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Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
Running your business in the cloud: Matt from FreeAgent
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Running your business in the cloud: Matt from FreeAgent

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FreeAgent's talk about why accounting is like brussel sprouts, delivered by Matt Perkins at the Running your business in the cloud event on October 10th in London

FreeAgent's talk about why accounting is like brussel sprouts, delivered by Matt Perkins at the Running your business in the cloud event on October 10th in London

Published in: Economy & Finance, Business
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  • This is really to drive home that whatever type of business you run – even if it is a not-for-profits social enterprise – it still has to be able to ‘wash it’s face’ or you are back to gainful employment!
  • Recap on this earlier slide – pointing out the ‘Poor cash flow management’ point
    Now click onto the next slide (22)
  • Recap on this earlier slide – pointing out the ’61% said cash flow issues were their most significant challange’ point
  • Recap on this earlier slide – pointing out the ’61% said cash flow issues were their most significant challange’ point
  • Think about the sales flow of any business from receiving an order to getting paid. Businesses that manage this process effectively are the ones that survive and grow
  • From
  • This is really to drive home that whatever type of business you run – even if it is a not-for-profits social enterprise – it still has to be able to ‘wash it’s face’ or you are back to gainful employment!
  • Notes on each point:
    All businesses need to invoice the customer. It is our biggest search word by which people find us.
    Professionally – looks right and contains correct information (payment terms, etc.)
    Accurately – ties in with previous quotes etc. don’t give reason for invoice to be rejected.
    Efficiently – word or excel are very manual. Eg: timber yard.
    You need to know what you are owed at any one time – aged debtors!
    You need to physically be able to take payments. Too many people sort this out as a last resort. Give example of methods of taking payments.
    You need to have a system in place to chase late payers – or they’ll always push it as far as possible!
  • Notes on each point:
    Invoice as soon as possible after an order is completed. Make sure all the details are clearly presented including terms and conditions and payment due date.
    You should use a three step credit control approach to chasing payments – a reminder just before (or when) the invoice is due, a chaser if the payment isn’t forthcoming – usually a week or so after the invoice due date, and finally a final reminder/warning that non-payment will result in legal action being taken – usually sent 4-6 weeks after invoice due date.
    We saw it in the list of reasons for business failure – failing to keep track of what taxes you owe is one of the biggest slayers of businesses. You must keep track of what tax you owe and when you are going to have to pay them.
    Expenses are actually a business’s friend (if used reasonably!). Lots of businesses keep track of income but too many don’t keep a record of ‘reasonable business expenses’ (travel expenses etc.). These can be offset against the tax you pay so you really would be crazy not to keep note of them!!
  • Notes on each point:
    Invoice as soon as possible after an order is completed. Make sure all the details are clearly presented including terms and conditions and payment due date.
    You should use a three step credit control approach to chasing payments – a reminder just before (or when) the invoice is due, a chaser if the payment isn’t forthcoming – usually a week or so after the invoice due date, and finally a final reminder/warning that non-payment will result in legal action being taken – usually sent 4-6 weeks after invoice due date.
    We saw it in the list of reasons for business failure – failing to keep track of what taxes you owe is one of the biggest slayers of businesses. You must keep track of what tax you owe and when you are going to have to pay them.
    Expenses are actually a business’s friend (if used reasonably!). Lots of businesses keep track of income but too many don’t keep a record of ‘reasonable business expenses’ (travel expenses etc.). These can be offset against the tax you pay so you really would be crazy not to keep note of them!!
  • Notes on each point:
    Invoice as soon as possible after an order is completed. Make sure all the details are clearly presented including terms and conditions and payment due date.
    You should use a three step credit control approach to chasing payments – a reminder just before (or when) the invoice is due, a chaser if the payment isn’t forthcoming – usually a week or so after the invoice due date, and finally a final reminder/warning that non-payment will result in legal action being taken – usually sent 4-6 weeks after invoice due date.
    We saw it in the list of reasons for business failure – failing to keep track of what taxes you owe is one of the biggest slayers of businesses. You must keep track of what tax you owe and when you are going to have to pay them.
    Expenses are actually a business’s friend (if used reasonably!). Lots of businesses keep track of income but too many don’t keep a record of ‘reasonable business expenses’ (travel expenses etc.). These can be offset against the tax you pay so you really would be crazy not to keep note of them!!
  • Notes on each point:
    Invoice as soon as possible after an order is completed. Make sure all the details are clearly presented including terms and conditions and payment due date.
    You should use a three step credit control approach to chasing payments – a reminder just before (or when) the invoice is due, a chaser if the payment isn’t forthcoming – usually a week or so after the invoice due date, and finally a final reminder/warning that non-payment will result in legal action being taken – usually sent 4-6 weeks after invoice due date.
    We saw it in the list of reasons for business failure – failing to keep track of what taxes you owe is one of the biggest slayers of businesses. You must keep track of what tax you owe and when you are going to have to pay them.
    Expenses are actually a business’s friend (if used reasonably!). Lots of businesses keep track of income but too many don’t keep a record of ‘reasonable business expenses’ (travel expenses etc.). These can be offset against the tax you pay so you really would be crazy not to keep note of them!!
  • Notes on each point:
    Invoice as soon as possible after an order is completed. Make sure all the details are clearly presented including terms and conditions and payment due date.
    You should use a three step credit control approach to chasing payments – a reminder just before (or when) the invoice is due, a chaser if the payment isn’t forthcoming – usually a week or so after the invoice due date, and finally a final reminder/warning that non-payment will result in legal action being taken – usually sent 4-6 weeks after invoice due date.
    We saw it in the list of reasons for business failure – failing to keep track of what taxes you owe is one of the biggest slayers of businesses. You must keep track of what tax you owe and when you are going to have to pay them.
    Expenses are actually a business’s friend (if used reasonably!). Lots of businesses keep track of income but too many don’t keep a record of ‘reasonable business expenses’ (travel expenses etc.). These can be offset against the tax you pay so you really would be crazy not to keep note of them!!
  • Transcript

    • 1. Matt Perkins Head of SME Engagement matt@freeagent.com @perkinsmattj
    • 2. Let’s talk about accounting
    • 3. Accounts are like brussel sprouts! Very few people enjoy them! Most people avoid them! Once a year you have to face them!
    • 4. Forget about the accounting It’s not about creating work! It’s not about compliance! It’s about powering your business!
    • 5. Two fundamental truths… Whatever you want to achieve with your enterprise, you can only do it with a viable business model. Even with a viable model, unless you get the money in – quickly and efficiently – you will fail
    • 6. The figures are so important! Consistently in top 10 of failure surveys: • • • • • Poor cash flow management Inability to pay tax/wages Overspending Poor credit control Insufficient funding
    • 7. Why is that not surprising? St op 49% don’t know their gross profit margin (KPI) ta lk i acflow issues were their most significant 61% said cash c ng ou challenge ab nt ing out 63% Had no formal accounting procedure ! 46% unaware of break even point in place Source: NatWest survey, May 2011
    • 8. Let’s look at it from a different angle! In 2012, the average outstanding debt for an SME was £45K…. They were also waiting an average of 30 days past agreed payment terms for their money….. And wasting130 hours (3 weeks) a year chasing payments Source: BACS Payment Schemes 2012
    • 9. Two Golden rules: 1.It’s not a sale until they’ve paid! 2. Get paid as quickly as possible!
    • 10. change s se “technology changes; s people e don’t” sin u Deb Shultz B
    • 11. “Cloud” innately means... connected & present real-time collaborativ e
    • 12. Ecosystem HMRC Accountancy Companies House Web apps, APIs Banks E-invoicing E-commerce Financing etc
    • 13. What does that mean practically? We have the technology We just need to change the mindset!
    • 14. What 4 things do all business need to do to get money in? 1. Invoice your customer – •Professionally •Accurately •Efficiently 2. Keep track of who owes you what. 3. Take payments 4. Keep on top of late payers
    • 15. Tips to keep on top of your finances Invoice in a consistent manner Chase payments consistently
    • 16. Tips to keep on top of your finances Make it easy for customers to pay Chip CS BA & Pin Payment buttons on invoices ts en ym pa ile ob M Direct Debits
    • 17. Tips to keep on top of your finances Keep track of business expenses incurred
    • 18. Tips to keep on top of your finances Keep track of taxes (inc VAT) owed
    • 19. Tips to keep on top of your finances Review your financial position regularly
    • 20. Get an extended 3 month free trial – pick up a leaflet today only!! Matt Perkins Head of SME Engagement matt@freeagent.com @perkinsmattj

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