Blog posts tagged in Consultancy
When it comes to financial information, many small businesses keep to the basic quarterly or annual statements from their accountants. Aside from dealing with the daily financial and cash flow issues, owners can make the mistake of neglecting valuable information—information that can be used to manage their businesses successfully now and optimise its health in the future. FRS102 - "The Financial Reporting Standard applicable to the UK and Republic of Ireland" fundamentally reforms financial reporting in the UK could further affect how you remeasure the assets and liabilities of your business..
To truly understand the current state of your business and to plan for the future, you need to understand your financial statements. Financial statements assist you to:
Ever heard the expression “time is money”? Well, it’s never more true than when it comes to making changes to your business.
A business charter defines your promises and outlines what customers can expect from you. For companies like the Ritz Carlton it has been a map to success. Here are some tips.
Make a guarantee: You want to outline the minimum level of service that customers can expect. And you want to make it sound good and honest. For example: we promise to replace all broken or damaged items without hassle.
The answer is both. Have you ever heard the expression "too many generals and not enough soldiers"? Well it works both ways. Too many soldiers without a strong general will surely find themselves fighting the wrong battles.
Experience has shown us that businesses with too many leaders fail from their inability to manage and implement day-to-day business issues. Likewise companies with excellent managers fail because they did not innovate, motivate change nor watch for strategic threats.
The Annual Investment Allowance (AIA) allows businesses to write off 100% of the cost of qualifying plant and equipment, up to the allowed maximum, against taxable profits. It can be claimed by an individual, partnership or company carrying on a trade, profession or vocation, a UK non-residential property business or a furnished holiday let. Only partnerships or trusts with a mixture of individuals and companies in the business structure are unable to claim the AIA.
Businesses can currently write off 100% of the cost of acquiring qualifying assets against their taxable profits, up to an annual limit of £500,000. The increase (from £250,000) came into effect from 1 April 2014 for companies and from 6 April 2014 for unincorporated businesses. From 31 December 2015 the limit will revert to its original amount of £25,000.
A recent survey revealed the following five responses:
- Solving problems, working on challenges. This includes the ability to be creative, undertake large and/or new projects, and solve problems for clients and others.
- The people I work with. Words such as "rapport," "camaraderie," and "interaction" came up, including working with clients and others.
- A sense of accomplishment. This included completing numerous tasks or projects, plus reaching goals with successful results.
- Variety. People enjoy different challenges and the sense of newness/excitement they bring.
- The work itself. This response referred to projects, the line of business and using computer technology.
As we continue into 2014, many businesses and their teams are taking a step back, looking at the business, considering how the market will develop over the next 12 months and creating plans to grow the firm and take advantage of changes in the business environment.
A typical approach to planning suggests multiplying last year's financial results by an acceptable growth factor. Industry standards vary, often from 5% to 25%. Add to that number any enhancements to your product or service lines plus solutions to key problems you've been meaning to address, and that will essentially give you an outline of a business plan.
Understanding that there are basically just four ways to create a better business can play a crucial part in your entire business planning process.
The four ways are:
The following business ratios are commonly referred to as profitability ratios. You can use them to monitor how well you business is performing.
Whether you choose to do your own financial statements or to have someone else do them for you, understanding these important ratios will help you manage your business more successfully.
Due to the turbulence of the current economy, businesses today are having to adapt to constant market shifts. The businesses that adapt best to this “new normal” will thrive as the market improves over the coming years.
Every market changes, but some change faster than others. For example, the iron ore industry moves much slower than the high tech or publishing industry. Established franchises can disappear if they fail to see, accept and respond to market changes. Microsoft were slow to respond to the rise of tablet computing, and cannot compete on price in the cloud sector of the market. Many magazines have been slow to respond to the web and the growing popularity of tablets such as the iPad. However it is interesting that most major IT and technology magazines went 100% digital well ahead of other titles.