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

Your Financial Goals for 2017

UK is a great place to start a business (even though the survival rates are low). More than 50% businesses don’t survive beyond five years. According to the statistics published in 2016 by the Small Business Administration (SBA), 80% SMEs survive for more than a year; whereas another 50% survive at least five years and only 33% survive ten years or more.

Why so many SMEs fail?

Here are the top reasons responsible for the failure of SME’s-
1. Lack of vision when starting new business
2. Poor Management of Finances and employee management
3. They simply run out of cash.
4. Wrong choice of location for business operations
5. No proper marketing/business planning
6. Expanding business in non-core areas

As mentioned in point number 5, most of the businesses do not have a business plan or financial goal. One must remember that a business plan is a road map to his/her business’s future. Without a plan, a business is essentially rudderless and day-to-day activities are likely to be hampered. The key to success of a business is efficient planning.

Most of the entrepreneurs are not realistic and don’t have sufficient knowledge about the efficient execution of plans. This eventually results in failure of their business.

Points to be considered when setting your business goal for 2017
1. Write down all the goals – Quarterly, Six Months, Yearly.
2. Determine your objectives- Where do you stand and what you want to achieve.
3. Why is it important for you to achieve the goal?
4. At what rate your industry will be growing.
5. What are the headwinds and tailwinds for your business- Factors that will have the positive and negative impact on your business which are out of your control?

Once you have considered above factors, you can start preparing your financial goal for the year by following below mentioned steps:

1. Sales Forecast- Make month to month forecast. To achieve your goal, you need to consider various factors like number of leads generated in the previous year, sales generation report monthly, quarterly, and annually.

2. Direct Costs and Overheads- Direct Costs include raw material, purchasing, labour costs, etc while overheads include rent, electricity, sales and marketing, telephone costs. Direct Costs can be the percentage of sales, while overheads will remain static over a period.

3. Based on the above figures you can arrive at profit/loss projection report.

Monitor your business plan now!

Most of the successful businesses, review their business plan with actual performance on monthly basis. To ensure the success of your business you need to review all the parameters and identify the gaps for better output.
We have attached a business plan template here for your help. You are just a click way to setting efficient goals for your business.

Remember, a beautiful saying by ZigZiglar ‘A goal properly set is halfway reached.’ So be considerate when planning your business goals.

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 accountant 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.co.in