If you have a growing business, you may well have taken on a bookkeeper to help you do the accounts. But grow the business a bit further and you will need to supplement the bookkeeping role with the services of an accountant.

The problem is that there is an in-between time when you need a management accountant, but cannot afford to employ someone on a full-time basis. This is when you need the services of a virtual financial director – a qualified accountant who will spend as much time and energy on your business as you need, but who will work only for the amount of time you need them.

Your virtual financial director is integral to your company’s growth

Even though they’re not directly employed by you, your virtual FD will have your business’s interests at heart. They will work on your behalf as though they are a valuable and trusted member of staff – it’s their job to help you increase sales and improve turnover and profitability, but they will also have an objective overview of the business, helping you to spot trends and new opportunities you may not previously have been aware of.

They will give you financial guidance and strategic advice, prepare your management accounts and forecasts, and attend meetings on your behalf wherever necessary, but without the expense of having to employ a full-time FD.

The additional benefit of a virtual financial director above is that they will help you with strategic planning to help you achieve your goals in the short- and long-term. You can also use them as a sounding board to discuss ideas to make sure you’re going in the right direction.

Having a virtual FD on board will also improve your credibility and raise the confidence of stakeholders and financial institutions. If there are any regulatory changes you need to be aware of, they will update you.  

Where to find a virtual FD

You’re most likely to source your virtual FD from your current accountancy firm – if you factored your business growth into the equation when choosing your accountant, you will hopefully have someone who can seamlessly take over because you’ve already got a good working relationship with the company.

Otherwise, look for a reputable accountancy firm that offers management accounting, advice and consultancy services.

If you run a charity, you’ll know that when it comes to doing the accounts, there are more complications than a ‘for profit’ business. Charity Accountants do understand these complications and the most effective ways to address these without any interruption to your operation. 

The accounting requirements for charities are onerous and apply to even the smallest charity. Visit the Charity Commission for England and Wales’ website for the rules around reporting, accounting and audits depending on the size and type of charity.

When it comes to finances, there is a basic requirement to submit accounts and returns to the Charity Commission, as well as a trustees’ annual report, a set of accounts and an annual tax return. The accounting process needed also depends on the type of charity, whether it’s a Trust, a Charity Incorporated Organisation (CIO) or a charitable company limited by guarantee.

Charity Accounting Specialists

Keith Grover, Director at HB Accountants, specialises in accounting for charities and understands the complexities and challenges this involves.

“All charities need proper disclosure in all areas, but, in the case of the smallest ones, their expertise tends to be limited. The rules are not easy to get your head around and lots of the smallest charities muddle along simply hoping that they get it right. When a charity’s income rises above £25k, the statutory requirements it has to follow in terms of accounting are huge. The main problem is that every charity, even the smallest, has to have a Trustees Report as part of its financial statement, yet the report is a very wordy document with prescribed formats. This is usually when charities turn to us for our specialist accounting services.”

If you would like certainty about financial reporting requirements as set out in charity law, as well as help with accounting systems and procedures, VAT management and operational advice, contact us to make an appointment to talk to one of our charity and not-for-profit accounting specialists.

As you drive across the border into the county of Hertfordshire, you’re greeted by a road sign which says “Hertfordshire. County of Opportunity”.

When Hertfordshire County Council (HCC) published its Corporate Plan for 2013-17, they explained why they came up with this slogan: “We want Hertfordshire to remain a county where people have the opportunity to live healthy, fulfilling lives in thriving, prosperous communities”.

In terms of prosperity, HCC stated it was working towards a “business-friendly environment where initiative is encouraged and celebrated” in order to create a strong, resilient and successful economy.

But the Corporate Plan went further than just making Hertfordshire a great place to do business, it also encompassed the community as a whole. The plan focused on giving residents the opportunity to maximise their potential by supporting those in difficulties, giving them a clean and green environment to live in, and tackling the overall health and wellbeing of everyone living in the county.

The current situation

According to the Council’s latest Annual Report, HCC is doing very well. According to its latest survey, 74% of residents were satisfied or very satisfied with the way HCC runs things and the Council has been shortlisted by the Local Government Chronicle for the “Best Council of the last 20 Years” Award.

To increase the opportunities available to businesses, HCC is currently working to improve transport links which will have a direct effect on local businesses. It has given the go-ahead to the Croxley Rail Link that will bring the London Underground system into Watford, making commuting more attractive at the same time as taking the strain off road links.

HCC is an active member of the London Stansted Cambridge Consortium (LSCC) which aims to promote the economic potential of the London to Cambridge corridor. The Consortium’s Growth Commission described the corridor as sharing “a set of advanced industries characterised by rapid growth and high productivity, supported by a global centre for business and financial services. Productivity is 16 per cent higher than the national average, and growing”. HCC is supporting the LSCC’s economic vision for 2036 with ambitious targets to create 400,000 new jobs – half of which will be tech, life sciences and knowledge-based – as well as growth in productivity and the creation of 10 new companies each worth in excess of £1bn. Business growth will be backed up by an education and skills system that provides a skilled, qualified workforce, as well as high quality housing and diverse and vibrant communities.

HCC is also a member of the West Anglia Taskforce which is recommending that the Government brings forward the four tracking of the West Anglia Mainline to Broxbourne as part of a strategy to bring Crossrail 2 into Hertfordshire.

If you would like to explore the opportunities offered for your business, we offer full accountancy services for companies of all sizes. Contact us to find out more or to make an appointment.

With effect from 1 April 2017:

The National Living Wage for those aged 25 and over will increase from £7.20 to £7.50 per hour.

The National Minimum Wage will also increase as follows:

Apprentices aged 16-18 or over 18 in their first year:             from £3.40 to £3.50 per hour

16-17 year olds:                                                                               from £4.00 to £4.05 per hour

18-20 year olds:                                                                              from £5.55 to £5.60 per hour

21-24 year olds:                                                                              from £6.95 to £7.05 per hour

With effect from 6 April 2017 a new Apprenticeship Levy is being introduced.  This will be charged at 0.5% of the employer’s total pay bill but there will be an offset of £15,000 so only employers with an annual pay bill in excess of £3 million will need to pay anything.  There are the usual rules for connected companies and the levy will be collected on a monthly basis through PAYE.  This will cause problems if bonuses are paid early in the tax year.  For example, if the total pay bill in month 1 is (say) £300,000 (because of bonus payments), a levy of £250 will be payable.  If the total pay bill for month 2 drops back to £200,000 or less, the £250 will be repaid in month 2!

Our previous update on this topic was on 30 August 2016 following the publication of consultation documents by HMRC.  There was a very significant response to these, most of which was unfavourable.

The House of Commons Treasury Committee has considered the HMRC proposals and published a report on 17 January 2017 which has identified a number of serious shortcomings with the HMRC proposals.

The Committee highlighted the additional costs and administrative burdens for very small businesses which they felt might either drive them out of business or into the “hidden economy”.  They also felt that the proposed changes were being introduced too quickly.  Both of these issues could adversely affect millions of taxpayers and their relationship with HMRC.

The original proposal was for all businesses with a turnover in excess of £10,000 per annum to be in MTD, with a requirement to make four quarterly reports every year and a final “sweep up” report after the end of the year.  The Committee considers that turnover threshold to be much too low and proposes instead the VAT threshold, which is currently £83,000 per annum.

The original timetable was for the changes to be introduced from April 2018, but the Committee suggests these should be delayed until April 2019, and possibly later.

The Committee also suggests that there should be proper pilot schemes evaluated before the proposals are implemented.  HMRC have apparently run some pilots on an invitational basis but the Committee has pointed out that the people who are most likely to be adversely affected are also those who are most likely to have declined any invitation to take part in the pilot!  The suggested pilot schemes will need to cover the full reporting cycle of four quarterly reports and the end of year update.

The provision of appropriate software is also an issue.  The Committee points out that there will need to be adequate free software available for smaller and less complex businesses, but the Government has yet to set out how this may be accomplished.

The Government will consider the Committee’s report and respond in due course.

HB Accountants are so pleased to be attending the FSB Hertfordshire Awards 2016 as finalists in categories Best Customer Service, Training & Development and Apprentice of the Year! As this is our first year of entering awards we are overwhelmed that we have been shortlisted amongst some fantastic businesses.

The team at HB Accountants work extremely hard in providing a high standard service and being nominated for the Best Customer Service award fills us with pride. As a training firm, our apprentices play a big role in the company. With 5 current apprentices at HB Accountants we are thrilled to have been shortlisted for both Training & Development and Apprentice of the Year.

We are looking forward to a fantastic night and wish all finalists the best of luck.

Date: Thursday 23^rd June 7pm
Venue: Manor of Groves Hotel, High Wych, Sawbridgeworth, Herts, CM21 0JU

HB Accountants are delighted to announce that we are holding an exclusive Ladies Networking Lunch at Hanbury Manor in Ware, Hertfordshire.

When: Thursday 21st April, 12pm
Where: Hanbury Manor, Ware
Cost: £25 per person, including 2 course lunch

Our unique format enables female business owners to meet, network and market their businesses in a relaxed yet professional atmosphere. Our lunches have always been a great success with around 30 ladies from a variety of business industries attending.

With no professional lock-out, the lunch will start at 12.30pm and you are invited to arrive any time from 12pm. Whilst the lunch finishes at 2pm, ladies are welcome to stay behind to continue networking for as long as they like.