According to the accounting membership organisation AAT, SMEs are probably losing out on £1,277 a year because finances are being dealt with by unqualified staff. This equates to a massive loss of around £2.9billion a year across the UK. AAT estimates that 35% of people who are responsible for finances in their SME don’t have a relevant qualification, with finance and accountancy tasks being shared between staff for whom it is not a primary responsibility. In fact, only 26% of small businesses have one or more dedicated staff members dealing with the accounts.

Here are our Top 7 effective budgeting tips for small business owners.

1 Hire an accountant

Well we would say that wouldn’t we! But even if you’re thinking of using our services, there are steps you should take to make sure it’ll be a good investment. A good accountant won’t just do your tax returns, they’ll also help your business grow, so you need to find someone you can really trust as they’ll need to know everything about your company. Ask around – talk to other small business owners to find out who they use and whether they’d recommend them.

2 Be timely with your tax return

If, like many small businesses and sole traders, you leave it until the tax deadline to give your records to your accountant, it could leave you in the position of having a last minute tax bill you can’t afford. If you sort out your tax return nice and early, you’ll know exactly how much you’ve got to pay when there’s still lots of time to get the money together… without incurring added fees or penalties.

3 Don’t waste your energy

Energy bills will be one of your company’s largest expenses, so are there ways you could save money by using less energy? Shop around the utilities companies to see if any could offer you a better deal. And get your staff involved in identifying ways of saving energy and encouraging them to switch off lights and equipment when it’s not in use.

4 Get appy

There are a lot of accounting programmes and apps to help make budgeting easier and less boring. Check out our blog on some of the most popular to see out which one might work best for you.

5 Bank charges

Review the service you’re getting from your bank, especially when it comes to bank charges. Find out what the other banks are charging as you might find you can get a better deal. If you are thinking of changing banks, take into account what your business might need in the future (e.g. a loan or insurance).

6 Keep on top of your budget

If you keep your records up-to-date and accurate, you can use your budget as a planning tool. By working out what your expenses are, you can get a much better idea of the revenue you’ll need to aim for.

Please be aware of the following changes effective as of 1 April 2016:

· National Living Wage increase to £7.20 per hour for those aged 25 and over.

Please be aware of the following changes effective as of 6 April 2016:

· Emergency tax code increase to 1100L (£11,000 Tax Free Allowance per Annum)

· Employment Allowance increase to £3,000 for eligible businesses. Businesses with a sole employee who is also a director are now not eligible for employment allowance.

· Apprentices under the age of 25 have a change in NI to category H, so employer’s no longer have to pay employer’s NI contributions on earnings up to the new Apprentice Upper Secondary Threshold (£43,000 per Annum)

The Borough of Broxbourne is extraordinarily well placed to become a lively and prosperous place for businesses to be.

Just outside the M25, it has all the advantages of being close to London without actually being in London. It’s already home to major companies such as Tesco, News UK, Merck Sharp & Dohme and VolkerWessels UK. Stansted and Luton Airports are easily accessible, it has good road and rail links and will offer easy access to the proposed Crossrail 2 route.

But most importantly, it is being supported by the government in the form of Ambition Broxbourne which was launched in 2014.

The Council’s vision for the area is that by 2030 the Borough of Broxbourne will “have a thriving, vibrant and prosperous economy that is underpinned by innovation, enterprise and entrepreneurship”. It is aiming for a knowledge-driven economy, where the educational institutions meet the current and future needs of business, and with a well-educated and skilled population willing and able to compete in the local and global economy.

Work is already underway on a £3.9m purpose-built Enterprise Centre to provide quality workspace for SMEs and start-ups. The Centre is due to open in Autumn 2016.

As part of the new initiative, a business and community support centre has been set up in Hoddesdon town centre under the name Give Your Town The Run Around. The centre is a café hub which offers works booths and meeting space with wifi, as well as a space to educate and engage the local community. It aims to raise event sponsorship locally, to bring awareness of what is great about the area and to give back to a selection of good causes centred around charity and fitness incentives. Give Your Town The Run Around also supports local ideas and is a building towards being a platform that encourages local creativity.

In addition, there are already numerous business networking groups established by and for small businesses in the area which are complemented by exhibitions and showcases.

Broxbourne is also a great place to live. Bordered by the Lea Valley Park and surrounded by ancient woodlands, it combines the best in small city living with the countryside on the doorstep.

HB Accountants has been established in Hoddesdon for more than 30 years. As an active part of the community we enjoy helping other businesses and organising local events. We’re passionate about the Broxbourne Borough and would love to talk to you about its advantages and attractions. So if you’re thinking about moving your business to the area, get in touch!

Small businesses can never be safe from the possibility of getting in to debt. Often, it’s not even the fault of the business owner – the late payment culture prevalent in the UK can tip a company over the edge. According to UK Debt Collection News, virtually 60% of small business invoices are paid late (and it won’t surprise any small business owners to know that the worst offenders are blue chip companies, high street retailers and supermarkets).

Whilst small business owners are perfectly justified in complaining about how unfair this is, without government intervention, there’s very little they can do to overturn this damaging practice. However, there are steps they can take to help tackle any debt before it gets out of control.

• Alternative funding: the bank isn’t your only source of funding. Since the recession, alternative ways of funding and dealing with small business debt have risen, such as crowdfunding, peer-to-peer loans and invoice financing. Invoice financing is where you hand over your company’s invoices to a third party who will process your invoices. Your business can then receive loans based on the expected invoice payments.
• Free up cash: increase your efforts to chase your debtors to try and get the money you’re owed in the first place. After that you could: sell off unused equipment – even if it’s broken or out-of-date, you may get scrap value for it; get rid of unnecessary expenses; rent out office space to other small businesses or sole traders.
• Look at your budget: create a new, realistic one based on your current financial situation. Once you know what your fixed costs are, you’ll know how much you can apportion to debt payment. There are many inexpensive accounting software packages designed to help you keep track of your budget, so if you don’t already use one, look at what the market has to offer.
• Prioritise debt payment: don’t just pay off the bare minimum each month or it’ll take too long to get back into the black. Check your interest rates and pay off the debts with the highest rates first.
• Communicate: talk to your creditors, explain your situation and ask if they can help with a realistic payment plan.
• Ask for help: contact a confidential helpline like Business Debtline which specialises in free debt advice for SMEs. They can advise you on many financial aspects, including whether you might be eligible for benefits to help you through the lean times.

If you’re looking for confidential financial advice from approachable specialists please get in touch with the HB Accountants team.

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.

There are two major property-related changes in the Budget statement which will affect “buy-to-let” investors in residential property (whether in the UK or oversea). Investors in commercial property are unaffected; as are investors in furnished holiday lettings.

The first change relates to “finance costs” such as mortgage interest, interest on loans to buy furnishings and fees incurred when taking out or repaying mortgages or loans. Starting from 6 April 2017 (and phased in over 4 years) tax relief for these costs will be restricted to the basic rate of income tax, this restriction applying to individuals only. Instead of deducting finance costs from rents to arrive at taxable profits, landlords will instead receive tax relief by deducting an amount equal to tax at the basic rate on the finance costs from the tax chargeable on the profits.

The second change relates to “wear and tear” allowance for furnished lettings. This applies to companies as well as to individual landlords. At present, the costs of replacing furniture and fittings are not tax-deductible. Instead, a notional deduction is given for tax purposes equal to 10% of rents. From April 2016 the 10% deduction will be abolished and instead tax relief will be given for the actual costs of replacements. This change does not affect tax relief for expenditure on routine repairs to the property, including furniture and fittings in it, which will continue to be tax-deductible in full.

It’s tempting to think that if a car is generally available to anyone who needs to drive it, it must be a pool car and therefore not taxable as a benefit in kind on anyone. Tempting but, sadly, not often true. To be exempt, the car must be one which is

– Actually used by more than one employee or director
– Not ordinarily used by on employee or director to the exclusion of all others
– Not normally kept overnight at or near the home of a director or employee (except where it’s kept overnight on premises occupied by the employer)
– Not used by anyone for private (including home-to-work) travel at all (except for private use which is “incidental” to business use, such as taking a car home overnight in readiness for a business trip starting very early the next day)

The rules are strict and are notoriously strictly applied. Be prepared to prove, if challenged, that they are met.

FRS 102 defines investment property as property (which can include land or only part of a building) held by the owner or by the lessee under a finance or an operating lease to earn rentals or for capital appreciation or both.

SSAP 19 required investments properties to be carried at open market value with no depreciation, whilst FRS 102 refers to fair value (with no depreciation); although this change in wording will not lead to many differences in practice.

Under FRS 102 where there is a mixed use property, the fair value of the proportion of the area let should be quantified and accounted for as an investment property. So this will be one property with an element of it being depreciated and held at cost (being property, plant and equipment) and another element being held at fair value and not depreciated (being investment property).

Gains or losses on investment properties will be recognised through the profit and loss account in future, rather than through the Statement of Recognised Gains and Losses. It will be necessary to keep track of these amounts as they will not be distributable reserves.