Parth Shah

Give your accounting firm TLC: 8 mistakes to avoid

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Tender loving care – that is what TLC means! The thing is accounting firm owners are responsible for taking care of a hundred things every day. As a result, their routine tasks such as their own bookkeeping or doing taxes often take a backseat.

That might be a bother, but unless they are well on top of it, they can face significant tax liabilities and even government scrutiny later on. This is exactly what they regularly warn their clients about.

Plus, having accounts in place is a big part of making financial decisions about their business, such as new investments or increased hiring.

Given the current socio-economic climate, it can be challenging to get on with specific accounting tasks of your own practice firm. That is why it is even more important to give your practice some TLC!

This article throws light on eight common accounting mistakes to keep an eye out for and avoid right now:

1. Not updating accounts receivables

Quite often, accounting firms are in the habit of simply depositing the invoice amounts they receive from clients without updating their records of receivables. This leads to confusion later on when revenues don’t match receivables and can affect cash flow if the firm is unclear about which of the receivables are still due. It is essential, therefore, to mark each customer deposit as paid the moment it comes through.

2. Not tracking expense receipts

Many accounting firms have the habit of not keeping their business expense receipts. While it might seem tempting to throw away that piece of paper or delete a file, it is essential to remember that you need to reconcile your expenses later and that a lack of receipts (both hard and digital copies) will make the job tougher.

Keep a designated folder for all your expense receipts and make it a habit to enter each receipt as it comes rather than accumulating it for later. Besides, try to ask for e-receipts wherever possible so that you don’t have the bother of tracking down paper receipts.

3. Not recording cash expenses

While credit/debit card or online transfer expenses have a digital record attached to them, it is easy to overlook the costs paid in cash, especially the small amounts.

However, a few pounds now could add up to thousands of unexplained expenses at the end of the year if you don’t keep records of them. Therefore, try to ask for a receipt from your client or vendor even for small expenses, or make a note of them on your smartphone so that you can enter them in the books of accounts later.

4. Not outsourcing to manage taxes

While it might seem tempting to handle everything yourself in your way, as a business owner, there are several claims upon your time. Growing your revenue, market share and profitability, and client servicing are full-time tasks of their own and should be your priority.

Day-to-day accounting tasks of your clients such as tax returns are best outsourced to a professional who can do them accurately and in a timely fashion for a competitive fee.

This not only frees you up but also improves your market standing, as your business reputation depends mainly on the accuracy and integrity of your financial records.

Plus, you can offer advisory services to your clients, such as budgeting and forecasting and help them grow at a faster rate.

5. Real value addition in every client meeting

All too often, accounting firm owners are reluctant to admit to their outsourcing partner that they do not understand the tasks being assigned to the latter.

This could lead to misunderstandings and costly mistakes later on if the accountant and the outsourced team are at cross-purposes.

Therefore, it is essential to let your outsourcing partner know whenever you don’t understand something and try to communicate transparently and frequently.

This will eliminate misunderstandings and also improve the professional relationship you share with your partner.

6. Expedite compliance and drive more growth and revenue

Tax laws can be complicated to understand and often change. Unless you are entirely in tune with how those laws work, you risk running into problems with the tax authorities by making mistakes out of ignorance. Be sure to ask your outsourcing partner to explain the laws to you as and when necessary so that you are on top of things.

7. Getting ready for MTD for income and corporation tax

Even if you outsource to an accounting partner, the onus of getting the necessary information from your clients still falls on you. Many accounting firm owners are reluctant to follow up too aggressively with their clients for fear of offending them.

However, clients are far more likely to be annoyed if their taxes are not filed accurately, so don’t hesitate to make those follow-up calls.

In addition, plan to collect all your client’s documents as far in advance of the tax deadlines as possible so that you don’t need to rush at the last minute.

8. Not making efficient use of accounting technology

Many accounting firms still rely on Excel spreadsheets to manage their bookkeeping. As a result, the process takes far more time and is more prone to errors or omissions.

Instead, it would be best if you moved to a cloud-based accounting solution that keeps your books of accounts accurate and up-to-date with minimal manual intervention.

Another option, of course, is to outsource your accounting to a third-party service provider who has all the latest tech in place to manage your records for you.

so, what do you think?

The pandemic has not made it easy for any business to function. Yet, you must strive to rise above the challenges and get help from an expert accounts outsourcing provider so that you are in a better position to tackle your clients’ accounts and tax returns and also keep your financial records up-to-date.

If you need any assistance, please don’t hesitate to give us a ring on 020 3475 3537 or email us at contact@stellaripe.co.uk. Speak to you soon!

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How to improve local search visibility for your accounting firm

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When clients are looking for an accounting firm to help them out with self-assessment, they will most likely search for good ones online. Proximity is one of the factors that go into choosing – if the client sees an accountant mentioned nearby on Google Search, they are more likely to go with that accountant than to scroll further down.

It is thus vital for you as an accounting firm to be visible to local search queries. For the first time, Team Stellaripe brings you a quick guide on how to get your business started on local SEO. Here you go:

1. Set up a Google My Business profile

While the top few results for a search query like ‘accountant near me’ are typically Google Ads, right below that is a map pinpointing local accountants. To show up on this map, you need to have an accurate Google My Business profile. Add the exact name, full address and primary telephone number of your business and choose a relevant category (if you don’t find an exact match, choose a category like ‘accounting firm’ instead).
Set up a Google My Business profile

You also need to enter your business website URL, so now is an excellent time to set up a website if you don’t have one already. It would help if you then got your listing verified for authority.

2. Add relevant website content

Your business website should, first and foremost, have the exact same name, address and telephone number you used for Google My Business. Set up an About Us page that describes precisely what you do – it is also a good idea to set up separate web pages describing each of your services.

This will help your business rank higher on search engines when people search for those specific services. In this regard, it helps to incorporate the keywords or search terms people tend to use when looking for those services.

Google Keyword Planner is a useful tool to get you started, and it comes free if you choose to invest in Google Ads. Once you have your list of target keywords, add them to the HTML title tag of each page and the page content wherever relevant.

At the same time, be sure not to excessively overuse keywords – search engines automatically flag content like that.

3. Add your profile to local business directories/listings

When you search for ‘accountant near me’, you will see that the first few organic search results include lists of accounting firms rounded up by business directories.

Be sure to have your accounting firm listed on directories like Yelp For Business Owners or Yellow Pages, with the exact same contact information you have on your website and Google My Business.

Most directories will list your business for free as long as your information is verified, so you should reach out to them right away.

4. Seek client reviews

Getting your business listed on online directories is just one step. Search engines also look for proof that customers like your business when ranking you – in other words, client reviews or customer feedback.

If your clients are not already leaving reviews, reach out to them with requests to do so and make it easier for them by sending them the URLs to the review pages on Google or Trustpilot or directories like Yelp.

You can even consider offering incentives to customers who share reviews, such as a discount coupon for their next invoice. Another way to generate positive signals for search engines is by asking clients to share the link to your website on social media.

5. Dive into client referrals

The more your business is talked about on the Internet, the likelier you are to show up on the first page of search engine results. One of the best ways to be mentioned more often is to have more clients, and one of the best ways to acquire more clients is to make use of referrals.

Give your customers incentives to refer your accounting firm to others who might need help with self-assessment. You can also give new clients who come in through referrals a special discount on their first purchase.

Referral programmes are an excellent way to capitalise on the goodwill you have earned from your happy customers, who will go on to recommend you highly to their friends and colleagues. This will earn you more positive reviews, more favourable mentions and thus a stronger SEO presence.

OVER TO YOU

The practice will take time to deliver organic search results. However, if your goal is to boost your accounting firm’s online visibility in front of a local audience, you must improve your local search visibility.

So, if you want to get on the bandwagon but don’t possess the required knowledge. Don’t worry – Stellaripe provides a range of digital marketing services for accounting firms, including content writing, SEO and social media.

If you want to discuss your requirements with us, please fill the contact form, and we will get back to you as soon as possible.

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5 ways automation can boost your accounting firm’s profitability and compliance efficiency

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Gone are the days when accounting meant filing reams of paperwork or adding columns of numbers to an Excel spreadsheet. Modern accounting technology allows accountants to work efficiently from wherever they are while collaborating in a timely fashion with their team members. According to the WorkMarket’s 2020 In(Sight) report, 54% of executives agree they can save 240 hours a year through automation. Don’t be surprised when we tell you the manual processing of paper invoices alone takes up about 62% of a company’s labour costs! If you are yet to make the transition to an automated business setup, here are five compelling reasons to get started today:

1. Automate workflows

Having homogenised and automated workflows can save significant amounts of time and effort. The first step in this regard is to go paperless wherever possible.

There are several tools such as Receipt Bank, Auto Entry, Hubdoc, 1Tap and others available to capture invoices, bills, and critical documents electronically and store them securely for future references. This practice helps in a smoother collection of documents.

Set up processes for necessary tasks such as prospect outreach or communicating with clients; use accountancy practice management tools such as Accountancy Manager, Senta, Pixie, Practice Ignition, Karbon HQ, Aero workflow,  or Xero HQ so that everyone can track their tasks in real-time and with ease.

The aim should be to organise and track one-to-one or group internal team conversations, emails, notes, important paperwork and client interactions for better collaboration – all under a single roof. Your team will work faster with a workflow that is simple and easy to understand.

The use of right technology, moreover, will free up your staff’s time to spend more time on fostering client relations, which is what will set the firm apart from the competition.

2. Make the most of your software - don't just pay for it

Software is only as good as the people using it. Investing in every piece of software just because your colleague suggested doesn’t make sense. Choose a tool which supports the core needs of your accounting firm, your clients and the team working with you.

Be sure to train your team and clients on every new tool your firm incorporates, and rope in the support of your developers to make customisations and fix issues, whenever necessary.

On the client-side, you can streamline communication by using instant messaging to connect with them and resolve their queries promptly. If your client is unaccustomed to working with the tools you have, hosting a training session with them will help improve the efficiency of your interactions and garner their trust.

3. Make real-time accounting your top most KPI

The world moves at a very rapid pace. We are sure you experienced the change first-hand during the past few months of COVID-19. Clients want to know how they are doing today, not last month and certainly not last year.

Real-time accounting allows you to stay on top of all changes and errors, and benefiting from it is entirely achievable with the right software and apt processes.

There are loads of accounting applications such as Xero, QuickBooks, Hubdoc, Receipt Bank, and practice management tools like AccountancyManager and Senta which help in timely collecting and keeping accounting data available in a matter of seconds.

Such software solutions also auto-chase your clients on your behalf and send timely reminders without having you to remember it.

Set the benchmark high and streamline the accounting process to accommodate a minimum of monthly or even weekly cycles and have your team address discrepancies as and when they crop up rather than waiting until the end of quarter or year.

That way, you will not only be able to access accurate data real-time but also remove inefficiencies within your accounting practice. It further provides you an opportunity to help you take proactive steps to provide timely actionable insights to your client.

Check out our blog to read further on the benefits of real time accounting.

4. Optimise the compliance cycle

All too often, year-end compliance cycles take longer than needed because there are too many steps in the process. An excellent way to remedy this is to sync the year end compliance cycle with real-time bookkeeping to have more regular checks that take less time. For instance, we use Xavier Analytics as a tool to perform regular checks and expedite the year-end process.

Besides, the self-assessments can be timed to harmonise with the year-end accounts. This allows the team to relax a little in December before resuming the hunt for new clients in January, once the tax season is over. New year, new clients!

5. Don't wait

Automation is the order of the day, and your business will benefit from it as soon as you make the switch. This also calls for trained team members who know their way around new tools and processes you incorporate.

If this intimidates you or if you are unsure where to begin, consider outsourcing your work to multi-talented, XERO-certified practice staff, such as Stellaripe, that can help you scale up your accounting firm from day one.

Our experts will help you choose and implement the right tools for your business. Plus, our dedicated manager will train and guide your team members in using those tools, which will save you time and resources.

Another benefit of working with us is that our accounts outsourcing services come with an account manager who can upskill, reskill and guide your team of outsourced accountants tailored as per your requirements, so you don’t have to bother about it.

OVER TO YOU

Automation can bring greater opportunities to the shore as it reduces routine and transactional tasks, allowing you to focus on more value-added services. If you are ready to automate but need a helping hand, we are happy to assist you! Call us at 20 3475 3537 or email us at contact@stellaripe.co.uk. We love to talk!

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How accountants can get back on their feet after COVID-19 in time for tax season

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As the world struggles to throw off the Coronavirus pandemic’s ripple effects, accountants have faced their challenges concerning adapting to remote work and maintaining their client base. A test of the ability of businesses to continue to operate will come, as they begin to function with reduced support measures.

As per a DMP survey, COVID-19 is predicted to have a negative impact on the sales of UK businesses – an average probability of 71%. Even though this impact will be temporary, it will cause a decrease in the overall revenues and profitability of businesses.

Back in April, it was reported that 59% of UK businesses are not confident about surviving the pandemic. The situation is tougher on small to mid-sized accounting practices as their resources are more limited as compared to larger firms.

Moreover, the UK tax season is approaching as inexorably as ever, which means that accountants need to start prepping for self-assessment tax deadline. Here is how accountants can rethink their business model and prepare to serve their clients optimally in the new normal:

1. Analyse the effect of the lockdown

First off, you should take a step back and analyse the effect of the lockdown on your clients. Which industries have been the worst hit? Which ones have witnessed increased demand during the lockdown? How have their buying patterns changed? Which financial assets are the most (or least) popular now? What are sales channels your clients looking to invest in?

All of these will help you to plan how you, as an accountant, can best serve them. One way to look at this is to have a long-term vision of what you would like to be doing as an accounting firm, and work backwards from there.

2. Consider long-term investments in your business

While it might seem counterintuitive to make extra investments now, there are several anticipated industry trends that it is good to prepare for. The prevalence of digital communication means that most tasks and client interactions will be happening online, which makes a robust CRM and a smart practice management system necessary.

One should also invest in robust technologies to support remote work and business continuity. In addition, having efficient accounting software and tools that can handle complex tasks will help accountants work from home with ease.

You can even take the extra step of investing in home offices for your team members so that everyone embraces the new normal readily. You must also make necessary changes to improve the wellbeing of the workplace.

3. Prepare for increased demand

One way to prepare for new incoming clients is to invest in substantial customer experience. Invest in both software and skilled team members who can connect with your clients, resolve their difficulties and educate them on new service offerings or new accounting trends they should be prepared for.

If you don’t already have social media channels for your business, now is an excellent time to set them up. As digital communication becomes the norm, quick responses and active information-sharing over social media will become not just nice-to-have but also necessary.

4. Ramp up your business development

Now more than ever, consistent business development efforts are crucial. This is where industry research comes in handy – the more you are up-to-date on how different industries are performing, the more efficiently you can reach out to companies that are struggling with their accounting and bookkeeping or need help with tax planning.

Have a strategy in place for the nature and channel of communications, ask your existing clients for referrals and keep following up on the people you do connect with.

5. Introduce new sales channels

Adding to #4, if your existing accounts and avenues of business are not enough, plan for and introduce new revenue channels. Here are some ideas to consider:

1. Act as a business coach or growth advisor

Many businesses may be struggling to figure out their next move in the wake of the pandemic. As their accountant, you can also act as their mentor or business advisor. Review their financials, cash flows and industry benchmarks to make sure everything is up-to-date and advise them on costs they can save, payment terms they can negotiate and claims they can apply for.

You can also review their supply chain, test their business model and check resilience and offer suggestions on whether they can modify their product/service line and whether they can downsize any activities or even think of diversifications. E.g. Change business model to online, introduce DIY products/services

2. Advise on financial products

Many accountants have already had to become emergency workers as businesses have rushed them for advice on which loans to apply for and which government grants are best for them. You can take this a step ahead and start advising both individuals and businesses on which financial products to buy and sell.

For instance, those who have lost jobs in the pandemic may need to mortgage their property or withdraw their money from the stocks or bonds they hold. Others may wish to take out new insurance policies or apply for pensions or loans from the government.

Businesses will also need help with choosing grants they are eligible for or selling fixed assets to get some ready cash. As a financial products advisor, you can guide them through all of these.

3. Develop a niche market

If you have been working as a generalist so far, now might be a good time to specialise in one niche. Different industries will face different kinds of challenges as they get back on their feet. As a niche accountant specialising in, say, retail accounting or NGO accounting, you can acquaint yourself thoroughly with the needs of your chosen industry and give them tailored inputs.

4. Work with SMEs

Small businesses are likely to have been particularly hard-hit by the crisis. Many of them may be in survival mode and facing the prospect of bankruptcy. As an SME-focused accountant, you can help them with solutions like applying for financial aid, building extra financial reserves and implementing office-wide pay cuts if needed.

Besides, advise them on when laying off employees might be the only option while suggesting alternative ways to stay financially viable. Broad-scale layoffs may lead to resentment within the team and also cause the loss of valuable skill sets, which is why SMEs should be guided carefully on this front

5. Expand overseas

This might sound difficult now when cross-border commerce is profoundly impacted. However, now it is, in fact, an excellent time to form relations with new businesses abroad. By offering timely and personalised advice to companies that might not be getting such services in their own country, you can acquire new clients that will continue to be your long-term accounts once things get back to normal.

6. Outsource

If you are looking to streamline your operations and focus on the activities and clients that bring in the highest returns, outsourcing is a good option. Routine tasks such as bookkeeping, payroll and tax filing can be carried out efficiently by outsourcing partners who specialise in those services. It is also a cheaper option than maintaining full-time employees who do the same things but at a higher cost.

7. Use scenario analysis

Businesses of all sizes need to make critical decisions about how they will reopen, whether they will operate at full capacity, what changes in capacity could imply for their supply chain, how to forecast demand and so on.

As an accountant, you can help them set up contingency plans for significant changes they may need to implement. These can include the use of historical data to predict trends, introducing new or supplementary services to meet changes in demand (such as online ordering for restaurants), choosing and getting accustomed to digital tools to allow for contactless service and so on.

summing it up

As they say, when the going gets tough, the tough get going. These tips mentioned above will help you not only respond to the ongoing effects of COVID-19 but also prepare a blueprint for more efficient operations in the long-term, tax season or not, including the scenario where another pandemic or significant catastrophe strikes.

If you want to need support from an accounting outsourcing expert, please ring us at 020 3475 3537 for a free consultation or fill the contact us form.

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6 things to do before the Self-Assessment tax deadline starts looming

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Whether working for the October or January deadline, businesses large and small will be scrambling to file their returns on time. While many of them tend to leave this for the week or fortnight right before the deadline, getting an early start will help them complete their tax filing on time, accurately and without undue stress.

More importantly, your accounting firm must get a headstart in preparing for the tax season. Messy desks, disgruntled staff, stacks of paperwork (or numerous excel sheets) – do you remember your last tax season? Let us not be disorganised this year!

Here are six things to do before the self-assessment tax deadline starts looming:

1. Communicate regularly with clients

All too often, accounting firms have a hard time collecting and verifying the necessary documents from their clients and it becomes very stressful at the last minute. To avoid information coming to you in patches, you should:

  • Ask for the right information over an email
  • Ask for all the information in one go via a checklist
  • Provide clear and structured instructions for clients to follow

Please make sure you start reminding them via email or phone call to have all the paperwork in place well ahead of time.

By doing so, you could also ask them to retrieve any data that might be incomplete or incorrect. And the better your relationship with your clients, the more accommodating they will be in case you do need something from them at the last minute.

Pro tip: Make a list of those clients who dilly-dallied in submitting their documentation last year. Schedule reminders on your calendar to contact them periodically. Picking up the slack for them puts extra pressure on your staff. Avoid that.

2. Revisit your processes

Tax filing will likely call for long hours and working weekends right before the deadline, but it is essential to ensure that your staff does not feel burnt out. This is an excellent time to identify areas that caused bottlenecks last year and need to be changed to serve your clients better and make work easier for your staff.

Having shorter, more efficient meetings will also improve productivity, as your team is freed up sooner to go back to work. Start implementing the changes now so that your staff doesn’t waste time adapting to them during the tax season.

Pro tip: Take a chill pill! Ensure you have a system in place that allows them to take some time off each week (for instance, half-days) so that they can be rejuvenated and perform better the next day. If your staff knows the schedule beforehand, they will be able to manage their work around it and meet deadlines efficiently. Also, clearing the trickier ones first should be the priority.

3. Generate more revenue streams

The closer tax season approaches, the less time any accounting business has for service expansion. Use the time you have now to offer new services in areas you have expertise in.

For example: while exact figures can only be obtained once you start the process of tax filing for your clients, it helps to have guesstimates of their investment horizon, personal goals, their assets and liabilities, cash flow and so on.

You could accordingly advise them on financial matters and help them plan future investments and save their taxes based on your analysis.

Start by offering the new service and investment options to your current clients first so that you can get referrals from them to share with prospective clients.

You can even offer package deals to your critical clients for your new and existing suite of services – this will boost their loyalty and bring in more revenue for you.

Pro tip: You should ideally conduct a market analysis to gauge the consumer demand gaps and the service you could potentially aim at providing.

4. Introduce a price escalation clause in your contract

Despite planning in advance, if you do end up stretching yourself for a particular client, make sure you charge for it monetarily. That is where such a clause comes in handy. In simple words, a price escalation clause is a contractual term that allows a price to be increased in case the prices for inputs increase. For instance, tighter the deadline, more the fees. It is necessary to get paid for the numbers of hours invested for a client.

Pro tip: Revise the contracts at the earliest and make sure you explain the clause to all your clients over a phone or Zoom call.

5. Spread the workload

Tax returns will typically eat into your staff’s regular workday, which could be more profitably spent on client-focused work, service expansion or business development. It thus makes sense to outsource your tax returns to a dedicated service provider with the expertise to do it quickly and efficiently.

Outsourcing guarantees that your taxes will be filed accurately and in full compliance with the latest mandates. Plus, for a reasonable fee, your staff will be freed up and can concentrate fully on the tasks they are best at such as client servicing and not have to be bothered to work longer hours or over the weekends – which every accountant dreads during the tax season.

Pro tip: Outsourcing can be a reasonably uncertain road if you have never walked on it. Therefore, undertake due diligence when choosing an outsourcing service provider for your accounting firm. Check out six checks to make when selecting an outsourcing company.

6. Upgrade your technology

For tax to be managed efficiently in the digital domain owing to MTD, it has become necessary for businesses to get tech-savvy.

There are several tax processing software options such as 1Tap, Receipt bank, IRIS, TaxCalc, Taxfiler etc. that are in sync with the latest tax norms so that you need not worry about whether or not your returns are fully compliant. Be sure to coach your staff on how to use the software and have a contingency plan in place in case it develops last-minute glitches.

Also, set up a documentation portal for your clients to upload the paperwork on the cloud hassle-free. That way, you and your staff don’t have to scramble around your emails to search for the paperwork.

Pro tip: Don’t wait for the tax season to begin to sort out your tech. Even if it is as trivial as purchasing new printers, do it now.

OVER TO YOU

It is in your hands to stop the tax season from getting overwhelming for you and your staff. Therefore, start preparing for it now. If you think you want to outsource, that is a smart choice too! We will be more than happy to help you. Simply click the button below and share your details with us so that we can contact you. Speak soon!

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How to build meaningful client partnerships through real-time accounting

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For any accounting firm, building trust with clients is a long-term process that involves more than just crunching numbers for them. Every business owner has a vision and set of goals they want to realise and achieve for their company.

As their accountant, it is essential for you to not only be aware of this but also to always have accurate and up-to-date financial information at your fingertips. Leverage real-time accounting power so that your clients can make valuable, data-driven decisions for their company.

In this article, we shed light on how you can not only do a stellar job for your clients but also build a meaningful partnership with them through real-time accounting:

1. Measure client goals so that they are on track

Setting short-term and long-term goals will only yield results if they are being tracked consistently. As an accountant, knowing how different areas of your clients’ business are performing is valuable information in its own right.

Lend an ear to understand your clients’ short-term and long-term goals. What are they planning to do? Expand their business in different countries, introduce a new service, train more people on the job? Whatever it is, it will cost money, and that is where your expertise is required.

Real-time accounting will let you examine the triggers for any changes in performance, and enable you to guide them to achieve their goals effectively. No one turns down useful advice while making crucial financial decisions. Your clients won’t either, and this proaction of yours will win their trust and loyalty for the long haul.

2. Invest more time focusing on the metrics most relevant to your clients

Another way to establish trust with your clients is by backing up all your claims with real-time data. For instance, informing your clients about the advantages and disadvantages of the decisions they are keen to take, and also giving them alternative options.

With real-time accounting, you can proactively track and discuss multiple KPIs such as customer life cycle, revenue per customer or location, L&D expenses, ROI of any particular project, and more, depending upon your clients’ business goals.

Tools such as real-time business scorecards and dashboards will give your clients a better picture of their financial health and business trajectories. That, in turn, will enable you to identify those areas that require immediate attention and fix them in time.

3. Always share actionable insights with your clients

There is an adage in the corporate world: “Don’t bring me problems, bring me solutions.” Sure, it is supposed to cut down on complaints and empower employees. However, without proper groundwork, this adage holds no meaning.

One of the ways to establish a trustworthy relationship with your clients is by coming up with actionable insight for a given problem you point out for them. To do this, you need to do your homework and study the situation thoroughly before broaching it.

At a button’s click, real-time accounting lets you check critical factors affecting your clients’ operational performance, which will enable you to deduce the right solution to drive the business forward. Your clients will appreciate your perspective, and your insights will empower them to arrive at an informed decision quickly.

4. Ensure fixed pricing for worry-free partnership

Many accounting firms charge by the hour – it is a norm. However, that could be very costly for a business that needs constant support on the phone. This, in turn, causes them to limit the time spent with their accountants to save costs, which is not good.

With a fixed fee agreement, your clients would not need to worry about the number of hours they are spending with you and getting charged for it. If you focus on adding value to their business and contributing actionable insights, they will trust you more.

At the end of the day, your clients will be charged for the services rendered and not worry about other aspects such as phone calls, meetings, and discussions, thereby making doing business with you less price sensitive.

5. Communication is vital in every client relationship

You cannot deny the importance of maintaining regular contact with your clients. By doing so, you will not only get a deeper understanding of their goals and requirements but also will be more receptive to implementing your suggestions for their business.

There is no better way to build trust and confidence in your client than by regularly communicating with them. With real-time data coming in, you can have purposeful talks with your clients and exchange vital information that empowers both sides to improve business performance based on current market trends.

Over to you

How can you enable the client to focus on their business while taking care of all the bookkeeping needs? How do you give the client adequate accounting advice necessary to achieve business success?

With real-time accounting, of course. Track relevant metrics in real-time to give your clients a broader view and understanding of their business performance.

That way, you will be not only able to solve your clients’ accounting issues but also help upscale their business, thereby building trust within them. If you want to maximise the use of real-time accounting, ring us at 020 3475 3537 for a free consultation or fill the contact us form.

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Fighting the pandemic: 5 traits of lasting accounting firms

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According to the Office for National Statistics, 59 percent of UK businesses are not confident about surviving COVID-19. The Coronavirus pandemic that has swept across the globe since December 2019 has destabilised economies, taken down businesses and drastically altered daily life as we know it. The UK accounting industry is also feeling the ripple effect.

The situation is particularly concerning for small to mid-sized accounting firms as their resources are often more limited than those of larger accounting practices and are therefore more vulnerable to volatile market conditions.

In addition, it is predicted that a fifth of smaller UK firms ‘will run out of cash.’ Accountants, in particular, have stated that 18 percent of their clients are unlikely to get access to the cash they need to survive a lengthy lockdown.

If your accounting firm is navigating its boat in rough waters at this time, it is more crucial than ever to strengthen the core of your business and to adapt how you operate to suit the current times. Here are six best practices from Team Stellaripe to keep in mind:

1. Inclusive management

When working from home is the new norm, staff members may feel isolated from the decision-making process. At these times, it is more important than ever for the management to help everyone feel included in executive decisions.

Promote ‘diversity of thought’ by encouraging your employees to share their opinions, and be frank about sharing news with them, whether it’s good or bad.

Don’t forget the humane side of the crisis, and include everyone in the managerial processes at the firm level. This will help to enhance your credibility as an employer and also increase employee loyalty by boosting their morale.

2. Value Addition

Providing top-notch client support to retain your accounting business during the slowdown is crucial. Think of tasks you can do for your clients for free. The list could include advisory services or top-level admin work.

You should also manage your clients’ expectations so that they know their investment is safe with the understanding that things will take more time than usual. This way, you can continue to operate realistically and also protect your revenue.

Alternatively, utilise the time to pivot to a new business, make changes to your operating model or save initiatives for the recovery. For example, if your accounting firm has taken a significant hit, do you plan to consider accounting outsourcing moving forward?

What does your business partner suggest? Is laying off and hiring outsourced accountants at a low cost the right option for you?

3. Adaptability

Now more than ever, businesses need to build resilience, embrace digitisation and adopt agile practices to ride the wave of change. Successful remote work calls for a new reliance on technology and automation.

If your accounting firm did not rely on such technology earlier – including tools like Slack, Trello or Zoom that facilitate working from anywhere – now is the time to bring them in. You should also encourage your employees to actively use these tools and provide them with training if necessary.

Besides, if your clients are struggling with using these tech-forward collaboration and communication tools, you can also lend them a helping hand for free.

4. Productivity

For those used to working at an office and with the company of team members, productivity during the lockdown can take a hit. As a firm, now is the time for your top managers to show your teams how to remain at the top of the game while working remotely.

An excellent way to do this is by implementing a work routine that everyone can follow comfortably. Set aside time for team discussions on Slack and one-on-one calls, and provide flexibility to workers who may have family commitments at home.

Now more than ever, the focus should be on getting things done, not on the number of hours logged in.

5. Digital client experience

While in-person client meetings are no longer possible, there is still plenty of scope to foster a strong connection with your clients. Video conferencing technology makes it easy for the client to get personally acquainted with the relationship manager at your firm.

There can be meetings scheduled to discuss work commitments as well as to bond informally. Moreover, regular old-fashioned telephone calls are still a must to build and foster client relationships.

One cannot underestimate the power of a quick check-in call to answer a question that the client may have raised or simply to ask how they are doing. Your accounting firm can also become creative with their emails and share advice related specifically to business during the pandemic.

If done correctly, digital client experiences can have as much impact as face-to-face meetings and engender a solid bond that lasts well after the lockdown lifts.

6. Outsource

Going back to point #2, another best practice that many accounting firms overlook is the power of outsourcing. By delegating routine tasks to third-party accounting service providers, you can save a great deal of time and money.

This will help you remain financially steady and also lets you focus on client services for which you need support, such as tailored consulting and strategy planning.

Summing it up

At some point, this crisis will run its course. Until that happens, make sure your accounting firm plans to survive or better, to emerge stronger and ready to grow again.

If you are looking to shorten your to-do list and want to spend time making tweaks to your operating model, bonding with staff and clients or focusing on growing your advisory department, you can count on us.

Ring us at 020 3475 3537 for a free consultation around how Stellaripe can help you during the crisis and after it. You can also contact us here. Speak soon!

7 ways accountants can benefit from real-time accounting

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In this day and age, it is no longer good enough for accountants to know about new technologies. They also need to be able to adapt it, tap into its full potential to stay ahead in the market, and drive business success for their clients and themselves.

That brings us to a new, relatively new term on the block, i.e., real-time accounting. It refers to the process by which users can access most up to date financial data from any device, any place, at any time thanks to the cloud.

This has manifold benefits for an accounting firm, particularly given the intensely competitive industry where data-driven decisions may need to be reached, and clients have to be pleased promptly.

With real-time accounting, accountants as well their clients’ can get access to accurate and most up-to-date financial information they need at the exact moment they need it. Adding to that, let us discuss seven ways in which you can benefit from real-time accounting:

1. REAL-TIME DATA COLLECTION

Data collection traditionally involved requesting records, organising and storing data, and extensive time spent on bookkeeping. This meant that obtaining adequate data to develop business solutions took a substantial amount of time.

With real-time accounting, data collection and query resolution can take place in a matter of minutes or even seconds for your clients. There’s no waiting around, no data entry, and no paperwork. They make it simple to capture, process and share all financial information instantly.

Applications such as Receipt Bank, Hubdoc, AutoEntry, Xero, QuickBooks, Zoho Books, and practice managers like Senta, AccountancyManager and others help in timely collection and keeping accounting data secure on the cloud.

They also streamline the workflow to make things easier for every staff member of your firm, allowing automation of tasks like reminding clients about documents, deadlines due, or discussing queries on the go.

2. Real-time business KPIs

Measuring business KPIs in real-time allows accounting firms to ramp up their productivity and advisory skills tremendously., The use of tools such as real-time dashboards and scorecards gives you better visibility of business trajectories, which lets you adjust and align your short-term or long-term objectives and identify areas which are doing well and those that require some changes.

You can proactively track and discuss with your clients’ variables such as the revenue per customer/product/location, customer life cycle, overall profitability and many more such KPIs with the help of real-time accounting.

Data-driven insights backed with real-time data can also help make quick corrections to prices as needed based on revenue and profit needs. By staying on top of business KPIs, you can also contribute better to the overall strategic decisions of your clients’ business, including areas that require more attention and the areas to exit, if found unprofitable.

 

3. Real-time cash flow forecast

Cash is the lifeblood of every organisation, and your clients need to always have a finger on their business pulse to gauge how much money they will need for current and future requirements, especially when things are uncertain such as the present COVID-19 situation.

With real-time accounting, you can get them daily or even hourly updates on the kinds of inflows and outflows they can expect soon. Accordingly, you can plan for working capital for your clients.

Real-time data also allows you to assess the possible impact of different external and internal forces on your client businesses, which again can help them prepare in advance for additional cash flow requirements.

4. Real-time client advice

With real-time data, client-related decisions no longer have to happen after days or weeks of deliberation. You always play on the front foot by offering proactive advice to your clients and promptly respond to changes in tax regulations.

At a click of a button, real-time accounting let you check critical factors affecting business performance and ultimately drive business in the right direction. 

This allows you to improve the customer life cycle and complete projects faster. As a consequence, your accounting firm also has the opportunity to charge your clients upfront for advisory services rendered quickly.

5. Real value addition in every client meeting

With real-time accounting, client connections go far beyond the occasional physical meetings. You connect with your clients over Skype for Business or Zoom or other video calling apps to answer any immediate questions or check in to provide project updates.

This also helps to make physical meetings more productive by keeping discussions to the point. With real-time data coming in, you and your clients can also have purposeful talks on how to grow and improve business performance based on current market trends. Action plans can now be executed in real-time.

6. Expedite compliance and drive more growth and revenue

With real-time accounting, your firm can perform its tax and compliance work much faster and more accurately than otherwise. This not only frees up your time but also gives you the luxury to choose whether to expand your service portfolio or focus on a niche area.

You can also nurture your existing client relationships and engage in more complex projects with them as the trust is solidified. This, in turn, allows you to win more clients through word-of-mouth and also expand your capacity by marketing yourself to more clients. You can also be of service to your clients by becoming a Virtual Finance Director, CFO, or Business coach.

7. Getting ready for MTD for income and corporation tax

By 2021, all businesses, self-employed and partnerships and landlords will fall within the scope of MTD (Making Tax Digital). They shall be required to report income tax and corporation tax summaries quarterly rather than once in a year.

Real-time bookkeeping will be of immense help for this. With data coming in consistently, you will find it much easier to compile all the inflows and outflows of your clients for a month or even a week on the cloud, which will help them stay MTD-compliant at all times.

Over to you

Now that real-time accounting has gained momentum in the industry, it is essential for you to also jump on the bandwagon. With the ever-increasing pressure on businesses to be leaner and more competitive in the market, your clients deserve an accurate and timely assessment of their financial health. And if you can do that for them on the cloud, in real-time, your clients can focus on more profitable practice areas, while staying compliant. If your accounting firm is not equipped to manage real-time accounting for your clients, don’t worry. Stellaripe, your accounting outsourcing partner, can do it for you, freeing up your time to focus on fueling client relationships. Get in touch with us to find out more about our real-time accounting services. You can also find us here: www.accountant-info.co.uk

7 Ways payroll outsourcing can help your accounting firm

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Whether you are a small accounting firm just starting on your journey or a large practice handling millions of pounds’ worth of business, payroll is a function that remains a top priority, irrespective of size or domain.

Not only does correct payroll processing matter hugely when it comes to drawing up an income statement, but also it keeps employees happy when they are paid on time. Accounting firms often get requests from their clients to handle payroll for them.

At first glance, it might seem like a simple, straightforward process. How tough can it be to calculate your client employees’ hours and prepare their pay? Trust us – in reality, there is a lot more to payroll.

From calculating taxes and implementing wage policies to remitting to HMRC, the process is far from simple. In fact, things can escalate quite quickly and get complicated if not handled with dedication and finesse. Payroll clearly demands accuracy each time, every time – after all, no one appreciates even the tiniest error in their payslip.

Clearly, you are stalling your accounting firm’s growth if your practice staff spends more time managing payroll than offering advisory services such as tax planning and forecasting. That is why it makes sense for you to outsource payroll processing to specialised third-party vendors like Stellaripe.

Here are seven ways in which payroll outsourcing can help you:

1. Streamline your accounting firm

If you offer specialised services to your clients in niche areas such as forensic accounting or environmental accounting, then payroll management is not always the most profitable type of project to take up. Imagine your practice staff spending hours calculating weekly wages!

Therefore, by diverting your clients’ payroll management requests to third-party providers like us, your accounting firm is free to take up tasks that are more profitable and in line with your areas of expertise, thus letting you grow further.

2. Drive additional revenues

When your accountants are caught up with processing payroll, they lose out on work time that could be allocated to other, more critical tasks. By outsourcing payroll, you free up your accountants to spend more time interacting with clients, solving their problems and reaching out to new clients for potential business.

If you aren’t already offering payroll services, this could become a new revenue stream. All of these are money-making activities that your accounting firm can benefit from while an external team manages payroll for you.

3. Leave payroll and admin compliance worries

Payroll involves compliance norms of its own that can be tricky to keep up with for an accounting firm without specialised expertise, which could lead to legal hassles later.

Expert payroll accountants at Stellaripe, for example, are fully versed in all compliance-related matters and can also answer any questions that your clients may have about payroll and admin compliance.

We can also save you a ton of hassle as we manage HMRC, auto-enrolment pension and other statutory regulations. Further, we can also talk to HMRC and pension authorities on your behalf. It thus makes sense to outsource payroll to an external provider and free yourself from potential non-compliance liability.

4. Get it done by the experts

Payroll processing is a time-consuming task of its own that requires a high degree of expertise and accuracy to process the data correctly and identify any errors, even when multiple software solutions are being used.

Third-party providers are experts at precisely these things and are accustomed to handling hundreds if not thousands, of client payslips every month.

By entrusting the payroll function to us, accounting firms can rest assured that their clients’ payrolls will come back error-free and on time, every time.

5. Make payroll profitable

When you outsource your payroll function, you end up saving hugely in terms of time and money. Your accountants can now focus on the specialised work for which they are best trained rather than spending hours poring over large volumes of information and cross-checking all of it for errors.

Moreover, you don’t need to either procure payroll processing software for your in-house systems (which is an extra cost) or spend time training your accountants to use them. For example, the Stellaripe team already has all the necessary software in place to handle the payroll of accounting firms expertly and efficiently.

6. Simple pricing

Most of the third-party providers (like Stellaripe) that offer payroll services set a pricing model which takes into consideration: Total number of employees, pay type and pay frequency. Alternatively, some even offer a dedicated payroll staff to fully manage the payroll function including every type of correspondence and query resolution.

By contrast, keeping an in-house accountant to take care of payroll is a far more expensive undertaking that calls for salary, benefits, training costs and office infrastructure. The accounting firms that we work with find outsourcing to make far more financial sense when they are billed for the exact amount of work done by our expert accountants.

7. Enhanced data security

Client information is highly confidential, and third-party payroll providers keep that in mind when accounting firms outsource their payroll work. For example, we at Stellaripe make use of GDPR-compliant tools to manage client data, including password-protected payslips, employer reports, encrypted emails, and so on. These ensure that each client’s data is secure from start to finish, no matter how complex or voluminous the data may be.

Over to you

Payroll outsourcing is increasingly becoming the norm for accounting firms of all sizes so that the task can be done efficiently and promptly. Be sure to do your research and have a thorough conversation with the providers you shortlist so that you can choose the best one for the task and potentially work with them on a long-term basis.

Alternatively, you can ring us at 020 3475 3537 for a free consultation around how Stellaripe can keep all your payroll woes at bay. We take care of your payroll processing, auto enrolment, CIS, client liaison, HMRC correspondence and reporting – all under the same roof. You can also drop your contact details here for us to call you. Speak soon!

IR35 in the Private Sector Delayed: How should Accounting Firms Prepare

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It looks like the contractors in the private sector can breathe easy (for a year). Chief Secretary to the Treasury, Steve Barclay, announced on 17 March that the implementation of IR35 in the private sector will now happen on 6 April 2021 due to the coronavirus pandemic.

During Budget 2018, the UK government mentioned it would reform the off-payroll working rules in the private sector from April 2020. Fast forward to last week: the impending reform wasn’t even mentioned in the Budget 2020 speech.

However, in the executive summary was confirmation that the government has reviewed the reform and is currently making many changes to ensure its smooth implementation on 6 April 2020 in the private sector. But not anymore.

IR35 presents a bleak outlook for the contractor market as it impacts those operating via Personal Services Companies (PSCs). New legislation shifts the compliance burden from the contractors onto recruitment agencies and hirers specifically (any medium to large businesses) in the private sector.

Lack of clarity around the off-payroll reforms has caused a ruckus in the market, impacting contractors, recruiters, and businesses. The one-year delay due to COVID-19 is good news. However, Barclay insists the delay doesn’t mean cancellation, just a deferral.

Reasons why contractors want to be outside of IR35

Contractors who believe they are genuinely self-employed seek the flexibility to work with multiple clients and not be tied to a single employer. Especially in the IT sector, remote working is on a rise where companies are setting up the infrastructure that allows people to work from anywhere.

Further, many self-employed contractors operate from their own limited companies and enjoy lower taxes by paying a combination of a tax-efficient salary and dividends. Tax relief is also available to them in case they shut down their limited companies.

However, all this gets hampered when a contractor is identified (rightly or wrongly) inside of IR35. With clients erring on the side of caution, block decisions about the working position of contractors are frequently being taken and this has a dramatic effect on them.

Without full assessment of the relationship between the contractor and the client, contractors are being informed that the working practices followed with the clients show them as a ‘disguised employee’ and not an ‘independent contractor.’

That means their take-home pay will be reduced if they are unable to negotiate an increased day rate to adjust the higher employment taxes to be paid in this arrangement.

How accounting firms can remotely help contractors hit by IR35 during the Coronavirus outbreak

Most independent contractors have an accountant. With the IR35 reforms, the prospective impact on accountants was enormous where some were anticipating losing 20-30 percent of clients who are no longer contracting but moving to employment or umbrella companies, i.e., operating within the scope of IR35. Further, the ongoing Covid-19 outbreak has made everyone adopt work from home.

That means that even though contractors have a year in hand to figure out their plan of action, the pandemic has made it impossible for them to physically meet their accountants. The pandemic is already having a huge impact on small businesses throughout the UK, and everyone is still coming to terms with what this will truly mean.

The section below advises accountants like you on how to uninterrupted assistance to contractors in times like these:

1. Determine the IR35 status of contractors

Even though the final say lies with recruiters and employers, many contractors in the private sector will look out for accountants who can assess their engagements and prepare for the next course of action.

Your accounting firm could set up a special team or appoint a few staff members to assist in this regard. The communication can happen on Skype, Zoom and on the phone. Important documentation and information can be shared on email.

2. Handle deemed payments

If a contractor is found inside of IR35, they will be required to make a deemed payment. This amount is paid at the end of a tax year, and is calculated after considering corporation taxes and account expenses. You can calculate the amount they need to pay.

3. Ensure they hold small business insurance

If you have contractor clients with their own limited companies and employees, they must have the necessary insurances in place. One of which is Employers Liability insurance that provides compensation claims made by employees.

Your accounting firm can make sure that your contractor clients are adequately insured. Information can be exchanged via email or any other communication tool.

4. Help them with paperwork

In the event of an HMRC enquiry, your contractors may be required to provide copies for their contracts along with their accounts for a specific timeline. As their accountant, you are most likely to be their first point of contact – especially concerning the accounts.

Moreover, contractors might have to approach their insurers for their insurance to kick in before contacting the HMRC. You may have to tie all the loose ends for your contractors. Dropbox, WeTransfer and Google Drive are secure tools for sharing sensitive paperwork.

THINGS TO DO IF YOUR ACCOUNTING FIRM LOSES A LOT OF CLIENTS IN ONE GO

Hmm..if that happens to you, then there are specific steps you can take to minimize the negative impact on your business and to get back on your feet faster:

1. Expand your staff without the headache - outsource!

If you are spending more time handling accounting-related tasks and less time engaging with your contractors, it is time to consider outsourcing.

When you partner with an accounting outsourcing firm, they bring a certain skill set to the table – help you boost your efficiency and improve your bottom line.

The trained staff at the outsourcing companies are familiar with the latest changes in accounting laws and regulations and can guide in offering IR35 compliance support.

2. Offer new services - diversify!

If you have been only focusing on a limited number of services such as bookkeeping or year-end accounts, expand your service offerings. Payroll and tax return preparation are also viable services that can fetch you a range of clients.

Further, you can also take a step further and provide advisory services such as budgeting and tax planning apart. Your clients may be wishing you offered this service.

Even if you don’t have in-house expertise, outsourcing can help you diversify quickly without increasing your overhead costs.

3. Overhaul your marketing efforts

This scenario calls for you to pull up your socks and promote yourself aggressively in the market to attract more clients. Therefore, review your business website and revamp your business cards, marketing brochures and flyers.

Be active on social media and kickstart your email Marketing. Get the word about your services out there, and ensure that you spend at least an hour on marketing yourself. If you don’t have the right support in-house, Stellaripe can offer you digital marketing assistance.

The best part is you don’t have to be on the field to meet new prospects. Ramp up your online marketing efforts, hold preliminary conversations with potential clients on Skype or Zoom, and use DocuSign for paperwork!

4. Review internal processes - save costs!

Just because you have always worked in a particular way, doesn’t mean it is the best or the right way to do it. A perfect time to review your processes is when the focus of your accounting firm shifts away from contractor client demands.

Using someone to independently assess your existing processes is frequently the best way to undertake this as they do not bring all the historical ‘baggage’ to the table and can review things more objectively.

Outsourced accountants are frequently well placed to undertake this as they will have a wide range of experience of numerous processes and awareness of what works best.

Conclusion

Even though the world has shut down due to the pandemic, it will come out of it. And when that happens, the gig economy will continue to thrive, and people across the country still wouldn’t want to be tied down to restrictive working environments.

Your accounting firm should protect itself in the wake of the inevitable roll-out of IR35 in the private sector, and outsource vital accounting services, marketing your business aggressively to boost leads and make time to offer the right guidance to the deeply-affected contractors.

Want to have a quick chat about leaving your back-office worries to Stellaripe? Please ring us on 020 3475 3537 or email us at contact@stellaripe.co.uk.