No, times have moved on, and people pretty much expect to be able to purchase things online, or at the very least using their debit or credit card, if not contactless.

If you’re a business owner who has yet to make the switch to online payments, there’s simply no time to lose, and waiting any longer could result in you getting left behind.

But what exactly constitutes an online payment, and how do they work?

Also, what’s the cost involved?

Let’s take a look.

What are the benefits of online payment?

First and foremost, your business risks losing a sale if there’s no way for someone to pay via card, as they simply might not have cash on them (an increasingly common occurrence).

Like it or not, people have been conditioned to rely on online payment methods, and so carry less and less cash every year.

Being able to take card payments also means people will be inclined to spend more, as they’re not eating into any emergency cash reserves they do have.

Security is another big factor.

The reality is that businesses which deal in cash are more vulnerable to things like robbery attempts, putting staff at risk unnecessarily.

Conversely, when everything’s in the ether, it’s safe from physical threats.

Perhaps the biggest benefit, though, is simply convenience and accessibility, with online payments enabling customers to make purchases from anywhere in the world, and at any time.

This means businesses can receive payments instantaneously.

How do online payments work?

Online payment generally refers to when businesses accept electronic payments for goods or services purchased over the internet (or via card/contactless).

There are different types of online payments to be aware of as a business owner.

These include:

• Debit and credit card payments
• Bank transfers
• Digital wallets

Typically, payments go through a payment gateway and payment processor, and these authorise online payments by encrypting and transferring data securely.

Choosing the right online payment method

When it comes to choosing an online payment method, there are actually quite a lot to choose from, and some work better for different types of businesses.

It really comes down to what’s best for your business, based on your own unique needs.

With that in mind, the most common types include the following:

Credit and debit cards

These are undoubtedly the most common forms of online payment processing, mainly because of how easy they are to use.

To make an online purchase, customers simply enter their credit or debit card information into a payment gateway.

Or, if the sale is in person, they can use their pin or even just tap their card for smaller purchases (known as contactless).

Bank transfers

As the name would suggest, this method involves the transfer of funds directly from the customer’s bank account to the business’s bank account.

Bank transfers can be completed two main ways: either via online banking or with mobile banking apps.

Alternatively, they can be initiated and authorised through a retailer’s website or app.

Digital wallets

These offer a convenient alternative, allowing customers to store their payment details and make online payments quickly and easily.

Popular examples include PayPal, Apple Pay, and Google Wallet.

Direct debit

This is a recurring payment method where the customer gives permission for the business to withdraw a set amount from their bank account at regular intervals, much like a subscription.

Cryptocurrency

Crypto is a digital currency that can be used to make online payments in certain countries.

Although this is a newer option, it’s becoming more and more popular, and regulations around it are constantly evolving.

Setting up a payment system

For businesses, choosing the right online payment processing provider is key to being able to accept online payments.

There are some important factors to consider when looking for one, though.

For example, you’ll want to look for providers that offer advanced security features like fraud detection and prevention, as well as data encryption.

You’ll also want to consider the costs (transaction fees, setup fees, etc.) and also check how easily the payment processor can be integrated into your website or e-commerce platform.

Depending on the size of your business (and your plans for future expansion), you may also need a provider that supports multiple currencies and languages.

Popular online payment platforms and tools

Generally speaking, you’ll find that most online payment processors share similar features, and so your final choice is likely to be based on which you think best aligns with the unique needs of your business.

Whichever route you go down, the goal is the same – to make it as easy as possible for customers to hand over their money. Weigh up your transaction volumes, your customers’ preferred payment methods and how much control you want over fees and contracts, then pick the provider that suits you best. It won’t always be the one with the flashiest offer.

Get the basics right, and online payments stop being a technical hurdle and start being what they should be – one less reason for a customer to walk away.

Let’s compare some of the best payment processors for businesses in the UK to give you somewhere to start.

WorldPay

• Offers specialist payment packages for small and medium-sized businesses
• Supports a wide range of global payment methods
• A choice of countertop, portable, or mobile card machines
• Pricing split into two main tariffs (Simplicity and Custom), usually tied to an 18-month terminal hire agreement

Revolut Business

• Provides a wide range of payment processing solutions for small businesses, including in-person card readers, a free POS app compatible with iPhones, Macs, etc.
• Gives you the ability to accept online payments in up to 32 countries
• No hidden fees, and no set-up charges
• Fast access to money with 24-hour settlement, even on weekends
• To use Revolut Business’s payment solutions, you will need an account
• Prices start from £10 per month

Tide

• Banking and payment solutions for small businesses, including card readers, online payments, and Tap to Pay
• Standard and Plus card readers, both of which have Wi-Fi and lifetime free 4G connectivity
• Plus model allows you to print receipts
• You can rent or buy the device
• Alternatively, you can choose the pay-as-you-go model, with no monthly fees but an upfront cost of £159 and transaction fees from 1.39% + 5p

PayPal

• Offers a point-of-sale, card reader, invoicing, and an ecommerce platform
• Allows you to manage your inventory, send abandoned cart emails, and track your performance with real-time sales analytics
• Compatible with iOS and Android, accepting Samsung, Google, and Apple Pay
• 1.75% transaction fee
• Custom rates for businesses that take over £10,000 every month

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

The post How Do I Take an Online Payment? appeared first on The Cheap Accountants.

But should you hire an IT contractor or go through a recruitment agency? The reality is there are benefits to both, and which you should choose really depends on the kind of support you feel you need, and how long for.

In this article we’ll look at your options for outsourcing your business IT to a contractor of taking on an agency.

What is an IT contractor?

Essentially, an IT contractor is a self-employed specialist, hired by businesses to complete a range of projects – normally to work in fixed blocks of time (e.g. 3, 6 or 12 months). This could include things like IT support, or software development and network administration.

This arrangement allows them to enjoy flexibility and freedom in their work, moving between different organisations once their contract is up.

Advantages of hiring an IT contractor

If you’re looking for an IT contractor for a specific project or busy period then the contract only needs to cover that time. This means you don’t have to worry about any hidden overhead costs like you would with a permanent employee in your business – such as pension payments, National Insurance contributions, sick pay, etc unless your IT contractor is working inside IR35.

Another big advantage is that you have greater flexibility, as you can engage the contractor for however long you need them, and compared to a larger agency it’s often easier to terminate their contract if your strategy changes for any reason.

It’s also true that not every business requires a full-time, in-house IT specialist. By contracting the work out, you can pay a fixed rate for the duration of the project, as opposed to keeping someone on your books unnecessarily.

Disadvantages of hiring an IT contractor

You can generally expect an IT contractor to charge more in the short term, owing to the lack of job security and employment benefits.

They may also specialise in a particular area of IT, in which case the service they offer could be considered more bespoke (and so worth more).

In addition, while you can obviously read reviews and look at their CV/portfolio, there’s no getting away from the fact that hiring a contractor is still a bit of a shot in the dark, as you don’t know what they’re going to be like to work with.

It’s also worth noting, if a project runs over schedule and requires renewals, businesses must be careful not to blur the lines between a contractor and a permanent employee.

If the working relationship shifts to mirror regular employment, the role risks falling inside IR35. This would require your business (or the fee-paying agency) to process them via payroll, deducting income tax and National Insurance, while also paying Employer National Insurance on top of their rate.

What is an IT agency?

An IT recruitment agency specialises in connecting IT professionals with job opportunities at companies looking for talent.

They handle everything from sourcing candidates to screening CVs, so employers only see people who actually fit the role.

Advantages of using an IT agency

First and foremost, you’ll have access to a broader talent pool, as recruiters actively source potential candidates through various channels, such as job sites, social media, and professional networks.

This not only gives you more options, but also saves you a load of time which you can spend on other important tasks in your business.

Recruiters also assess candidates by looking at their CVs and conducting interviews, and so the risk of you hiring the wrong person is significantly reduced. Consider for a moment the hidden cost of a bad hire: months of salary paid for underperformance, as well as management time spent resolving issues.

An IT recruitment agency can also provide insights into things like current salary trends, competitive intelligence, and other job market-related information that can help inform your hiring strategy.

Increased confidentiality might be another possible advantage depending on your situation, as you don’t have to advertise job openings when going through an agency.

Disadvantages of using an IT agency

One of the tradeoffs of the agency handling everything for you is you therefore have less personal involvement, and if you’re used to making all of the decisions in your business, then you may struggle with this.

Whilst you can choose how long you want the contract to be, you’ll be bound to the Terms of Business (ToB) contract with the agency – which could include things like restrictive clauses, where you can’t hire the individual directly without paying the agency a ‘transfer fee’.

On top of this, the agency will usually charge a percentage of the candidate’s first-year annual salary.

• For standard or entry-level roles, this typically falls between 15% and 20%
• For specialist or senior roles, fees can sometimes range from 20% to 30%

Exact recruitment fees can vary, and will be influenced by factors like location and role complexity (e.g. entry-level or specialist), with hard-to-fill roles requiring more targeted search campaigns.

So, should I go with an IT contractor or agency?

There’s no one-size-fits-all answer here – it really comes down to what matters most to you. If you’ve got a specific project in mind, a tight budget, and don’t mind doing a bit of legwork to find the right person, a contractor could be the way to go. But if you’d rather hand over the sourcing and screening to someone else, want access to a wider pool of candidates, and value the extra reassurance that comes with it, an agency is probably worth the fee.

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

The post Should I Hire an IT Contractor or an Agency? appeared first on The Cheap Accountants.

Not only do you want to try and find the right person, but you should also make doubly sure that you actually need to be hiring someone new in the first place – especially if you’re a small business where every penny matters.

If you do decide you need to hire someone, you need to consider things like where to find your candidates, how much you want to pay them, and if you want to offer any perks.

We’ll break all of this down for you, and even explain what to do if a candidate makes a counter offer.

Identify the need for a new hire

It can sometimes be obvious that you need to begin the process of finding someone new. For example, if a previous employee hands in their notice.

For smaller businesses this can difficult to avoid, and talent retention can be a struggle if you’re up against bigger companies offering higher salaries. This means you may have to face the reality that people will come and go – at least until you grow your business to a point where you can offer clear progression.

Other times, it’s less obvious that you need to take on new staff.

You may just notice that your workload is getting a bit much, or that employees are missing deadlines. These can be indicators that it’s time to start looking for help.

It’s important to think about the long-term. If work is heavy at the moment because of a specific deadline or project, but this isn’t expected to last, then it may be better (and more cost-efficient) to outsource instead.

If that isn’t the case, and it’s busy around the clock – it’s time to look for your new hire.

Define the role clearly

Once you’ve decided you need to recruit, write up a clear job description which can be used to help advertise the role. This should outline things like:

• Key responsibilities
• Required skills and qualifications
• Experience level

You’ll also want to explain the reporting structure, as well as what success might look like in the role.

Lastly, if there are any particular benefits or perks to working in your business, be sure to list these too, as they may help entice potential candidates. An example might be free parking, or a catered lunch.

Determine salary and employment terms

The next thing to do is undertake some market research into average salary levels for the kind of job you’re looking to fill.

You’ll need to decide on the following:

• Salary range
• Benefits and incentives
• Working hours and flexibility
• Contract type (e.g. full-time, part-time, temporary, or freelance)

Again, if your resources are limited then you may need to place more emphasis on something like flexibility in order to still appear like an attractive option.

Choose where to advertise the role

Conduct more research and figure out which channels or sites will allow you to reach your target demographic.

Examples include job boards like Indeed, professional networks like LinkedIn, recruitment agencies, social media, and of course your own company website so that people can apply directly.

Internal referrals can be another good option given that an employee is unlikely to risk their reputation by referring someone who isn’t a good fit.

Conduct interviews

After drawing up a shortlist of suitable candidates, looking for both technical ability and also cultural fit, you can start the process of interviewing them.

Try to prepare structured interview questions, and in the interview itself, assess such things as the candidate’s skills and experience, problem-solving ability, and their alignment with your company’s values.

Don’t be afraid to hold multiple interview stages if necessary, and do your due diligence as an employer: contact previous employers or professional references, confirm the candidate’s employment history, etc.

You really don’t want to get this decision wrong, so feel free to take your time.

Make an offer

Think you’ve found the one?

Great.

Make them your best possible offer, including things like the salary, start date, and contract details.

Now, when you interview somebody for a job vacancy and offer them the role, they might sometimes respond with a counter offer, so be prepared to negotiate.

Their counter offer could be regarding hours, location, or responsibilities – but let’s be real: it’s usually about pay.

This may have always been their intention, and now that they know you’re interested in hiring them, they feel emboldened enough to try their luck.

Ultimately, it’ll be up to you to decide whether it’s worth it. You could come to an agreement with them. Say, for example, they’re asking for £5k more; you might agree, once they’ve completed their probation period.

Onboard the new employee

All that’s left is to provide a structured induction for your new hire, introducing them to the team and company processes. If it’s your first hire, make sure you’re registered for PAYE, and you understand how payroll works (when it comes to deducting things like NI and income tax).

Reiterate your expectations of them and even set some early goals to get things started.

Of course, you should also make yourself available to offer support and guidance during the early stages.

Before you know it, they’ll be part of the team!

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

The post How to Recruit Someone to Your Business appeared first on The Cheap Accountants.

Failure to comply can result in content being pulled from the platform or even a permanent ban, so the impact can be significant if you’re a small business looking to invest in social media or influencer marketing.

We’ll look at what the latest guidelines mean for you, and how you might even capitalise on them. Let’s jump in.

What are TikTok’s content guidelines?

TikTok’s policies reflect the requirements of the European Digital Services Act, which is in place for Very Large Online Platforms (VLOPs) with over 45 million monthly users in the EU.

We’ll cover the three main areas one by one, starting with the most timely.

AI-generated content

So-called “deepfakes” are facing the strongest crackdown. In short, all AI-generated content (including images, audio, and video) must be clearly labelled to avoid confusion.

Deepfakes are media generated by AI to depict someone saying or doing something they never actually did. For example, a deepfake will clone a celebrity or politician and then use this to manipulate their audience.

If your business does use AI-generated content, you must indicate this by applying the label “AI-generated content”. This not only safeguards you against compliance violations, but also builds trust with your audience.

LIVE streaming

Creators are expected to take responsibility for their content, making sure it adheres to strict advertising standards when promoting products and/or services in real-time.

For example, much like with AI-generated content, ads and sponsors must now be labelled or demarcated in some way.

There are also strict rules around what you can and can’t advertise, too. For example, you’re usually prohibited from promoting high-risk, age-restricted goods – like tobacco or adult services. Advertising alcohol also comes with strict rules that include age-gating and business authorisation.

Eligibility to go live has also become stricter, with only users aged 18 and above being allowed to do this and monetise streams.

What this means for you is extra due diligence when working with any creators or influencers, including ensuring they are 18 or older, and following TikTok’s guidelines.

Transparency and safety

The responsibilities creators have also include taking care around misinformation and trends that TikTok deems unsafe or even harmful, such as misleading health or financial advice.

Increased responsibility also means increased accountability, and as the business running the campaign, the buck ultimately stops with you. Vet potential partners, and only work with people who are eligible and demonstrate compliance.

What your marketing team needs to know

Let’s look at some numbers.

• Upwards of 30 million people in the UK now use TikTok
• Over two-thirds (67%) of UK brands run influencer marketing campaigns on the platform

As such, compliance with the new rules shouldn’t just be treated as a formality; it can actually give you a strategic advantage over your competitors, allowing you to grow your reach and ultimately expand your client base.

Finding your target audience

Running a social media page of any kind will require a time investment in order to make it worthwhile, and so you want to ensure you’re on the same platform as the people who would be interested in what you have to offer.

This is where it’s useful to consider whether or not your business even needs a TikTok account. Otherwise, you simply won’t see the results you want.

Adapting to the rules

Every business needs some kind of niche to stand out in an increasingly competitive marketplace, but simply positioning yourself as trustworthy and responsible may in fact achieve the same outcome, as many creators will be slow to adapt to these new changes.

To be on the safe side, start incorporating AI disclosure and LIVE safety requirements into marketing campaigns, briefs, and contracts for potential partners.

This will also future proof your campaigns, setting you up for long-term success.

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

The post Everything Small Businesses Need to Know About TikTok’s Guidelines appeared first on The Cheap Accountants.

CV and portfolio building

Your curriculum vitae and portfolio are both valuable ongoing resources showing what you’ve done, and therefore what you’re capable of. Continuously building on this shows potential clients all the ways in which you can add value through your services, with evidence based on real examples to showcase your work.

This might not always be so simple though, especially in the early days of your freelance careeer, during quieter spells, or if you’ve been working with clients under non-disclosure agreements.

Doing the work on a voluntary basis will allow you to show-off your problem-solving talents without fighting for the work first – hopefully helping you secure the job as a paid gig next time round.

It’s also a great way to test run brand new skills if you are in the process of a complete career transformation without being tied to any long-term employee contracts.

Making contacts

Volunteering in your chosen field means you are opening the door to a whole new world of contacts and opportunities you might otherwise miss.

You’ll be connecting with the right people and gaining access to resources which could help you get ahead.

Volunteer work is also great practice for networking, enabling you to hone in on your interpersonal and communication skills. It will stand you in good stead for future interviews and client meetings! You might even connect with someone who becomes a valuable mentor on your journey.

Employability

It’s common knowledge that the skills gap is still a prominent problem throughout the UK. Extra-curricular work towards learning and adopting new skills can help you stand out from the crowd.

Along with developing your skillset, taking up volunteering work demonstrates willingness, initiative, motivation and a drive to succeed. These are all extremely attractive qualities to prospective employees or clients who will be sifting through applicants or pitches.

Boosting confidence

CV building, contact making and employability are less important to the well-versed retiree who is simply looking to spend their time constructively. However, confidence boosting is vital to almost everybody as great self-esteem contributes to a healthy mind and positive productivity.

A survey by Reach Skills showed that more than one in three volunteers do it to increase their confidence levels and we salute them! Satisfaction, pride, sense of purpose and confidence in your own capabilities are all key ingredients to a happy well-rounded person, and staying motivated.

Good karma

As well as ticking lots of boxes for those of you still working your way up the career ladder, volunteer work will also allow you to rack up some serious good karma points.

If nothing else, altruistic acts of kindness make you feel all fuzzy inside and will give growing businesses the helping hand they need to succeed and we all know that feels, right?

Getting the most out of your volunteering experience

Taking a hiatus from money-making can be nerve-racking, so it’s important you get the most out of your volunteer experience. Be proactive in getting involved and go above and beyond what’s expected of you. Remember, it’s only temporary and one day these skills could be earning you a pretty penny.

If you feel like you aren’t getting enough out of the experience then speak up because volunteer work has to be a mutually beneficial process.

Lastly – ask questions. Be inquisitive to absorb the absolute most out of the situation and the people in it. Wring it dry!

 
Check out our accounting support hub for more help and resources, or to ask a tax question.

The post Will Volunteering Work Help My Freelance Career? appeared first on The Cheap Accountants.

This is where good financial planning and management come into play, helping to give your business a solid foundation as you look to establish yourself in the market.

In this article, we’ll share some of the best things you can do in the beginning to set yourself up for continued success.

Grab a notepad and pen, and let’s get started.

Do your homework

It can be tempting to just dive in headfirst once you have a business idea you’re happy with. But take a moment to consider how much you actually know about the market you’re looking to enter.

Do you know the ins and outs, or do you have more of a working knowledge?

If it’s the latter, you might want to rectify that before you get up and running. Conducting research into your chosen field shouldn’t just be a formality, though, or an exercise in ticking boxes.

Carrying out good market research and analysis is a sound business practice that can pay dividends in the long run – hopefully literally, if you’re running a limited company!

As well as giving you a good idea of what your operational costs are likely to come in at, early and ongoing market research will help you with things like:

• Setting fees and prices
• Understanding who your nearest competitors are
• What your customer is looking for from you, which will give you a better chance of securing work

Track your spending

Two words: cash flow.

This is super important to understand, but it’s also tricky for new businesses just starting out.

Again, your first impulse might be to cut to the chase and start spending right away, and this actually makes a good amount of sense. You obviously need to invest in your business if you want it to grow, right?

Yes, but you also have to be smart about it. If you miscalculate and then can’t pay your new suppliers on time then you might be out favour before you’ve even had a chance to make a good go of it.

Thankfully, good bookkeeping software can help with this, allowing you to track your spending and use short and long-term forecasting to work out when clients need to pay, so you can pay your own bills on time.

Once you have a cash flow forecast, you can then build in a buffer zone to give yourself a bit of breathing room.

Understand your tax obligations

Now, before you start to nod off, make sure you know what you owe.

The best starting point to this is deciding on a legal business structure. The way you set yourself up, for example as a sole trader or director of a limited company, affect the type of tax you need to pay as well as the deadline to pay it.

Failing to pay the correct amount (or type) of tax can result in hefty fines from HMRC, and no one wants that.

Some of the types of taxes you might need to pay include Income Tax, Corporation Tax, employer’s National Insurance, and VAT.

Being aware of these means you’re in a position to plan ahead, which brings us back to the importance of cash flow forecasting!

Set clear goals

If you want to hit a target, you first need to aim at one. That may go without saying, but it bears repeating.

So, using all the knowledge gained from conducting thorough market research, as well as from your cash flow forecasting, you should try and pinpoint exactly what you want to achieve with your business in both the near and distant future.

This ensures you are constantly improving and making progress, which helps to support long-term growth.

The bit that lots of startups struggle with is the fact that everyone’s goal is “make money”. Looking at all the facts and figures can help you make things a bit more clear cut. For example, “take on one client and bill this amount by this date”.

Leverage technology

If you’re starting a business today, you simply can’t afford to ignore the digital tools and platforms available to you.

Technology can and should create savings, representing a valuable return on investment.

For example, if you’re starting up in retail, you should familiarise yourself with Electronic Points of Sale (EPOS), and perhaps even inventory management systems if you really want to make your life easier.

More generally, you should look at ways you can market your business on social media platforms like Instagram and TikTok, as this is a great way to expand your reach (and hopefully your customer base).

Every business will of course be different in this regard, so find your unique selling point and get creative.

We know it’s not easy taking your first steps in business formation, but put in the effort with financial planning and you’ll reap the rewards.

If you’re unsure about any of this, don’t hesitate to get in touch with an accountant, who will be able to simplify everything and walk you through the whole process.

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

The post Top Tips for Financial Planning in the Early Days appeared first on The Cheap Accountants.

This rupture certainly isn’t helped by the many misconceptions surrounding the concept of outsourcing.

In this article, we want to clear a few things up by presenting some of the most common myths about outsourcing, then busting them with the facts so you can decide how outsourcing might help your business.

The myth: Outsourcing means you lose control of project management

Some people find the idea of working with external parties who aren’t part of the in-house team overwhelming.

You can see your colleagues sitting right in front of you. Why would you outsource to someone who might not even be working the same timezone?

For some, this suggests nothing but a loss of control.

The truth

Often, one of the most productive things you can do for your business as an owner or manager is open the door to others more proficiently skilled. Even if they are working six hours ahead or behind, from the comfort of their own home.

With technology working its magic, remote project management and collaboration between geographically distant teams in and external to the business has never been easier.

With the right systems in place, great communication, and the odd tool to help you out here and there, those you’re outsourcing to will simply become an extension of the team.

The myth: Outsourcing is something only big companies can afford

Plenty of business owners see outsourcing as a luxury that only big companies with lots of resources can afford. They see the cost of outsourced work as an added expense on top of the regular salaries and overheads – but what about ditching tradition?

The truth

Outsourcing skills or services can actually be a great way to spend more sensibly and help budgets stretch further.

For example: rather than employing a full-time marketing social media exec to write a couple of social media posts per week, dissolve the role in favour of a freelancer or agency who can do the same, for a fraction of the cost. Plus, you don’t need to pay any employer’s contributions for them.

The myth: Outsourcing causes risks with data and cyber security

Far too often we see businesses shying away from outsourcing due to fears around cyber-attacks and data breaching. We hear you, and you’re right to be concerned about the online security of your business, especially when working with external parties. Just don’t let that be what puts you off outsourcing.

The truth

Sure, if you’re not careful, working with external parties can compromise your data, but this is why contracts are useful. A freelancer or contractor is no more likely to result in a data protection breach than an employee.

The myth: Outsourced work isn’t as high quality as in-house work

Some believe that the best work can only be done by those operating from inside the business. Employers can find it difficult to process the idea that external professionals can do just as good a job as an employee.

The truth

Recruitment is important! This is how you hire, or use the services of, good people who are dedicated to doing the job well. People are motivated in different ways, so one employee might be just as switched on as the next freelancer.

When you outsource to somebody, you’re buying into a specific, fine-tuned skillet that’s been honed. Their expertise can take you to the next level.

Sometimes, full-time employees can become generalists spread thinly, with fingers in a number of pies. The experts you outsource to, however, are masters of their craft. Plus, they’re well-versed in getting to know a business’s brand, tone of voice, culture and identity at super-speed.

Wondering how outsourcing skills might impact your business finances? Use our handy tool to ask a tax-related question for free and let our experts give you a (generous) nudge in the right direction.

The post Dispelling Common Myths About Outsourcing appeared first on The Cheap Accountants.

In some cases this can be where Debtor Protection Insurance swoops in to save the day. In this article we explain what this type of insurance covers, and who might benefit.

What is Debtor Protection Insurance?

Debtor Protection Insurance is a type of insurance cover designed to safeguard a business against customers who don’t pay their debts, or who cease to trade before they’ve settled an outstanding balance.

It enables businesses to insure themselves against the non-payment of invoices but more importantly, protect against the consequences they would otherwise have to face at the hands of customers who won’t – or can’t – cough up the cash.

It also offers reassurance in a situation where your business has to spend money on services or materials upfront in order to carry out work for a customer. If the customer ceases to trade before the work has been carried out, you run the risk of losing a lot of cash and swallowing up valuable finances for nothing.

The benefits of this type of insurance cover

So, why do so many businesses choose to fork out for Debtor Protection cover? Well, because:

• It helps maintain cash flow when customers fail to pay money owed, or cease to trade
• It helps support business-as-usual, even when you are struggling with late payments
• Generally, it tends to be a low-cost, affordable service (so well worth the investment)
• Many services cover both UK and overseas debts
• Gives you reassurance and peace of mind so you can concentrate on more important things

How does it work?

If you invoiced a customer and they fail to pay you, Debtor Protection Insurance means any financial loss can be absorbed by your provider. You won’t have to suffer the fallout of the financial blow yourself.

In terms of how payments are made, how long it takes to fulfil a claim and other granular details of the process, you’ll need to ask each individual insurance provider as this can vary from policy to policy.

Who needs this type of cover?

Debtor Protection Insurance is something businesses of all shapes and sizes can benefit from. It’s particularly useful for small businesses and start-ups who need to keep an eye on every single penny that goes in and out of the accounts.

For larger, established businesses with a more solid cash flow, late payments might not be such a pressing matter, so insuring debtors may not be top of the priority list. It’s still best practice if budgets permit.

How much does Debtor Protection Insurance cost?

You won’t need us to tell you that the cost of business insurance can vary quite significantly from provider to provider. That makes answering this particular question a little tricky and for that reason, we suggest doing your own research to find out.

How much you pay for your Debtor Protection Insurance cover will depend on a number of variable factors such as how old your business is, your typical monthly turnover, how much is owed to you in invoices, your history of bad debt, as well as any information you provide about outstanding aged debtors.

As with any insurance cover, it’s always a good idea to do your homework and shop around before signing your name on any dotted lines.

Get a few quotes and go through all of the small print with a magnifying glass to ensure you’re working with a reputable provider who will be able to protect your business when it comes to the crunch.

 
Looking for more support with your business finances? Use our resource centre to find cheap accountants and more business support.

The post Should I Get Debtor Protection Insurance for my Business? appeared first on The Cheap Accountants.

Every sale you make and every penny of profit you achieve all started with one spark of an idea. In legal terms that idea is known as your Intellectual Property (IP).

In this blog post we’ll be exploring why it’s so crucial to protect your IP and your creative assets at all costs, covering:

• What Intellectual Property actually is
• Why it’s so important to protect IP
• At what point you should protect an idea
• The best ways to protect your business ideas
• What to do if your IP has been infringed

What is Intellectual Property?

Intellectual Property is anything original you create, covering all sorts from music or artwork to software or a product invention – and so many more things in between. It also includes your business name, logo, products, or services.

Owning IP makes sure it’s only the creator(s) who can legally profit from their work by preventing other people or businesses using it unlawfully.

There are a number of ways you can protect your work – your IP – and we explore each of these in more detail further down.

Why it’s so important to legally protect your IP

There are a number of reasons why protecting your IP and creative assets is so important, including:

• Safeguarding your income and preventing anybody from profiting from your ideas without your explicit permission
• Shielding what helps you stand out from the competition and preventing your competitors replicating whatever brings you success
• Helping you avoid costly legal action further down the line if you find yourself in a situation where your IP has been infringed. It’s much better to prevent a problem than to have to deal with its consequences.

At what point should you think about protecting an idea?

In general, it’s important to think about protecting your ideas and your IP as soon as possible. The point at which you can do this very much depends on the circumstances.

If you’ve just got an idea for a business that hasn’t started trading yet, applications for IP protection aren’t typically accepted. So, if you want to safeguard an idea for further business development later on, you might consider:

• A Non-Disclosure Agreement (NDA) so you can talk to other people about your idea, but they can’t disclose it elsewhere
• Setting up a company (and leaving it dormant) so it can ‘hold’ your IP until you’re ready

If you’re looking to protect a practicing idea or creative asset for a business that is already trading, on the other hand, you should do so sooner rather than later. So, if your business is registered and you’re ready to start trading, there’s no time like the present to start protecting your IP.

The best way to protect a business idea

When it comes to safeguarding your ideas and Intellectual Property, there are a number of routes you can take, depending on the nature of your asset(s).

Non-Disclosure Agreement (NDA)

If your business isn’t trading yet and your idea isn’t in practice, the best way to protect yourself is with NDAs. Anybody who signs is under contract not to discuss or share your ideas without your permission.

If you’re talking to a client or a supplier about your idea, for example, you can get them to sign an NDA to keep your plans under wraps.

Patent

Patents are most commonly used to protect inventions. A patent gives the inventor exclusive rights, granted by the government, which mean nobody else can replicate, sell, or make money from that invention.

There are two different types of patents:

• Utility patents (the way something works)
• Design patents (the way something looks)

Both types require the inventor to go through a rigorous application process to check criteria. If an invention is just a modification of something that already exists, for example, a patent cannot be granted.

Top tip: Patents are only applicable in the country which grants them, so always try to secure a Worldwide Patent wherever you can.

Trademark

Trademarks are most commonly used to protect a business’s brand. They can cover elements such as a company name and logo, and sometimes even specific words and colours. Trademarks are designed to protect your business’s unique identity by preventing others replicating it too closely.

Once you have a trademark in place, you can start using the registered (®) symbol to demonstrate that your IP is protected. As with patents, trademarks only apply in the country which grants them, so it’s vital to apply for trademark registration anywhere you plan to do business.

Copyright

Unlike trademarks and patents, you don’t actually apply for copyright. Instead, copyright applies automatically to any original works or ideas that have been expressed.

The following assets are automatically protected by copyright, meaning you don’t need to take any action:

• Original literature, drama, music, and art
• Sound and music recordings
• Film and TV recordings (including broadcasts)
• Original illustration and photography
• Original software, web content and databases
• Original layouts

You can – and should – mark your creative assets with the copyright symbol (©) to indicate the protection. This isn’t a legal requirement and not using the symbol won’t impact the copyright protection, but it is best practice.

Copyright expires after a certain period of time so make sure you do your research to ensure your ideas stay secure. Most copyright is in place for 70 years but there are some instances where this is much shorter.

You can license or sell your copyright to third parties via a legal contract that passes usage rights over to them. You can then start reaping the rewards of royalties. To do this, you’ll need to register your work with a licensing body.

Trade secret

Trade secrets conceal confidential business information from the public domain. This could be a formula, a process, a technique, or even a secret recipe that you don’t want the world to know about.

You cannot officially register a trade secret and instead they’re protected by common law under the law of confidence. However, this is where Non-Disclosure Agreements come back into play, to prevent anybody sharing your secrets unlawfully.

What to do if your Intellectual Property has been exploited

There are several actions you can take if you find your IP being used without permission.

1. Take a deep breath and sleep on it

Any correspondence you have with somebody regarding infringement can be used in legal proceedings, so be mindful about what you say or do in the heat of the moment.

2. Issue a cease-and-desist letter

This should outline the problem and how you wish for it to be resolved, as well as detailing all of your IP rights.

3. Negotiate a resolve amongst yourselves

Sending a cease-and-desist letter will, hopefully, be enough for you to come to an agreement without the need for legal support. In most cases an IP violation will be an honest mistake which you can quickly resolve. You can also ask someone to mediate on your behalf if you prefer.

4. Seek legal advice

If step 3 doesn’t solve the problem, it could be time to take further legal action. A solicitor will be able to assist you but just be aware of the potential costs before committing to anything.

Can an accountant help me with IP?

Navigating Intellectual Property protection can seem daunting so if you’re feeling overwhelmed don’t worry, you’re not alone. Whilst they might not offer legal advice per se, accountants can help you deal with the financial impact it might have on your business. They can also help you set up a limited company to offer your ideas more legal protection.

So, if you’re looking to protect your business, speak to an accountant who will be able to help guide your strategy and finances. They’ll also be able to advise you on what level of protection best suits the various elements of your business and its Intellectual Property.

 
Find more help and accounting support in our online hub, or learn more about finding an accountant.

The post How Do I Protect an Idea? appeared first on The Cheap Accountants.

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.

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