Management information

Management information

Management information is essential to tell you how your business is performing.

Every business wants to grow, to improve profitability, reduce risk, increase cashflow etc. but none of it can be done very well without the right management information at the right time.

Good bookkeeping is the basis of useful management information and the bookkeeping software available today makes it very easy to stay on top of all things financial. Download our free Bookkeeping EBook here.

But the two most important aspects of management information are:

  • make sure you understand it (accounting can be opaque!)
  • make sure you use it to make a difference

We think that management information is vital for businesses and we work with our clients to make sure they have the right information, in a user-friendly format, whenever they need it.

Using efficient workflow methods, saves you time to think about the big stuff and use management information to the full.

Read all about it:

Cashflow

There are two types of business – those that need to concentrate on cashflow and …….. all the rest.

They say “cash is king” and that’s so true. Even if you are making profits yo can still run short of cash and a business that’s short of cash is in trouble.

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Basics of VAT – an ICAEW publication

The Institute of Chartered Accountants in England & Wales (ICAEW) runs a Business Advice Service (BAS) which we are members of.

As part of the BAS commitment to UK business, we offer a free introductory meeting to any nearby company  i.e. within 10km of the SW6 or TW9 post codes.

If you would like to meet up to discuss your business then please give me a call on either number at the top of the page.

In the meantime, if you are just starting out or getting to a point where you might want or need to register for VAT, you might find this PDF document, Basics of VAT , a useful read. We can help you register, consider the flat-rate scheme, which is helpful for some small businesses and also look at whether being on cash accounting would be useful.

 

VAT should be easy

VAT is easy to deal with most of the time for most VAT registered businesses. However, you need to make sure you have complete, accurate and up to date bookkeeping and also remember to ask for advice if a new, different transaction comes along as the rules can throw up some very odd outcomes from time to time!

The HMRC VAT helpline 0300 200 3700 is very helpful as is their website.

Tip: your business is acting as a tax collector for HMRC so consider having a second bank account into which you can regularly set aside money for VAT, PAYE etc so that the money is available when the time comes to pay it to the taxman.

As well as VAT, we offer a wide range of practical financial and accounting services for owner-managed businesses and I hope we can help you soon – don’t forget the BAS free introductory meeting!

If you’d like to find out more on how we help businesses with VAT and HMRC, visit our VAT Services page.

 
 
Michael
@diaryofanomb

 

Where do the jobs go in the digital economy?

Digital disruption : Digital opportunity

We have a report we produce every quarter that tells us useful information about the previous twelve months. We’ve been producing the report each quarter for the last five or six years and every time we run it we learn important lessons about our business and we make changes for the better.

Here’s the story of the report.

Let’s start at the very beginning

The source data we need is very easy to obtain, there are two downloads into Excel we run from our bookkeeping program. Once we have the data, we paste it into an Excel workbook and then have to perform hundreds of “copy and paste” repetitions to get the data in to a format that produces the information we need.

Over the years the source data hasn’t changed but the process has.

To begin with we had to write the spreadsheet so it would crunch the copied & pasted data correctly and give us the information we wanted and then we added one page that summarised this information for easy use. We review the summary page and drill down to the detail when we want to know more about an area of interest.

Having figured out how the spreadsheet should work it then took someone almost a week to crunch the numbers and give us the information we were after.

It was worth it – the report is brilliant!

Since then we’ve got more efficient at producing the report and quickly got the time down to around four hours.

A brilliant report now produced more efficiently and cheaply.

 

But why is there any human data processing, you may ask?

This year we set about changing how the report is produced. We learnt some new Excel formulae, got our heads around pivot tables and the report now takes an hour to produce.

Half of that hour is spent downloading and formatting the same two reports from our bookkeeping system and the other half is spent updating some of the formulae and re-working the pivot table. Hey-Presto we have the report ready to use only one hour later (and it’s a bit better too).

 

Which is great for us. We have a better report, produced more quickly and cheaply. In theory we could run it more often but part of the benefit is to look at it quarterly and see a broader picture emerge.

But where did the job go?

My colleague who did the data processing doesn’t miss it in any way, so in this case it’s a win:win.

I’m all for businesses using technology and I’m definitely in favour of making the right Management information available to improve every business.

But should we not pause for thought and ask wider questions about the march of technology?

Who are the winners and losers and what might be the impact on both?

 

Michael

@diaryofanomb

 

 

 

 

Cloud accounting – using the software you like

But the essence is that if you want get the benefits of working in the cloud you are not limited to having to use cloud accounting software. Instead you can continue to use the software you like and which works for your business. – See more at: https://bluedotconsulting.co.uk/blog/?p=2942&preview=true#sthash.QlS4ulFg.dpuf

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Management accounts makeover – clarity is everything

Management accounts are vitally important for every business.

Not having management accounts is simply not an option and yet we continue to see companies, some with multi-million turnovers, that have nothing like the management information they need to run their businesses.

Sounds familiar?

Organise a management accounts makeover.

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Make profit your first cost

By treating profit as your first cost you turn the normal thought process on its head and the costs, which you have most control over, become the variables to be addressed in order to achieve the profit you want.

Read More

Managing cash flow – an ICAEW publication

The Institute of Chartered Accountants in England & Wales (ICAEW) runs a Business Advice Service (BAS) which we are members of.

As part of the BAS commitment to UK business, we offer a free introductory meeting to any nearby company i.e. within 10km of the SW6 or TW9 post codes.

If you would like to meet up to discuss your business then please give me a call on either number at the top of the page.

Whatever your business, cash flow will be key to its success and you might find this PDF document, Managing Cash Flow , useful.

In addition to this ICAEW guide, we have put our best blogs on cash flow and getting paid in one place – here!

 

As well as cash flow advice, we offer a wide range of practical financial services for owner-managed businesses and I hope we can help you soon – don’t forget the BAS free introductory meeting!

 

Michael
@diaryofanomb

he Institute of Chartered Accountants in England & Wales (ICAEW) runs a Business Advice Service (BAS) which we are members of.

As part of the BAS commitment to the UK business environment, we offer a free introductory meeting to any business that’s local to us i.e. within 10km of the SW6 or TW9 post codes.

If you would like to meet up then please give me a call on either number at the top of  the page.

In the meantime, if you are just starting out or getting to a point where you might want or need to register for VAT, you might find this PDF document, Basics of VAT , a useful read.

We offer a wide range of practical financial services for owner-managed businesses and I hope we can help you soon!

Michael
@diaryofanomb

– See more at: https://www.bluedotconsulting.co.uk/blog/business/basics-vat-icaew-publication/#sthash.JonfIhRa.dpuf

Dividend tax implications 2016

From April 2016 there are changes to the dividend tax rules which do several things but the bottom line for most owner-managed companies will be that the “low-salary-high-dividend” approach to earnings will result in more income tax being paid than under the current rules.

Three questions arise:

  • What are the new rules?
  • How do they impact me?
  • What can be done – before April 2016 and after
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