Outsourcing can do more more than just save you money, though. In this article we’ll look at the benefits of outsourcing tasks, and how to find freelancers to do the work.

What is outsourcing?

Outsourcing work means specific business tasks or functions are given to external service providers (usually freelancers) to handle, rather than the work being completed in-house.

It often gives you more choice and flexibility, allowing access to specialist skills if and when you need them.

Different types of outsourcing

There are actually a few different types of outsourcing to be aware of, such as:

• Outsourcing key business-related functions like marketing
• Business Process Outsourcing (BPO) (for example, payroll or customer support)
• Information Technology Outsourcing (ITO)
• Knowledge Process Outsourcing (KPO) – usually highly specialised functions such as accounting or research

Why outsource?

Like anything, there are pros and cons to outsourcing. It can be more cost-effective than hiring a full-time employee, particularly if it’s only for a short-term project.

You won’t need to worry about additional costs or responsibilities (like making pension payments and National Insurance contributions, or arranging Employer’s Liability Insurance).

It can also be faster. Outsourcing a task to someone who specialises in that specific function is likely to mean they’re highly experienced and able to be very efficient.

More broadly, outsourcing gives you access to a large range of skills, many – or even most – of which may not be available to you in-house.

Can I outsource for long-term projects?

Lots of businesses outsource tasks on a long-term basis – such as accounting or legal services, or you might have longer projects which you need help with. Just be careful around the IR35 rules if you do hire a freelancer who comes to sit in your office every day as if they were a regular employee. It can muddy the waters around disguised employment, and that can have tax implications for both of you!

How do I find freelancers?

Most online job sites will simply let you advertise for freelancers, but there’s always the option of looking on freelance marketplaces..

For example, if you’re looking for project-based services you can check out Fiverr, or if you’re looking for a few freelancers that work in a wide range of fields, you might look at Upwork.

These can be a great resource, providing access to hundreds – if not thousands – of available freelancers looking for work.

Most freelance marketplaces even allow you to filter for the exact skills and experience level you’re looking for.

How do I choose a freelancer?

Even once you’ve found some potential options, you still have to make a choice between them. Generally speaking, it’s important to consider things like cost and flexibility.

The idea of selecting the right expert to work with can be daunting if it’s not an area you’re familiar with. After all, that might be why you’re hiring them! It’s usually worth looking at their portfolio or other examples of clients and work, and asking for any testimonials.

Check their portfolio

If you’re struggling to decide whether or not to hire a particular freelancer, previous examples of their work can be very helpful, giving you a tangible idea of what they’d bring to the table.

While a more generalised approach to freelancing may work for those with a diverse set of skills, you typically want to pick someone who specialises in exactly the kind of work you’re asking them to do.

In other words, you want a specialist, not a generalist.

A solid portfolio serves as proof that a freelancer knows what they’re doing, whereas an absent one may be a sign that they’re relatively new (and therefore lack experience).

Look at their track record

In a similar way, testimonials from previous clients are a good sign a freelancer can be trusted to follow through and get the job done.

Hiring someone obviously comes with a high degree of risk, and so any reassurance you can get is vital. If a freelancer is able and willing to give you past case studies to look over, that’s an even better sign.

Get in contact with them

This is a good way to test how responsive they are. Simply shoot them an e-mail and see how long it takes for them go get back to you.

If they take a while, that could be a sign they’re either too busy or don’t see freelance work as a priority. But be fair – they might be away, or this might be a one-off! Either way, it’s a window into how your communication could go if you were to hire them.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post How Outsourcing Can Help Your Small Business appeared first on The Cheap Accountants.

Nobody expects Mary Berry to be able to make waves with her mind, in the same way you’d never ask Aquaman to bake you a birthday cake. We’ve all got our own skills and superpowers but it’s crucial that we also accept our limits. One of the many myths of outsourcing is that the quality won’t be as good as doing it yourself, but this isn’t always the case.

Outsourcing can often help you hire in talent which you might not otherwise be able to afford (or need) on a long term basis.

We’ll share some tips on how to hire an expert if you need to outsource tasks from your business or as part of a project.

Decide where to look

The first step in looking for an expert? Look in the right place! For example, you might go to a freelancing platform like Fiverr if you need a content writer, or use Checkatrade for a roofing contractor.

It will help focus your search, which is a starting point.

Describe what problem you’re trying to solve

Giving the solution to the problem you’re hiring someone for can suggest you already have a very particular goal in mind. If this isn’t the case, and you need their expertise to work out what the best outcome could be, describe what you’re trying to achieve and any constraints instead.

That way, it becomes their responsibility to design the solution – which is exactly what you’re hiring an expert for!

How do you know you’re hiring an expert?

So, you’ve acknowledged a gap in your skillset, and recognised you need help from somebody more qualified or experienced. How can you identify a field expert when you aren’t one yourself? As a business owner or employer, this can become a bit of a stumbling block when it comes to finding the right person.

A common example of this is SEO. You know you need it to climb the search ranks and boost your small business marketing, but you don’t know where to start. When something feels like one big mystery or a foreign language, it can then be hard to work out whether the person you’re hiring knows what they’re talking about.

Fortunately there are several steps you can take to make sure you’re hiring the right person.

Ask for references and a portfolio

This is where it’s so important to do some research! Check out their portfolio, reviews, and reputation in as much detail as you can. You might not become an expert in the field within the hour but you will at least have a better understanding of the basics.

The best way to build a character profile and get a good idea about whether somebody is the expert they claim to be is to experience what they do first hand. Ask to see some examples of past work, case studies and testimonials from previous clients or employers before committing to anything. This is particularly useful for creatives like marketing experts.

Check their qualifications and professional memberships

In some cases it’s a legal requirement that the person carrying out a particular task is accredited or qualified by a professional body. For instance, gas appliances can only be installed by a gas safe engineer.

Some professions, such as accounting, aren’t a protected industry. Unfortunately this means that anyone provide accountancy services, so make sure they have the type of qualifications, accreditations, and experience that you need. Read our guide to hiring a qualified accountant.

Get a second opinion if you need one

Outsourcing doesn’t tie you to using one firm or person forever after. If you need to get a second opinion or several quotes, then you’re well within your rights to do so!

If you do end up using someone for a larger project, why not split the job up into smaller milestones – each with their own milestone payment? That way you can get out of there if you need to, without committing too much upfront or getting tied up in a contract.

Beware of sales patter

Most genuinely experienced and knowledgeable experts will be very honest that they don’t know everything – how could they? With that in mind a few potential red flags could include:

• An aversion of “not sure but I can find out”. This raises all sorts of questions about whether they actually know what they’re looking for, or what sort of value they might be able to offer you.
• Not giving you options, or explaining what the trade-offs might be to reach a particular outcome
• They use a lot of jargon without explaining what any of it means. Okay, so you’re hiring an expert – it’s their job to understand this stuff! They don’t need to dazzle you with science.
• They don’t ask any questions at all. You might have given a supremely detailed brief, but if they jump straight into sales mode rather than asking about your own unique circumstances, then they might be selling something more formulaic than the expertise they’re claiming to have.

 
Find more business guides and resources in our information centre, including help with finding a cheap accountant.

The post How to Hire an Expert When You Aren’t One appeared first on The Cheap Accountants.

Taking money from the business as a sole trader versus as a limited company

As a sole trader, your business and personal finances are effectively one and the same. That means that any profits the business makes are simply yours to keep, so withdrawing money from the business is pretty straightforward in terms of accounting.

With limited companies it’s different. The business is a separate legal entity, so you can’t just take money out without following a set process. Normally you would take money out of the company:

• As a salary
• In the form of dividends
• To reimburse business expenses that you paid from your personal account
• As a director’s loan

As you can see, taking cash isn’t illegal, but it’s crucial that you have clear cut audit trails. Otherwise, mixing up personal and business transactions can easily get you in a muddle. In this quick guide, we’ll briefly look at why and how you might take money out of your business for personal use.

Drawing a salary from your business

Paying yourself a salary a common way to take money out of your limited company regularly. It’s up to you how much you pay yourself, but lots of directors tend to pay themselves a tax-efficient combination of a lower salary and then dividend payments.

As a sole trader you can still pay yourself a regular salary, but it’s usually not necessary to set up payroll if you’re the only person in the business. Instead, you could just take the money on a regular basis. You’ll still pay tax and National Insurance on all of the business’s profits, even if you don’t ‘withdraw’ them from the business.

Director’s loans in limited companies

As the name implies, director’s loans are just that; a loan the director makes to the company, or vice versa, which is recorded in their director’s loan account. It’s not a facility that’s available to sole traders, but sole traders can simply keep the profits from the business anyway. There’s no need to account for taking money in this way.

Directors might borrow money from the company for unexpected personal bills, loan money to the company to fund growth, or move funds back and forth for all sorts of other reasons. What’s important is that there are accounting and tax implications for using your director’s loan account, so it’s essential you record everything to show why money is moving between the company account and your personal bank account.

You should try to repay your director’s loan prior to the end of your financial year. If not, it may be seen as additional income, so you’ll pay extra tax, known as S455, on any balance still outstanding.

Receiving dividends

Another way to withdraw money from a limited company is with dividend payments. For a tax-efficient way of taking money out of your business, you’d be hard pressed to do better than dividends.

Dividends are paid from any profit left over after Corporation Tax and are often paid in addition to a salary. They’re usually taken at the end of the company’s financial year (so that you know for sure how much is available to take safely).

There aren’t any rules which prevent you taking them more frequently, but it’s a good idea to pay them at regular intervals. It reassures HMRC that you’re managing the company’s finances appropriately!

If the company has other shareholders, they should receive dividends at the same time. The amount everyone receives is based on the proportion of the company they own. This means there may be less for you to withdraw than it first appears.

Withdrawing cash for personal expenses

If you want to take money from your limited company, via cash or cheque for instance, to be spent on personal items, make sure you keep absolutely accurate, watertight records. You should be able to see at a glance when the cash was taken out, and how much was withdrawn.

At the end of the financial year, any outstanding amounts could well be deemed as income by HMRC, which will mean paying tax and NI on it.

Business expenses reimbursement

Any business expenditure should really be paid from your business bank account wherever possible. However, you might decide to pay for certain incidentals from your own account. For example, train tickets or a coffee, but you don’t have a company credit card.

As long as the expenditure is entirely for business purposes, you’re well within your rights to claim back the cost. It’s not new personal income and will mean you’re not out of pocket when the payment was for something business-related.

As long as you make it very clear what the expense is for, and record everything meticulously in your accounts, it will be fine!

Keeping things simple

At this point there are a few tips we wanted to point out around keeping your accounting straightforward.

Firstly, bear in mind that if you make withdrawals pretty frequently from your business account to your personal account, you or your accountant will probably end up spending more time on record keeping. This is why we really recommend only withdrawing cash if you absolutely have to.

Plus, don’t forget that banks and accountants must, by law, inform the National Crime Agency if they think any transactions are suspicious. It’s part of their duty to help prevent money laundering or fraud.

Withdrawing cash regularly can also make it trickier to get an accurate idea of your cash flow. Understanding exactly what cash you’ve got where makes it easier to meet your commitments to creditors and suppliers.

As a final point, it’s possible that any money you do withdraw from your business for personal reasons will attract certain interest charges or penalties for late payment on business expenditure.

Benefitting from personal liability protection

Setting yourself up as a limited company means protecting yourself against your company’s debts. In other words, you’ll never have to sell your own assets like your home should your business end up in financial hot water.

However, it’s worth pointing out that if your company does unfortunately start to struggle, avoiding any legal action could prove difficult if too much cash has been withdrawn for personal spending, and therefore funds aren’t available.

Presenting a clear, accurate financial picture

Healthy businesses grow, but financing that growth can be difficult unless you’re able to show a clear financial picture. Potential lenders and investors will always want to examine the business accounts very closely indeed. Too many personal withdrawals may make them uncomfortable, and suggest that the business’s finances aren’t be managed correctly.

Potential clients may also want to see financial stability when assessing suppliers – for instance if you tender for a larger contract. Again, this makes it well worth keeping personal withdrawals to a minimum, so your cash flow is accurately presented.

 
We always recommend seeking the guidance and expertise of an accountant. That way, you can be sure that you’re doing everything by the book, and in the most tax-efficient way possible!

The post Can I Move Money from a Business Account to A Personal Account? appeared first on The Cheap Accountants.

Don’t focus on a franchise which needs minimal investment

As the old saying goes, you get what you pay for. The more well-established a brand is, the more likely you are to be successful promoting the business, but that does come at a cost.

The flipside of this is that smaller franchises might be able to offer more support. Every business is different so shop around for the set up which is most likely to fit your needs, rather than simply on price alone.

Missing out on support and mentorship isn’t really ideal as it’s one of the pros of opening a franchise in the first place.

Relying on your instincts

There will be a lot of people out there, successful entrepreneurs included, who will tell you to trust your gut and listen to your instincts.

While your instincts might be great, that doesn’t mean they should be your only basis for measuring a business decision. That’s a sure way to make a mistake and leave you disheartened with a failing franchise. Instead, base any business decisions on solid research and comb through the data available.

Poor choice of location

Just because a brand is doing spectacularly well in one place, it sadly doesn’t mean it brand will do well everywhere. Different areas might have different tastes, needs, and income profiles, so factor this isn’t your decision making.

Location is also an important part of your service and marketing. A retail store selling childrens toys might struggle in the middle of a business park. A garden centre specialising in fruit trees will probably need a car park rather than a city centre location.

Having a building in an obscure business park isn’t going to get you much business if you rely on passing traffic, though it might be fine for an online-based business.

In order to pick the right location you’re going to need to do a lot of research. It’s not a simple case of the place feeling right or having good facilities (although that’s important). You need to look at every possible angle, for example:

• What is passing traffic like?
• What are the other businesses around doing well/not so well?
• Is there enough parking space?
• Is it easy to get to via public transport?
• What’s the local recruitment pool like if you need to hire staff?

Going it alone

You started a franchise for a reason; so that the company had your back. Ignoring their advice or procedures when you don’t agree is unlikely to be in your best interests! You could end up harming the reputation of the brand, but you’re also missing out on their experience. Treat the relationship as a conversation, rather than simply following orders or going off-plan.

Being the first franchisee can be risky

Every organisation is different of course, but it’s often more risky to be the one who goes first. If you’re going to be the guinea pig franchisee for a brand, then it’s more likely you’ll both have a steep learning curve to deal with.

They won’t have the experience of supporting another business owner meet their expectations, and might not be prepared for the level of guidance they need to provide. Likewise, you won’t have other franchisees within that brand, so they’ll be your only contact. This isn’t necessarily an issue depending on what they’re like to work with, but it’s certainly something to be wary of.

Underestimating costs

Franchises can be expensive business, because you’re partially paying for the element of safety and support and also for the brand’s reputation. There may also be more than the franchise fee alone, including legal costs of getting the whole thing set up. You could end up with a nasty surprise if you don’t prepare for these.

Like with any business venture it’s important to have an emergency fund that you can fall back on should an unexpected cost or repair threaten to slow you down.

 
Running your own business as a franchise means you’re responsible for recording, reporting, and paying tax on your profits. Learn more about tax for franchisees in our article.

The post Common Franchising Mistakes to Avoid appeared first on The Cheap Accountants.

Some businesses also use referral incentives as part of their wider marketing strategy, rewarding clients who recommend them.

What are referral incentives?

A referral incentive is something you offer to an existing customer to encourage them to recommend your product or service to their network in exchange for a reward. This strategy turns your existing customers into brand advocates. For example, you might reward them with:

• Cash
• Account credit
• Gift vouchers
• Lower fees
• Money off
• Points in a loyalty scheme

The reward you offer for recommendations depends on the type of referral programme you want to run.

Do referral incentives work?

Recommendations from friends are often touted as one of the most reliable forms of advertising, with many of us allowing this to influence our purchases.

A global marketing study carried out by Radius suggests word-of-mouth is particularly powerful amongst millennials. This group placed word-of-mouth at the top of the list of what influences them when it comes to purchasing apparel, financial products, travel, electronics, and consumer packaged goods.

Is a referral incentive an allowable marketing expense?

Yes, referral incentives do qualify as an allowable expense which you can deduct from your profits before tax.

In short, including allowable expenses on your tax return means you pay less tax. Other allowable marketing expenses might include:

• Website costs, such as development, hosting, and domain name
• Print advertising
• Mail shots
• Free samples

Just be aware that entertainment and hospitality, on the other hand, are not allowable marketing expenses because they’re not business critical.

How to record referral incentives for accounting purposes

You’ll need to document the referral incentives you issue as part of your regular bookkeeping process. Experts at The Accountancy Partnership recommend the best way to do this is by setting up a new expenses category specifically for referral fees.

That way you can clearly see what it costs you (so you can check it’s worth it!), as well as making it easier to claim everything against your tax bill later. It’s just another reason why accountants are so keen on good bookkeeping!

Advice on managing a referral programme

Not sure whether you should be considering running a referral programme to help promote your business? We’ve gathered some of our top tips on how to run a referral campaign efficiently, and successfully.

Set clear goals around what you want to achieve

Are you looking to accelerate business growth? Perhaps you want to supercharge revenue? Maybe you’re searching for ways to improve customer retention? Whatever your goal might be, keep it in mind when you’re thinking about your referral scheme. It might affect what sort of incentive you offer, and who you offer it to. Some people might not offer the sort of brand rep you want!

Regularly report and review progress

Like any aspect of running a business, it’s essential to take stock of where you’re at on a regular basis, so you can see what’s performing well and what’s not. That way, you can adjust your strategy moving forward.

Setting up some sort of tracking for your referral campaign will show you the progress and success of each referral incentive. There are lots of ways to do this, such as issuing specific people with a discount code which identifies customers they’ve referred, or getting technical with unique referral links or coded URLs on your website.

This sort of tracking will also help you understand what a new customer is worth in comparison to the referral costs you incurred to engage them in the first place.

Involve your accountant in the process

Whenever money coming in or going out is involved, it’s always a good idea to ensure your accountant is involved too. Where referral incentives are concerned, they’ll be able to advise on what kind of reward is affordable and make sure you remain tax-efficient and compliant in the process.

Show your appreciation

Okay, so, a customer might be getting a nice little reward for any recommendations they make but still, it’s polite to show your gratitude for their efforts. Contact your referees to say thank you – it’s a small gesture that will have a big impact.

Are referral incentives the same as affiliate marketing?

It’s easy to see how referrals and affiliate marketing can be confused or used interchangeably because both use incentives to drive new customer engagement. When it comes to strategy and management, the two are quite different.

The main difference is the audience who drives this new engagement. While referral incentives call upon existing customers to entice their friends, family, and contacts to purchase your product or service, affiliate marketing campaigns rely on third-party activity.

This third-party comes in the form of brand advocates who are paid a fee to drum up business for you. Normally, the brand advocate will be recommending your brand to an audience which doesn’t know them in person, but who may be influenced by their opinion.

They’re often paid in commission, which comes from a percentage of each sale they directly motivate. This commission is something that can be agreed upon between you and any affiliate you deploy. Yep, this is how influencers make money!

Although it is a different form of marketing from referral incentives, the fees attached to any affiliate campaign you run will also be classed as an allowable expense.

 
Find more help in our guides and faqs, or ask a tax question for free!

The post Are Referral Incentives a Marketing Expense? appeared first on The Cheap Accountants.

More importantly, what’s the best way to go about it if you’re on a budget?

Well, more and more people are taking the route of outsourcing their marketing (as opposed to handling it in-house with a dedicated team). This can be a great, cost-effective option for start-ups though it’s not without its downsides, too.

Let’s take a look at the pros and cons, as well as what to look out for when choosing a marketing agency. But first…

What is outsourced marketing?

Outsourced marketing basically involves using an external agency to manage your business’s marketing activities.

You can either get them to oversee all aspects of your marketing, in which case they’ll likely develop a strategy for you, or just a few select areas that may require specialist knowledge (e.g. your social media presence or SEO and website development).

What’s the difference between in-house and outsourced marketing?

It’s important to understand how the two differ so that you can make an informed choice, and ultimately one that’s right for you and your business.

In comparison to outsourced marketing, marketing which is in-house typically involves a small, dedicated team – or even a single person. It might even be you, as the business owner!

This means you’ll either need to employ someone to do the job (yes, even if you’re a sole trader), or find time to fit it into your schedule.

What are some of the pros of outsourcing marketing?

One of the main benefits is being able to work closely with an agency that has access to the latest marketing tools and technologies. Your business will benefit from all this without you needing to purchase any of it yourself.

You’ll also get access to different perspectives than if you were to simply do it yourself. This can be really beneficial, as being too close to the business can mean you lose the ability to be objective and spot potential issues.

Outsourcing to freelancers or other companies also frees you of the duties and responsibilities you would have if you chose to employ a dedicated marketing team instead. These include things like recruitment laws, registration, insurance, various health, safety and equality duties, payroll and the legalities of sick and maternity pay.

What’s more, outsourcing allows you to adopt a more flexible approach, as when you start working with an agency, you have the benefit of being able to increase or decrease the number of services you require as and when you need to.

And the cons?

First and foremost, it may be hard to find an agency that understands the unique needs of your business. You want an agency with different perspectives, but, at the same time, these could actually cause them to try and take your marketing in a direction you’re not entirely comfortable with (or ready for).

Learning to trust their direction could take time – time that you may not have if you’re hoping to grow your business quickly.

You may also notice a lack of loyalty and/or commitment when working with freelancers or other companies, and this is because they (understandably) don’t feel the same level of investment as a permanent employee would.

If you’re hiring a freelancer, one other thing to watch out for is that they don’t fall under IR35. This is when someone is working for a client (you) on a supposedly self-employed basis, but the relationship is actually more like they are an employee, or an employee-in-disguise.

Failing to comply with IR35 rules can result in financial penalties.

What to look for in a marketing agency

Broadly speaking, you want to look for one which offers a diverse range of services, from digital and social media marketing to web design and copywriting.

Whether you have an immediate need for all of these right now or not, it’s still good to have the option – just in case.

A proven track record (and the accompanying experience) is also a crucial factor, as you’re effectively placing your trust in someone you don’t know, and so you need to see evidence they’re capable of getting the job done.

Otherwise, it’s a complete shot in the dark.

Good communication is also important, so that you’re kept in the loop and can track the progress you’re making (via things like monthly reports or meetings).

And, again, you ideally want someone who just “gets” your business, as this will make the whole process much smoother, allowing you to scale at a faster rate.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Should My Small Business Outsource Marketing? appeared first on The Cheap Accountants.

If you use a car for your business

Car insurance is a legal requirement for every driver, but did you know there are special considerations if you drive for business as well as leisure or commuting?

Using your own car for business purposes

Car insurance is issued based on what you use the vehicle for, so if you don’t already have business use on your policy, make sure you either upgrade your personal car insurance to cover business purposes too, or get business car insurance.

If you have an accident without it, you might not have cover – and that can be both very expensive and a legal issue.

It’s also worth checking the car’s contents are adequately covered, too. If not, you could lose a fortune in stock or equipment should anything happen.

Company vehicles

Vehicles used solely for your business, be they cars or vans, will need commercial car insurance. It’s not the same as business car insurance!

If you run your business from home

Running your business from home can be a great way to save costs – and you’ll be able to claim the portion of household bills which relate to your business as an allowable expense! In some cases it might be a matter or practicality anyway – such as an Airbnb host who lives ‘above the shop’ as it were. Just make sure you have the correct insurance in place to cover any activities taking place there.

Buildings and contents insurance that covers business use

You need to make sure your buildings and contents insurance is adequate. When getting a quote for buildings and contents, you’ll be asked to if your building is only used for domestic purposes.

Don’t be tempted to say no if that’s not true, particularly if you have expensive equipment or stock in your home. Answer yes if you:

• Have any regular business-related visitors to the property (more than once a month, advises GoCompare)
• If you or anyone else run a business from the property
• If you have paying guests staying there

Many standard policies will cover limited business use with little or no extra fees, but check what protection you’re getting and consider business insurance if you’re not getting adequate cover through a standard policy.

Protecting your business against claims

There are different types of insurance available which can help your business if anyone needs to claim against it. This type of policy can sometimes become mandatory depending on what sort of business you run.

Public liability insurance

Public liability Insurance protects you against compensation claims and the legal fees involved in defending against them. These claims could be from customers, clients, or anyone else who feels your business has been responsible for injury or damage.

Examples might be a customer who trips on an uneven step and breaks their ankle, or damage that occurs to someone else’s property while you’re having work done or moving bulky stock.

It should also cover the actions of yourself and any employees when you’re on someone else’s premises, but always check exactly what’s covered.

Professional indemnity insurance

This is sometimes confused with public liability insurance – not helped by the fact that some companies offer a joint policy!

Professional indemnity insurance covers you against claims from customers or clients who have been adversely affected or financially disadvantaged by taking your advice or using your services.

This could be anything from the fire or flood resulting from electrical or plumbing work you’ve undertaken, to losing money because a service you supplied was delayed or inadequate.

Lawyers, accountants, and financial advisors must have this type of insurance by law.

Product liability insurance

This may sometimes be covered by your public liability or professional indemnity insurance. If it’s not, and your business sells products, ensure you take out product liability insurance.

This covers you against claims arising from injury to members of the public or damage to their property caused by products you make or supply. An example might be a small child choking on part of a toy that’s come loose.

If you have employees

Employers must have adequate insurance – it’s a legal requirement.

Employers’ liability insurance

The minute you employ someone, even on the most temporary or casual basis, you must have employers’ liability insurance in place.

This insurance will cover your business for claims and legal fees if an employee seeks compensation after being injured or taken ill because of their work.

The Health and Safety Executive (HSE) is responsible for enforcing this law and if you don’t have cover in place, they can fine your business up to £2,500 per day that you don’t have insurance in place (and even close you down).

You should display your employers’ liability insurance certificate in a prominent position and you’re legally required to keep a copy of it for a minimum period of forty years. You’re also obliged to show it to the HSE if requested. Failure to comply with either of these conditions above can result in a fine of up to £1,000.

Protecting your business premises

You might need insurance for your premises and contents, even if you’re a tenant rather than the owner.

Business building and contents insurance

This is necessary to cover your business against damage to premises or the loss of tools, materials, stock, packaging, furniture, appliances and IT equipment. Make sure you take the time to realistically value everything you would have to replace, not just the obvious bulk or high value items.

Desks, the fridge, the stationery cupboard; everything would have to be replaced if a fire occurred at your property, so make sure that if the worst happens, there will be enough money to start again.

Business interruption insurance

If you can’t work because vital equipment has been destroyed or stolen, or because your premises have been damaged, then you’re going to lose money. Business interruption insurance will help you recoup that lost income.

 
Insurance can be costly and with so many other costs to consider, it can be easy to put off getting the cover you need. But bear in mind you’re taking a huge risk—and that just one compensation claim or burglary at your premises could be enough to bring your business to its knees. Don’t take the chance! Get the cover you need now.

The post Insurance Policies your Small Business Needs appeared first on The Cheap Accountants.

• Financial: The money and funding required to either launch or scale the venture
• Human: Ppeople (employees, co-founders, shareholders, advisers) who are involved
• Educational: Industry knowledge, news, training, reports, research, thought-leadership etc
• Physical: Tangible assets (workspace, premises, equipment) required for operation
• Emotional: A support network of friends, family, mentors and professional connections

As the owner of a flourishing business it’s essential to find sources of sustenance which will nourish and feed each of these requirements. They are all crucial elements of running a business.

In this article we’re going to focus on the educational bracket, but will also touch upon other resources to help you run your business.

HMRC

HM Revenue & Customs is an essential stop-off for any business owner, whether new or established. You’ll find information to help you with writing a business plan, details about government support initiatives, and guidance on everything from VAT to Self Assessment. This is certainly a resource you’ll want to bookmark.

Chamber of Commerce

You can either browse the British Chambers of Commerce website, or seek out your own local Chamber of Commerce online to unlock a wealth of invaluable business support.

Not only do the Chambers provide financial and educational resource, it also feeds into the human requirements we discussed earlier. Connecting with your local Chamber puts you in touch with a network of people and businesses who can support, advise and mentor you. It’s good for networking, too.

Your accountant’s website

There is much more to an accountant than simply filing tax returns and dealing with the payroll. These days a good firm will also have a website or blog that is an absolute goldmine of invaluable finance advice, business tips, and industry insight.

Staying abreast of ongoing updates to regulations, deadlines, schemes and news can be tricky when you’re contending with a never-ending to-do list. Your accountant’s website could be the perfect one-stop source. It’s also worth asking them if they have a newsletter they could add you to.

The wonderful world of podcasts

Speaking of never-ending to-do lists and being short on time, podcasts are the perfect solution for those who prefer to squeeze their information-gathering into the morning commute, a lunchtime walk or a weekend stint on the treadmill.

Reading articles, rooting out reports and checking in on websites can sometimes be just that bit too time consuming. Instead, you can plug in and press play on a podcast to listen along whilst multitasking.

Hearing from those who have been there before and learning from their experiences is often one of the best ways to educate yourself and steer your own approach.

Some great podcasts we recommend listening to:

• How I Built This (With Guy Raz)
• HBR IdeaCast by Harvard Business Review
• The Tim Ferriss Show
• StartUp Podcast
• Masters of Scale

Of course, you know better than anybody what skills you’re lacking and where you could benefit from some additional support. Just make sure the sources you’re absorbing your knowledge from are reputable ones delivering factual information.

Top tips to ensure good quality resources

• Check when the article you’re reading was published – is it still relevant, or out of date?
• Look out for .gov, .ac or .org websites as these are often credible sources
• Steer clear of websites with suspicious pop ups requesting your details
• Stick to sources which specialise in your industry, or business advice as a wider topic

 
If you’re looking for some professional help with your business, check out our price comparison for online accounting packages.

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But that doesn’t mean your business shouldn’t and can’t appear to be professional. Here are our seven tips for a professional approach that will stand you in good stead however big and successful your business becomes.

Have an attractive online presence which is easy to find

Not every business needs a huge online presence, but it can often help to have one if you want potential customers to be able to learn more about you without having to go too far.

This might consist of social media accounts, or even profiles on various review sites, such as Trustpilot. Have a think about how you respond to any negativity though – online spats are not professional!

Have a professional email address (if you need one at all)

Your business will almost always need to offer ways for customers to talk to you. If this means handing out an email address, you probably shouldn’t use the one you created when you were a cool fourteen year old.

SeriousProfessional@Business.co.uk tends to be more reassuring than some examples we could think of.

Remember that first impressions count

If you or your employees come face to face with the public, you should all ensure you’re smart and polite. Uniforms may not be necessary or appropriate, but name badges with a job title included are a good idea.

Similarly, if customers or clients come into your business premises, everything should be neat, tidy, clean, operational and fully compliant with health and safety regulations. Trailing cables, dusty surfaces and malfunctioning toilets aren’t going to win you any customers.

Register and advertise widely

At first glance, this may not seem related to professionalism, but if clients see your name appear on local listings, online business searches and in print, it will give your business an air of legitimacy and people will be reassured by their – and everyone else’s – familiarity with your business name.

Provide great customer service

Be dependable. If you offer services, ensure appointments are properly booked, kept and run on time. If you offer goods, make sure you’re offering quality products, deliver them on time and offer swift refunds or exchanges if there’s a problem.

Answer customer queries and complaints quickly, whether by email, phone or via social media. People are quick to take to social media if complaints aren’t dealt with swiftly or appropriately.

Consider VAT registration

While you may not be obliged to register for VAT, registering voluntarily can sometimes be a good idea. It’s best to discuss the implications with your accountant, who will know the ins and outs of your business. Having your VAT number on your paperwork can help with that appearance of professionalism, and some suppliers will only deal with VAT registered companies.

Keep paperwork and payments under control

Send quotes and invoices promptly and be sure to include (and adhere to) a payment terms policy. Make sure you pay your bills on time too; word of mouth can be a negative as well as a positive!

Keeping track of your finances and invoicing doesn’t need to be difficult, and there are free accounting software solutions out there.

Professional, dependable companies will gain clients or customers by word of mouth and online recommendation, and they’ll retain them too. So, make sure your business looks, sounds and appears professional – and that it really is. Happy, confident customers are repeat customers!

 
Compare online accounting software in our information hub.

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Just because you aren’t a gigantic conglomerate organisation with offices all over the world, and countless teams orchestrating an operation cross-continent, it doesn’t mean good project management should be any less of a priority.

If anything, start-ups and SMEs have less wiggle room for error due to limited resources and finance. So, with this in mind, we’ve put together some tricks of the trade to help you improve your project management tactics as a small business owner.

Plan ahead and then plan some more

It goes without saying that effective project management requires lots and lots of planning. Processes need to be put in place and potential problems considered. Contingency plans need thinking about, and sufficient preliminary research needs doing – all before you put your foot on the gas.

You’ll need to think about financial planning, logistics, and timings to help you get the resources you need in place at the right times.

Definte the roles everyone will play – even if it’s just you

Even if you’re the only person involved, it’s still worth defining the roles needed at each stage of a project, and the responsibilities that role entails. It will help you get things clear in your mind, so you can be where you need to be at the right time.

For instance, if you’re supplying wedding cakes to two separate venues on the same day, you need to make sure you turn up at the right place, with the right cake! Plus, are you just handing the cake off to someone in the venue? Who? When? And so on…

Ensure everybody involved is clear on where they need to be, what they need to be doing, when they need to do it by, and who they need to be working with.

Evaluate and evolve as you go

As the project develops, ask yourself the following five questions at regular intervals:

• Are you meeting milestones in sufficient time?
• Are all of your deliverables being executed to a high enough standard?
• Are there any members of the team who would be better placed elsewhere?
• Is your budget still on track?
• Have there been any unexpected elements which now need accounting for?

Answering these questions at various points along the way will help you identify any issues that might arise, or any processes that may need streamlining in some way. You might even find they’re part of a larger issue within the business, prompting you to update your business plan completely.

It’s going to help you evaluate as you go, and sort out any weak spots before they become big troublesome holes!

Don’t be afraid to delegate responsibility

Offloading tasks to people with the right skills for the job isn’t a sign of weakness. In fact, it’s an entrepreneurial strength.

Trying to take everything on yourself will almost always result in underperformance, struggles with deadlines and frustration all round.

A knockout project manager is one who can recognise their own skill gaps and capitalise on the expertise of others. Whether you have staff or need to outsource to freelancers, delegation can save the day.

Manage the budget

A huge part of the project management process is handling finances and making sure budgets are being met.

With so many other elements to consider, it’s easy to take your eye off the ball when it comes to outgoings and spending. You just want the project to go to plan and we get that. However, for a small business, overspending can be crippling if not handled correctly so it’s vital to take measures to avoid it at all costs.

Enlisting the help of a trained professional will help you make sure the numbers stay balanced, and you don’t end up splashing cash on things you really can’t afford.

 
Need help with the accounting and finance side of things? Learn more about how an accountant can help.

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