Business Process Outsourcing, Technology, Transformation - Management Team

Business Process Outsourcing, Technology, Transformation - Management Team

XERO is too good for small businesses, but not so good for growing ones

It’s no surprise many businesses rely on Xero to keep their books. It helps manage quotes and proposals, invoicing, accounts payable, accounts receivable and more, all from an intuitive interface. But if you need advanced functionality like inventory, fixed asset, budgeting, etc., as your business expands,  then you have to use  add-ons which add to the monthly cost. Hence, beyond a certain point you have to look at other options.

Pros:

It is cloud-based web software. It offers It’s also very clean and aesthetically dashboard. And indeed very easy to set up, with just a few clicks, you are ready to go. All in all a great product for small businesses.

Cons:

But it’s lacking inventory and budgeting, These are best handled with apps. That’s another add-on cost. Also, you have to keep your payroll separate. So it’s great for small businesses, but not so good for growing business.

What to do?

Try before you buy it, just take the advantage of free trial. And understand the features of Xero as per your requirements.  You might also want to check with your CPA or tax professional and test some of your more unusual company issues.

At certain point of time, if required outsource your accounting and bookkeeping requirements. Because, it would be cheaper option as compared to buying the add-on apps. Also, it allows you to get the customized service as per your company’s needs. Do send us an email atinfo@corientbs.com to know more about outsourcing benefits you can get.

Author: Sachin Lohade is a Chartered Accountant and works with Accounting Firms to improve practice and reduce costs. He can be reached out at sachin@corientbs.com or you can visithttp://www.corientbs.co.uk

12 Ways to Grow Your Business Without Spending Money

Today we’re sharing what we call “ideas to steal”. They are all real-life ideas from successful businesses — action steps you can pick up and run with right away, without having to research, test or otherwise delay implementing. And, you don’t need to spend money to do them.

1.     Bill faster. Your receivables can count for 40 – 50% of your actual assets. Don’t batch invoice: bill as soon as you can. Simplify your business. Weed out the unprofitable and the hard-to-sell.

2.     Get your business and your web site listed in relevant directories. To find directories, Google the name of your town plus directories url” (e.g. “cobourg directories url”).

3.     Learn to delegate. Figure out what you do that turns dollars. Then delegate the rest.

4.     Encourage employees to explore more efficient approaches to their tasks instead of relying on their standard way of doing things.

5.     Don’t forget suppliers. They might not be on your payroll, but they are more apt to do a few things for you at no charge because you really take care of them.

6.     Work faster. If you can condense three four-month jobs into three three-month jobs, you can do one more job in the year.

7.     Reward your team for meeting budgets and time lines. A 5% bonus is cheaper than a 20% increase in costs.

8.     Cut overhead by automating most of the non-producing items like accounting, customer care, voice mail, sales reporting, ordering and record keeping, better outsource it..a

9.     Offer to be a spokesperson on your specialty when your local media need an expert opinion. Send them a relevant press release every month.

10.    Highlight offers, features, promotions and news in your email footers, invoices and letter signatures.

11. Start social accounts with Twitter.com, Facebook.com and LinkedIn.com and post articles.

12.   Get your clients to refer you. Check out “Make A Referral Week” to learn more about how referrals can build business.

Top Tips for Improving Your Cash Flow

As a business owner, you need to be aware of ways to improve cash flow. Budgeting and collecting are not glamorous but they are both key to achieving and maintaining a successful business. 

1. Know the cash balance

It is extremely critical that you know exactly what your cash balance is at all times. Always monitor your cash flow and that way problems can be recognized earlier and corrected. This is a fundamental point.

2. Don't manage from the bank balance 

Remember that your bank balance and the cash balance are two different forms of cash; they are very rarely the same figure. Don't make the mistake of confusing them as attempting to manage your cash flow using your bank balance will result in errors and failure. 

3. Budget

If you don't have one, make one now. The budget is part of a business plan. You want to know exactly how much to spend on each large item you purchase and when you will have the cash to do it. 

4. Invoice your clients regularly

This is so obvious but still many businesses are so busy selling to new clients that they forget to invoice the clients they have already worked with. Put the task of invoicing your clients on your calendar and then stick to that schedule or invoice them as and when the job is finished.

5. Credit Control 

As important as it is to invoice the customer, it is equally important to collect the money as well. The longer your receivables are outstanding, the less likely you are to collect. Collecting promptly from your clients doesn’t qualify you as mean, just rigorous and diligent. A good rule of thumb is that you should always have a due date on the invoice and then send out a follow-up statement within 10 to 30 days from the due date. 

6. Accounts Payable

Just as you have customers, you are bound to be someone’s customer as well. Negotiate terms with your supplier’s to help delay the outflow of cash payments. Lots of suppliers have payment terms that allow you to delay the payment until end of the month or maybe even up to 60 days. Then hopefully you will receive payment from your customers prior to needing to pay for the products you purchased.

7. Cash Payment

Consider operating like a cash and carry type business instead of worrying about receivables. The best business plan is one where customers pay at the time of purchase so you don't have to worry about invoicing or collection procedures. Once you set up the payment system like this, your customers know what to expect, and administration costs of invoicing, following up and collecting are significantly lessened.

8. Discounts

Consider giving discounts for early payment by customers. When you send the invoice, give them the option to pay early and get a discount anywhere between two percent to five percent. The other option will be, when the customer pays within a certain number of days, they get two percent to five percent off their next invoice. Conversely, apply a penalty for late payment, or an ‘interest’ charge to encourage early payment.

9. Upfront payment

If you are working on expensive project or long term project, it might to a good idea to have some of the payment in advance. It not only helps you with cash flow but also helps to fund the upfront costs connected with the project. But you have to be careful with this approach as while some customers might be willing to go along and pay in advance, others might think that you will not be able to finish the project without their help. They might try to re-negotiate the price or worse leave you, and take their business somewhere else.

10. Savings for a rainy day 

Almost all businesses have ups and down in their business flow and hence the cash and managing cash effectively can be a challenge. Although it can be hard, putting away a little bit during the good times to help alleviate issues during the rough season is vital. As I do personally, take whatever you have left at the end of the month in the current account and transfer it into the saving accounts. You can always access it later if needed. - 

Source: net.workspace.co.uk

15 brilliant resources for UK SMEs and start ups that you have to try

Whether you are 15 or 50, if you have big ambitions for your SME or start up, the hub is here to help you get all the support you can.

From wild ideas sketched out on a napkin to realistic goals thought out in the boardroom, every SME or start up has great aspirations. The journey to reach those pivotal goals isn’t always easy, often we need a little help.

In our recovering economy, there is plenty of growing support on hand from associations, charities and government backed enterprises for SMEs and start ups, if you know where to look. From funding to business coaching, consultancy to knowledge exchange, there are many helping hands out there; you don’t have to go it alone.

We’ve picked out the essential resources that every aspirational business in the UK should explore:

1. UK Crowdfunding: Of course, cash is what every business needs but bank lending continues to be on a downward trajectory, despite the controversial Funding For Lending Scheme. If you have begged, borrowed or stolen from your friends and family, try something new. UK Crowdfunding is a good entry point to learn about how to get started with crowdfunding and what the best platforms are for your venture.
2. LetsLinkUK: LetsLinkUK offers community networks to link people who want to swap their skills and goods - no currency transaction required. Useful if you have capacity and an interesting alternative to investment.
3. Start Up Loans: A government-funded scheme to provide loans and mentors for entrepreneurs. The project is championed by Lord Young, who identified that if entrepreneurialism was as entrenched into the British mentality as it is in the United States we would have 900,000 more jobs in the UK. The scheme has lent more than £115 million since its conception and backs an average of 41 businesses per day. Interested? Your business must be less than 12 months old, or 24 months under special circumstances.
4. Nesta: Nesta is an innovation charity, dedicated to supporting ideas from early stage investment to in-depth research and practical programmes. Nesta has sponsored and mentored creative and inventive graduates in the UK. One such is Jane Ni Dhulcaointinght, whose business, Sugra, produces a pliable waterproof substance that can be used to customise, repair or reinvent everyday objects. Sugru is now used by more than 60,000 people in 100+ countries around the world and the company has since opened its own factory in London.
5. Local Enterprise Partnerships (LEPs): The go-to champions of small businesses in the UK. As well as providing training, networking and local promotion possibilities, a new campaign for £2 million to help micro-businesses and sole traders increase their online presence has been launched.
6. Virgin Start Up: What entrepreneur doesn’t want a bit of the Branson magic? Virgin StartUp is a not-for-profit organisation that helps entrepreneurs aged 18 and over in England with the small business funding, resources and advice they need to make their business a reality. Mentors and advice are provided at every stage, the website has heaps of useful information and live events are run throughout the UK. They have funded more than 100 businesses since launch in late 2013 to the tune of £600 million. Check out their toolkit; packed with useful advice for every stage of business.
7. Tech City UK Programmes: For digital businesses, there's a range of services designed to drive growth - from online courses to competitions and clusters. Some of Britain's most successful digital companies have already participated.

8. UKTI: Arrange a face-to-face meeting with an export adviser. On average, companies earn £100k in additional sales within 18 months of working with UKTI, and the advice given by trade experts is free.
9. Prime: For over 50s entrepreneurs. The Prince’s Initiative for Mature Enterprise (PRIME) is the only national organisation dedicated to providing everyone over 50, who is unemployed or under threat of redundancy, with the support to achieve financial, social and personal fulfilment through self-employment. With high-profile ambassadors such as Channel 4’s The Secret Millionaire’s Carl Hopkins and The Apprentice’s Nick Hewer, Prime has helped a huge range of businesses; from dog food to cake making companies, all helmed by talented over 50s.
10. The Prince’s Trust: The Prince's Trust supports 13 to 30 year-olds who are unemployed, and those struggling at school and at risk of exclusion. Many of the young people helped by The Trust are in or leaving care, facing issues such as homelessness or mental health problems, or they have been in trouble with the law. Now in its 38th year, the Trust has recently announced partnerships with M&S and will.i.am to offer extra support in the areas of digital skills and employability. Support provided by the Trust includes free training courses, brand new experiences, support, mentoring and finance opportunities.
11. UK Business Angels Association: Business Angels provide capital for businesses, usually in exchange for convertible debt or ownership equity.

12. GrowthAccelerator: GrowthAccelerator is now part of the Business Growth Service, a government-backed scheme offering support to businesses with the potential to improve and grow. It offers business planning, coaching and access to skills and funding for a small fee (between £600 and £3,000 depending on the size of your business) which is deductable from your VAT bill. It claims to help businesses grow 4 x faster.
13. Oxford University Entrepreneurs: One of the UK’s student entrepreneurial incubators that has inspired many other universities to follow suit. Oxford Entrepreneurs established the Oxford Entrepreneurs Incubation Centre in 2009 for student startups in a space provided by the institution. Successes include Plink – a mobile app that recognises well-known artworks – which was Google's first ever UK acquisition.
14. co.uk: A brilliant resource for any budding entrepreneur. Full of inspiring stories, links to businesses which can help you grow and a must-read news section covering most business sectors and services. Connect with them on social to get the latest updates.
15. Growth Vouchers: Your business could receive a voucher of up to £2,000 to help finance advice on how to market, attract and keep customers.

- See more at: http://thehub.tips/articles/grow/15-brilliant-resources-for-uk-smes-and-start-ups-that-you-have-to-try#sthash.jhitlPqr.dpuf

SMEs Love Cost Effective And Efficient Technology Solutions & Services

This indeed is the era of small and medium sized enterprises, which is popularly known as SMEs. SMEs of all types in UK are geared up to be a part of UK economy growth. For it to happen SMEs are considering cost effective aids that can empower them to become agile to compete with the larger players out there in the market.

Less cost. More Gain

The world is shrinking, as technology is helping SMEs to expand rapidly. Technology brings to table the comfort of everything at one place; you can monitor, analyse and make decisions independently. Each SMEs love technology that actually reduces there overhead and increases productivity. This in return helps them to move forward faster.

Limited Budget Unlimited Possibilities

All technology-driven processes – accounting, bookkeeping, payroll, HR help SMEs adopt paperless work environment. SMEs are also willing to adopt it, once they are convenience that it will actually help them stream-line work at lower costs compared to the existing process.  

No doubt everything boils down to the cost and budget. It is a not a rocket science, when it comes to choosing the right technology platform for your SME. All you need to do is analyse your requirement and set your budget.

Added Value Delivered

Let’s take the example of accounting. Employing a full time accountant can be taxing on the limited resources of any SME. For any small sized business any kind of recurring monthly cost can be a burden. At the same time, accounting is one crucial aspect of business which if ignored can land you in a lot of trouble later. One smart way of addressing the situation is to opt for outsourced bookkeeping services. These services offer qualified and reliable accountants on hire, who can help SMEs maintain their books of accounts as per regulations in a cost effective manner.

Flexible Partnership For Growth

Gone are the days when one had to lock into fixed, extensiveand lengthy contracts in order to avail smart solutions. These days there are many provider out there who can provide SMEs effective tailor made solutions without burning a hole in the pocket. SMEs want to break free from out dated commercial models and embrace innovative technology and services that are flexible, and come without a steep price tag.

We are turning a corner now and with the advent of crowd funding, business accelerators and a Great British entrepreneurial culture there is no better time to start a fast growth business than right now.

Author: Sachin Lohade is a Chartered Accountant and works with Accounting Firms to improve practice and reduce costs. He can be reached out at sachin@corientbs.com or you can visit www.corientbs.co.uk

5 tips for improving business efficiency

Many business owners and managers are so busy working on what their customers and clients need that they forget to take the time to work on their own business.

But being efficient is the first step in business success, so it’s worthwhile investing the time.

Five key areas to focus on that will make a difference include:

1. Getting organised

Decluttering and organising inboxes, filing systems and other paperwork is essential.

For every piece of correspondence received, whether physical or by email, there are four options:

• Bin it/delete it
• File it/archive it
• Give/forward to someone else
• Action it

It is important to retain a lot of financial information for tax and many other purposes. Having an adequate and systematic filing system will help.
Also, do some research or get advice on which information needs to be kept, and for how long.

2. Reduce debt

Review current debt and the different types and interest rates being charged.

With the level of competition among financial institutions, it is worthwhile comparing offerings to see if there is a better deal – it may be possible to refinance to pay less interest.

The usual rule of thumb is that high interest-bearing liabilities should be paid off first.

Also consider paying off non-tax-deductible debt as quickly as possible.

For those who can afford to do so, slightly increasing repayments and increasing the frequency (from fortnightly to weekly) can also decrease the life of the loan and overall interest paid.

3. Look after cash flow

The other side of the coin to debt is cash flow, often called the lifeblood of a business.

Any business that offers credit needs to actively manage this, including setting – and sticking to – terms of trade and following up on outstanding payments.

Business owners shouldn’t feel concerned or embarrassed about following up with slow-paying customers – if they’re not paying, they’re probably not worth keeping.

Experience has shown that slow-paying customers often become non-paying, and ultimately cost the business money.

4. Review expenditure

Insurance for both business and personal needs should be reviewed at least annually to ensure cover in the event of a claim is adequate.

Also review other expenditure – for instance, can a better deal be negotiated with the telecommunications provider?

Are there high bank account fees that could be eliminated? A change to a different plan or account may be all that is needed, rather than changing suppliers.

5. Business succession

While no one likes to think about it, illness or death can occur at any time. If contingency plans haven’t been made, this can leave business partners and employees, as well as family, in extremely difficult circumstances.

Business succession is often perceived as being too difficult to think about, but it is better to have some plans in place rather than nothing at all.

Everyone’s circumstances are different. It’s important to spend some time identifying requirements and issues so an action plan and time frame can be developed.

We thought to share with our readers this beautiful piece of advice

source: http://www.rebonline.com.au/blog/9071-five-tips-for-improving-business-efficiency

5 Interesting Facts About Accountancy

This post has been written by Ezekiel Ayonrinde – He currently works on behalf of Perrys Chartered Accountants in London.

Accountancy has long been made fun of. People like to think of accountants as dull, boring individuals obsessed with number crunching. What they might not know is that the profession has its roots in ancient history, that a number of famous celebrities started their life off as accountants, and that accountants have even invented products we use every day. Here, we’ll examine five interesting facts about accountancy:

1. Accountancy is one of the oldest professions in the world

Many people think of farming or law as some of the oldest professions in the world. What they might not know is that accountancy has its roots in prehistory. Strange but true.

The Smithsonian museum has an exhibit from South Africa’s Blombos Cave that is over 75,000 years old. The Blombos Ocher Plaque has markings on it that might have been used to record information. The organised pattern suggests it wasn’t for decorative purposes.

Move forward in time and you will see the first accounting system being used in ancient Mesopotamia. Farmers relied on accounting 7,000 years ago to record their crops and herds; using it to determine if they had a surplus at the end of season.

Bookkeeping on clay tokens was used in ancient Iran between 4000 and 3000 BC. These are the first example of graphical representations used in accountancy.

The Romans were fond of using accounting systems to help run their empire. The Emperor Augustus, for example, created the first government accounts in 23 BC (called a “rationarium”). It listed revenue earned from the empire, how much was in the treasury, in the hands of tax officials and contractors.

2. Many famous celebrities were accountants

Before they hit the big time, many famous celebrities started life off as accountants. These range from well-known authors to singers and film stars.

Mick Jagger was a high achieving student at Dartford Grammar School who went on to study to become an accountant at the London School of Economics. His band, The Rolling Stones, became big and he left university to pursue a career as the frontman of one of the world’s most successful bands. You know the rest.

John Grisham, the famous novelist, studied Accountancy at Mississippi State University. Janet Jackson and Kenny G are two musicians who studied accounting. Robert took accounting lessons but quit.

Actor and comedian Eddie Izzard studied Accountancy at Sheffield University.

In the world of business, J.P.Morgan started off his career as a junior accountant before founding the iconic investment bank. Arthur Blank, co-founder of the famous American DIY chain Home Depot, studied accounting at university before working as an accountant at Arthur Young. Phil Knight, co-founder of Nike, studied accounting at university.

3. St Matthew, the patron saint of accountants

Did you know that Accountancy has its own patron saint? St Matthew, also known as Matthew the Apostle, was one of Jesus’ first disciples and is the patron saint of accountants, tax collectors, bankers and perfumers. He worked as a tax collector for King Herod before joining Jesus’ cause and is most famous for authoring the Gospel of Matthew. His saint day is the 21st September.

6. Athletes have even been accountants

Accountants have even doubled as athletes. One of Australia earliest Olympic heroes, Edwin Flack, won gold in the 800 and 1500m runs at the 1896 Olympic Games in Athens. He also won bronze in the mixed doubles tennis event.

Edwin Flack was an accountant when he achieved Olympic success. He worked at his family’s firm in Australia in 1898 and joined Price, Waterhouse & Co (now PricewaterhouseCoopers) when he was 21.

5. And finally… an accountant invented bubble gum

Accountants are not normally known as inventors, but did you know that one invented bubble gum?

Walter Diemer was working as an accountant for Fleer, a confectionary company, when he came up with developed the recipe for bubble gum in 1928. His product, Dubble Bubble, became a success and sold millions in the first year. New flavours were added gradually and products like gumballs were developed by the company.

Importance of Cloud for SME's to achieve growth

Of all the developments in information communication technology (ICT) over the past decade, cloud computing has been one of the key gamechangers, offering far-reaching benefits for businesses.
A recent report by IDC says that SME cloud spending will grow by nearly 20 per cent the next five years.

The research findings showed that
33 per cent of SMEs are using the cloud for email
33 per cent are also using it for storage and back-up.
Other cloud applications being used include
accounting and billing - 15 per cent,
HR - 14 per cent
CRM -14 per cent By delivering cost-effective, on-demand computing opportunities, the cloud is dissolving the advantages long held by larger enterprises.

By observing the above figures, you would have by now know the importance Cloud computing is gaining among the SMEs.

The benefits it drives are as follows:
• SMEs gain the ability to grow faster and employ more people.
• It offers SMEs in the UK the opportunity to compete with big organizations.
• SMEs can even take head on with competitors internationally like never before.
• It puts employees in control resulting in increased motivation and in-turn, greater productivity.
• Simplifying accounting for businesses and harmonizing workflows and policies to achieve lower costs and higher quality.

Cloud-computing is fast becoming the norm for thousands of businesses across the UK, enabling them to be more agile, flexible and ultimately more productive while at the same time reducing costs and their impact on the environment.
Perhaps it’s time that your business decided to embrace the cloud?
Call corient at (44) 24 76997742 and we will help you take full advantage of cloud computing through our customized offering accounting services for business.

Author: Sachin Lohade is a Chartered Accountant and works with Accounting Firms to improve practice and reduce costs. He can be reached out at sachin@corientbs.com or you can visit www.corientbs.co.uk

Data Management System for SME

Thousands of companies depend on the accurate recording, updating and tracking of their data on a minute-to-minute basis. SMEs use this data to complete accounting reports, calculate sales estimates and invoice customers. In some cases the vendors or workers access this data through a computerized database. In fact there are many proven methods to manage the various data elements. But before that you must have in front of you the set of challenges are you facing. 

Below are the questions a small business should consider asking before trying to solve the data management stumper.

·         What are you trying to accomplish?

·         Who is it for?

·         What do they need?

·         What do you need from them?

 Once you are clear about the above question you have two options to manage it:

      A.    Online Software

There are many softwares available online for small businesses designed to help them to run their operations better, cut costs and replace paper processes. The most popular software packages include accounts, office productivity, email and communications, but nowadays, most business activities can be improved through desktop or web-based applications.

But if you are not a tech-savvy person or if you do not have a trained staff to manage it, no worries, just go for the second option. 

     B.     Outsource it BPO

If internal data management isn’t economical, outsourcing it is an attractive alternative. You will benefit from technology-driven and professional DBMS services at a cost-effective price. We at Corient have helped many SMEs grow by the proper management and processing of raw data into useful information becomes a critical matter. Outsourcing your data management helps you grow faster, as it free-up your time to focus on core business. It also saves lots of time.

At the end, I would like to add one thing, just weigh all the pros and cons before going ahead with any of the above mentioned options.      

Author: Sachin Lohade is a Chartered Accountant and works with Accounting Firms to improve practice and reduce costs. He can be reached out at sachin@corientbs.com or you can visit www.corientbs.co.uk

Importance of Cash-Flow for Logistics Companies

Cash flow is of vital importance to the health of a business. One saying is: “revenue is vanity, cash flow is sanity, but cash is king”. What this means is that whilst it may look better to have large inflows of revenue from sales, the most important focus for a business is cash flow.

A difficult situation

This payment delay creates a dilemma for the logistics company. If they focus on growth and keep signing on new clients, they risk cash flow problems. On the other hand, if they refuse to sign on new clients, they limit their growth. Neither option is attractive.

Solving the cash flow problem

However, cash flow problems can often be solved by taking some simple steps. First, evaluate the cause of your specific cash flow problem. Knowing where the problem originates is critical to solving it.

Often, cash flow problems originate from a combination of things such as poor client selection, infrequent collections follow-ups, or inadequate financing.

The following three steps outline a process that improves cash flow in a way that supports growth.

 

1.Sign on customers who pay quickly

Many logistics companies are eager to grow and sign on new clients as quickly as possible. However, few spend the time necessary to determine if the shipper will, in fact, become a good-paying client. This crucial part of the pre-sales process shouldn’t be left to chance.

 

2. Improve collections

Many companies experience financial problems because they do not have a good collections system. Most business owners find collections work tedious and prefer to focus their efforts in sales and other areas. Ignoring collections is a mistake. Collections should be considered one of the most important company functions, second only to sales.

 

3. Given an incentive to pay early

One simple way to improve cash flow is to offer clients an early payment discount. Additionally, offering this incentive can help create goodwill with your client. Actual terms vary by industry, but it’s common to offer shippers a 2% discount in exchange for a payment within ten days.

Author: Sachin Lohade is a Chartered Accountant and works with Accounting Firms to improve practice and reduce costs. He can be reached out at sachin@corientbs.com or you can visit www.corientbs.co.uk