5 Steps to Manage Making tax Digital for Your Clients

Making Tax Digital is finally here. Below are some of the key points:

• April 2018 for income tax and National Insurance contribution (NICs) purposes if client’s turnover is over the VAT threshold
• April 2019 for income tax and NICs purposes if client’s turnover is below the VAT threshold

• April 2019 for VAT purposes for everyone who is VAT registered
• April 2020 for Corporation Tax (CT) purposes for everyone who pays CT

Below are the 5 Steps you can make Making Tax Digital simplified for your practice:

Corient helps Accounting Practices to manage their back office by providing Book Keeping, Payroll, Year End on a real time basis on various softwares including Xero, SageOne, Quickbooks, Freeagent, Kashflow, Xero Workpapers, IRIS, Digita. Our services help accountants to take on additional work and significantly increase revenue  without hiring and training the team at extremely low costs

If you need any free consultation on how you can increase revenue by adding service lines, please feel free to get in touch with us info@corinetbs.com

Visit us at : http://www.corientbs.co.uk

How to Lower Your Break Even?

We are continuing from our previous blog on how to calculate your Break-Even Point. If you missed it, please read our previous Do you know your Break Even Point?In this blog, I will share with you few ways to reduce your break-even point.  A lower break-even point leads to more profit, more cash and lower the organisation pressure on sales.

Below are some of the ways to look at how you can reduce your break even sales point:

Happy Accounting!

Corient helps Business to manage their accounting function by providing Book Keeping, Payroll and Other Services on a real time basis on various softwares including Xero, SageOne, Quickbooks, Freeagent, Kashflow, XeroWorkpapers,. Our accounting services help businesses to take right decision and grow by business based on accurate and timely financial data

If you need any free consultation on how you can increase revenue by adding service lines, please feel free to get in touch with us at info@corientbs.com

Visit us at : http://www.corientbs.co.uk

Making Tax Digital – is it an opportunity or a threat?

Making Tax Digital (MTD) is a government initiative that sets out a vision for ‘a transformed tax system and the end of the tax return by 2020.

The initiative is part of a wider government vision to enable all taxpayers to pay their taxes and manage their tax information online.

The smallest businesses will be exempt from MTD – the original proposal was for “smallest” to be “turnover of £10,000″ but following the consultation responses, this figure may change.

The current plans:

1. Taxpayers will send in summaries of their income and expenditure at least four times a year.
2. More taxpayers will be able to use the cash basis of accounting.

For most of the accountants, clients generally send in their records 2 weeks before VAT Return filing (VAT Clients) or 3 to 4 months after the year-end (VAT Exempt Client).

Most of the accountants do a limited review while filing VAT return. Making Tax Digital makes it mandatory for the businesses to file returns on a quarterly basis with underlying assumptions that statements filed are accurate and do not throw any big surprise at the year-end.

MTD challenges:

Making Tax Digital throws the following challenges to the accounting firms:

• Handling huge influx of the volumes at every quarter
• Setting up meeting with clients to go through their statement of affairs and discuss potential liabilities, etc
• Tax planning should be done every quarter rather than every year
• Moving from spreadsheet accounting to more formal accounting
• Adequately trained staff regarding bookkeeping as well as compliance on Making Tax Digital

MTD opportunities:

While Making Tax Digital offers several challenges, there are several opportunities for accounting firms to grow. Accounting firms can embrace the following:

• Move from spreadsheet/ Desktop Accounting to Online Accounting
• Ride on automation software
• Guide clients to do their own bookkeeping or provide bookkeeping service
• Manage Internal System to ensure they have adequate time to spend with clients to discuss tax liabilities
• Take help of external service providers for doing bookkeeping, reconciliations and management reporting

Corient helps Accounting Practices to manage their back office by providing Book Keeping, Payroll, Year End on a real time basis on various software including Xero, SageOne, Quickbooks, Freeagent, Kashflow, Xero Workpapers, IRIS, Digita. Our services help accountants to take on additional work and significantly increase revenue without hiring and training the team, at extremely low costs

If you need any free consultation on how you can increase revenue by adding service lines, please feel free to get in touch with us at info@corientbs.com

Visit us at : http://www.corientbs.co.uk

Do you know your Break Even Point?

No matter how great your business model is, you can’t survive if you can’t manage your company’s cash flow. Calculating your break-even point will ensure that your business is profitable based on your costs and your sales.

Many businesses fail due to poor cash-flow management.

One of the most shocking facts revealed during the survey was that most of the businessmen fail to analyse the cost sheets correctly and put wrong Gross Mark-Ups at the time of pricing their products.

Most of the businesses are carried away by gross margin and forget to analyse fixed overheads and put them on the back burner.

The best way to analyse if you are making a profit is to keep track of break-even sales.

The higher the gross margins, lesser the break-even point or lesser the fixed overheads lesser the break-even point.

Keep a tab on your break-even point, keep making sales exceeding your break-even point and the higher you go away from break-even point, the more cash you generate from your business.

Happy Accounting!

Corient helps Business to manage their accounting function by providing Book Keeping, Payroll and Other Services on a real time basis on various software including Xero, Sage One, Quickbooks, Freeagent, Kashflow, Xero Workpapers,. Our accounting services help businesses to take right decision and grow by business based on accurate and timely financial data

If you need any free consultation on how you can increase revenue by adding service lines, please feel free to get in touch with us at info@corientbs.com

Visit us at : http://www.corientbs.co.uk

Do You Check the Overall Health of Your Business?

1. What do you do if you had some health issues? You would get a health check-up, including CBC, CT scan, MRI, etc., right?
2. Do you handle your business in the same way as your health?

Here are quick steps to manage your business’s health:

1. The first and foremost thing is to prepare Profit and Loss, Balance Sheet and Cash Flow statements on monthly basis.
2. The above can be done only if you are maintaining your accounts on daily/ weekly/ monthly basis depending on size of the company.
3. Currently, there are several applications available in the market such as Xero, FreeAgent, Kashflow that make accounting easier.
4. Once you have done accounting and reconciled bank, you can extract Balance Sheet, Profit and Loss Account, and Cash Flow using any of the above software.
5. You can then analyze several ratios including Net Profit, Inventory Turnover, Current Ratio, Acid Test Ratio, Debt to Equity Ratio, etc. to determine the health of your business.
6. Once you know the health of your business, you may then strategize remedial actions to achieve the desired results and make your business stronger. Also, running the business will turn out to be fun, indeed.

Happy Accounting!

Corient helps, manages the accounting department of the business houses by providing Bookkeeping, Payroll and other services on a real-time basis on various softwares including Xero, SageOne, Quickbooks, FreeAgent, Kashflow, Xero Workpapers. Our accounting services help the businesses to take the right decision and ensure their growth through accurate and timely financial data.

If you need any free consultation on how you can increase revenue by adding service lines, please feel free to get in touch with us: info@corientbs.com

Visit us at : http://www.corientbs.co.uk

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Book Keeping- Way to Increase Revenue and Help Business Grow

The advent of internet and continuous market disruption (caused due to technological evolutions and alternative product lines) is compelling the business houses to look out for help. Never before in history have businesses required so much external help as today.

The accounting industry is on the cusp of making significant contribution to the economic growth through better management of Tax Compliances and by helping businesses proactively to become more financially strong and robust.

An accountant can help businesses in several ways, including the following:

• Review financials on more frequent basis and advise clients accordingly
• Advise opportunities to the clients that can increase revenue and reduce costs
• Introduce clients to other clients for healthy business tie-ups
• Suggest the ways to reduce work capital gap, cash flow problems, etc
• Restructure funding arrangements to reduce cost of finance and improve the credit ratings

The best ways to help clients improve their businesses is assisting them with financial analysis, monthly/quarterly bookkeeping, and recommending them the right course action.

With Xero, Quickbooks Online, Kashflow, Sage One, and FreeAgent bookkeeping can be done quite easily and quickly. Application of these Bookkeeping softwares will eliminate the possibilities of accounting errors as well as save huge amount of time at the end of financial year.

Proper bookkeeping will further increase revenue, reduce your cost of year-end preparation, and take your business to next level of success. It is quite a win-win game for all.

Corient offers accounting services to the businesses and manages their back office by providing Book Keeping, Payroll, Year End on a real time basis on various softwares including Xero, SageOne, Quickbooks, FreeAgent, Kashflow, Xero Workpapers, IRIS, Digita. Our cost-effective services help accountants to take on additional work and significantly increase revenue without hiring or training the team.

Please feel free to get in touch with us if you need any free consultation on how you can increase revenue by adding service lines.

If you need any free consultation on how you can increase revenue by adding service lines, please feel free to get in touch with us: info@corientbs.com

visit us at : http://www.corientbs.co.uk

Sharks Are Coming

Have you read following news?

1. PWC enter SME market with SAGE Live
2. Big 4 Re-enter the SME Market
3. KPMG to take on Google and disrupt SME market
4. Shrinking audit and KPMG SME offering means practice revolution
5. Deloitte propels into SME market with £2.5m accounting services investment

Why Big 4 Want to Enter the Market?

Combined ecosystems of connected applications to automate transactional services – from bookkeeping to raising finance and beyond – the opportunity is there to broaden and deepen the service offering to SME market and gain significant fees by nurturing fast moving businesses and leverage from huge amounts of core data

Why is the UK ready?

UK has more than 5 million firms and cloud disruption has already made significant inroads

Why Big 4 Can Win?

• Unlimited access to a dedicated qualified accountant.
• Best of breed software subscriptions, tied together with neat analytics, VAT, corporation tax, and payroll (with AE), company secretarial… all packaged up into a regular monthly subscription.
• Benchmarking, performance metrics and regular business reviews and the proposition is pretty much everything you need to look after a small growing business.
• Actual amount of face-to-face time most firms will have with clients, this represents an equally complete service with the underlying message of location is irrelevant. Service, contact and insight is everything

How can you leap forward?

However, small and medium size firms has significant advantages over Big4 if they make following changes to the business:

• Get More Involved: Accountants can get more involved in the business of their clients rather than just seeing them at the time of VAT return or filing personal tax return. Accountants can set up monthly/ quarterly meeting with their clients to review the business
• Move from Traditional Offerings to more Value Added Offerings: Accountants need to move from traditional services such as Year End Accounts to more real time work like Book Keeping, Funding, Data Analytics, etc
• Tax Planning to Business Growth: Accountants need not just do tax planning but help clients understand their business problems and provide consulting how they can help their clients grow by increasing revenue, decreasing costs or expanding the business
• Move to Cloud Accounting: Accountants need to move from Desktop based Accounting to Cloud Accounting like Sage, Xero, Freeagent, Kashflow, etc
• Retrain Team- Accounting Staff needs to be retrained not only to do accounting but also understand how businesses are run and how they can help clients grow

Corient helps Accounting Practices to manage their back office by providing Book Keeping, Payroll, Year End on a real time basis on various softwares including Xero, SageOne, Quickbooks, Freeagent, Kashflow, Xero Workpapers, IRIS, Digita. Our services help accountants to take on additional work and significantly increase revenue without hiring and training the team at extremely low costs

If you need any free consultation on how you can increase revenue by adding service lines, please feel free to get in touch with us: info@corientbs.com