think it would be before you starting losing customers?

Precisely why you need to put together a Disaster Recovery plan. The plan will include contingencies for every critical element of your business. It will make you think about back-up plans for everything from accessing your data to keeping your lines of communication open and providing somewhere for your staff to work from.

Making good use of the cloud 

When it comes to methods of continuing to run ‘business as usual’, lots of companies are getting set up to work remotely. If staff can work from home then everything can continue even if they’re unable to get into work. Cloud based technologies will allow you to provide staff with remote means of accessing your company network. They’ll be able to login to their own familiar desktop and access all their files and software just as if they were at work.

Another cloud based technology that proves incredibly effective as a back-up plan is a hosted telephone system. Also known as VoIP, this is basically a telephone system that works over an internet connection. So it’s not affected by outage at the local exchange, and can be operated from anywhere. In fact with just a flick of a switch it can transfer to a back-up plan whereby your calls are re-routed to another number. Callers won’t know any different so there’s no losing face – or business.

Some companies are signing up to a secondary internet connection too to cover them in the event of losing their main broadband. This secondary connection comes via a wireless source, so is not dependent on any exchange and therefore makes an excellent back-up plan.

Make today the day you put together a Disaster Recovery plan 

If your business hasn’t yet put together a Disaster Recovery plan or you are yet to think about how you would react in a situation that could potentially stop you operating as normal, make today the day you take action.

If you’d like some help in getting started, your bookkeepers can prove a useful resource.

Are you Ready for the New Shared Parental Leave and Pay Rules?

As an employer you will of course be well aware of the new shared parental leave and pay rules introduced in respect of children due on or after 5 April 2015.

The Shared Parental Leave Regulations 2014 permit employees to share up to a year’s leave between mother and father. This includes adoptive parents. Mothers are allowed to restrict their maternity leave and pay and share the remainder with their partner.

With the notice period being a minimum of eight weeks, requests are likely to start coming in this month. You will therefore need to put a process in place without delay to deal with such requests from expectant employees with babies due on or after 5 April.

It is reckoned by the Government that between two and six per cent of fathers will take advantage of their new rights, however this could be an underestimate according to some reports. Taking some time to speak with your bookkeepers and calculate the likely impact on your business is wise.

Be Mindful of Discrimination Claims

Aside from the direct financial impact, you also need to be mindful of the risk of discrimination claims. These can come about if you decide not to extend any enhanced maternity pay you offer to fathers as well as mothers. Whilst there is no legal requirement for you to do so, you will have to bear in mind the fact that fathers could cite you for sexual discrimination.

Acas has published a guide to the rules which will help you understand the finer detail of this latest employment law update. You should always seek legal advice when setting down new policies and procedures, or taking any action, so as to minimise your risk of facing a claim.

Plan Ahead for Financial Peace of Mind

It is also worth having a discussion with your bookkeepers as to the financial impact of changes to any employment legislation so that you can plan ahead. They will be able to help by running forecasts to show you how things may alter on the balance sheet, so that you can make any necessary changes within the business in advance.

Get Ready for Significant Changes to Business Insurance with the Insurance Bill

Back in July 2014 the Law Commission, a public advisory body sponsored by the Ministry of Justice, put a report forward to Government. It consisted of a set of recommendations for reforms to non-consumer insurance in the UK. It also included a draft bill called the Insurance Bill.

Reforms to commercial insurance have been long awaited. Currently, insurance law is based on the Marine Insurance Act of 1906. Naturally a law of this age can only be considered outdated and it is hard to imagine how it could possible reflect the expectations of businesses when arranging insurance. Precisely why insurance disputes are so common.

Duty of Disclosure

One of the areas of insurance that is due to undergo reform is known as duty of disclosure. Current insurance law requires that anyone arranging cover has a duty to disclose to the insurer ‘every material circumstance’ that could ‘influence the judgement of a prudent insurer’ in whether or not to accept a risk and in setting the premium. The Law Commission recognised a number of issues with this saying understanding of the system and how to comply with it was generally not good enough. They also identified that the penalties for non-disclosure – i.e. refusing a claim outright – were far too tough.

In response to these issues, the Law Commission has put forward a variety of recommendations. One of these is to replace duty of disclosure with a ‘duty of fair representation’ which will detail what needs to be disclosed and how. A system of balanced remedies in the event of a breach has also been suggested.

Insurance Warranties

A second aspect of insurance intended for reform is warranties. This is another area where great confusion lies. Warranties are promises you make to do or not do something as part of your insurance contract. They could be anything from installing a certain type of alarm or locks to employing a health and safety officer. Breaching warranties can have very serious consequences. Failing to comply can lead to the insurer being fully discharged from liability from the point where the breach occurs.

What this means is that even if a breach had been put right before a loss was suffered, a claim could be thrown out with the insurer not being liable. Even worse, the breach doesn’t have to be connected to the loss for the insurer to be discharged from liability. So for example, if you had agreed to a warranty that required you to install a burglar alarm but failed to do so, then your premises suffered a fire, your claim for losses would not be paid out, even though the fire could not have been prevented with the presence of a burglar alarm.

Good News for Businesses

Once these and other issues undergo reform, it can only spell good news for businesses where insurance is concerned. The Insurance Bill was introduced in the House of Lords on 17 July 2014 and has gone through a number of stages. A line by line examination of the Bill took place during report stage on 8 January 2015 and a third reading, offering a final chance to amend the Bill, is scheduled for 15 January. Only after this takes place can the Bill receive Royal Assent.

Here at Office Assistants your Essex bookkeepers will be keeping an eye on what happens so we can report back and let you know.

Why You Need to Keep a Check on Your Energy Contracts

If you have been fortunate enough to negotiate favourable rates for your electricity and gas supplies then you should pat yourself on the back. But don’t sit back and relax for too long, because you absolutely must keep an eye on the end-dates for your contracts. And if you are moving premises and think your special rates are going to relocate with you, think again.

So why do you need to keep a close eye on the contract end-dates? Well there’s a very good reason. If you find yourself outside of them on ‘out of contract rates’ (OOCR) you could find yourself paying up to double what you’ve been used to paying: something that could have a significant effect on your profits.

Important Note

Put a note in your diary for at least three months before each energy contract is due to end. As soon as the reminder flags up, start researching new deals. Scanning the market can take some time, as can negotiating with existing suppliers. Leave it to the last minute and you may be forced to accept rates that aren’t as beneficial as others you may have come across with time on your side.

Moving Premises?

If you are moving premises then it is important to realise that energy contracts do not move with you. Unlike other contracts they cannot be transferred from one location to another. Instead they cease without penalty under what is called Change of Tenancy. Many businesses don’t realise this, and find out a few months after their move when they receive bills that are much higher than expected. So what do you need to do?

Ahead of your move, contact your energy suppliers to see if you can negotiate new contracts at your new premises. Also spend some time comparing tariffs from other suppliers in case you can land something more favourable.

Sourcing the Best Rates

Whilst this may seem a time consuming business, it will be worth it when you realise how much you can save. It is also worth noting there are companies who provide a sourcing service and who will scan the whole market on your behalf for the best deals. Some of them can even lock you into favourable rates in anticipation of your switch over. Usually there won’t be a charge for the service, as they make their money on commission from the energy suppliers.

Your bookkeepers will usually be able to help in pointing you in the right direction when it comes to energy suppliers and tariffs and of course will be able to illustrate how you will fair financially with any new rates you are offered.

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.