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outsourcing update

Summer 2018 Latest news and updates from the Roffe Swayne Outsourcing team

Welcome to our new latest newsletter There are some deadlines approaching that may need your action. Firstly, the new data protection regulations (GDPR) came into force last week. All businesses must review the way they use/store personal data. Secondly, the Government’s Making Tax Digital (MTD) programme has been revised again, see page 2 for an overview of what the new regime involves, and some of the software solutions that can help on page 3. Later on this year there is also a change to how residential addresses are shown on public records at Companies House more details on these topics are on page 2.

Scott Harrower Partner 01483 416232 mail@roffeswayne.com @RoffeSwayne

Lastly, summer has now arrived, we have dusted off our sporting attire to enjoy the longer evenings. Read how one of our team tackled the Paris Marathon.

Scam alert

Fraudsters are sending out scam emails and text messages to trick people into thinking they have received a tax rebate.

Improve operations and profitability Management accounts are not essential in running a business but certainly provide management teams with vital information to help decision making and grow the business. Whilst they are used for record keeping, their value mainly lies in providing you with valuable financial information to help with planning. Comparing the actual figures with budgets/forecasts, highlights any variations that need to be investigated. This allows better management of the business’ resources. Sound familiar? You can design bespoke management accounts to suit your business. The content should just contain what the Board and management team wants to see. The frequency is also down to you, but usually they are monthly or quarterly.

Please do not ever give out your account details. It is always best to err on the side of caution, talk to us if you are concerned.

Lenka Ball Management Accountant lball@roffeswayne.com

Typical problems we hear:

“Our margin is too low” “We have problems paying suppliers on time” “Our customers take too long to pay”

Cost savings

Budgeting

Do you have sufficient financial data to review/ lower your expenses? What about savings you could make if you changed supplier, or other cheaper options? The information derived from management accounts allows the company/ business owners to better understand how much it costs to run their business.

Budgets are a major part of management accounting and are often based on historical information (prior year). The main purpose of the budget is to monitor financial performance against expectations, allowing you to understand how the business is doing. Read more here about what management accounts should contain: https://www.roffeswayne.com/ preparing-management-accounts/

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News Company secretarial update: New regulations are coming into force later this year which may be of interest to company directors who still have their residential address on public record at Companies House. Although the introduction of the ‘service address’ in 2009 provided enhanced protection for directors, there is still a privacy issue for directors appointed prior to this date. Under current arrangements, a director has the option of choosing a business address as his service address – this is essentially the correspondence address which will be shown on the Companies House website. All directors must supply a residential address

Making Tax Digital update: HMRC has revealed the roll-out of their Making Tax Digital (MTD) has been delayed. Here is the latest: VAT The Making Tax Digital element for VAT will be going live in April 2019. From that date VAT returns will be submitted using a new online system. Accounting records supporting the VAT returns should also be kept digitally with the aim of information from those records being automatically transferred to the VAT returns. Important: don’t underestimate the impact this change may have on your business. For those still on manual accounting records, you will need to move to an accounting system in order to file your VAT from April 2019 onwards. There are many software solutions available such as Xero, Sage and Quickbooks. Depending on the complexity of your needs there are different entry levels for each product. Read our article on page 3 on the various software options available if this is you if you are considering implementing or changing your accounting system.

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to Companies House, but can keep this off the public record provided they supply a different address as their service address. However, for directors of companies incorporated a number of years ago, a quick trawl of previously filed annual returns (which are on permanent record at Companies House) will bring up details of a home address. Given that directors are a target for online fraudsters (recent statistics estimate that 20% of all online victims are company directors), this can be a real concern. The good news is that the Companies (Disclosure of Address) (Amendment) Regulations 2018 will change this: under the new regulations a director may apply to have

Louise Davies Company Secretary Adviser ldavies@roffeswayne.com

these historic details removed from the public record. Although we have only seen draft guidelines, we understand the application will be a relatively straightforward procedure. The legislation will come into force by the end of summer 2018. An update will be provided but if you would like further details in the meantime, please get in touch.

Did you know... Roffe Swayne offer a registered office service to companies and directors, allowing the use of our office address on the public record. If this is of interest, please get in touch: 01483 416232.

GDPR Jane Alsop Tax Investigations Adviser jalsop@roffeswayne.com

Business income tax and corporation tax The current plan is for quarterly tax returns for landlords, the self-employed, partnerships and companies to be phased in from 2020 at the earliest. Again the accounting records supporting the returns are to be kept digitally.

Individual tax returns Originally the idea was for these to be included in Making Tax Digital with the old selfassessment tax returns being phased out. This now looks unlikely to happen in the near future as HMRC have recently said: “We have made the decision to delay plans to release project capability to EU Exit work. This means halting progress on simple assessment and real-time tax code changes.”

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GDPR: Click here to complete our online form.


Accounting software Changing your accounting system

Andrew Bagley Senior Manager abagley@roffeswayne.com

There comes a point when a business outgrows their financial accounting system and it ends up holding them back. Take stock of the accounting system you use and what it does for you and the man hours it takes to undertake the tasks. It’s imperative to keep a clear picture in your mind of where the business is heading, that way the system you choose has the ability to grow with your business by giving the data you need, to make important business decisions.

2) Xero accounting software Xero is a cloud based accounting system with a mobile app. Again it comes in various shapes and sizes depending on the complexity of your requirements. It has a large number of bolt-on products to cover things such as stock control, time sheets and project tracking.

Ask yourself a few key questions to see if you should review your accounting system: »» Have your accounting processes changed as your business has grown? »» Are there manual tasks that could easily be automated, saving you time and resources? »» Does your current system integrate across other software that you use? »» Can you easily get a real-time snapshot of the financial position of your business? »» Could your system still work if your team grows and additional users are needed? »» Security – have your accounting controls been updated to combat new types of fraud?

3) Quickbooks Quickboos is another long established software many businesses use. It is both desktop, online and has a mobile app which means it should meet nearly all business owner’s requirements.

You can customise your accounting software Once the accounting software has been chosen, you can also customise the software to give you exactly the functionality you need to and integrate it into your business effectively. You will then have the management information reporting at your fingertips for business planning. Need our help? You can of course research the different options yourself, but we fully understand this is a time consuming task. Our accounting team knows the various accounting packages very well, we understand their capabilities and therefore which one would best suit your business, both now and in the future as your business grows. We would start by reviewing the needs of the business owner or management team. We can then discuss the pros and cons of the different accounting software options, to help you choose the right system and tailor it to give you the financial information you need, to make key decisions in your business.

With so many accounting software solutions available, how do you choose the right accounts package for your business? Is cloud accounting the way to go for your business? This is not a decision to be rushed. Here are three of the main accounting platforms our clients use: 1) Sage accounting software Sage accounting software is a long established software many businesses use. It comes in a variety of shapes and sizes designed to meet a business’ needs as it grows and develops. Sage offer both a cloud based system, as well as a desktop option and mobile app.

If you are considering changing your accounting system, give us a call and we would be happy to help you select the right system for your business - 01483 416232.

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Financial outsourcing for today’s entrepreneur Freedom to get on with what you do best - running a successful business. Reporting to management, shareholders and investors is a major responsibility of any company. It’s very easy for entrepreneurial owners and managers to get bogged down in trying to design financial statements and interpret the data. Often they keep the intricate details at arm’s length, hoping their current financial expert will keep them abreast of milestones, cash flow or other critical data. With advances in technology, fast growing businesses (and the people who run them) need to be confident their reporting and systems will quickly deliver the financial information they need. Well thought out systems and processes are vital to assist this, but can you rely on yours to be accurate and help quick decision making?

Many clients come to us to help sort out their legacy systems, or unravel bookkeeping incorrectly entered by previous accountants. They were the lucky ones who realised they needed to change something, but some companies who don’t address issues can find themselves down a financial reporting dead end. We help many fast growing companies by taking on their core finance processes and reporting to free up their management time so they can get on with the business of growth. To help you get to grips with the financial outsourcing options available we have put together an outsourcing guide which details all of the areas worth reviewing in your business. To get your copy, please email your address to marketing@roffeswayne.com and we will post you a copy.

Team news Finally we just wanted to tell you about our budding athlete within the outsourcing team. Maria Novell wanted to challenge herself, over the past few years she has really started to enjoy running and particularly competing in races. The ultimate race was obviously a marathon! So Maria set her sights on the Paris marathon, and to raise money for the Alzheimer’s Society, a charity very close to her heart. We are all very proud of Maria as she managed to raise just over £1,600, far exceeding her own expectations! Here is Maria’s account of the day: “The Paris marathon was an amazing experience, and for a first time marathon runner it seemed like the perfect course - very flat! However, on the day the heat was very unexpected, having trained in the rain and snow, including two Beast from the Easts, the 23 degrees heat was not welcome!

But with the support of my family, friends and the crowd I completed it in 6 hours 5 minutes. Along the way the fire brigade were out with their hoses and buckets of water to cool us down. At mile 18 we ran passed the Eiffel Tower which was stunning in the sun with clear blue skies. At mile 19 when I started to struggle, a lovely lady who was spectating and could only speak a few words of English (and I can only speak minimal French) stopped me from walking and ran with me for just over half a mile. There were bands playing music around the course which were great. The final 0.2 of a mile was the most amazing feeling, everyone cheering your name to the end. I said “never again”… but I am now planning another two marathons for 2019. I think I’ve got the bug….” Fresh from her Parisian success, Maria has now set her sights on the Mundays 5K run, with fellow team member Ella Punter as well as members from our audit team. We will let you know how they got on next time.

Roffe Swayne, Ashcombe Court, Woolsack Way, Godalming, Surrey GU7 1LQ. Tel: 01483 416232. Email: mail@roffeswayne.com 4 | Roffe Swayne Outsourcing Summer 2018

Outsourcing update summer 2018  

Outsourced accounting newsletter. Making Tax Digital update, the benefit of management accounts, accounting systems overview and a company s...

Outsourcing update summer 2018  

Outsourced accounting newsletter. Making Tax Digital update, the benefit of management accounts, accounting systems overview and a company s...