How I kept my motivation sky high whilst studying

Posted by & filed under Students, Study tips.

Meet Sarah Eve Tucker, an Assistant Manager from London, who is currently studying AAT with Home Learning College.

We spoke with Sarah about why she heading into accountancy, what helps her stay motivated, her highlights and challenges so far and her hopes for the future.

How I got interested in accountancy

I’m currently working as an assistant manager at an electrical wholesaler; I have a very varied role in managing people and serving customers, but I also do a bit of purchase ledger, sales ledger and credit control. They certainly never advertised that aspect in the job role but it’s really enjoyable.

I chose to study AAT as I really enjoy the accounting side at work, and in the sales and retail industry there is only so much you can do – I felt like I’d reached a dead-end. In accounts the possibilities are endless, which is what really attracted me; there can be flexibility in working for yourself or for a company.

Gaining confidence

The course has given me so much more confidence in the work I’m doing in my day job. Most importantly, it’s giving me a foundation in accounts and exposure to software such as Sage which will make me more employable when I go for an accounting role.

Keeping my motivation high

The way the course is structured allows me to plan ahead and to meet targets, which is great as I tend to be really intense on occasions and then at other moments slacken the pace.

This course has a structure that is manageable and most importantly keeps me constantly engaged. I like that I can easily contact the tutor by phone or email and talk to my class mates on the student forum giving each other tips and encouraging each other to push through.

It has that normal class structure like at a college but in the comfort of my home. It’s done in a way that, I think, makes it impossible for you to fail if you follow the steps in the lesson plan, making me confident that on assessment day I will succeed.

Pushing through the challenges

In the initial part of the course I found it challenging as I was learning about the double entry system and what debits and credits are, which was alien to me.

But once I understood it I was able to apply it easily.

I really worked hard to gain that understanding as I was studying every day after work and had a full weekend studying but it was worth it.

My highlight

I did really well in the exam part of all the units. I called my mum immediately to tell her as soon as I stepped out of the building – it felt great.

I also enjoyed learning Sage which makes trial balance, reconciling and correcting errors super easy; I really enjoyed that module.

Looking to the future

I hope to continue on in my AAT studies and find a job in accounts while studying so that I get more of the practical experience rather than just relying on the qualification to land that big break. I am also looking to become chartered.

Inspired by Sarah’s story?  Here are 6 top tips to stay motivated whilst you study

Picture your end goal

Visualising yourself in that new job or the great feeling you will get when you pass your exams can help you get through those times when you’d rather be doing anything else than studying.

Find an image that reminds you of it and make it your screen background or stick it by your desk.

Get together with a group

Whether you meet online through your virtual learning campus, chat via social media or study together in person, sharing the journey with other learners will help you stay on track.

You can encourage each other and even increase your understanding by swapping stories from your own work experience. Plus you’ll have a ready-made network when you finish your course to help you in your career.

Plan ahead and reward your own progress.

Create a realistic study plan that allows you focused periods of work as well as downtime to relax, taking into account busy periods at work or social events.

Tick off your achievements and reward yourself with your favourite activity or treat when you have completed each step of your plan.

Read more on staying motivated while studying;

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IR35: The wider implications

Posted by & filed under IR35, Tax 2020.

In part one of this article, we saw how next year’s changes to IR35 might affect the gig economy – now we are looking at what are the implications for other stakeholders.

“It’s essential to know who the engager, the worker and the fee payer are, and understand the supply chain,” says Justine Riccomini, Head of Taxation (Scottish Taxes, Employment and ICAS Tax Community) at ICAS.

“The engager is whoever engages the contractor or worker to do the work. When engaging someone, the engager will now have to make a decision about that worker’s employment status.”

The duty of the engager

Riccomini says, “the engager has a clear duty to make a decision about whether any worker they engage is operating inside IR35 or not and produce a Status Determination Statement (SDS).”

The engager then has to pass this information on to the worker – “with the reasons for their decision-making process. They also have to tell whoever is paying the worker – this might be them, or an agency, or another party.”

If they don’t pass this information down the chain, Riccomini says, “they will be responsible for deducting and paying over the PAYE and NICs, including employer’s NICs. It used to be the worker’s responsibility, but the decision about their status will now be out of their hands.”

They are entitled to query the decision, “but HMRC has stepped away from facilitating an appeal and mediation process.”

Layers of complexity

For Riccomini, there are now “three layers in the IR35 universe.

  1. The public sector version
  2. The private sector for large and medium-sized companies version
  3. The private sector for small companies version.

Each requires a different approach.” Engagers, agencies and workers “each need to understand what the three layers are, decide and agree on which applies in that particular context and inform relevant parties. It used to be rather simple, and now it’s rather complicated.”

How this will affect agencies

For the agency, “the majority of scenarios won’t involve a lengthy supply chain. But if you look at the oil and gas sector (for example), there might be a dozen stages to the supply chain – different agencies for different types of specialist work.”

Everyone has to pass IR35 responsibility down the chain until it reaches the fee payer, or become responsible for PAYE and NI themselves. “If there’s a failure further down the chain – let’s say one of them goes into administration – the transfer of liabilities provisions in the legislation ensure the liability passes back up the chain, and the first agency at the top might end up liable.”

This may give Agency 1 an accounting headache too. “If there is a chance the liability might pass back to them, they would need to note a contingent liability in the accounts.” This seems “rather inequitable in view of the fact the agency effectively becomes liable for something which it neither had any influence over in terms of the status decision nor for which it has agreed to pay the fees.”

A further stakeholder in all of this is the payroll provider. “They need to be provided with the right information, including whether the worker is a Scottish, Welsh or ‘rest of UK’ taxpayer. If payroll agencies are not properly informed, the payroll returns may be submitted incorrectly.”    

What happens next

“Agencies are going to be worried by this,” says Chris James, Head of Accounting Operations at JSA Group and Chairman, FCSA. “They will look at the law and can’t guarantee that they won’t end up with liability – and that’s a big unintended consequence of this legislation.”

It’s almost impossible to exert control over every part of the supply chain, he points out. “HMRC’s view is to say – you need to know the employment status, and compliance performance, of everyone in the chain. But that can hamper agility, adding administrative burdens at each step in the supply chain, and stifle entrepreneurship and growth.”

The knock-on effects of this are going to be problematic, James says. “I agree with aspects of the aim, but the legislation is so rushed and ill-thought-through; it’s a sledgehammer to crack a nut and it will damage flexibility for a significant time – especially while Brexit is going on.

It will harm a lot of flexible work projects, and the amount it will generate is less than £1 billion a year – compared with the impact on the business on having to deal with this, the net impact on the UK will not save anything.”

How this affects the individual contractor

For the individual contractor, “a lot of contractor jobs are in finance and IT. Finance and IT don’t need to be done locally. I’m already aware of some companies announcing that they might not use contractors any more and a lot of these businesses are international.

The thought process is – if it’s harder to do business in the UK, we have Europe and the USA to go to for our project work.”

The changes make little sense, James says. “We want to make the UK as good as possible a place to do business, we have Brexit to navigate and now we put this in at the same time – why?”    

Umbrella companies

A potential unintended consequence of the revised legislation “is a mushrooming of Umbrella Companies (UCs) appearing between contractor and engager,” Riccomini says. “Some will be legitimate, and some won’t.

How does a contractor know who’s legitimate? – they will all have a good-looking website. The idea is that if you join an Umbrella Company, you are working under an employment contract and the UC deducts the PAYE and NI. But, there’s no way an unrepresented individual would know how secure that is.” There is no legal definition of an Umbrella Company, Riccomini says, “which means they are unregulated.”

Riccomini’s understanding “is that many contractors are now being approached by UCs, being enticed to give up their Personal Services Companies and go with the UC instead. Some might claim the contractor will pay less tax than they did before, or even claim that they are ‘HMRC-approved,’ when there’s no such thing.”

Accountancy practices too might fear that they will lose some of their clients who have Personal Services Companies to UCs. “It will be hard to stop them going, but what accountants can do is to set out the differences in the available services and advise their clients to check the UC very carefully before they jump.”

IR35 – How each stakeholder is affected

  • Self-employed people need to check their status and be clear about whether they would be deemed inside or outside IR35 for current and future contracts. From April 2020 the decision on status will be taken out of the worker’s hands – so they need to communicate clearly if they are sure they are outside IR35 when taking on contract work.
  • Accountants need to run IR35 testing for clients. But as part of this, recognise that many people will still be working legitimately outside IR35 and the doubt amongst organisations about whether or not to engage contractors needs to be clarified – blanket decisions should not be taken. Only those working via personal services companies, who are working for large companies, and who might be deemed as employees from a tax point of view, are affected by the changes.
  • Engagers need to be aware of the IR35 responsibility that is now placed on them from April 2020 and run IR35 tests on their contractors as part of this.
  • Agencies need to be aware that liability can bounce back to them in the event of a problem down the line that they have no control over.
  • Check the legitimacy of umbrella companies before signing up to them. “The best way to do that is with an FCSA membership check,” says Chris James. “The single clearest indicator of non-compliance in the umbrella market is unusually high net pay illustrations or payments.”

Further reading on tax:

Will the IR35 changes fly in the face of the gig economy?

Posted by & filed under IR35, Tax 2020.

The changes to IR35 next year are going to send shockwaves through the contractor market.

There are concerns about who will be responsible for deducting tax and NI, and fears that some companies may try to stop using contractors altogether.

But the devil is in the detail. What exactly do accountants need to know about the IR35 changes, how should they advise their clients and what will the impacts be on the gig economy?

The key things to bear in mind:

  1. the changes only apply to those contractors working through personal services companies. This removes a huge number of gig economy workers from the problem – as we will see.
  2. there are exemptions for smaller companies – we are only really talking about mid- to large size companies, and the definition of ‘small’ company is generous.
  3. not all contractors will be inside IR35 as a result of these changes anyway – as before, there are many examples in which contractors, even if they have personal services companies, can still be working outside IR35.

What are the changes?

“Currently, the obligation to decide whether someone is inside or outside IR35 rests on the contractor,” says Chris James, Head of Accounting Operations at JSA Group and Chairman, FCSA. “It’s the contractor’s responsibility if they do it wrong or ignore the rules, don’t self-assess properly and don’t pay the correct tax.”

Currently, “end-users, clients and agencies don’t have a risk unless they wholesale push people into working like that.”

This gives the rationale for HMRC wanting to make changes – individuals “might take a risk or be unclear about their status in order to avoid tax,” says James, “and potentially the only party who loses is HMRC.”

How does this affect liability?

The change is that from April 2020, the engager becomes liable not the contractor. “It doesn’t mean they have to pay it,” says James. “But it does create liability issues.

If the tax hasn’t been deducted at source and HMRC later concludes that it should have been, you have a supply chain situation where the end-user has transmitted liability down the chain. If lower down that chain, someone hasn’t deducted it, and HMRC can’t collect there, the liability can bounce back up again.”

So, the end-user could end up liable even if they correctly assessed the person as inside IR35 and transmitted this fact. “This will make end-users worried – they won’t be able to guarantee, by following proper procedure, that they won’t end up with liability and that’s a big unintended consequence of these changes.”

The result of any HMRC investigation deciding that the contractor is a “disguised employee” could now be a bill for tax unpaid to the end client or agency or other party paying the contractor’s company – no longer the contractor.

How might these changes affect the gig economy?

“The issue here is to establish what you’re talking about when you think of the gig economy,” says Rebecca Seeley Harris, a specialist legal consultant in employment and tax status.

“It means different things to different people. For me, its roles are at the lower end of the pay arena where people have a lot of uncertainty, are not well paid, and have no rights.” For Seeley Harris, “with the gig economy, therefore, it’s unlikely they would have a personal services company, and unlikely they would be affected by these changes.”

That “unlikely” needs a caveat. “The Treasury has seen evidence that some companies have persuaded people to work through personal services companies who were on a low wage and not necessarily in full understanding of the position.” This is the “push” that Chris James talked about above.

Attention to detail is required

So, amongst much of the current commentary about IR35 changes, details such as this sometimes get lost. “You have to be really technically correct about the terminology,” Seeley Harris says, “because it makes a difference to the outcome.”

A self-employed person working directly for a company is different, from a tax point of view to a self-employed person working through an agency; and is different again from someone describing themselves as self-employed, but working via a personal services company.

The nature of work needs to be considered

Then there are further differences about the nature of the work and the relationship with the engager – if the engager sets your hours, for example, or decides exactly how they want the work delivered, you might from HMRC’s point of view be considered a disguised employee.

For Seeley Harris, “the issue for the gig economy is that you have Uber drivers and Deliveroo drivers and so on who aren’t very well paid. The business model from the point of view of the company is that they are not paying VAT because they are not employing the drivers. As those drivers are likely to be below the VAT threshold, the individuals won’t be paying VAT. So there’s a hole in the model – it’s a real mismatch.”

There are two issues here, Seeley Harris says.

  1. “At present, the worker in the gig economy is self-employed both for tax and employment rights. Various individuals have taken legal action to claim ‘worker’s rights’ for employment purposes.” They have won their cases, she says, “and subsequently are now ‘workers’ with basic employment rights.” But – they still pay tax as self-employed. “These people are not affected by IR35.”
  2. The second issue is on IR35 itself. “From April 2020, the engager will make the assessment and the person who pays the PSC will bear the tax burden. So, these people will pay tax as a ‘deemed employee’ but have no rights.”

Promoting risk-averse behaviour

Chris James thinks that the changes would not necessarily in themselves damage the gig economy, but the extra burden of checking, plus misunderstanding of the changes, might have that effect. “It does make it harder for end-users and agencies to engage with gig workers than before,” he says.

“It won’t kill the gig economy, but it will promote risk-averse behaviour. There might be a rush of people saying, perhaps we won’t use contractors at all,” he argues. “In reality, in many, if not all cases you will still be able to use contractors as before.”

But he suspects the lack of clarity around the issue may prevent this understanding. Further down the line, “they will realise they can use gig economy workers in the same way as before after all and go back to them.”

The disruption in the meantime as the market settles into the new normal, after April 2020, “will be painful”, says James. “Businesses are facing quite enough in the way of uncertainty at the moment”, he continues, “and I’m not the only one querying the timing of these new rules, in the circumstances.”

How accountants should advise their clients

• Know the employment status of your client. If they are operating through a personal services company, they may be liable for IR35. If the client is an engager, ensure they know the employment status of those they are using as contractors. “It has got to be through a personal services company,” says Seeley Harris, “or you don’t have an IR35 problem.” Even then, it will only apply in certain circumstances:
• Assess whether the worker is inside or outside IR35. If you have autonomy and are not obliged to work for the engager; if you set your own hours; if the client is not obliged to keep offering you contracts and you are not obliged to take them; if other contractors can complete your work; and if the engager does not have heavy influence over the manner in which work is done; then you are likely to be outside IR35. “Accountants may not know the IR35 status of their client,” says Chris James, “and haven’t needed to know how to do a proper IR35 assessment before. They do now.”
• Ensure you understand the changes to IR35. The engager, not the contractor, now needs to ensure that somewhere along the chain, liability for IR35 is met, if such a liability exists.
• Understand exemptions for small companies. Inside any 12-month period, you are regarded as a “small” company if you meet two out of these three criteria: your turnover is below £10.2 million; your balance sheet (gross assets) is below £5.1 million; you employ fewer than 50 people. This removes a further huge band of engagers from IR35 liability. Critically, it is the size of the end engager, not the agency or contractor’s own company, that is being considered here.

Further reading on tax:

5 ways to enhance your employability

Posted by & filed under Students.

This content is brought to you by ACCA.

Qualifications are an essential foundation of a successful career, but the role of a ‘professional’ demands a much broader range of knowledge and skills.

So what else do clients and employers expect of financial services professionals?

Accountants, doctors, engineers and lawyers are very different professions, but all share the core concept of the ‘professional’ – an individual who provides specialist expertise to others, whether as a consultant or full-time employee.

In purchasing their expertise, clients and employers have clear expectations about what they want in return for their investment. More than likely, professionals will also be working alongside colleagues that have similarly clear expectations.

‘Professionalism doesn’t simply refer to your technical expertise,’ explains Ros Leah, ACCA head of professional development. ‘It’s about how you deliver that expertise as a service, and this is a crucial point of differentiation for employers. The applicant that behaves in the most professional manner is usually the prime candidate for a position.’

So what does it mean to be professional? Here are five essential qualities that clients and employers expect.

1.   Build trust

Successful business relationships are built on trust, making it by far the most important quality of professionalism.

‘The confidence to trust someone comes from the way they conduct themselves,’ says Ros. ‘Clients and employers will, of course, assess you on your technical ability, but a great deal more contributes to their overall impression of you.’

‘If a candidate is late, messy, uncommunicative, rude or evasive, this all serves to undermine the perception of trust. This isn’t restricted to interviews, as professionals are judged on how they conduct themselves every single day.’

2.   Demonstrate responsibility

‘Responsibility and trust go hand in hand,’ explains Ian Waters, ACCA head of standards. ‘Every organisation relies on finance, which means finance professionals play a critical role in an organisation’s success. Clients and employers must be certain that you can not only carry out tasks to a high standard but also do it honestly, objectively, confidentially and in compliance with relevant laws and regulations.’

‘This is why ACCA continues to drive professional responsibility in the finance sector, with a mandatory ethics module, a comprehensive ethical framework in the ACCA Rulebook that applies to students as well as members, and a positive engagement with the International Ethics Standards Board for Accountants (IESBA).’

3.   Strive for excellence

Manufacturers rely heavily on ‘quality assurance’, simply because one bad product can drive customers to buy elsewhere. Finance professionals must embrace quality assurance for the same reason, bearing in mind one critical difference – they take personal responsibility for their own quality assurance.

‘Quality assurance is an obligation that professionals have to their client or employer under the ethical principle of competence and due care,’ says Ros Leah. ‘Beyond that, striving for excellence is particularly important for those with ambitious career objectives as it can lead to professional recommendations and much greater opportunities.’

‘Continuing professional development (CPD) is an essential part of this. Keep up to date with technical developments, embrace new skills, and continually challenge yourself to do better.’

4.   Add value

Today’s world demands more of its professionals across all sectors and industries. More than ever, clients and employers are looking for individuals who can deliver a much broader positive impact on their organisation. This can take many forms, from improved business processes to initiatives that enhance team-working and morale.

Today’s professionals must also be more considerate of how their actions affect communities and the environment. In many sectors, corporate social responsibility has even become a driving force for business improvement.

5.   Represent your profession

‘The conduct of professionals has a strong impact on their profession,’ explains Ian Waters. ‘Those with positions of responsibility have never been more closely scrutinised, both by traditional and social media. In particular, failures of integrity and ethics can have an extremely damaging effect, and ultimately weaken public trust in the profession overall.

As a membership body, ACCA is in a similar position, which is why we expect all of our students and members to be positive role models and ambassadors of our organisation.’

In Summary

Professionalism encompasses every aspect of your presence as a service provider, and it may help to consider this in three layers.

At the core, professionalism means delivering your technical expertise reliably, responsibly, ethically, with continual pursuit of excellence, and in a way that adds value to your client or employer’s organisation.

Supporting this are ‘soft skills’ such as written and verbal communication, team-working and leadership. And underpinning everything are personal standards such as time-keeping, appearance and your ability to treat colleagues with respect.

Combined, this builds into a cumulative reputation of trust that will ensure clients and employers see you as a valuable asset within their organisation.

——-

If you’ve completed the AAT Professional Diploma in Accounting you’ve already started your journey to ACCA. You will receive free exemptions, meaning you will get a head start and qualify sooner.

Visit the ACCA website to find out more

Customs and VAT fears threaten Brexit deal

Posted by & filed under Brexit.

The Democratic Unionist Party is refusing to support the Government’s last-minute deal with the EU due to fears about customs processes and VAT accounting.

Without the party’s support, the Government is unlikely to get enough votes to pass its revised deal, making a no-deal Brexit on 31 October far more likely.

Prime Minister Boris Johnson has made a “fundamental shift” in the last week to get the EU on board, according to Associated Press. As a result, the DUP is unhappy about three key areas:

No-deal: how would it affect you?

DUP statement

The DUP has issued a statement saying that “as things stand, we could not support what is being suggested on customs and consent issues and there is a lack of clarity on VAT.

“We will continue to work with the Government to try and get a sensible deal that works for Northern Ireland and protects the economic and constitutional integrity of the United Kingdom.”

What’s blocking the deal?

The DUP is unhappy about the promised exemptions from Customs checks at the border within Ireland. These are meant to reduce the number and impact, but it fears this will not be the case.

The DUP also believes VAT accounting arrangements would be unclear under the current proposals.

What happens next?

The whole situation with Brexit will remain volatile up to the deadline.

Negotiations could still save a deal, but for now no-deal on 31 October 2019 appears more likely.

Now is the time to find out how a no-deal departure will affect your practice or your business.

10 quick ways to communicate better

Posted by & filed under Communication, Students.

How you communicate with co-workers and clients is essential to succeeding in your career.

Whether you like it or not, it can even be more important than your actual ability to do the job – especially for client-facing professionals like accountants.

So do you have the gift of the gab, or does your communication leave you cringing? Do a quick assessment with our 10 quick ways to improve your workplace communication skills.

1. Talk (don’t just email)

Conversation is often neglected in favour of email or chat systems.

But getting email instructions from someone sitting beside you can feel quite rude.

Emails can also be misunderstood– sometimes with disastrous results. Most communication is nonverbal after all, and we lose all those conversational cues when everything is done over text.

“Email is a great tool,” says Georgina Perry, a senior HR consultant, “but communicating in person offers greater meaning and understanding than the written word alone.”

So why not follow up that email with a quick face-to-face chat or a call?

2. Become an active listener

Most people think good communication is about getting your message across. But listening to others is a big part of effective communication.

Conversations are usually two-person minimum after all.

One useful trick to make sure you’re listening, is to repeat what the other person says. For example, you might respond: “OK James, I understand you feel this client’s audit is taking too much of your time. I will look at ways to spread the workload.”

It’ll help you remember what was said, and convey your engagement in the conversation.

3. Ask questions

If you’re unsure about something, or need a little more detail, ask.

If you don’t, you could end up wasting time because you didn’t fully understand the task at hand.

If you’re a manager, it’s also vital to regularly ask your team how they’re getting on and whether they need any extra support. This is one way of rising beyond the role of employee and looking out for those within your team.

Either way, don’t forget to listen to the answers!

4. Keep criticism constructive

Few people respond well to a tirade of abuse.

So if you need to talk to a colleague about a mistake they’ve made, try coming at it from a different angle. Find out if they’re struggling with anything, and ask if there’s any ways you can help instead.

Telling off a colleague in front of the rest of the team is also a big no-no.

“I once had a boss who ridiculed subordinates in an attempt to make himself look better, but he just ended up looking incompetent himself,” said architect Robin Fenton.

If your emotions are running high, take time to calm down before talking with your colleague. This way, there’s a chance you may reach a mutually beneficial solution.

5. Praise your colleagues’ wins

It’s too easy to fall into the habit of only commenting on colleagues’ work when there’s something wrong. It’s how most of us talk to ourselves inwardly.

But positive feedback is a vital part of good workplace relationships, regardless of your role.

We all like to be told we’ve done a good job. So don’t forget to praise colleagues, team members and even your boss if they’ve done something well.

6. Accept your shortcomings

Most people find themselves on the receiving end of criticism at some point during their working lives.

If and when that time comes, try to avoid becoming defensive or making excuses. These knee-jerk reactions need to be set aside, so you can rationally process the feedback.

Instead, ask the other person to give you some examples of where you have been falling short. Get specifics so you can make positive changes.

There’s also the possibility that your colleague may have misunderstood and you weren’t in the wrong at all. If that’s the case, explain your actions calmly to clear up any confusion.

7. Stay calm during conflicts

Workplace conflicts can and will arise. People have bad days, or certain people just don’t get along. When frictions crop up, the most important thing is to stay calm and avoid personal attacks.

If you need to take five minutes to do this, then so be it.

From a managerial point of view, responding to conflicts promptly, confidentially, and with an open mind is the best way to find a satisfactory resolution.

“Treat anything you learn confidentially,” Perry advises from a HR perspective. Especially if something sensitive comes out in the heat of an argument, it’s important to reassure your colleague that you will keep it to yourself.

8. Respect cultural differences

Some of your clients or co-workers are likely to come from different cultures.

So refrain from discussing controversial topics such as politics or religion – you could end up offending someone unintentionally, or even being reported for discriminatory behaviour.

“Respect those around you, and avoid the use of slang or inappropriate language,” Perry added.

Even if this behaviour is rampant in your office, that doesn’t mean it’s acceptable in reality. Be mindful of your words.

9. Meet face-to-face regularly

Holding regular team and client meetings is a great way to foster effective communication.

And don’t be afraid to mix it up: formal meetings are perfect for planning big projects; informal coffee or lunch meetings are better for team building.

“Having lots of team meetings to explain decisions and listen to each other’s suggestions meant we always knew we were all on the same page,” adds Caroline Turner, talking of her time at a major investment bank.

10. Keep it professional

Some details of your private life may be too personal for sharing in the office. You may think it’s ok, but others may find it inappropriate.

So be friendly, but remember to maintain that professional line.

If you become too close to co-workers, you may find it harder if one of you is promoted to a management position, for example.

Becoming too friendly with clients can also cause problems, for instance if they become unable to pay their bills.

In summary

Your communication skills can have a huge impact on how you are judged by the people you encounter at work.

Make the right impression by taking a professional, yet human approach.

For more on workplace communications:

4 Bookkeeping challenges faced by small businesses that you can solve

Posted by & filed under Bookkeepers.

Many clients look to their accountant for business direction and advice as well as just crunching the numbers.

Startup and small business owners face lots of challenges on a daily basis and accounting related tasks are some of the main ones that most struggle with.

We explore four of the most common bookkeeping challenges that small businesses face that you have the ability to offer solutions to. Take these tasks off your client’s plate and let them focus on what they do best – whether that’s manufacturing, merchandising or offering a service.

Problem 1 – Cash-flow

It can be very hard for small businesses to keep tight control of their finances and outgoings. They might not know the smart ways to spend money when they haven’t got much experience. Suggest a review of the following with your client to keep their cash-flow healthy.

  • Are they keeping on top of expenses?
  • Are they getting multiple quotes and recommendations for any sizeable investments – whether that be marketing support or a new printer?
  • Are they keeping track of how much they need to cover recurring payments and are they focused on how they generate enough income to cover those as a minimum?
  • Are they invoicing as soon as they can, asking for immediate payment and chasing early for overdue payments?
  • Are they setting aside money for tax bills?
  • Have they tried to think about any expenses that might come up in the future so there aren’t any nasty surprises and do they have a contingency fund?
  • Are they tracking and reviewing the return on investment of any marketing to see if it’s working and worth repeating?
  • Do they know the value of their customers/clients so they are ensuring that the majority of their effort is concentrated on their most lucrative customers or products and are they doing any work for free?
  • Do they have the confidence to price themselves in line with the market?

What you could offer:  A cash-flow health check 

Problem 2 – Having irregular financial reports

Having financial reports that don’t match up can be a huge problem for a small business. They will not be able to get an accurate picture of how they are performing as they could be missing data, have the wrong information or be misinterpreting it. On top of this, they may not be compliant.

Help your clients to get into good habits and strict processes in place for all their accounting and make sure they keep on top of regular reviews of their ingoing and outgoing transactions. You could help them to implement software or make the most of systems that they already have but might not be using to their potential.

What you could offer:  Financial report audit 

Problem 3 – Being investor ready

If a business is looking to attract investors for growth – are all their accounts and plans in order? What is their business model for growth, what are their USPs and what specialist experience do they have – why should an investor choose them?

You can help them to complete their business plan with a detailed cash-flow forecast, profit and loss and break-even account for the next five years. Analyse the current state of their finances to review their current position in the market and find anything that could be hampering their business growth – before an investor does!

What you could offer:  Business plan creation

Problem 4 – Payroll management

Typically, small businesses can feel confused about payroll (what is the best system to implement, what tax codes should they be using?). They will often find that it is a real admin overload and something that they don’t want to be doing when they should be focusing on growing their business in other ways.

The most common problems that clients have related to payroll are; tracking employee absence, over- or underpaying, compliance, tax filing and using incompatible software.

You can help your clients to change and innovate – to choose software that will report to HMRC or you can run payroll for them to remove the administrative burden.

What you could offer:  Payroll systems review and recommendations

In summary

When a small business is selecting an accountant, they will look for someone dedicated to taking their business further and to help them optimise the systems that they are using. By offering a direct service to solve these problems and others for your clients you can build a really good reputation and stand out from other accountants in your area.

Further reading

Does enforcing a strict dress code at work improve productivity?

Posted by & filed under Members, Run your business.

The workplace attire rulebook has been rewritten over recent years. But what impact – if any – does allowing employees to dress more casually have on productivity?

For many business sectors, Dress down Fridays were the first step towards today’s more casual approach to business attire.

From suits to sweatshirts: how working wardrobes have changed

Dress down Fridays began in the 1940s in Hawaii, when workers in Honolulu started being allowed to wear brightly printed Aloha shirts.

Spotting a marketing opportunity for its new range of chinos, jeans manufacturer Levi’s then got involved – sending some 25,000 businesses “A Guide to Casual Business Wear” that helped set the tone for Dress down Fridays.

Now, casual workwear has become the norm in many sectors throughout the week.

Reasons for this include the rise of anti-corporate technology companies, as well as the trend for more people to work from home.

Key takeaways

  • Employers have been experimenting with casual dress codes since the 1940s
  • Casual wear is now the norm in many sectors

Dress codes: a help or a hindrance?

Clearly, there are some jobs that come with compelling health and safety reasons for wearing certain clothing.

But do you need to be dressed a particular way to perform well while sitting behind a desk?

Research suggests not. When fashion website Style Compare surveyed 2,000 UK adults recently, 61% said a dress code had no positive impact on their productivity, while 45% felt they’d be more productive wearing more comfortable clothes.

Regan McMillan, director of Stormline, said: “Businesses seem oddly keen on making their talent dress in specific, often very restrictive ways.

“Our research suggests that this attitude could actually be harming their ability to attract top talent.”

Key takeaways

  • Dress codes can discourage prospective employees
  • Dress codes must not be discriminatory

Dressing for your day: advice for employees

There’s little doubt that feeling comfortable helps you to focus on the task at hand.

But unless you work for a trendy tech start-up, older colleagues, in particular, will often expect a level of smartness – even if there is no formal dress code.

That’s why New York Times bestseller author Austin Kleon advises people to “dress for the job you want, not the one you have”.

Client-facing roles also often still require a level of formality.

Some people, for example, find it easier to get into work mode when they put on a ‘uniform’.

For others, wearing casual clothes makes them more focused.

Zuckerberg, for example, believes wearing hoodies every day gives him one less decision to make, allowing him to concentrate on important workplace tasks.

Key takeaways

  • Dressing smartly can help your career prospects
  • Clients often appreciate smart attire
  • Some people prefer smart dress, others casual

Casual wear – pros and cons

  • It’s popular – particularly with younger employees
  • It’s comfortable and allows people to express themselves (within reason)
  • It may cause distractions
  • It can be difficult to police – where do you draw the line? Ripped jeans? Nose rings?

Formal wear – pros and cons

  • It can give a good impression to senior colleagues and clients
  • It allows people to get into ‘work mode’
  • It is often less comfortable
  • It can seem out-dated
  • It is less popular with younger workers

In summary

The etiquette around workplace attire has changed a lot over recent years.

While smart dress can be a plus in situations such as client meetings, forcing employees to follow a strict dress code may have a negative impact on productivity and retention rates.

For more on workplace etiquette:

5 ways to impress on your work experience placement

Posted by & filed under Students.

Play your cards right, and a work experience placement can be a stepping-stone to being offered your dream job.

Government statistics show that 42% of those who undertake work experience placements are offered a job at the end.

But what’s the best way to turn a few days of tea-making duties into a golden opportunity?

From researching the company thoroughly before starting to showing initiative and being prepared to get your hands dirty, we highlight five ways to impress senior colleagues and boost your chances of being offered a more permanent role.

1. Prepare for the role

Find out as much as you can about the company you will be working at, and the team you will be in.

Check out the company website for details about what it does and, where possible, its ethos.

“Do your research to demonstrate a good initial level of engagement, and understanding of the company,” said Georgina Perry, a human resources expert at consultancy The HR Difference.

If you know the name of the manager you will be reporting to, or the people you will be working with, you could also see whether they have a profile on the company website or on a social media site such as LinkedIn.

Avoid, however, checking up too much on personal sites such as Facebook: you don’t want to come across as a stalker!

Key takeaway

  • Researching the company will give you some talking points and show you are motivated to do well

2. Give a good first impression

Dress smartly for your first day – it’s better to be overdressed than underdressed.

And make sure you turn up on time. Once there, smile and introduce yourself to everyone on the team.

You never know, the person you shake hands with on your first day of work experience could be your next boss.

“A work experience placement is often short in length so establishing yourself on your first day as a professional and positive addition to the team is important,” Perry said.

“Being presentable, engaged and willing to learn are among the key attributes you should look to demonstrate.”

Key takeaway

  • First impressions count! So dress the part and don’t be late

3. Be enthusiastic

Embrace each new task you’re given, however menial, and do it to the best of your ability.

Once you’ve shown you can master the basics, you’re more likely to be offered more interesting jobs.

When student Amy Taylor was on a placement at a financial services firm recently, she impressed her boss with an eye for detail.

“I noticed a mistake while entering a client’s details,” she said.

“I wasn’t sure whether to mention it at first, but I’m glad I did as my manager was very pleased and has now offered me a longer placement during the Christmas holidays.”

Remember too that you are there to learn, so it’s ok to ask questions.

Asking for clarification is a lot better than having to go back and start a task again because you misunderstood the instructions.

Key takeaway

  • Show willing, whatever you are asked to do, and try to learn as much as you can

4. Be proactive

It’s important to show initiative when you are on a work experience placement.

So if you finish a task in a shorter time than you were given, ask what else you can do or offer to help a colleague with another job.

Other ways to show an active interest include asking to sit in on meetings or accompany a colleague on a client visit.

After a couple of days, you can also ask for feedback from your supervisors.

This will show you’re keen to improve and give you the chance to prove you can act on the advice given.

“I got some really useful pointers from my manager during my placement,” Taylor said.

“It’s advice that has already helped me with my studies too.”

Key takeaway

  • The aim is to show you can be a valuable member of the team, so help out wherever you can and take any feedback on board

5. Make the most of networking opportunities

There are lots of chances to network during a work experience placement.

Try to connect with as many of your colleagues as possible, even if it’s only by offering to make them a tea or coffee.

“Take the opportunity to introduce yourself to others,” Perry said.

When you do speak to people, be friendly and open about your own ambitions.

Once your placement has finished, email the members of the team you worked with to thank them and connect with them on LinkedIn.

And email the person who set up the placement to thank them too, and to flag up that you are interested in working for the company on a more permanent basis.

Even if there aren’t any jobs going at the moment, they can keep your CV on record and let you know if and when anything suitable comes up in the future.

Key takeaway

  • Networking is one of the best ways to hear about any jobs that become available, so be friendly and stay in touch with any contacts you make on your placement

In summary

A work experience placement is a great opportunity to meet people and learn about a role.

Even if you decide the industry isn’t for you, you can make valuable contacts and gain transferrable workplace skills.

So make a good impression by researching the company, being professional, showing initiative, and working hard.

For more work experience advice:

Build a killer business brand

Posted by & filed under Members, Run your business.

Your brand defines who you are. Done well, it also helps you stand out from your competition. But how do you create a brand?

Branding is your chance to decide what feelings your business will generate in others. Will you wow them with your confidence? Reassure them with your reliability? Or impress them with your bold ideas?

Your logo (just one element of your brand) will usually be the first thing prospects see, and it can leave a lasting impression. A bland, forgettable icon isn’t going to do anything for you. But a well thought-out brand, with a logo that pulls everything together and makes a powerful impact, could excite and inspire potential clients.

But aside from proclaiming your business identity, a good brand will also give you professional credibility. Clients tend to gravitate towards polished visuals, assuming they’re a reflection of the service quality. Why not capitalise on this predilection?

Branding could also generate a ROI – a well-branded proposal will almost certainly have a higher acceptance rate than a poorly designed one.

So how do you get started?

Who’s your target audience?

Before any work starts on branding (or in fact any marketing) you will need to ask yourself “who is this for?”

The temptation to create something that speaks to you will be strong, but stop yourself. First, pinpoint your ideal client and don’t try to be everything to everybody.

Contrary to what you might think, it’s much easier to build a business if you have a niche that either offers specific services or targets a certain industry (or both). Work to become renowned as the experts in your field. That will be pretty much impossible if you decide your field is everything.

Key tip: Creating and growing a brand is easier if you offer a speciality service (like accountancy with business growth support) or target a specific industry (like hospitality or veterinary).

Repeatedly assess your competitors

Your competitors are successful businesses that you aspire to be better than. Learn from them and let them inspire you – there’s a lot of valuable information to be gleaned here if you pay a little attention.

Choose three or four competitors and regularly conduct some analysis, asking:

  • What does their brand say about them?
  • What services do they offer?
  • Who are their clients?
  • What are they charging?
  • What marketing are they doing? (If it’s ongoing it’s probably working).
  • What do they do well and what can you do better?

Key tip: Don’t just do competitor analysis once – make time to do your research at least once a quarter to keep up to speed with any changes.

Create a logo to represent you

A professional looking logo and visual branding will generate trust. If you don’t have any design experience, don’t try and create your logo yourself! This is one thing that’s definitely worth a little bit of investment and some expert advice.

Your focus instead should be on creating the brief. This will be the main reference for your designer as to who you are, what you stand for, who your business is, the nuances of your target audience, your services etc. So take your time to lay it all out clearly.

Once you’re happy with the logo, you’ll need the designer to create different file versions of it depending on different uses. Ask for a suite of editable branded template designs for any marketing collateral you might require like business cards, presentations, proposals and letterheads.

Key tip: Get designer recommendations from another similar-sized business whose branding you admire. Get a few quotes to compare and take a look at each of their portfolios.

A powerful mission statement

Your company mission statement, or tagline, should convey clearly what you do best, and what to expect from you. Don’t make it cryptic, and avoid using generic words like ‘quality’ or ‘good value’ – anyone could say this about any service, but what makes you stand out?

Key Tip: Listen to your gut instinct – a good tagline should feel right.

Craft your business voice

Your brand voice conveys your business values and its personality, so the first step is to decide on these first and write them down. Then you can think about the sorts of things your brand would and wouldn’t say; what words it should use; and what sort of topics you should be talking about.

Produce a set of guidelines that has all the details about your brand in it so that it’s available for employees and suppliers to reference. Guidelines and consistency will future-proof your brand as it grows but your brand should also evolve with your business.

Key tip: Somewhere between three and five brand values is the recommended number. Make them memorable and meaningful.

In summary

Branding isn’t just for large companies and it’s essential if you want to grow your reputation and your business. Do your research first and make some key decisions on how you want to be perceived in the marketplace. When you have your brand visuals and tone of voice in place, consistency is the key but let your brand develop and grow with you.

Further reading on marketing your business to get more clients;