Category Archives: Accountancy & Accounts

Accountancy & Accounts, Accounts and Accountancy, Business Advice, Finance and Banking

7 Bookkeeping & Accounting Tips for Small Business in 2023

Small businesses also have bookkeeping and accounting requirements. How accurately you maintain your business’ finance records contribute to your brand value and keep you on the right side of the law.

While you can always hire bookkeeper services to take care of the numerical data and accurately track the profits and losses, there are some ways to do it on your own. This article shares seven bookkeeping and accounting tips that small businesses can use in 2023 to save money and time and correctly record books.

 

Record business and personal finances separately 

Small business owners often need to correct the mistake of mixing up their business and personal finances, which results in chaos. It is tempting to spend money when you are just getting started. We have seen people using a business credit card for personal expenses. These are terrible finance habits. In 2023, you must make it a habit to keep your personal and business finances separate. This will help you get a clear picture of expenses, save the bookkeeper’s hours, and minimise the risk of missing any claimable expenses.

 

Receipts vs. invoices

Small business owners often mistake invoices for receipts. There is a difference between the two, and you must know that. An invoice reminds customers that they have received your service or product and owe you money. Receipts, on the hard, are evidence that a transaction has taken place and the customer has made the payment.

If you mess up invoices and receipts, it will be a nightmare for accountants. It will create trouble balancing the books. This is why bookkeeper services advise keeping track of both.

 

Consider automating the workflow

Bookkeeping can be very time-consuming, and it can be a nightmare for small businesses. If you are not hiring bookkeeper services, then focus on automating the bookkeeping workflow in 2023. Today, cloud-based and AI-powered bookkeeping Software as Service applications are available that you can use to automate records.

 

Monitor the cash flow

Cash is significant for small businesses. To successfully manage a business, you must create a cash flow that keeps tabs on income and expenses. To keep an eye on your business’ payment cycles and seasonal costs, cash flow management is essential. When you monitor the cash flow, you can predict expenses and identify any early warning signs.

 

Keep track of important documents

Documents associated with payroll and inventory management are necessary for tax purposes. Bookkeeper services scan and save important business documents such as cancelled checks, bank statements, receipts, and bills. As a small business, you must make it a practice to create and save digital copies of important documents as password-protected files.

 

Hire a professional

You must hire a professional account or bookkeeper service if it’s too much for you. Professionals know what they are doing. Also, their skills and experience are unmatched, which is worth paying their fee. As a small business owner, you should hire bookkeeper services instead of struggling to balance the books. If you cannot manage it, you need to focus on growing the business and let the professionals take charge of bookkeeping requirements.

 

Keep in touch with the bookkeeper

Bookkeeping jargon can be difficult to understand. Instead of guesswork, you can rely on professional accounting services and bookkeeping services to fill you in on the latest financial industry technical jargon.

 

Conclusion 

In 2023, small businesses should focus on evolving their accounting and bookkeeping practices. Hiring professional bookkeeping services, automating workflow, and learning the best practices listed here will help.

 

Accountancy & Accounts, Awards, Bristol, Finance and Banking, News

University of Bristol Duo Awarded Quantum Advisory Prize for Excellence in Mathematics

Two Accounting and Finance graduates at the University of Bristol have secured the Quantum Advisory Prize for stand out achievements in their courses. Along with the notable accolade, Anna Wolstenholme and James (Jim) Robb will also split the prize to help further their careers in the fields of accounting and finance.

The Quantum Advisory Prize was established in 2018 at the University of Bristol and is awarded to the highest achieving accounting and finance students each year. Normally awarded by independent financial services consultancy Quantum Advisory at the end of each academic year, delays caused by the Covid pandemic mean James and Anna have now taken up roles within their chosen field and begun their careers.

 

Anna, from London, secured the Quantum Advisory Prize for the Best Overall Performance on the University of Bristol undergraduate accounting degrees at intermediate level. Enrolled on BSc Accounting and Finance, Anna was completing her second year when she received the prize and has recently graduated with first-class honours. She is now working within an audit team and completing her ACA exams. Anna said: “I feel very honoured to receive this prize which has provided the chance to explore career options in financial services which are very interesting.”

 

The Quantum Advisory Prize for Exceptional Degree Performance was won by Jim, from Cheltenham, who is currently completing his ACA exams while working as an insurance auditor. Jim graduated in 2021 with a first-class honours in BSc Accounting and Finance and was in his final year when he received the prize.

Jim said: “I feel incredibly grateful to receive an award to recognise my hard work and dedication during my time at Bristol. It marks a great achievement to be so highly regarded alongside my undergraduate degree.

“I hope to qualify as a chartered accountant in 2024 and explore my options into the various branches of corporate finance, with the long term aim to hopefully become a valuations specialist. Having the potential opportunity to link up with Quantum Advisory at some point in the future and explore potential career opportunities with them is very exciting.”

 

Partner at Quantum Advisory, Stuart Price, said: “While it was disappointing not to be able to hold a ceremony and meet Jim and Anna in person, it was a pleasure to once again to award the Quantum Prize and hear about all the inspiring work being done by the students at the University of Bristol.

“Jim and Anna are two exemplary individuals that stood out among their peers during their time at university. The work they put in, particularly throughout the disruption caused by the pandemic, has not gone unnoticed and I’ve no doubt their academic success will pave the way for a very prosperous career. We look forward to seeing their progression and will stay in touch and support them along the way.”

 

Mark Clatworthy, Professor of Accounting at University of Bristol Business School, said: “The aim of the Quantum Advisory Prize is to recognise high performing students’ achievements and this year was no exception in terms of the calibre of work we had to consider. We at the University of Bristol Business School are very proud of our students’ success and we are extremely grateful to Quantum Advisory for their generous sponsorship of these prizes.”

 

Quantum Advisory has offices in Cardiff, Amersham, Birmingham and London and provides pension and employee benefits services to employers, scheme trustees and members.

For more information about Quantum Advisory, please visit: https://quantumadvisory.co.uk.

 

 

Accountancy & Accounts, News, Tax

How to Give Your Staff a Tax-Free Christmas Bonus

December is often a time when businesses look to give back to their employees and celebrate the company’s success over the last year. The most common way to do so is through a Christmas bonus, usually in the form of some extra cash, but this is not always the best way to get the most from your money.

Cash bonuses paid by businesses are subject to Income Tax, which means that anyone who receives a bonus will not benefit from the full value of your Christmas gift. If you give goods with a cash value, these will also be subject to a tax liability that will reduce their value in most cases. These factors can make it difficult to decide how much to offer as a bonus, and may lead you to ask whether you can give a Christmas bonus without incurring this tax liability.

Thankfully, there is a way. By using the trivial benefits exemption to offer staff (including company directors) bonuses in the form of gift vouchers, you can avoid any tax liability for the business and for the recipient and let your staff enjoy the full value of a well-earned Christmas bonus.

Here, the expert chartered accountants at Sherlock & Co will explain how the trivial benefits exemption works, the restrictions that apply, and what businesses need to do in order to take advantage of this exemption in time for Christmas.

How can I make sure gift vouchers qualify as tax-free bonuses?

Gift vouchers are among a number of possible items that may be considered “trivial benefits” under tax law. Unlike cash bonuses or goods, trivial benefits are not subject to Income Tax, although there are some conditions that you must meet when giving vouchers to ensure that they qualify as trivial benefits.

If the gift vouchers meet all of the following restrictions, it will be considered a trivial benefit:

– Each voucher must cost a maximum of £50
– The voucher must not be a cash voucher or be exchangeable for cash
– The recipient must not be entitled to the voucher through the terms of their contract
– The voucher cannot be given as a reward or performance incentive
– The voucher cannot be provided as part of a salary sacrifice arrangement

Not only are vouchers that meet these conditions free from any Income Tax liability, but their cost is a tax-deductible expense for the business. It does not matter where you buy the voucher from, so you are free to pick something your staff will like. You might choose a popular high-street shop, an online outlet, or a voucher that they can spend in multiple places to allow them to choose for themselves.

Are there limits to how many vouchers I can give?

There are no limits on how many vouchers you can give, but there are some limitations on how many staff members and directors can receive. For employees, there are very few restrictions and they can enjoy essentially unlimited trivial benefits each year (that meet the above conditions), but they cannot receive more than one per day.

For directors of companies with five or fewer shareholders, there is an annual limit of £300 per tax year on the trivial benefits they can receive. These businesses are referred to as “close” companies and this £300 limit extends to anyone who lives in the same household. Nevertheless, this means that directors can enjoy up to six £50 gift vouchers each year without incurring any additional tax liability.

For these reasons, vouchers that qualify for the trivial benefits exemption can be a good way to offer bonuses throughout the year. What is more, trivial benefits are discretionary, which means that you do not have to give them to every employee. You can give to one employee, a group, or your entire staff – just remember, you cannot give them in recognition of hard work without incurring a tax liability and this may be more difficult to prove if you give them to only a few select recipients.

With all of this in mind, we hope that you take advantage of the trivial benefits exemption and give a generous, tax-free Christmas bonus to your staff this year.

Accountancy & Accounts, Appointments, Finance and Banking, Newport, News

New Associate to drive growth at Kilsby Williams

Newport-based Kilsby Williams has appointed a new Tax Associate as it continues to consolidate its position as one of the country’s leading independent accountancy firms and business advisors.

 

Rob Meredith joins the firm from PKF Francis Clark in Bristol. He grew up in South Wales and trained as a Chartered Tax Advisor in Cardiff before spending 12 years with Big Four and Top 12 accountancy firms in London. He is a corporate tax specialist and will be providing tax technical and general business advice to the firm’s diverse range of clients. His appointment is the sixth into the firm’s growing tax team in the past few months.

Rob, who previously played rugby for Cardiff RFC and international age grade rugby for Wales, said: “I was attracted to Kilsby Williams by the opportunity to work for one of South Wales’s biggest independent and most highly respected accountancy firms. I’m really excited to be joining the team at a time when our clients, associates and the wider community need our guidance and assistance more than ever.

“I have led tax compliance teams in the UK and overseas and I specialise in mitigating tax risks and maximising reliefs for my clients. I am also an experienced advisor on restructuring projects and property transactions. I am looking forward to bringing my wealth of experience to the firm, its clients and wider stakeholders, helping the firm to continue to be a trusted adviser to entrepreneurial businesses across South Wales.”

 

Simon Tee, Managing Partner at Kilsby Williams, said: “We are thrilled to be welcoming an Associate of Rob’s calibre to the team. The last few years have seen the company grow at an exciting rate and we are constantly on the look out for new talent, especially potential future leaders for the business.

“With Rob in our tax team, I’m sure that the business will continue to go from strength-to-strength.”

 

Established in 1991, Kilsby Williams works with clients from across South Wales, the Midlands and London, ranging from sole traders to companies in international quoted groups.

 

Accountancy & Accounts, Charity & CSR, Thought Leadership

How to Create an excellent annual financial report that brings accounts to life

Written by charity auditors, Sayer Vincent’s Fleur Holden and Vivien Ma 

At the Charity Accountants Conference in September Sayer Vincent’s Fleur Holden and Vivien Ma presented a session on how to create an excellent annual report.

The annual report is an opportunity for a charity to tell its story through its financial reporting and the narrative around it and, bringing accounts to life for those who are not financial experts is a vital part of producing a great report.

 

The session began with a look at what SORP says. The Charities SORP (FRS 102) document sets out how charities are expected to apply international accounting standards to their particular activities and transactions, and explains how charities should present and disclose their activities and funds within their accounts.

 

The purpose of the annual report is to be publicly accountable to stakeholders, to demonstrate stewardship and management of funds and to consider the information needs of primary users. These include funders, donors, financial supports, service users and other beneficiaries.

 

A recommended order for the annual report is set out within the SORP, and starts with the objectives and activities, and what has been achieved throughout the year.  This really focusses the reader on the impact the organisation is having, leaving some of the more compliance driven narrative such as on the structure, governance and management of the organisation towards the end of the report.

 

The session highlighted that the level of financial and technical detail needed varies depending on the audience. For example, the public, beneficiaries, funders/donors and staff need top line performance and a summary, whereas the Trustees, Management and Charity Commission will need much more of a technical/compliance focus. This should be reflected in how the financials and narrative are presented and some examples were given for the different audiences.

 

The session suggested there are eight key questions charity finance professionals should ask themselves before putting together the annual report, which will help them when thinking about what needs to be included and the story they are telling. These are:

 

  1. What is our annual report for? Is it just a compliance document, or is it used for fundraising, too?
  2. Who is our target audience? A pure compliance document may not be suitable if you plan to attract funders/donors and supporters to support your charity.
  3. What do we want our audience to do? Donate to us? Fund us? Do we want them to better understand the problem we are addressing and our achievements?
  4. What other publications do you produce? Annual accounts and report, impact report, or a combination?
  5. How will readers access the report? (Hard copy, web, mobile)
  6. How do we demonstrate outcomes and impact?
  7. Who do we involve? Some charities rely on the management team to write the annual report and the board checks and approves, and some charities involve the trustees throughout the process.
  8. What’s our timetable? If you produce designed annual report and accounts, you will need to build in additional time for your comms team to design the document. Involving them too early in the process could lead to time-consuming revision; too late and the approval and submission deadlines could be missed.

 

Finally, the session ended by highlighting that good narrative reporting answers five key questions:

  • What are the benefits we are providing to the public?
  • What do we do to achieve them?
  • What are we achieving?
  • How do we know what we are achieving?
  • What are we learning, and how can we improve?

 

The key is to give a balanced view – celebrate your achievements, but also reflect the lessons learned along the way.

Accountancy & Accounts, Finance and Banking, Newport, News

Tax specialist Kilsby Williams warns Autumn Statement is a mixed bag for companies’ R&D spending

Newport-based tax and accountancy specialists Kilsby Williams, believes that Chancellor Jeremy Hunt’s Autumn Statement is a mixed bag for organisations that benefit from the government’s Research and Development (R&D) tax relief schemes.

Kilsby Williams works closely with clients to help them claim R&D tax relief through the government schemes that are designed to incentivise innovation and research spending.

Lucy Lloyd, R&D Tax Specialist at Kilsby Williams said: “For many of our fast growth corporate clients there will be disappointment that the R&D SME scheme has become less generous, and the exclusion of overseas costs from claims has been confirmed.

“A reduction from 130% to 86% of relief, with a reduction in the credit for surrendering tax losses from 14.5% to 10% means the cash value of the relief will nearly halve from 33.35% to 18.6% for expenditure incurred after 1 April 2023. This is on top of the PAYE cap for the SME scheme introduced in 2021.

“Thankfully, the expansion of eligible expenditure to include, among others, data and cloud computing costs will remain. The compliance changes recently announced, including the requirement to notify HMRC in advance of the intention to make a claim within six months of the year end, have also been retained.”

However, for large companies, things are more optimistic with the expansion of the Research and Development Expenditure Credit Scheme (RDEC).

Lucy said: “The generosity of the RDEC scheme for large companies (or SMEs undertaking subsidised R&D activity) has increased from 13% to 20%, resulting in a change in cash value from 10.5% to 15%. There are rumours afoot that the two schemes will merge into one RDEC type scheme in the future, so we watch with interest for future developments in this area.

“There are unquestionably difficulties in the market with the SME scheme being exploited by fraudulent activity (in some, well publicised cases touched on in the Chancellor’s statement), but it’s hard to see how a blunt change in the rates will prevent this occurring. Arguably the reduced generosity will encourage those who partake in this activity to be more aggressive.”

Established in 1991, Kilsby Williams works with clients from across South Wales, the Midlands and London, ranging from sole traders to companies in international quoted groups.

Accountancy & Accounts, Cost of Living Crisis, Finance and Banking, News

It’s not good enough: 79% of SMEs believe the current energy support package isn’t sufficient

  • Tackling inflation is the main issue SMEs want to see addressed in autumn statement, followed by targeted energy support (55%)
  • 57% report borrowing to manage cash flow has been more difficult in the last quarter compared to last year
  • Almost half (47%) say that supplier credit is harder to access

Following continued political turmoil, a perfect storm of uncertainty has been created for small businesses, leaving many in the dark on government support. The latest edition of the ACCA UK (the Association of Chartered Certified Accountants) and The Corporate Finance Network (The CFN) SME Tracker contextualises this ongoing uncertainty and reveals the top issues SMEs want to see incorporated in the government’s new autumn statement on November 17th.

The survey, which polls accountancy professionals on the financial outlook of their SME clients, unsurprisingly found the top issue SMEs want addressed in the new autumn statement are measures to tackle inflation (71%). Encouragingly, Mr Sunak addressed this problem in his first Prime Minister’s speech.

Over half of SMEs (55%) are also calling for targeted energy support for both organisations and individuals, which is yet to be properly detailed. Despite the PM acknowledging that ‘difficult decisions’ need to be made, the impact of these decisions remains unclear. Greater clarity on these decisions is needed, particularly when it comes to energy costs. Based on responses, a staggering 79% of SMEs believe the current energy support package for businesses is insufficient. A further 97% of businesses feel that the support did not account for specific energy intensive sectors, with a number citing cutting back on trading hours to address rising energy costs.

Against the backdrop of high inflation, firms are struggling to secure working capital due to a number of factors including a rise in interest rates, with 57% reporting borrowing to manage cash flow has been more difficult in the last quarter than over the previous 12 months. Almost half (47%) say that supplier credit is harder to access, while over a quarter (27%) report accessing support from HMRC’s Time to Pay scheme is more difficult.

ACCA UK and The CFN warn that as political uncertainty continues, more detailed and targeted support from the new government will be needed to help firms weather the storm.

 

Lloyd Powell, Head of ACCA Cymru/Wales, warns: “In the face of so much turmoil, it can be tempting to take a ‘wait and see’ approach. However, it’s more urgent than ever for the new government to address the issues, such as providing certainty on energy support schemes from April, tackling inflation and improving access to finance for SMEs. With no end to volatility in sight, business owners and accountants need to work even closer together to forecast effectively without a clear plan set by the government at this current time.”

 

Kirsty McGregor, founder of The Corporate Finance Network, said: “This is a worrying time for all SMEs, as profits will inevitably take a dip with a softening in consumer spending. Only resilient businesses with strong working capital and cash reserves will survive, and following the pandemic, cash resources are already stretched. The lending markets are understandably taking a more risk-averse approach to companies with weaker balance sheets, so business owners should take action early and work with advisers who can assist them to strengthen their cash flow situation to ride out this storm.”

 

Accountancy & Accounts, Appointments, Finance and Banking, Newport, News, Tax

Tax team strengthened by new appointments

Newport-based tax and accountancy specialists Kilsby Williams has appointed five new members to its tax team.

The series of appointments, ranging from graduate to managerial roles, sees the tax team grow to its highest number ever.

Cardiff University graduates Colin Evans and Robert Harris join the team as Tax Assistants. The pair will be assisting with the preparation of personal and corporation tax returns, company secretarial matters and other administrative tasks, alongside structured training.

 

Robert said: “Joining Kilsby Williams, I was immediately amazed by how good the firm is to its employees. I think that anyone would be happy to join such a nice team.”

Joseph Charlton, a qualified chartered accountant, joins Kilsby Williams as a Tax Senior. In his new role, Joseph will work alongside tax managers to assist in matters of tax planning and compliance.

 

Joseph said: “I am excited to have been given the opportunity to work for such a highly regarded firm within south Wales, especially one that offers the opportunity to progress professionally whilst also supporting me in further training and development.”

 

Jamie Cannings and David Pescod have been appointed as Tax Managers.

Jamie, who previously worked in the tax department of a Chartered Accountants firm in south Wales, will be responsible for managing a portfolio of individual, partnership and trust tax clients. ACCA qualified David joins from an accountancy practice in Morpeth, Northumberland and will manage a portfolio of corporate, personal, trust and estate clients.

 

Jamie said: “I am looking forward to getting to know my clients and expanding my knowledge and understanding of more technical tax planning. Kilsby Williams provides the perfect opportunity for me to develop in this area, especially with its client base and focus on advisory work.”

 

Mary McDonagh, Partner at Kilsby Williams, said: “We are delighted to welcome Colin, David, Jamie, Joseph and Robert to our largest ever tax team. These new appointments will strengthen our team and comprehensive tax services, providing our clients with even more support with compliance and tax planning opportunities.”

 

Established in 1991, Kilsby Williams works with clients from across south Wales, the Midlands and London, ranging from sole traders to companies in international quoted groups.

Accountancy & Accounts, Carmarthenshire, News, Pembrokeshire, Swansea, Wales News

Welsh Accountants Bevan Buckland LLP Ranked Top 30 in UK

Wales-based accountancy and financial planning specialists, Bevan Buckland LLP, has been ranked a top 30 mid-tier accountancy practice in the UK by industry bible Accountancy Age.

The firm, which has its headquarters in Swansea, in the only independent accounting practice in Wales to make the  Mid-Tier Power Index list, which spotlights excellence in the industry across the UK. The ranking judges mid-tier firms in the UK based upon their strategic planning, profitability/growth, professional excellence, people & community.

Alison Vickers, Managing Partner at Bevan Buckland LLP, said: “We are very pleased to be ranked highly on the Mid-Tier Power Index, which is recognised by our industry peers and by clients as a mark of quality. It is a great achievement since we are the only independent Welsh firm on the list. The Bevan Buckland ethos has always been one of continual growth and improvement and of strategic investment and planning, so we are delighted these attributes have been recognised by the judges. We have a number of initiatives in place designed to nurture and develop our team members to thrive and to enhance their skills and expertise, including our very popular skills academy, and I feel this is one of our great strengths, which is benefitting not only the company but the wider economy here in Wales.”

This latest accolade follows on from Bevan Buckland LLP, being named one of the top 100 accountancy businesses in the UK in the Accountancy Age Top 50 + 50 List.

The practice, which is more than 120 years old, is going through a period of expansion and it now has five offices: in Swansea, Carmarthen, Pembroke Dock, Haverfordwest and Cowbridge.

Bevan Buckland LLP is the largest independent accountancy firm in Wales providing practical support and strategic accounting, tax and financial planning advice for small to medium-sized businesses.

For more information go to: www.bevanbuckland.co.uk

Photo – left to right – Harri Lloyd Davies, Michael Jones, Llinos Williams, Andrew Muxworthy, Matthew Denney

Accountancy & Accounts, Apprenticeships, News

HURST to welcome school leavers on to its trainee accountant programme

Accounting and business advisory firm HURST is offering school leavers the chance to join its trainee accountant scheme for the first time in its 40-year history.

HURST is opening the programme to applicants with three A-levels or equivalent.

The firm is also offering places to graduates with lower second-class honours degrees for the first time. Until now, there has been a requirement for trainees to have at least an upper second-class honours degree.

Another change sees HURST open its programme to those seeking qualifications from the Association of Chartered Certified Accountants (ACCA) rather than solely from the Institute of Chartered Accountants in England and Wales (ICAEW).

HURST partner and director of practice development Simon Brownbill said: “We have seen placement and work experience students make a fantastic impression with us over the years, demonstrating that there are quality people out there without university degrees who would be great additions to our team.

“Our rapid growth means we need more applicants, and we also want to improve diversity and reduce barriers to entry. As we look to build our business at an even faster rate while continuing to develop our own talent, the time is right to offer careers to school leavers.

“We welcome applications from a range of backgrounds, and will be using the same recruitment process for school leavers as we have in place for graduates. The standard to get a place at HURST will remain the same. The process is under way, as we are seeking trainees for our 2022/23 intake.”

School leavers joining HURST will receive paid leave for study and examinations, leading to the same qualifications they would get had they graduated from university.

Each newcomer will be assigned a mentor and will have a tailored career plan, which will see them working with partners and managers on a range of assignments with clients, and including possible secondments overseas.

Meanwhile, HURST has also launched a development programme for accountants seeking to progress through the ranks all the way to manager and partner level.

Simon added: “Our retention levels have been phenomenal, and this has been down to a focus on working with the very best clients, a supportive culture, and providing career development. As the firm grows, we want to give more people these opportunities.”