“Techlish” according to the urban dictionary is defined as a very technical conversation in English.
Accountants, as with most other technical professions get into the habit of using specialised words and phrases, especially when we are in the professional zone and conversing with our colleagues and peers or intimating to our customers we know what we are talking about! at times this can be to the detriment of the customer as they wonder what on earth their accountant is talking about, therefore at Laxmi we would like to break down some accountancy techlish for you in a way that you will hopefully understand.
Why this is important – This can be used to set financial targets eg. to ensure your business breaks even or generates the profits that you need. You can also measure the % margin against your business peers to see if you are competitive.
What this is : the profit of your business excluding depreciation, interest and tax.
Why this is important : This measures the underlying operational performance of your business. As different businesses will have different debt and investment levels this enables investors in your business to assess your ‘true’ financial performance.
What this is : Mandatory workplace pension scheme for employers
Why this is important : This is great for your employees but comes at a cost to your business. With contribution rates set to rise significantly from April 2018 the business owner will need to budget for this as this impacts the ‘bottom line’
What this is : Interest added to the initial loan value, or in other words interest on interest
Why this is important – the headline interest rate for a loan may not be as enticing as initially expected.
What this is and why is it important – We know what this is but it’s unlikely you need to know. We live in an information overloaded world, so why would we waste your time telling you about it?
If there are any accountancy acronyms/terms that you do not understand or need further clarification in a way you can understand, please let us know.
Our clients at Laxmi are always asking what is and isn’t an allowable expense for tax purposes. Questions such as, can I claim for my dry-cleaning bill for my business suit/dress, what about my commute to work, what about my broadband, etc and we often have to say that the tax man will look to disallow this and that. However, there are still many areas that offer up little gems. Trivial benefits are one such little nugget.
So, what is a Trivial Benefit?
In a nutshell, it’s the opportunity to thank your employees whilst at the same time making your money go further. The general rule is that an employer can provide trivial benefits such as a bottle of plonk, a trip to T20 blast cricket or a night out at the theatre. The employer can claim income tax or corporation tax relief on the cost and the employee does not suffer any income tax or national insurance costs. Everyone is a winner!
The key conditions are as follows:
Fear not! Directors can benefit too, but the annual cap for each director is £300 for exempt trivial benefits. So you can make savings which are a darn sight better than the proverbial kick up the back-side ….!
The weather changes and that’s a fact, but it has a lot of influencing factors which is why meteorologists forecast the weather. They might not always get it right but they make predictions based on trends and their own gathered intelligence.
The business landscape is very similar in this regard and your accountant can help you to determine what might happen in the future for your business, to help you make those important strategic decisions by forecasting the future.
Whilst there are many similarities, there is one fundamental difference. Unlike the weather, you can change your business, you are one of the biggest influencing factors in your businesses forecast, but how can you change what you don’t know about or cannot see? Forecast and start making some changes for a better future today.
4 Reasons why you might want to forecast?
Forecasting can be as detailed or ‘high-level’ as per your requirements but there are lots of elements to factor in and you need to re-visit and re-forecast regularly, but remember that this is your business, your time, money, blood, sweat and tears that you have invested; so get the foundations right by starting forecasting today and the results will speak for themselves and you will doubtless wonder why you haven’t been doing this all along!
In life you get those events, you know the ones, lifetime events that come along usually only once; a wedding day, a dream trip, buying a house and they all have one thing in common: planning. Setting up and running a business is also one of those events so why wouldn’t you put in the same effort in planning your business?
A Business Plan is an essential tool for your company; it’s a blue print for your business whether you are just starting out or have been in business for years, this compass will help guide you to build it into the business you want.
Approximately a third of all SME’s in the UK don’t have a Business Plan, that’s about 1.5m businesses, if you are one of them here are some reasons why it might be a good idea to prepare one…
The best laid plans don’t always work, however with the right guidance you can be prepared for anything.
Start your Business Plan today!
As business owners, we share similar dreams, and one of those I imagine we share is to one day bask in the glory of retirement. Retirement for us and our employees may seem a long way off, especially with the state pension age for both men and women on the rise. However, it’s never too early to start saving and what better way to do this than with a work place pension, and do we have a choice?
Under law introduced in 2012 all employers must offer this service and auto-enrol eligible employees, work place pensions are the responsibility of the business owner(s) and your staging date may sneak up on you. Work place pensions and Auto-enrolment has been a phased process staring with larger organisations but by 2018 this will apply to all businesses and according estimates from The Pension Regulator (TPR) in 2017 up to 500,000 businesses will commence with full duties.
Reference : The Pensions Regulator, Employer staging forecast.
Please don’t leave it too late, this process takes time to ensure you get the very best outcome for you, your business and your employees ...with fines starting from £50 per day you can’t afford to sit idle.
Swindon Football Club have already fallen foul of this and received a 22k fine!
Call now for your free auto-enrolment consultation. Furthermore, as the business owner, this may also be the ideal time to review your existing pension arrangements - call us now to find out how we can help you with this and explain the tax benefits to you.
Laxmi are delighted to announce a strategic partnership with TransferMate Global Payments, the market-leading, international choice for businesses worldwide that send and receive foreign currency payments.
As a leader in the FinTech world, TransferMate provide a full 360 solution enabling clients to process international payments, faster, cheaper and smarter than ever before. With a unique offering of global regulation, TransferMate own and control their entire banking network across 50 countries, bypassing the costly intermediary bank system.
Building on our range of services, Laxmi has negotiated an excellent package to provide our valued clients with better exchange rates, no fees on transfers over £1,000 and a faster payment service. We understand that each business has specific requirements and with that faces different challenges. Our partnership with TransferMate will ensure you are in control of your international payments and remove the burdensome admin previously associated with payment and invoice processing.
Further aiding time savings, TransferMate offers a Xero app that integrates seamlessly with clients existing Xero package. Together with TransferMate and Xero, you can process invoice payments within your Xero package, with automatic reconciliation, saving you huge amounts of time on double entry.
Find out more
For more information or a free comparison quote, contact TransferMate’s 24 hour team on
+44 207 659 9185. Our dedicated partner manager Anthony Mulligan is on hand to answer any queries firstname.lastname@example.org.
Until relatively recently, it was very difficult for small businesses to charge their customers by direct debit. That has all changed, and the use of payment network suppliers such as GoCardless can revolutionise the running of your business. Here’s why:
1. You get paid faster and with more certainty.
2. You reduce your admin - GoCardless syncs with your cloud accounting system so that direct debit payments automatically allocate to your corresponding sales invoices.
.3. No need for credit control - No need to chase customers for their payments, you have the peace of mind of knowing how much and when you will be paid
4. Improved working capital - less financing required and you can unlock that free cash to invest in your business.
5. You save money - less admin, less credit control, less bank interest charged, that all means one thing!
6. Flexibility on subscription charges - Ever tried requesting that your 100+ customers all change their standing order? It’s a nightmare …… with GoCardless you can increase and decrease the value of the subscription when you want which facilitates great commercial opportunities.
7. No more bad debt
Can your accountant help you to provide the end-to-end solution for direct debits and solve your cashflow heartache? Here at Laxmi we can, talk to your accountant today.
There are many myths about accountants such as…the profession is all about maths…that accounting software is now so clever they are not needed at all…that they are only needed at year-end or tax-year end…that accountants are expensive…that an accountant can’t help assess and improve financial performance and a lot of business owners are somehow content for their ‘favourite’ accountant to ‘just’ do the books.
Now we could look at each and every one of these and we may do in future blog posts, however, I would like to concentrate on just one for now and that is “Accountants just do the books”.
Filing Accounts, taxes and generally looking after the books are the basics for any accountant they could and should do much more, so demand this of your accountant as utilised correctly your accountant can save and even make you money.
Accountants have been around the block, they have seen it, done it, and got the T-shirt...It’s this experience that makes them the unsung heroes of many organisations of all shapes and sizes.
Here we are going to explore 10 fundamental tasks your accountant can collaborate with you on to enhance your business and ensure that you reach your future goals and dreams.
If you would like help with any of the tasks discussed or if you’re bored of your boring accountant, then please give Laxmi a call today.
The idea of a “paperless office” has been around since the late 1970’s and according to Wikipedia a paperless office is defined as “a work environment in which the use of paper is eliminated or greatly reduced. This is done by converting documents and other papers into digital form.” However we still find that peoples offices, wallets, spare shoe boxes and just about anywhere else a piece of paper can fit are full of paperwork.
With the generation shift it’s the millennials who seem to be hell bent on making this 40 year old idea a reality and everyone seems to be jumping on the bandwagon. HMRC are making tax digital, train companies are looking to eradicate paper tickets and the NHS has been challenged to go paperless by 2018.
As more and more business are looking at new ways to “trim the fat” of their processes and data entry they turn to technology to help them do this, with the increased use of tablets, cloud solutions and contactless technology. Paper documents, newspapers, contracts and even our paper money are becoming a thing of the past as companies and consumers alike use technological advances to digitize their documents.
This is not just an approach for “large companies”, a paperless office can be attained by a business of any size and the value of doing so will only increase as the business grows. The best way to start is by introducing paperless systems.
10 Advantages of Paperless Systems
At Laxmi, all our activities are entirely paperless and we offer our customers an end to end paperless solution. We find that our customers, once they discover how easy it is to make the change and begin to enjoy the efficiency savings it achieves they likewise take steps to embed paperless solutions across their business operations.
Is 2017 the year your business jumps on this 40 year old bandwagon? Don’t delay contact us today.
It’s January, it’s cold, the Festive period is over and it’s back to the daily grind, Brexit is happening at some point, it’s all doom and gloom; or is it? Here at Laxmi we like to think that 2017 has an air of optimism to it, here are 9 business reasons to be cheerful in 2017.
Whatever the prevailing market conditions, it is clear that a well-run commercial venture with a superlative business model will be successful. Laxmi can help you grow every step of the way, from start-up basics and financing support to financial strategy review and KPI measurement.