Wednesday, 23 June 2010
The Budget
Yesterday was the first opportunity for the new coalition government to outline their proposals for government spending, particularly for the current fiscal year, but also in broad principal, for the next three years.
How will these proposals effect individuals and small businesses? For individuals in the higher income bracket; no change at all. Once their total taxable income exceeds £100k in a tax year then they will begin to lose your personal allowances; when their taxable income exceeds £150k in a tax year, then they will be paying income tax at 50% on income above £150k.
For individuals who find that there income within a tax year means that they will be paying tax at basic rate, then there is better news; their personal allowances are going to be increased by £1,000 in April, worth £170 a year.
But there is a cost. VAT is going to rise to 20% in Jan next year, which means that this £170 will soon be clawed back into government coffers. Our shopping bills, private motoring costs, personal and luxury expenditure will all be more expensive by 2.5pence in every £1.
Businesses however, can look forward to more generous proposals; fuelled, no doubt, by the fear of further unemployment and also to encourage profit, which results in more tax. The corporation tax for small companies is going to be reduced from 21% to 20%; and for larger companies, which has a corporate tax rate currently at 28%, the rate is going to be reduced by 1% for each year, for 4 years, until the rate is at 24%.
For all businesses, corporate or not, if they employ people, then the threshold at which they pay employers national insurance will rise each year by the rate of inflation PLUS £21 per week.
What about those who were planning to realise capital assets? It was feared the the CGT rate would return to 40% for non business assets. However, as it turned out, for higher rate taxpayers the rate is increased only to 28% from midnight 22 June, 2010 - still an increase but nowhere near as much as was feared. Even better news though for entrepreneurs relief - the rate of 10% on the first £2m gain will be extended to the first £5m - worth popping the champagne corks for!
So, how is the government going to tackle this huge deficit that it has been telling us about? Well, no changes for the higher earners is one. In fact, with annual inflation - albeit this rate is small - one could argue they are worse off. Also there is the increase in the VAT rate.
The big hits are in public spending. Public sector workers will face a pay freeze for two years for those earning over £21,000 per annum; for those in the public sector earning less than £21k per annum, they will get a flat pay rise worth £250 for both years. In addition; education spending in England is facing up to a 25% cut. There are also hits on; child benefits, housing benefits, tax credits, other benefits effecting lone parents. The total cuts to welfare will result in an expected saving by 2015/16 amounting to £11bn.
My final thoughts? Well, we were all bracing ourselves for high increases in taxation and in the end these didn't materialise. But beware of the effect of the cuts in public spending. When preparing for your personal and business budgets for the next two years - build in a factor for a drop in demand as a result of your customers having less disposable income.
Like me, I sure that you are glad that the budget is over - at least for the moment. Should we lose sleep? probably not - just make sure that YOU budget and ALWAYS prepare up to date and robust plans
Tuesday, 11 May 2010
TODAY with TONY DOWN
Excellent numbers attended the financial and business planning courses this week - very positvie feedbacks. Further courses that we are running very shortly, include; SAGE accounts, Quickbooks, and general book keeping. Budgeting methods and skills will be included in all the courses.
All course are led by Tony Down FCCA, a Chartered Certified Accountant and experienced presenter. Contact a member of his team on + 44 (0) 08450 347343 or email tony@gordon-down.co.uk
Financial Management
Many businesses today are still unaware of their overall financial situation. Apart from being able to easily access their bank account balance from over the telephone, internet, or cash point machine, all the other important information such as; total sales, breakdown of costs, profit and working capital remain a mystery until accounts are prepared nine months or so after the year end. Too late for being able to make management decisions; their only use is for the tax authorities for which, in reality, was the only reason the accounts were prepared.
It is little wonder then that businesses are still struggling and that the rate of business closure remains very high.
Tony Down and his team seek to support and encourage businesses by providing and explaining the financial information, thereby empowering business owners and their management teams to take business decisions based on accurate information.
Whether your business is based in the UK or in another Country; to find out how Tony and his team can add value to your business, please contact him on +44 (0) 08450 347343 or email tony@gordon-down.co.uk
Tony is a Chartered Certified Accountant and Business Advisor. He is also an experienced presenter where he regularly provides seminars on subjects including, financial and business planning, financial monitoring and financial control.
Wednesday, 21 April 2010
SEMINAR by TONY DOWN
Today, and through to the 6th May; the electorate here in the UK are being asked to make choices. Depending on what their choices are, and more importantly, their choice on the 6th May, this will determine who will govern Britain for the next four years or so.
So making the right choices are important, not just politically, but certainly in business aswell. Business is limited in the amount of resources that are available to them (economists call this 'Scarce Resources'). Whether the resource is money, people, or, capital equipment - the amount available is limited; so, we have to make choices from time to time.
This week I have been continuing to advise a business who wants to carry out a new project, but for a long time, this project has remained as just an idea in the directors minds - no progress has ever been made. I have helped the company put a 'Route Map' together whereby they can identify where they are now, then how they are going to achieve a successful outcome to the project - This is called; 'Strategy'.
Basically it's about planning. Making the most effective and efficient use of the limited resources available to them - Making right choices. Taking a wide panoramic view of the business and economic evironment and then breaking the picture down into detail.
Finally, Thursday and Friday I presented the second of this months business seminars. One of the delegates who attended is an Illustrator and Animator; at the end of the course he came up to me and said, 'Thanks Tony, the last two days have been really helpful', then he handed me a cartoon of myself presenting the seminar - I shall treasure this so much; there are some things that just cannot be measured in monetary terms.
Management and use of resources in business is important - It's not just about money, other resources are just as important too. For details of my seminar "IT'S NOT JUST THE COST, IT'S THE INVESTMENT THAT COUNTS", contact me at +44 (0) 08450 347343 or email me at: tony@gordon-down.co.uk
Sunday, 18 April 2010
TODAY with TONY DOWN
I have been in the Garden this morning, so having a break now - I had a great two days lecturing. One of the delegates is an 'Illustrator'. He was good fun; we had a bit of banter from time to time which really helped everyone relax and contribute. I thought that he was taking copious notes yesterday morning, then, during the lunch break he came up to me and said 'thanks Tony, the last two days have been really helpful, this is a present for you' he then handed me a cartoon of me in front of a flip chart - I laughed so much, but I was really touched aswell - there are some things that you just cannot measure in money terms.
Tony.
Thursday, 15 April 2010
TEAM
Together Everyone Achieves More
In 56 days time 31 national football teams will take part in the most prestigious football competition – The FIFA World Cup. On the 11th July one of these teams will be crowned FIFA World Champions.
What will be the key factors in the winning teams success?
- VISION
- DESIRE to succeed
- BELIEF - individually and in all other team members
- TEAM culture
- FOCUS on the overall OBJECTIVE
- FITNESS
- PREPARED
- Strong LEADERSHIP
- SACRIFICE
- EXCELLENCE
Tony Down believes that examples from the Sporting World are invaluable and can be used within business models and organisations to enable businesses to be ‘Winners’. Through seminars and his own written material, Tony unpacks each of these 10 points.
Tony is a Chartered Certified Accountant, business advisor, and experienced presenter. Contact a member of his team on +44 (0) 08450 347343 or, email him at tony@gordon-down.co.uk
Saturday, 10 April 2010
STORY about PLANNING
An executive in their late forties sat pondering. Looking back over their career, they wondered how although they had worked so hard, that at nearly 50 years of age, they had still not quite achieved their objectives that they had dreamed of and set when they were much younger.
As they sat, an elderly gentleman slowly approached them – time had taken its toll on him but he looked so content; and smiled. He put his arm around them and said, “I have lived my life. I am happy and content what is bothering you”?
The executive explained to him that as a teenager they had this idea to build an organisation that would one day be a happy environment where they would provide gainful employment for many. That they would produce a service that would ‘blow their customers minds’. Then the day would come where they would spend more quality time with the family, that they were blessed with; they thought too, of the day when they could celebrate their own children’s success and of the grandchildren that they might one day have the fun and privilege of playing with.
The gentleman beckoned the executive to stand up and to follow him towards a large shop which was called; “Legal, Decent, Honest and Truthful Limited”. As they approached the main door, the gentleman said; "this is my shop – Go in; I can guarantee that what you need is in stock at a price you can afford".
As they walked through the main foyer the executive looked along the wall and there were photographs and letters of appreciation from grateful customers. Together, they walked up to the counter and the executive explained to their new found friend exactly what they wanted.
The executeive explained that they wanted a business that will be successful, with good cash flow and a satisfied, growing clientele. A motivated and dedicated team that were ‘proud’ to belong to such an organisation.
The man stood in silence for a minute, then his voice dropped. “I am sorry” he whispered, “we don’t sell fruit; only seeds”.
He bent beneath the counter and as he stood up he handed over a small packet. He smiled and said in a loud and confident voice, “take these, sow them carefully. Sow these seeds into land which is rich with character, water daily with competence, and always tend with chemistry. Each year you will produce fruit that will satisfy”.
He continued; “However, each year I want you to give some of that fruit away; this will provide more room for growth and for an even stronger and, even sweeter crop – It is only in giving that we receive”.
As the executive awoke, they smiled contently - and they began to plan. The successes of tomorrow, depend upon our planning today!
Friday, 9 April 2010
TODAY with TONY DOWN
The second and final day of the first of four business seminars that I will be conducting this month.
The course finished mid afternoon so the delegates were delighted to be able to get away early to enjoy the Spring sunshine and what promises to be a lovely weekend as far as the weather is concerned here in South Wales.
I was delighted with the feedback from delegates. We covered in some detail Cash Flow Forecasts together with bookkeeping so that the business owners can monitor the actual perfomance of the business against their plans. By doing that the owners are controlling and monitoring the business, this means that there is a greater chance that the business will succeed.
Before I finally leave the office for the night, it is the end of the week so I must make sure that my own administration is completed before the weekend. It is vital for me to start each week fresh, and with a clear desk.
I am ready to enjoy the weekend; walking with my wife, relaxing and attacking the garden. I will also be spending some time finalising my plans for next week making sure that our clients needs are addressed in a timely and proactive manner.
Tony Down
Thursday, 8 April 2010
TODAY with TONY DOWN
Today is day one of the business planning seminars that I am leading this month.
17 delegates attended the course. During the day we emphasised the importance of planning - a business doesn't want to rely on luck alone. We thought of the quote from the famous golfer Arnold Palmer who said: "It's a funny thing, the more I practice, the luckier I get...", and we applied this quote to business planning.
Throughout the day we considered; Systems, resources, quality, drawings/survival budget, different costs (direct, indirect, fixed, capital, etc) different methods of costing, and finally the delegates learnt how to construct a forecast monthly profit and loss account.
Tomorrow we will be looking at the all important cash flow projection and finally how to monitor our actual performance by looking at bookkeeping.
Tony Down
HMRC DEADLINES
Since an old tax year has now passed and a new one began. Don't miss out on important deadlines which are now fast approaching.
If you are an employer then any outstanding income tax deducted from your employees and National Insurance for the year ended 5th April, 2010 must be paid to HM Revenue & Customs by the 19th of this month. By the 19th of May, your end of year P35 and P14 must be filed; almost certainly electronically - make sure that you able to file electronically well before the 19th May.
If applicable, by the 6th of July, you must file P11D and P9D (Benefit-in-Kind), and pay and Class 1A NIC by the 19th July.
31st July, 2010 is the deadline for paying your self assessment second payment on account for 2009-2010. It is well worth making sure that your self assessment tax return for the year ended 5th April, 2010 is completed and submitted before this date to ensure that you are paying the correct amount of tax. HM Revenue & Customs have now issued the new returns.
For further assistance and advice contact Tony Down FCCA or a member of his team on +44 (0) 08450 347343 or email tony@gordon-down.co.uk
Tuesday, 6 April 2010
TODAY with TONY DOWN
Enjoyed the Easter holidays - It is important to take time out to relax, recharge the batteries and to have some fun. We need to be refreshed and sharp and not be worn out or stale.
Nevertheless; I was able to mix business with relaxation which was good - I reviewed some material that I will be using in the Business Seminars this week (8th and 9th of April), inparticular I finalised a practical, visual demonstration which should highlight some important principles that I want to emphasise during the section on Thursday concerning 'Time Management' - it should be some fun too!
Since today is the start of a new tax year in the UK, my team will be contacting clients to plan ahead for tax payments for the forthcoming July, and next January. VAT now needs to be paid online from this month, so make sure that your business is registered for online banking. From today, employers and contractors may be laible to to penalties if they do not pay PAYE, National Insurance Contributions, CIS decuctions and student loan deductions on time and in full.
Tony Down
IMPORTANCE OF PLANNING
What do the Burj Dubai, Taipei 101, and World Financial Center Shanghai all have in common?
Answer: They are the tallest buildings in the world. But, that is not all that they have in common. Like all good and 'fit for purpose' buildings - whatever their size and prestige - they all started with a plan and they are all built on strong foundations.
In order for your business to be fit for purpose, to be able to sustain itself against all of the economic seasons and weather, it is vital that you have a detailed plan and firm foundations (Systems).
Tony Down FCCA is a Chartered Certified Accountant who has a wealth of experience in helping business owners and their managers to plan and implement business systems, unpack and understand 'vision' and to work with teams to identify strategy and long, medium and short term plans.
Thursday, 1 April 2010
LESSONS FROM POLITICS
In the Summer of 2008, Senator Barrack Obama defied all the odds to secure his parties nomination to be their representative in the forthcoming US Presedential election defeating the bookies favourite, the popular Senator Hilary Clinton. In November the same year, Obama was elected President of the United States of America.
How did he do it? What lessons can business learn from his campaign?
The Obama team knew their market - The electorate had been led by a republican government for 8 years and they were tired; the people were looking for 'change'.
The Obama team knew their competition - The Clinton campaign relied on past successes; the Clinton brand that had been so successful in the 1990's, but the 21st Century was now a different era; the people were looking for 'change'.
So, the Obama campaign very cleverly, adopted the word 'change' as their campaign slogan - and it proved a winner.
The Obama team were adequatley resourced - The team managed the scare resources available to them by using each unit of resource in the most effective way.
So, what lessons can we learn?
First, we must know our market. We must supply the goods and services that the market demand, not want we want them to have. We must sell 'Value' to our customers; i.e. if you buy this product/service, then, this is what it will do for you/your business, this is how it will effect you, or, this is how our product/service will give you an advantage over your competitors, or make your life easier.
We, too, must know our competitors and their strengths and weaknesses. Note their strengths and weaknesses then seek to adopt the strengths into your own organisation - seek excellence. Put systems/training in place to eliminate weakness; allocate sufficient resources.
So finally, be sufficiently resourced - this will involve budgeting, not just finance but any resource that is scarce, e.g. the right people. To discuss your business and strategic planning why not contact Tony Down FCCA, or a member of his team on; +44 (0) 08450 347343 or email tony@gordon-down.co.uk
TODAY with TONY DOWN
Managing my team with various assignments; including, preparing final accounts for a company who require the accounts for a potential equity investment. Preparing monthly management accounts for another client business and, preparing for a meeting tomorrow with a client who has been successful in obtaining external funding.
Tomorrow, I will be planning for the business seminars that I will be leading in April. As the 5 April is now only a few days away, I will also be contacting all clients to arrange forwarding to my team their tax return information for 2009-10 as soon as possible. The sooner their tax returns are prepared and submitted the better. - Plenty of time to save for a balancing payment (if profits increase) and first payment on account in Jan 2011. The correct payment of tax due in July 2010 (4 months!) and, if their is a repayment due, then that can be paid back to the client sooner.
Tony Down
Tuesday, 30 March 2010
TODAY with TONY DOWN
Successful afternoon - Funding application for a clients new venture has been approved so one very happy client this evening. Next a meeting needs to be arranged with all the directors to agree the timetable for the next few months - exciting times!
Tomorrow I will be meeting a client to begin preparation of monthly management accounts. The budget for the next 12 months has already been prepared by the acting financial controller. It is important now to monitor actual performance against budget and analyse the variances - amending the remaining budget based on what has actually occured is all part of responsible planning - being ahead of the game.
Tony Down
RIPPLE EFFECT
Throw a stone into a pond and watch the ripple move outwards. The effect of the stone hitting the water causes a wider ripple. This is the approach that any business should take to medium and long term planning.
The actions that other individuals and orgainisations take within our market place, whether that be local or global, WILL have an effect on our business. For example; what will be the effect if a major employer moves their operation to where our custmers are? Alternatively, how will our customers be effected if a major employer closes their operation? Will our business be affected by a change in Government? If there is an increase in the rate of VAT and our customers are private individuals rather than other businesses then this will effect the selling price of our products or services.
Be in control - take a wide view of not just your business but of the environment around it and its stakeholders. For guidance and support with your business planning contact Tony, or a member of his team, at tony@gordon-down.co.uk or telephone +44 (0) 08450 347343
Monday, 29 March 2010
TODAY with TONY DOWN
I spent a pleasant morning driving to Aust. Met a new client who 'painted a picture' of the history of his business - with some interesting ideas for the future.
Spent the rest of this morning responding to requests from delegates who attended the business seminar that I led all last Thursday and Friday. Topics that were covered included; Management and systems -Planning, resources, quality, SWOT. The remainder of the two days focused on on finance; topics covered included budget profit and loss accounts, drawings/survival budget, cash flow projections, financial administration/bookkeeping. The next course is scheduled for 8th and 9th April.
Delegates have requested the cash flow template that I designed - Use of this template will enable owner/managers to plan their business finance AND to monitor their actual performance against their plans - ensuring that they are managing and being in control of their business.
This afternoon, I will be following up a funding application; also for a new business.
Tony Down
Friday, 26 March 2010
Services at GORDON DOWN & Co
Do you know what your projected income, costs and profit is for the next three months? What will be your cash/bank balance, or working capital? How long does it take your debtors to pay you, or, how much money is tied up in stock and how long does it take for your stock to turn to cash?
If the answer is; "I don't know" then, you are not in control of your business and you are relying only on luck to survive.
Get back in control of your business and be ahead of the game. Gordon Down & Company are Chartered Certified Accountants with a wealth of experience in training businesss owners and their teams to; plan, monitor, and, control their business. Contact Tony Down FCCA on tony@gordon-down.co.uk or telephone 08450 347343 for further advice.
Wednesday, 24 March 2010
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