eFinancial Management Blog

eFM's Survey In The Herald & Post - 'Half Work Here'

2012-02-06T02:28:00.000-08:00

A LUTON company’s survey has proved the answer to the old joke “how many people work here?” The answer is of course, half.

Outsource specialists eFinancial Management (eFM), based in Maxet House, Liverpool Road, conducted its Efficiency Of Employment Survey 2011 and found that employees in finance roles are spending only 55 per cent of time on the job they are paid for.

Please read the full article here:
http://www.lutontoday.co.uk/news/business/half_work_here_1_3401748

The Christmas flop

2012-01-13T04:28:00.001-08:00

More and more figures coming in are pointing to the samestory: the expected revitalisation of the retail sector over Christmas hasfailed to appear. Although some well known names are reporting better thanexpected results: most notably John Lewis and Sainsbury’s, the wider picture isone of low sales, low expectations and struggling finance.

If there is one lesson for businesses to learn from theperiod, it is that the expected “good times” are not ever going to come back ifthey just sit and wait for them. Between squeezed pockets, outrageous parkingcharges and of course the internet, there is little to lure shoppers to the highstreet and all the neon SALE signs in the world will not change the fact.

So what should these shops do? It is clear that people,despite the troubles, are spending money: John Lewis is certainly not a bargainbasement store, but people want to shop there. Businesses need to look atthemselves to see where the problems lie.

So for your new years’ resolution, instead of asking “whenwill people start coming to us”, ask “why aren’t we attracting customers?”

eFM Survey Shows Low Utilisation Rate In Full Time Employment

2011-12-16T04:14:00.000-08:00

The eFM Efficiency Of Employment Survey 2011 reveals low staff efficiency rates with employees spending only 55% on the job

Specialist financial management company finds that permanent employees in financial management roles are spending a significant amount of time on non-core jobs, and just about half their working time doing the actual job they were employed to do. According to survey results released today by e-Financial Management, employees in finance roles are spending only 55% of their working hours on core responsibilities. The results show how counterproductive full-time employment models can be with employers paying their staff not to work efficiently or in areas not relevant to their employment.

HIGHLIGHTS

Only 1% of respondents responsible for a finance function spend 100% of their working time on their core function. The average utilisation rate for the other ninety-nine percent is 55%

98% of respondents in finance roles take a holiday annually and of these, 35% take 30 days or more off work.

54% of those in financial management roles spend at least half an hour on internet usage not connected to their job during the day.

83% of financial management specialists including Finance Managers and Finance Directors spend up to one hour on administrative duties during the day including planning diaries, booking travel, making drinks and other such activities.

59% take sick leave during the year. It is worthy to note that 1% of respondents do not take any leave during the year and have never taken any time off during their working life.

88% of respondents in finance teams spend at least half an hour a day on banter, non-core communications, emails, letters and letters. Of these 2% spend about two and a half hours on this.

88% of respondents spend up to 20 days a year on self directed learning, courses and seminar and are away from work ‘for good reason’.

Direct full-time employment has in the past, been the preferred recruitment route for many employers, but with alternative routes becoming more popular, legislation becoming more stringent to the detriment of SMEs and employees increasingly having to multitask and spend less time on core responsibilities that outline the basis of their employment, many business owners now question the efficiency of employment. More favourable productivity-based employment models will now be of critical importance especially in the current economic climate. Gary Jesson, MD of the eFM Network commented that the results confirm that eFM’s approach to providing a flexible, scalable financial management resource focused on the core activity of running the finance function is the way ahead for growing companies. ‘It allows employers to avoid complex employment legislation and gives them a cheaper and more efficient resource than employing a full time member of staff.

e-Financial Management Limited is a financial management outsourcing company that offers a wide range of expert financial management solutions on a pay – as – use basis from bookkeeping to Finance Director levels. http://www.efm.uk.com .Contact number: 0845 129 9900, 01582 5163900. For a full copy of e-FM’S Efficiency of Employment survey, please click here or email chinwe@efm.uk.com

Tags: accountant, accounting, efficiency, efm, employment, finance, finance director, survey, utilisation, utilization, More…zoomerang

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Access to finance

2011-10-06T08:06:00.000-07:00

A better understanding of the alternativesavailable and the different ways in which a company can access funds, will helpdirectors and business owners secure the facilities they need to develop theirbusiness. Bank loans and overdrafts are not the only way; additional funds canbe made available through better Balance Sheet management as well as through avariety of products including invoice discounting and factoring, asset finance,even inventory finance.

One of the key mistakes made by businesses is tomismatch their requirements with the type of finance they are asking for. This iswhere advisers can play an important role in helping Directors and Shareholderstake a more strategic approach. For example, an important point to make is thatbanks are more likely to see cash flow as a deciding factor in a loan requestrather than property values. For a number of years there has been a move awayfrom overdrafts. Whilst a bank overdraft can be used for anything, it is notthe best way to finance items such as a capital purchase. Such a purchase suitsa structured product that is controlled, which in turn means that the cost ofcapital is lower. This is reflected in better pricing and allows for moreavailability of finance.

However, the first port of call must be managingthe Balance Sheet to maximise the present facilities within the business. Makesure that the business is not carrying assets or inventories that are not inuse, and very definitely control the debtors to ensure that your customers arenot using you as their finance providers. Be strong when negotiating payment termswith your suppliers, but once terms are agreed make sure that you keep tothese.

It is a good time for business to borrow forlong term investment. While there has been a demand from government for banksto do more to help business, the reality is that many businesses are payingdown debt rather than taking on new loans. However, with base bank rates at anhistoric all-time low of 0.5%, it is possibly the best time to borrow for longterm investment. The overall cost of funds is presently low and, it is felt, unlikelyto rise in the next year. Therefore potentially now is the time to consider borrowingover a three to five year period.

Contribution by Richard Keighley

07845 671204

Is a strong customer in a weaker position than they appear?

2011-09-22T06:32:00.001-07:00

In the current economic climate it is a critical part of financial management to be able to spot the warning signs that things could be going awry at one of your customers. One bad debt can be the difference to your business having a profitable year, or suffering a damaging loss.

There are various ways of spotting potential issues with customers which an experienced Financial Director will pick up. One of the first signs with regular customers is when their payment pattern, established over time, changes suddenly. A delay in payment can be a sign that things are getting difficult. In this instance, the approach to take is to pick up the phone and pursue it – quite often it will be a mislaid invoice or dissatisfaction with a delivery. Always try to resolve any issues as quickly as possible.

If a customer changes their pattern of placing orders with you, this can be a sign that not all is good in their world. If your customer’s orders suddenly triple it could be a cause for celebration… or it could be that their other suppliers have stopped delivery. Don’t be afraid to investigate.

Next there are the delaying tactics, with unnecessary queries or unjustified complaints about product quality, delivery or invoice accuracy. Establish whether there is a genuine cause for complaint and ensure that after buying your products the customer isn’t now trying to buy time. Connected to this, if your regular contacts are suddenly “unavailable” to take your calls, alarm bells should ring. Communication here is key - a company refusing to engage in a dialogue with a creditor is normally in some sort of discomfort.

Finally, take note of unexpected changes. Whilst changes in personnel could be prudent efficiency or cost-saving measures, they can also be desperate acts to stave off business failure. Changes in bank could make good business sense, or may be due to their previous bank changing their terms of business.

Contribution by Richard Keighley
07841 504 079

Cost management

2011-09-16T09:08:00.000-07:00

After three years of unabated cost cutting, how can we continue to maintain the profits within our business, whilst ensuring that our suppliers maintain their own position of generating profits to stay in business?

The importance here is to focus on obtaining value from suppliers rather than just targeting lowest cost. Reducing costs is not just about going to a cheaper supplier. Instead we need to cultivate closer worker relationships in which we can identify value creation strategies which generate savings without affecting or disrupting standards of service through changing suppliers. By engaging with suppliers and understanding their needs, as well as fully assessing and communicating our own requirements and objectives, we can obtain cost savings and develop good working relationships.

An area of focus must be on the question “is the proposed expenditure a need-to-have item or a nice-to-have item”. This really comes into its own when considering the management of non-core business expenditure. How many costs do we have that go unnoticed and unchecked for years, and are still in the business because we have always incurred them? By focusing on, monitoring and examining such costs businesses can make major savings which go to straight to the bottom line.

To drive such cost savings we need to create a cost conscious culture driven from Board level down with the Financial Director primarily responsible for creating this environment. That said, whilst some Financial Directors were able to provide strategic guidance, they sometimes fail to be in touch with the operational impact of some types of cost reduction. What is imperative is for all the business to be closely involved in implementing savings and managing change.

Contact one of the team at e-FM for an informal discussion to see where we can together take on the challenges of the coming months and build your business into the successful operation you desire.

Contribution by RICHARD KEIGHLEY
07845 671204

Many Interim Managers To Be Affected By AWR In October 2011

2011-08-30T03:28:00.000-07:00

From the 1st of October 2011, the Agency Workers Regulations (AWR) will become effective. Surprisingly, it has been reported by an IIM Interim Management survey that a massive 38% of interim managers have no idea how this law will affect them.

This law was introduced in 2010 to protect temporary / agency workers from exploitation and will be effective from the 1st of October 2011. It gives temporary workers various levels of rights that they would otherwise not be entitled to as ‘non-permanent employees’. The implication of this law is that companies that currently use temps and agency workers will be faced with increased responsibilities and will therefore be looking to employ those not affected by the AWR. For Interim Managers not working through their own limited companies, they could be faced with possible loss of contracts or negotiating power. As the implementation day approaches, many companies have started to rethink their recruitment strategies, and companies that have depended heavily on interim managers/ executives will start to look for those who will not create extra costs for them, or even increase the likelihood of being involved in an employment tribunal that could involve them, their interim manager and an umbrella company.

WHAT INTERIM MANAGERS CAN DO:
If you are an interim manager, you need to be able to prove that you are in business in your own right- on your own account. These are the questions to ask before you decide what action to take:
1. Are you working through your own Limited Company- or through an umbrella company?
2. Are you submitting your own invoices and demanding for payment independently?
3. Are your working hours dictated by an agency or the client you work for?
4. Can you hire employees at your own expense?
5. Do you have your own business stationery including business cards?
6. Do you have your own business insurance?
7. Do you have the right CV? Even a CV showing that you are looking for interim roles demonstrates what the law refers to as ‘publicly stating its line of business’ and can help support your claim.

However, one point to note is that the AWR guidance warns against individuals setting up a limited company purely as an avoidance tactic, so your business relationship has to reflect that you are an independent worker. If you can prove this, than you may be clear of the regulations and therefore not be in a disadvantaged position as clients will start to select those candidates who will not create additional liabilities for them. Get legal advice if you need to but you need to take action soon.

CLIENTS: If you are looking for finance specialists from any level from Bookkeeper to Finance Director/ Board Level, email us at chinwe@efm.uk.com or visit our website. The eFM Network is a nationwide network of finance specialists/ executives working via their own limited companies and is constantly expanding to new locations across the country. For more information about our Finance Directors and Managers, please visit our network site at www.efm-network.com.

FINANCE PROFESSIONALS/ACCOUNTANTS:For information about joining us an Interim Manager, or as a licensee where we can help with such issues as registering your limited liability company, please mail chinwe@efm.uk.com or visit us at www.efm.uk.com. To book a place now at one of our free discovery events, please email james@efm.uk.com

Enterprise zones: a shot in the arm or a waste of time?

2011-08-23T02:55:00.001-07:00

A group of new enterprise zones have been announced across the UK, creating an estimated £150m combined tax break, new jobs and areas of simplified planning rules.

Whilst every action like this should be welcomed as it shows the government is listening to the concerns of small businesses, this author cannot help but think that these zones will not make the impact promised. Why?

They have been tried before. Under the previous Conservative government, the general consensus was that rather than creating jobs and new businesses, the most common use of these zones was for established corporations to move into them to take advantage of the benefits. Jobs were not created, but moved.

The impact will be small. The few jobs created, even if they range into the tens of thousands, will not make much of an impression in the nearly 2.5 million unemployed, especially the younger unemployed who need training; not usually the domain of start ups. The loosening of regulation will be temporary. The tax breaks will be short lived.

As I said, I do not want to discourage the concept. But to identify individual areas and exclude them from the ‘normal’ rules is not a good way to encourage entrepreneurship. If the government wants to give the impression that Britain is open for business, admitting that areas need more ‘help’ to encourage people to start up is an admittance that, in general, the government’s policy on business is failing. Any changes to tax, any relaxation of regulation, must be across the board so nobody loses out, and everybody wins.

Just one in four workers gets a pay rise in 2011

2011-08-08T08:56:00.001-07:00

Pay rises are always a topic treated with some hesitation. Most Brits are uncomfortable with asking for one, especially in the current tough economic times. The common perception is that asking for a pay rise is a sign of cheeky disobedience; if you deserve a pay rise management will have noticed your efforts and recognised it with a discreet note. The issue digs down to British unwillingness to discuss pay; not the topic we wish to be exploring here!

The Chartered Institute of Personnel and Development has published the figures, which also highlight the fact that one in twenty workers have seen their pay decrease, and that here the gap between public and private pay rises is huge; one in five public workers got a rise while half of private workers did. When comparing these figures to the note that public workers have a higher average pay than private, it brings some relief to the feeling that the public sector is in a bubble, unaffected by the “real world”.

But what do these figures mean for SMEs? Ever increasing living costs and (for most people) longer, harder hours do not go well with no, or low, pay rises. Many small businesses would love to give a pay rise to their staff; despite all the tropes about self-serving middle management and penny pinching entrepreneurs, most businesses realise that their staff are the ones that make the business great and would like to reward them accordingly, especially when they work longer and harder in times of economic downturn.

With cash always being squeezed, a pay rise might be out of the question. So how else can employers reward their staff without damaging their business? As a previous blog has pointed out, pay is not the only reason most people work. Employees spend a large amount of their lives helping their employer’s business grow, and often expect rewards other than monetary for the effort. Some employees simply want their efforts noted. If a pay rise is out of the question, a note from a senior manager or director praising their efforts might go just as far to ensure the employee remains satisfied. Other employees may prefer a different reward; awards might be cheesy but if the sentiment is behind them is genuine (and the person the kind who enjoys these ceremonies!) the resultant happy employee will be worth it.

The nature of your business might offer a ‘reward’ structure; if you sell desirable goods something as basic as a staff discount can encourage happy employees. If you operate a service business, flexible hours or home working might be a possibility.

As an employee gets higher in seniority, the rewards become exponentially more costly for the business. A 5% pay rise might mean thousands in extra expenditure. This becomes doubly a problem when such a senior employee operates competently rather than excellently; there is an expectation that directors and senior managers get extra rewards every year unless they have performed poorly.

These considerations are just another few of many to add to the list of things to consider when employing people; if you would like the skillset of a senior financial employee without the hassle of pay rises or rewards, why not try outsourcing? Call e-FM on 0845 129 9900 for more information.

Participate In The eFM Efficiency Of Employment Survey 2011 And You Could Win A Case Of Wine!

2011-08-02T07:22:00.000-07:00

Staff Utilisation- How Effective Is Employment?

This survey is intended to show how distractions at work may impact on an employee's core function(s). These distractions are usually normal activities performed in the course of employment such as attending meetings, commuting to work, answering the telephone and even approved absences. This survey will not identify the names of any of our respondents and all participants will remain confidential.

We are entering everyone who takes part in a draw for a case of six bottles of our favourite wine, so why not take the survey now and maybe you'll win those six bottles?

If you have previously been in a full time finance role, or are currently in full time employment (in a finance-related role), you are eligible to complete this survey based on the permanent role.

Take the survey here

Thank you and good luck!
e-Financial Management

National Insurance holiday "a total flop"

2011-08-01T07:28:00.000-07:00

The National Insurance holiday, widely welcomed by businesses at its inception, has been branded by the Opposition as “a total flop”, with initial data showing that the scheme has barely been used by businesses, and has cost more to administrate than it has saved. Just 1% of the predicted 400,000 businesses actually used the scheme, which refunds Employer’s NIC for new businesses with less than 10 employees.

This kind of story is becoming typical. Officials are wondering why so few businesses took up the offer, when the financial benefits seem obvious.

A quick bit of research about the offer will show any business owner why the Holiday is not worth it. Exploring the labyrinthine HMRC website is daunting whenever it must be done, and this is no different. Businesses must check if they are eligible, then see if they are within the incredibly exact starting dates, then check with HMRC anyway. There are EU regulations about certain sectors being ineligible. This is all just to find out if the business is allowed to apply for the holiday.

Businesses need support, not more paperwork. So what can the government do that would be productive to job creation?

Rather than the holiday, employer’s NI contributions should be abolished altogether. National Insurance has ceased to be the ‘insurance’ policy it was designed to be, and has become just another tax. The employer’s NI contribution is a direct tax on employing somebody, and needs to go.

On a similar thread, merging NI and income tax would simplify the employment process considerably. This process would be wrought with difficulties, but the result would be much less confusion for employers.

The topic of employee benefits is one that always causes arguments. Maternity leave, holidays, flexible hours and sickness are just the beginning. The arguments for both sides are convincing: we have worked hard to win these rights for decades, and they provide us with a comfortable working life. But on the other hand, the regulations discourage employment. What use are all of the rights if nobody is employed to enjoy them? A solution would be to relax, rather than remove them. Extend the current ‘probation’ period before the rights become fully realised.

If the government wants to encourage businesses to employ people, the solution is not schemes like this. Paperwork, risk and outside (ie not the wage) costs are the barriers to employment; the government cannot regulate its way to higher employment. Taking a step out of business should be the focus of any further changes.

The gap between public and private

2011-07-25T03:39:00.001-07:00

Recently, the news was published that the pay gap between the Public and Private sector was widening, to a massive 7.8% difference in favour of Public Sector workers. In a time of supposed government austerity, such a discrepancy needs to be investigated.

It always used to be the case that a typical job in the Private Sector had better pay, whereas a job in the Public sector would present better benefits such as pension schemes. Now the Public sector appears to have both, and without a doubt it causes resentment amongst private workers who have seen their hours, pay or benefits cut in recent years.

A lot of this resentment comes from the way Public jobs have an inherent security lacking in any private job. The government cannot suffer a downturn in sales resulting in a tough month, the government has a reputation for not laying off workers when their positions become redundant; instead transferring them, and there is a widespread (imagined or not, the belief amongst private workers is there) culture of being ‘laid back’, rolling into work at 9.30, taking extended lunch breaks, and even a set number of sick days a worker is allowed to take above regular holidays (figures back this latter up, public workers took an average 8.3 days off last year compared to an average 5.8 private sector days lost). The public sector is also the last refuge of large scale union activity.

The issue is certainly not simple. It can be tempting to demonise Public workers as lazy and demand they work for lower pay and pension (a topic for another blog!), but the Public sector has a different raison d’être to the private sector. The private sector, at its core, exists to make money. The public sector exists to serve the public, be it through providing healthcare, managing a region’s economy in physical ways like administering the leasing of buildings, or dealing with the concerns of citizens through the council. Although arguable, none of these require the kind of competitive, cut-throat attitude the private sector demands. Hence private sector workers would get paid more for their proactive work, and the public workers would have greater security for their role but less cash in hand.

So where did things change? Several reasons can be put forward. In a drive to reduce costs, low skilled jobs in the public sector are being outsourced to the private sector. From knocking on doors to collecting rubbish, it is cheaper to hire a company to do the job than pay workers minimum wage with the associated administration and extra costs. With low paid jobs being outsourced, average pay will certainly increase.

Union activity surely has a part in the discrepancy; there are very few unions working for the private sector and collective action on behalf of the private worker is a thing of the past.

Minimum wage is seen in a different way in the public sector. In the Private sector, workers of a wide range of skill levels earn minimum wage for an assortment of jobs. It is seen as the default pay, with any extra to be earned through results. In the Public sector, a salary is given, rather than an hourly rate, always at a higher figure than £12,335.

So what can be done to alleviate the pain of the Private Sector? A rise in minimum wage seems the first port of call; but at the first hurdle we fall. Few would argue that minimum wage is too low to be considered a living wage in most of the country, but to raise it would mean the end of thousands of small businesses. Bakers, cleaners and restaurants are already struggling to make ends meet; with even a small rise in minimum wage to their unskilled staff meaning extra costs of hundreds of pounds per week it would not be long before they crumbled. It could be argued that a rise in minimum wage would increase consumer spending, hopefully increasing sales in these companies, but it is a risk not many are willing to take.

A better idea might be to reintroduce a level of collective bargaining to the private sector workers. Unions have proven to be little more than cash cows for their owners, so a different approach is needed. Pay should not be the only issue, and campaigning efforts do not need to be directed at the employer. Several costs to the employer by the government could easily be passed on to the worker; employer’s NI is a contentious issue and removing it could pave the way for an increased minimum wage; the cost to the employer is the same. Relieving the administrative burden on employers will reduce the hostility some have towards their workers; if they feel like their employees are a time sink rather than an asset they will not go out of their way to make them feel valued. Private sector working hours feel like they are ready to shift away from the 9-5 office; if companies can have their employees work from home, or on shifts to suit their family life the position of the employee will become happier. Simple employee benefits can make workers feel valued; be it offering the company’s products for free/at a discount, or offering training courses which can be funded by the government.

In time, private sector wages will rise to meet the public sector. But with inflation increasing the cost of doing business as well as living week by week, the government needs to look at other options and ask if a raise will do more harm than good.

One in three workers "admits skiving"

2011-07-18T04:16:00.001-07:00

A study by PwC suggests that British absenteeism, already at a long-time low of average 6.4 days per worker in 2010, might be even lower if not due to the abundance of workers taking days off work through choice not necessity. 34% of those surveyed said they had ‘skived’ work, with the largest excuse being given as illness, but outlandish examples included amnesia and “lime scale from the shower falling into my eye”. These days are even premeditated, with some workers feigning symptoms in the office days in advance.

These figures are worrying enough, but to pass them off as lazy workers would be to ignore the issues behind them. Those surveyed said family time was often the real reason for the time off, with others including a lack of work leading to boredom and feeling unappreciated for their hard work.

Each of the above present complications for the employer. Employees can request flexible working time when they have young children, but for a large number of offices there is not a lot of room for flexibility outside of the 9-5 working day. It is strong in e-FM’s belief (and our business model!) that a worker’s worth should not be valued in how much face time they put in, but how much they produce. For many people 9-5 is not convenient: the school run, commuting during the rush hour, and a late start for early risers means you are going to be getting tired and stressed workers when in reality it is the office hours causing the trouble, not the worker.

The ever increasing shift towards internet and Cloud working is alleviating this issue; with people able to do work from home they never would have been able to 10 years ago. If you have the capacity; consider offering your workers the option to work from home at the morning and evening with any required office time taken late morning/early afternoon. We suspect productivity will not be affected negatively by such arrangements; you may even notice an increase as they can work on their own terms around their lifestyle.

The “lack of work” reason is slightly trickier to address. Employees often have a fixed workload, and when this is done there can be an unwillingness to tackle any new projects because they know their regular workload will soon refill. Others can work at a faster pace than their colleagues, but do not want to ‘put their heads above the parapets’ because they do not want a promotion or to be put on a pedestal above their co-workers. Whatever the reason, an employee who is underworked is a cost to the business owner. Obviously if they have not spoken up about it they do not wish to raise the issue, and asking them directly is not likely to get reliable results. Instead, you might consider ‘pooling’ some administrative work, work that any employee can access and work through at any time. There is always something to do in a business, and sharing the load out like this might ease the burden on those already at capacity.

Employees feeling underappreciated are tempting to ignore. Every employee will need a different motivator, and to expect them to find it themselves is asking for trouble. There are tools available to find out what makes employees feel valued, with results ranging from a public declaration of their achievements to a private note from a high up director. If an employer wishes to do this, the recognition must be serious; ‘employee of the week’ on a rota of staff members will not motivate anybody! It must also be tailored to the person receiving it, as to continue the above examples a public statement about a person who prefers private praise might have the opposite of the intended effect!

Being demotivated can come from frustrations other than a simple lack of recognition, however. Bad pay, long hours or trouble at home can all cause problems, and though it can be hard to provide solutions to these problems, if the employee knows that their boss shares their concerns and is listening to them the problem becomes less private and less likely to boil over. Managers should take the time to hold regular evaluations with their employees, and seriously consider options like shifting pay schemes onto results based (if possible, and if the employee wants it) or considering flexible hours to help them with family issues.

Employment is never a simple matter of paying a person to do a job. When you employ somebody, you trust them with a stake in your business, and they trust you to take into account the fact that they spend around a quarter of their lives with you and treat them well accordingly. Sometimes outsourcing can provide the solution you are looking for; the epitome of paying a price to get a job done. But when the job gets too big it becomes more cost-effective to employ somebody to do it. The cost of an employee is far greater than the number on their salary line, if you are going to employ make sure you are ready for that range of commitment otherwise you will not be getting the best value for your money.

Retailers facing a reduction in Christmas credit lines

2011-07-11T02:51:00.001-07:00

Accountants Ernst and Young have made the announcement that they expect High Street retailers to struggle this Christmas to buy the stock needed to fill their shelves.

With muted growth and depressed customer spending, retailers are facing tough times and are already struggling to pay debts and rent. Ernst and Young’s report says that this has been noticed by suppliers and to protect their own businesses, they look likely to remove the credit lines many retailers rely on. Without a good Christmas stock, businesses which, according to EY spokesman “only really make money at Christmas” will be forced to shut down.

Larger retailers often have the security of their name and brand behind them, but what of the smaller retailers, and the independently owned shops? They will be facing the reality of having to convince suppliers to keep credit lines open; not an easy prospect given the tough times. It takes more than a good speech to convince a supplier: you need the financial figures and knowhow to prove your case. If you know your business can make the profit if you have the credit, you need to prove it. In-house bookkeeping staff may not be suitably qualified to generate or use this kind of information: you need executive level experience and input.

If you would like the skills and experience of a board level finance person to help you keep your credit lines open, on a pay-as-you-use basis this Christmas, give us a call and we will see how we can help.

Is offshoring losing appeal?

2011-07-08T02:55:00.000-07:00

Following several years of complaints, Santander has announced that it is moving its call centres back from India, to the UK, hiring 500 new staff in the process. Santander follows New Call Telecom, who also recently announced a move from India to Lancashire. The shift has been presented as a move to improve customer service and take on board complaints from customers, but the cynic in every reader would be more tempted to believe it is due to increased costs in areas such as real estate, salaries and accommodation in India.

Outsourcing is often confused with offshoring, and brings certain images and memories to mind: deserted factories, the infuriation of trying to pass on a complicated problem to a person with limited English and a general negative feeling of costing the British economy jobs. But with the trend away from offshoring, we need to reinvestigate what outsourcing really is, and what benefits it can bring to a company.

Outsourcing can be described as the process of hiring a professional company to do a job your company needs doing, relieving the need to employ somebody in-house to do it. Outsourcing gets a bad press because of the way it often removes the need to employ somebody; with unemployment rampant this is doubly a problem, and when certain services are outsourced the effect can be damaging to office morale and the ‘personal touch’ of the business.

e-FM strive to debunk some of these myths. When we say the word ‘outsourcing’, we want our clients to imagine it in its purest form. A job needs doing - for example, your business has just received funding and you suddenly realise the need for board level financial support. Your existing bookkeeping and administrative staff are not suitably qualified, but to bring in a full time Finance Director would be a gross misallocation of costs and skills. Aside from the (often) 6 figure salary and associated employment costs, you would now have a highly qualified and restless staff member when you are not certain of the roles he/she will perform. If under-utilised, they may begin stepping on the junior financial staff’s toes and getting involved in areas of the business best left to those with industry specific knowledge: HR is a common example.

This is a situation in which e-FM could help. We identify exactly what your company needs from its new senior accountant, and break down the time this will take using our decades of combined experience. Then we allocate a single person to your business, who will work from your premises, for just as long as you need them and not more. We will always be available in a crisis, and we see ourselves as ‘your FD’; we just do not need to be on site 5 days a week to do the jobs we were hired for. It is outsourcing with a difference - we insource one of our staff members to your office and they become an integrated part time member of your team, and you avoid the administrative headache and ever increasing costs associated with employment procedure.

Outsourcing is not for every company, and when a role gets to a certain size it becomes more cost efficient to employ somebody into it. But if you have a skill gap that your existing staff cannot fill, consider outsourcing as an alternative to employment as a means to fill it and you may be pleasantly surprised with the expertise a professional can bring.

Councils to keep their business rates

2011-06-29T09:15:00.000-07:00

Nick Clegg has announced that councils will gain control over the spending of their Business Rates, rather than the current central pooling and granting. “Every government preaches localism”, says Clegg, “this government will practice it. In terms of real decentralisation, money talks”. The move is seen as one of many to provide councils the measures necessary to attract businesses to their part of the country. The theory is that relatively reliant areas such as the North East will be able to lower rates to attract new and foreign businesses, whilst places such as London and Birmingham who attract business due to their location will be able to control their revenue, knowing that some businesses will set up there regardless of the rates.

The changes have been welcomed by business groups, though full details have yet to be released. Nick Clegg has claimed that poorer areas will not get less money than they currently do, which seems to be at odds with the basic principles of the change, but without any extra information speculation on the full nature of these proposals is pointless.

So, knowing what we know, what will happen should these changes come through? Despite Clegg’s assurances, it is inconceivable that all areas will remain equally well off. Net contributors, limited to the economic powerhouses of London, Manchester and the like, will have more to spend. They will be able to invest further in their own economy, and because of their scale they will be able to lower rates to attract new businesses.

The trouble starts when we consider that net users, which make up the majority of councils in the country, will have greater control over their spending but will have less money. Often small businesses in these areas are reliant on grants and exemptions to survive, but without income, the councils will struggle to provide these breaks. Councils are notoriously reluctant to look for savings within their own ranks, and the likely response is not to lower rates to attract more businesses, but raise them to get more from the existing businesses there. This will discourage further investment, leading to a cycle of problems that will not be easily broken.

However, these proposals are a clear sign that the government is listening to the concerns of businesses, especially SMEs. But they seem to have been written on the assumption that economies are local; that people live, work and spend in the same place. These days, a business can operate in Newcastle, with its offices in London and most of its workers in India. Larger businesses, those that can afford these operations, will set up exactly where it is cheapest and it is the local economies that suffer.

The focus of business rates should not be on where a business is, but what it gives to the local economy. If councils want to attract big businesses, lower rates will work. But when these businesses offshore their jobs and profits, their contribution to the local economy is low. If councils want to attract businesses that will be a local investment; providing jobs, paying taxes and reinvesting profits into their business and the local economy, they need to consider more progressive measures and make these investments attractive options to businesses.

Without further information, speculation lacks credibility. But the announcement is a very welcome one which shows that the government is listening to the concerns of SMEs so we are hopeful for any future developments.

Will StartUp Britain help entrepreneurs? What else can the government do?

2011-06-20T09:10:00.000-07:00

Several months ago, David Cameron’s initiative of StartUp Britain was launched. With the idea of encouraging budding entrepreneurs to start their own businesses, it was met with general praise; the feeling is that there is never too much the government can do to help small businesses. But several months in, to look at the website is to think ‘what a waste of money’. There are just a large number of links to service providers and the occasional instructional article, any of which a quick Google search can provide. The ‘offers’ promoted on the website are not unique to it - most are freely available to the public.

So, what can the government do to help kick start an entrepreneurial revolution? There are dozens of answers, but the common theme will be thus: stop making the idea so unappealing! When somebody decides to start up on their own, the troubles begin at the outset: a huge pile of paperwork arrives from Companies House and HMRC. Paperwork is one of the biggest barriers to entry to starting your own business. Box ticking, returns and different forms for every situation imaginable will put off the entrepreneur who just wants to get going.

Next on the list would be: relax the regulation. Health and Safety is without a doubt a good thing, especially for businesses which run the risk of bodily harm. But with stories abound of businesses forced to run Risk Assessments before lifting a new desk into place, workers going through ‘stepladder training’, has it gone too far? Likewise, employment legislation seems to actively discourage employing people by making it risky, time consuming and expensive.

A final grouping of changes would be in the tax department. “Taxes are the price we pay for civilisation”. This may be true, but the government seems determined to make it as difficult as possible to actually know what you are supposed to pay and when, and are equally determined to ‘make examples’ of non-payers, be they criminals or just beleaguered business owners who could not figure out the labyrinthine HMRC website. Most businesses accept paying tax as a necessary evil, to ensure their workers are educated, the country’s infrastructure is sound and the markets are regulated. But the wide array of taxes confuse people whilst the bigger corporations can pay people to help avoid them. Lowering and simplifying taxes, whilst making it far more difficult to avoid them, would be a move welcomed by small business owners across the country.

The message from SMEs across the country to the government is this: back off. We know the government has an essential role to play in our lives, but by infiltrating every aspect of business, demanding to know every detail and forcing the business owner to do the paperwork, they are placing a burden on those they claim to encourage. Thankfully, we are seeing aspects of this already; the government is relaxing some of the regulation on start ups, but there is a long way to go before starting a business will be something that can be done by anybody with the drive.

There is however, as always, a balancing act to be done here. It would be simplistic to think that the government is intrusive because of institutionalised paranoia, or any other petty reasons. Crime is, at its heart, about money. Working through a business gives crime a face that the outside world might mistake, and it is through some of these intrusions that the government can deter and catch such crime. Whether it is the passive crime of mistreating workers to increase profits or the active crime of money laundering, businesses can harbour criminal activity in such a multitude of ways that if the government was to back out completely the activity would explode. Perhaps in the future technology will allow the government to see the activities of businesses without any action needed on the part of the business owner. But for now, some (but not all) of this interference is a necessary measure to prevent crime.

Are summer holidays damaging your business?

2011-06-15T03:28:00.000-07:00

Summer is approaching, the sun is (almost) out and people are on their well earned summer holidays. But with so many staff members taking time off, it is a good time to reassess the efficiency of your business.

Employment is the traditional and time-proven way of getting a job done but the summer holidays just begin to show employers that it might not be the most efficient. Employees have 28 days required holiday every year, which is a whole month in which you pay them for taking time off. Add a national average of 6.4 sick days every year (CBI survey 2010) and you could be paying your worker for one day off work in every 7.5 days.

Are these days off damaging your business? For a small, high growth company when every day is full steam ahead, they certainly could be, especially when they are taken in blocks of a week or more as is common in the summer. If a vital staff member such as your in-house accountant takes time off, you may be faced with a very difficult choice. Do you accept the slow-down in your business, or find somebody else to temporarily fill the gap? Both options will cost you money and time.

Another thing to consider is this: are your employee’s jobs so time consuming that they can readily take two days off every three weeks with no consequences? Even when working, do you believe that 100% of their time is focused purely on the job? Employment brings a huge list of distractions with it; HR issues, administration, timekeeping, unimportant emails/phone calls, and much more. With traditional employment, we suspect that at very least a whole day’s worth of time, every week, is spent on activities other than the job written on the business card; added to the above figures your employee’s job might be one that can be done in 3 days!

e-Financial Management would like to open your mind to an alternative way of getting a job done. Without employee cost or regulation, contracts or required holidays, you can use the skills of our highly experienced accountants on a pay-as-you-use basis, meaning you only pay for what you need. And best of all in these holiday-filled summer months, we work on your timetable, not you on ours!

Public sector budget cuts - will your private business be affected?

2011-06-13T08:43:00.001-07:00

It has been some time since the public sector cuts were announced, and soon we will see the effects. Politicians, economists and men at the pub all have their opinions on what the results will be, but whatever happens we can be sure of several things:

1. Unemployment will rise. An obvious point, but with 500,000 job cuts announced the labour market will be substantially increased. The private sector will have more choice when looking for candidates when recruiting, though the public sector candidates will have to fight against the perception that they all take many sick days and tend to bunk off work early.

2. Customer spending will drop. Another obvious point. People out of work do not spend money on the luxuries that make up a huge portion of the private sector, so sales will drop for many private providers.

3. Private contractors will be forced to rethink their business plans. There are substantial businesses which survive purely by selling their services to public sector QUANGOs, and with this work drying up they will be forced to face the reality of finding new business.

4. Opportunities for working with the public sector will change. Some commenters believe that all public sector opportunities will dry up, but this is highly unlikely. Instead of wholesale products or services, the public sector will be looking for ways to save money and often the private sector is best placed to do this. e-Financial Management, for instance, allows companies to save money when they need expert financial assistance, as we offer a totally flexible, pay-as-you-use service that the public sector can take full advantage of as and when they need it, rather than hiring a full time accountant.

To pretend that the public sector cuts are nothing but good news for the private sector is to risk. Public workers make up a substantial amount of private spending and a lot of businesses have public sector contracts. For help planning for the future of your business, call e-FM on 0845 129 9900

Businesses Under Pressure To Improve Record Keeping.

2011-06-06T01:41:00.000-07:00

The Liverpool tax office has sent letters informing businesses that were part of a mandatory pilot scheme in March that they could be visited by inspectors to check whether they had improved their record keeping after a first visit from the inspectors.

The businesses involved in the scheme have been informed of the specific areas that need to be improved. Some of the recommendations include issuing sales invoices with consecutive numbers, keeping a drawings record, a mileage log being maintained and business records being written up at least once a week.

A spokesman for Abbey Tax said that help in educating SMEs about maintaining records is welcome. He also suggests that the initiative may not be fair and suitable for the SME to comply with, but the HMRC is yet to respond to the consultation.

SMEs therefore need to review their record keeping processes and where necessary, improve areas of concern or look for help where in-house skills are limited.

For proactive financial management solutions, speak to e-Financial Management Limited (e-FM). e-FM provides dedicated and accomplished book keepers, Financial Controllers and Finance Directors on a pay-as-you-use basis. www.efm.uk.com

How secure are our emails?

2011-06-02T02:54:00.000-07:00

The latest in a long string of news stories relating to online security has revealed that Chinese hackers have intercepted the private emails of hundreds of US officials, from politicians to the military. Google indicated that this was not due to their security being breached, but because users unwittingly entering their details into false websites, making it a crime of fraud.

Although it was just private emails intercepted, it reminds us that internet communication is vulnerable in more ways than one. This is, of course, the cost of instant communication. Security companies may make claims otherwise, but the truth is that no online system is infallible. Sony are under a lot of fire for their recent loss of millions of people’s data, but to take a step back and examine the facts shows a lot of unreasonable demands on internet security.

The business deals with a huge quantity, millions every day, of online transactions. The sector is so cutting edge that, should these transactions be anything but instantaneous, users will leave for competitors. To combine these demands with demands of top level security is simply impossible. Users want to purchase at a moment’s notice, and this is obviously beneficial to the business as well. This means it must be kept together and in an easily accessible place.

Should the data be secured in the matter many would wish, it would increase transaction times to several minutes. Data needs to be decrypted, gathered from several sources and confirmed by several methods (password, confirm postcode, etc) by the user. Most of us would not admit it, but when given the choice between instant and safe(r), I imagine the former will be the common choice.

There is also a level of unreasonableness amongst internet buyers. Details will be entered into dozens of websites, saved in browsers, written on post-its beside the PC and sent by email, and yet fraud is still treated as though it is entirely the fault of the person holding the data.

To bring this back to the original argument, we see that over a very short space of time we have developed in a huge way. The internet allows for amazing things, and instant payment has, in a way, revolutionised business. Businesses can quite reasonably demand this kind of payment, instantly dismissing the age-old problem of non-paying debtors, and emails have wormed their way into every level of our lives. But if we accept that the online world will never be totally secure, do we accept the risks that go alongside the benefits as acceptable, or do we stick to the slow, secure, tried and tested chequebook and memo?

Bank lending falls, Private Equity rises. Which is best?

2011-05-31T08:48:00.000-07:00

Project Merlin, designed to encourage more banks to lend to hard-up SMEs, appears to be failing. Lending £16.8bn of the required £19bn, it raises the question that has been on a lot of people’s tongues for a long time now: what do SMEs need banks for anymore?

Corporate lending is still on track, but for the majority of people in the country who work in SMEs, or are planning to start their own business, this news is discouraging. The consequences of this failure are unknown at this point, but several trends are apparent and we might predict several possible scenarios.

The populist view is that banks and the corporate world will continue to grow off of each other. Banks are guaranteed (comparatively) risk free lending to huge companies that some might argue do not need the money, and corporations get the advantage of low-interest cash to put towards new projects. Given the government’s hesitation in tackling either party’s negative effects on SMEs in the past, this ‘in-club’ seems likely to continue for some time. However, pressure from increasingly frustrated SMEs (who still make up the majority of business and employ more people in the country than any other sector) is growing and many are seeking other solutions for their needs.

With banks not lending, SMEs are looking elsewhere for the money they desperately need. Private equity activity has been steadily increasing over several months, with the local Venture Capitalist taking the place of the local bank manager of years past. The most obvious reason for the migration is the reluctance of banks to lend, so businesses go to those that will. But there are other benefits private equity can bring to SMEs. The bank manager used to be the first point of call when a business faced a new problem, but now a business simply cannot get the advice they need. After a lengthy trial with a call centre a business owner might get to see a junior staff member who will be reading answers from a list. VCs take a personal interest in their investments and have many contacts in the world of ‘real’ business, so if they do not know the answer they will hand the problem to somebody that does. The relationship with a VC might be a more expensive one, but it is far more fulfilling and advantageous to the SME.

VCs are notoriously difficult to please. Without the security that banks are afforded, they need to be sure of their investment. A strong business plan is just the first assurance they require, with their due diligence being thorough and a condition of their funding is often the strengthening of financial controls.

e-Financial Management are ideally placed to both help SMEs get the funding they need, and ensure VCs are confident in their investment. We can offer a range of financial health checks and due diligence reports at a fraction of the cost a typical accountant will charge, and our reports will be written with the confidence of hundreds of years of combined commercial, rather than practice, experience. Our core service of outsourced financial management can help both before and after an investment; ensuring that figures are accurate and that there are no underlying issues, then providing the financial direction a senior, experienced FD can provide, without the accompanying required huge salary and administrative headache of employment.

1-IN-10 Small Business Owners Are Missing Important Tax Deadlines and payments, While Nearly One-Fifth Have Lost Out On Grants And Tax Breaks

2011-05-26T02:57:00.001-07:00

A recent survey of 500 small businesses by Clydesdale and Yorkshire Banks showed that 19% had missed out on tax breaks and grants, while 10% said they had made late VAT payments or missed tax return deadlines. Some 16% were unsure of where to turn for advice on regulation, while 15% said they struggled to understand new rules."

According to Gary Lumby , director of small business banking, every penny counts for small businesses, so the cost of falling foul of red tape, can make a fundamental difference to their ability to succeed," said Gary Lumby, director of small business banking at the banks.

"In extreme cases, the lack of understanding can lead to closure. It is worrying that a significant number of small firms do not know where to turn for advice on these matters and we hope to change that for our customers."

If you are unsure of the impact of current legislation on your business, or simply want to avoid penalties from missed deadlines and payments, speak to our commercially experienced finance specialists.

e-FM have been delivering an innovative approach to financial management solutions for SME businesses for over a decade by offering financial management outsourcing services on a flexible and scalable basis, enabling clients to utilise all levels of financial management expertise on a pay - as - use basis. This service which is available from book keeping to Finance Director level is ideal for clients struggling with getting ready for audit and tax in areas such as year end reconciliation and schedule preparation.

We are equipped, at short notice, to provide a committed resource for a first class financial management service to your clients, without the attenuated costs and commitment required for full time employees.

For more information about our services, please click here. You can also mail chinwe@efm.uk.com or gary@efm.k.com. Tel : 01582 516300/ 0845 122 9901

Bridging The Gap: e-FM Launches Financial Diagnostic Due Diligence Service!

2011-05-20T06:03:00.000-07:00

The European Commission recently announced that Europe is facing an ‘Innovation Emergency’ as independent research shows that European businesses are falling behind Asian and American counterparts in terms of new investment and patents. While it is true that numbers are low compared to world markets, we have witnessed a significant increase in the number of recent deals completed since 2007/2008.

Over the last few months, there has been a significant increase in global M& A deal volumes, with private equity deals involving consolidation in the manufacturing and health sectors, divestiture of downstream assets in the energy sector, mega mergers and divestiture of non-core assets in infrastructure and technology. Sadly, there is a widening gap in the health sector left by a combination of factors- including government policy on healthcare and an aversion of the more typical VC to invest in high risk businesses, which corporate backed VCs and strategic investors are now bridging, according to research by EP vantage.

In spite of the sector switch, many analysts predict that this year will be a strong one for M& A activity, and in the last quarter, we have seen a strong period with quite a few flagship deals being publicized, some of which e-FM has been advising on. This trend proves that buyer confidence is returning, albeit slowly.

To support potential investors, funders and non-execs, e-FM has recently launched its ‘Financial Diagnostic Due Diligence Service’. This is an in-depth Financial Director Diagnostic/ Due Diligence review for non-execs and funders on target companies which will supply investors with information to enable the validation of claims made by management of the businesses and reveal potential pitfalls or missed opportunities of proposed plans.

The final report will include a list of key findings and valid recommendations as well as a detailed conclusion with a financial analysis explaining the feasibility of e-FM’s recommendations and its impact on the company. A transition plan can also be proposed to enable the target company to implement recommendations over an interim period.

This service is already generating interest in the private equity / venture capital market . The financial diagnostic is only a part of the full offering targeted at the Venture Capital market, as in addition to pre- due diligence support, the company also offers commercial and operational support after investment (post due diligence)and ongoing support in every other phase up to exit level, where necessary.

We look forward to continuing to provide clients with strategic and financial diligence advisory services on M & A transactions, and to help bridge the ‘innovation gap’ by supporting the investor and the investee.

For more information about our due diligence service, click here to email us or call 01582 516300. www.efm.uk.com

Retailers face a tough decade

2011-05-17T07:09:00.000-07:00

Top accountants Ernst and Young have predicted a tough decade for the British high street retailer with inflation rising, household debt mounting, decreasing wage value and the ever present threat of an interest rise threatening those who make a living selling to the public, especially in areas of discretionary funding such as restaurants and hotels.

It has just been announced that the government is bringing in TV business guru Mary Portas to rejuvenate the seemingly cloned streets of Britain, ending the ever-upwards march of the chain stores in favour of small businesses through old-fashioned business savvy and ‘tough love’. This seems, sadly, like another gimmick measure from a government who has already built a reputation for such in just over a year, but it shows that our elected representatives are listening to the concern of small business owners and at least trying to see how they can help on a national level.

e-FM loves small and medium businesses. A new business with a good product range can bring new jobs and growth to their local economy, and despite the reassurances otherwise, an economy based purely on the service sector and chain stores will be a dull one indeed to live in. So it is that our primary clients are SMEs, businesses we know we can help thrive through our knowledge of the financial pitfalls facing them and allow them to focus purely on doing what they do best. Our outsourcing model ensures the clients are getting the best value for their money without the headache of employment.

But we also know that it is not just internal problems facing SMEs. The regulatory burden is often overbearing for business owners, but even when it is done right times are tough. The combination of convenience stores and supermarkets, unfavourable parking conditions in town centres and the explosion of internet-based retail offering the same products at a fraction of the price has made the independent trader model obsolete; they have failed to move with the times and to grow in the current climate they need to really differentiate themselves. Simply buying a good and reselling it is not a feasible business model when larger companies can afford to do so in bulk, and the internet allows people to buy straight from the supplier.

Mary Portas might think that simple business sense will bring back the flair of the high street, but those living the problems know that this is simply not the case. Retail SMEs can still grow and colour the economy, but to really succeed in today’s world, they need a unique product, flexible methods of distribution and no headaches with administration.

e-FM can provide the pay-as-you-use expertise to ensure the behind the scenes activities stay there and we will leave the rest to the budding entrepreneurs of the country!

Badly educated workers getting you down?

2011-05-09T02:42:00.000-07:00

A recent report shows that business bosses are unhappy with 40% of school leavers’ literacy, and 35% with their basic numeracy. There are several possible reasons for this, from the increasing use of computers to correct poor spelling to the reduction in standards to fit a ‘no child left behind’ policy. This news is worrying enough in itself, but it poses a very real problem for businesses. There is no shortage of youngsters looking for work out there, and the benefits of a young or graduate worker are well known, from their energetic drive to their lack of workplace experience helping them ‘think outside the box’.

But it is not the job of businesses to educate workers. A thorough grasp of basic literacy and numeracy is not an unreasonable assumption to make when recruiting, but businesses find themselves increasingly frustrated by poorly educated workers, and the endless catch-up is stopping businesses from achieving the growth they desire and the economy needs. So with the prospect of hiring new workers being just too time consuming, and experienced workers too expensive, businesses are struggling to get any kind of talent into their ranks.

The route to a strong economic recovery is a strong workforce. But businesses expect certain returns on their tax. If the education system is not fit to produce a workforce suited to work and train in today’s increasingly office, knowledge-based employment style, then businesses should not be expected to pick up the slack and will no doubt look elsewhere to get the workers they need.

Such a generation gap is a heartbreaking thing to see. But small businesses are already struggling and will be the primary drivers of an economic recovery. e-Financial Management can provide exactly the skills your business needs, and when you hire us you can rest assured that every one of our employees, from bookkeepers to financial directors, have exactly the skills needed in today’s business environment. We also have an inside knowledge of the options available to businesses regarding government funding for training employees, if you want to make the most of your time and workforce give us a call!

Problems on the M1: more reasons to choose flexible workers

2011-04-18T08:01:00.000-07:00

It seems that every week we hear news regarding travel problems. From minor issues such as small accidents to wide ranging issues like the Icelandic volcano eruption last year, or the more recent M1 closure, travel is never simply a matter of going from A to B. And with huge numbers of people commuting to work every day, it is impossible to calculate just how much a simple road accident can cost hundreds of small businesses in lost man hours.

This is all part of a wider problem with a ‘fixed’ workforce. With everybody starting work at 9am, an accident on a busy road at 8.30 will affect every single business whose employees travel that way. Employers can do nothing about it, but still nothing has changed. With computers, the internet, Cloud technology and increasingly instant communications, is there still a need for workers to be in the office from 9 to 5? e-FM was set up with the core aim of providing maximum flexibility to businesses, meaning that our quasi-employees can focus entirely on the job they are given and doing it in the most efficient way possible, rather than trying to fix their work around employee lifestyle.

Online systems mean most of the day-to-day work can be done at the worker’s convenience, whether they are in the office, at home, or in a coffee shop. Cloud data storage means complicated information can be accessed and edited by people hundreds of miles away. Being hired specifically to do a job, rather than be an employee, means ‘typical’ working hours stop being an issue; it is amazing how many jobs take exactly 7 hours a day, 5 days per week! Obviously not every job can be done in this way, and offices provide a good environment to ensure work gets done. But next time you are sitting in a traffic jam at 8:30am, look at the people in the cars around you and ask to yourself: “do they really need to be here?”

Inflation in the service sector

2011-04-12T06:37:00.000-07:00

The news today reported a “shock” fall in inflation rate from 4.4% to 4%. Clearly this alone is not a large issue, as rates invariable have bumps, but it could be a potent of lower rates to come. However, at the moment inflation still remains at double the target rate and the low interest means savers see their money eroding. All of this points towards people making sure every penny counts, privately as well as in business.

This presents a question for retail businesses: do they raise their prices to ensure their profits remain steady and risk losing customers, or keep their prices steady to keep customers and shoulder the extra costs? But people always expect the price of ‘things’ to rise. For people who sell their own skills and time, an increase in price is seen as a much bigger event. Customers will, rightly or wrongly, see it as pure profiteering on the provider’s part, as they seem to have less ‘material’ costs for what they do.

With financial pressures both at home and at work, service providers are seeing their own costs increasing and the immense competition all but prevents them from raising their prices. To ensure standards of living and working are kept at a reasonable level, there are several steps providers need to take.

First, evaluate costs. In today’s ultra competitive marketplace providers of stationery, IT, insurance and others will be happy to cut a better deal if it means keeping a client. Shopping around can find you the best deal, then go back to your original provider and ask them to beat it. This is good practice to do every year but in times of plenty the extra few pounds may not be worth the effort; if you can make the savings in your own business rather than passing on the costs to clients you will soon get a very good reputation for value.

Next, take an honest look at how you run your business. All too often money can be wasted on things you don’t actually need, such as brand new computers or flashy material only existing clients will see. There is a huge amount of money to be saved if you are willing to take a step down; for example second-hand computers are much, much cheaper than new ones. If you are confident in your abilities, your props are just false pride!

Finally, if you really do feel you have to raise your price, be honest and open about it with your clients. Explain that your costs are going up and a small fee increase will be coming. Make sure you emphasize the good work you have already done, and be confident in the work you can do in the future. Clients will appreciate the honesty far more than a surprise on your next bill!

Pension Reforms Will Affect You In 2012. Let's Help With Your Financial Planning Now

2011-04-05T02:11:00.000-07:00

From 2012, it will be compulsory for all employers to contribute to a pension scheme for employees. All eligible workers , not already in a qualifying scheme will be automatically enrolled into the employers national pension scheme. Even though single director companies will not be affected by this new rule, their clients or suppliers may be affected, and this could have a knock-on effect on your own business. What financial planning initiatives have you considered?

With our network accross the UK, we have a team close to you that can talk you through the process of planning for your cashflow now, before it puts a strain on your business. Contact us for a free no-obligation meeting. If we provide a health check and we discover that you need help with cashflow management/ financial planning, we will decide on a mutual agreement suitable for your business. For more information, just send a quick mail on 'Help with my cashflow' to us , even if this may be as a result of some other internal issues, apart from the pension change. We respond quickly to queries and will keep you informed of any progress along the way. Our contact email is clientcare@efm.uk.com. You can also visit us at www.efm.uk.com or call on 01582 516300 or 0845 129 9907. We provide services at multiple levels from bookkeeping to Finance Director.

The Budget offers glimmers of hope for small business, but is it enough?

2011-03-25T05:06:00.000-07:00

In many ways, Wednesday’s budget was underwhelming. There were several headline grabbing announcements, but even these were of very little significance. The fuel duty reduction barely even made the petrol station price boards and frozen council taxes had already been announced locally. There was abundant bad news such as ever increasing inflation and growth was considerably lower than forecast.

But for businesses, there were small glimmers of hope amidst the bad news. The lowering of corporation tax is a widely welcomed move for struggling small businesses, and there will be a reduction in regulation for companies with less than 10 employees for 3 years, reducing the burden on startup and rapidly growing companies. Business rate relief holidays have been extended for another year for small companies. And there was even talk of merging income tax and NI, a move welcomed by nearly all, despite the complications involved in such a merge in areas such as pensions and company benefits like cars. It is hoped that these measures will lead to an increase in new business, something our country desperately needs right now.

So will the budget affect the day to day running of small businesses? At the moment, not really. Those already on the business rate relief holiday will simply continue to be on it, and against the background of wide ranging regulation the slackening of some of the fringe areas will not provide any relief for directors who have better things to be doing. The NI holiday that was hoped for never appeared and it will be several years before the merging of income tax takes place, so employment is still a reprehensible and overly expensive thing for busy business owners. But some of the measures provide the hope that over the next few years, running a business will become easier and owners will be able to focus on doing what they do best.

In the meantime however, things are unlikely to change for the small business owner. Employment is still expensive and risky, and legislation still takes up more time than is reasonable. Inflation means that more than ever every penny must count, but whilst employment legislation remains as it is hiring somebody to help is cost-prohibitive. Now is a better time than ever to make use of expert resource on a pay-as-you-use basis, meaning a business can reap the experience of hundreds of years of combined financial experience, without getting stuck in employment legislation. If you would like to see what an e-FM expert can do for you, give us a call for a free healthcheck!

Why choose employment?

2011-03-11T06:17:00.000-08:00

Employing people has always been the obvious method to fill a job opening. Little thought is given to other options, especially in areas of the company which are seen as essentially in house, such as the finance function.

But why go down this route? It seems that every week we hear of new government legislation making it harder, more expensive and more time consuming to employ staff. Whether that is NI contributions, regulatory issues, threats of tribunal action or required time off, employing a person has never been a less efficient option to get a job done.

Businesses, especially SMEs who cannot afford pricey HR departments, are left with several options. Going without the staff and working the extra hours is becoming more commonplace these days, as is asking ill-qualified existing staff to do the work. But this takes up time that could be spent developing the business, and quickly growth will grind to a halt.

There are alternatives. IT is one area of business frequently outsourced, but how much consideration is given to other departments? Paying for expertise as it is used makes sense financially – most businesses would enjoy and benefit from FD level input but simply cannot afford it, or do not even need it for more than one day a month.

Outsourcing departments makes sure that companies get the expertise they need on a low-risk, flexible and scalable basis. There is no employment procedure, and you can be certain that resource goes 100% towards the job, without company business diluting the time.

It has never made more sense to outsource jobs, but the word still has negative connotations, the image of jobs being shipped to the Far East and the ‘personal touch’ being lost. e-FM remove this fear, as all of our work is done at client premises, by those most qualified to do the job. We are quasi-employees, who you hire to do the work without the baggage of employment. Why not give us a call and find out how we can give you peace of mind whilst saving you money and letting you focus on what you do best.

What effect will rising oil prices have on the service sector? How can we reduce the impact?

2011-02-22T06:50:00.001-08:00

The current crises in the middle-east, along with the increased drive towards ‘green’ energy adding further taxes to fossil fuels means oil prices are sky high and do not look like they will fall any time soon, if ever. For business such as haulage and power, this presents obvious problems with prices of necessary materials rising and customers looking to save money wherever they can.

But what about the service sector, finance, IT and others, who are not as obviously affected? How do rising fuel prices really affect the service sector? There are the obvious increased fuel costs involved in travelling, for those companies such as e-FM that work largely at client premises. Utilities bills may go up. In other words, the usual year to year costs, maybe just a little higher than usual.

There are less obvious results of rising prices that could have consequences for business. Oil and natural fossil fuels are used in practically every aspect of our modern day lives. The plastic casings of computers are made using it. The factories used to manufacture paper run on it. Costs everywhere are looking to rise, and unlike those businesses directly affected we cannot justify using the rise as a reason for increasing our prices, as people who are already watching the pennies may decide to use the price increase as a reason to scout out the competition.

The solution? As tired as it is beginning to sound these days, cut the costs! Do you really need the brand new laptop, or would a second hand one at a quarter of the price do the job just as well? A few minutes browsing the internet tells you all you need to know about restoring a computer to the condition it left the factory in. Or would upgrading your existing machines do the trick?

If you are not in a serviced office, do you have good power saving policies? Computers left on standby use up energy and raise electrical costs, however little, whereas those switched off use none. Could your employees share transport to events? Have you reviewed your providers (stationery, furniture, photocopier rental, even tea/coffee) recently? A short annual scout of alternatives is good practice in any business, but in times of plenty we often save ourselves the effort.

The final option is one likely to become more fashionable, and perhaps even a legal requirement, in the years to come. Private homeowners are beginning to invest in solar panels, biomass boilers and other ‘natural’ energy sources. The government promises incredibly tax efficient schemes for businesses who participate: research ‘Enhanced Capital Allowances’. Whether or not you believe in Global Warming, manmade or otherwise, the savings to your business can be very real!

Organisations With Flexible Supplies Of Labour May Have New Opportunities

2010-10-19T03:23:00.000-07:00

As public sector cuts hit the UK, It is expected that half a million private sector jobs might be lost, according to recent research by PriceWaterhouseCoopers.

It is easy to see how the losses will come as a knock-on effect from withdrawn public contracts and reduced public spending. However, it is expected that this will result in increased flexibility on wages and working hours due to companies struggling to reduce non-core and fixed cost operations.

This increase could in turn lead to a rise in outsourcing activities, contract opportunities and part-time jobs, and is likely to occur in spite of the current fiscal squeeze, as has been the case in previous situations.

There is hope yet, I think for the interim job market.

www.imtb.uk.com is a joint venture between www.efm.uk.com and www.matureaccountants.com

Remote Workers At Risk Of Fire Skin 'Erythema Ab Igne'

2010-10-18T08:51:00.000-07:00

It has recently been reported by researchers at University Hospital Basel in Switzerland that there has been a surge in cases of EAI- a rash which leads to irritation and skin discolouration-amongst remote workers!

This condition, 'erythema ab igne', also known as laptop thigh (this is true) , or fire skin, arises as a result of exposure to heat especially among workers who use laptops for 4 hours or more. Historically, this has been associated with people who worked with intense heat such as bakers and silversmiths , or the elderly who sat close to open fires and heaters.

Modern day technology has reduced some of the associated causes but also brought with it these new issues...

Prolonged and repeated exposure would cause a marked redness and colouring of the skin. This may result in the thinning of the skin and underlying tissue, sometimes developing into lesions. Some people may complain of mild itchiness and a burning sensation but often unless a change in pigmentation is observed, it can be overlooked.

Once noticed, avoid using your laptop directly on your skin. It is easier to solve the problem if the area is only mildly affected with slight discolouration and redness. In extreme cases, where this has gone unnoticed and the condition is severe, there may be a risk of squamous cell carcinomas and a biopsy should be performed to rule out the likelihood of skin cancer.

Medical experts have warned people who use their laptops for extended periods on public transport, at home to take frequent breaks and avoid resting their laptops on bare legs.

e-Financial Management provides Finance Director, Financial Control and Bookkeeping services at http://www.efm.uk.com/

Having A Baby Is A Big Enough Deal!

2010-09-27T04:45:00.000-07:00

Whether it's your first baby, last baby, only baby or even your friend's baby, it is a monumentous deal!

Ever since you discovered a baby was coming, you made a list, dreamt big dreams, and hoped for many little miracles to help you pull through. All of a sudden, there's hardly any time left , the baby is almost due and there's a million and one things to do before ...tomorrow???Ok, if you are working, there's your maternity leave, so a bit of time to get your thoughts together-(maybe). If you are not, oh its even harder to explain what happened with all that time you thought you had!There's the cots, the prams, the chairs, the food, pampers, cutlery, bibs, the bathroom essentials, monitors,blankets, changing mats, play mats, toys, the hospital, the daddy, the mummy, grandma, grandpa, the dog, the cat, oh the other siblings too, how could I forget -there's me too.... oh and those many issues to resolve with my career and work, my stress levels, my eating habits,oh dear, there's at least a thousand issues I want to write down now- but I won't!How does everyone else cope???

Well, Babyinterims realises how EXTREMELY difficult this is for parents and kids when a new baby arrives,so we have developed affiliate relationships with some of the best providers of baby/family products and services. We are aware that new and expectant mothers (as well as their partners) have an immense amount of pressure and responsibilities to deal with during and after pregnancy, so we have provided a comprehensive list of providers that offer almost everything you will need from before the baby comes to when the baby grows- including advice, clothes, prams, toys, holidays and stuff for parents too!Some of our providers offer fantastic deals through our affiliate programme, so check our affiliate page for some super offers. Our affiliates include ‘Toys r us’, ‘Walt Disney travel Company’, ‘Bounty’, ‘Kiddies Kingdom’, ‘Baby Monitors’, ‘Born Gifted’, ‘Crave Maternity’, ‘Stardust Kids’, ‘Babycurls’, ‘Bambino’, ‘1st For Toys’, ‘Jojo Maman Bebe’,‘Just Childs Play’, ‘Kids Stuff and Things’To find out more or purchase a product, please visit Babyinterims.com (On this page, click on Interims Brands to go there now)

To find out more or purchase a product, visit the babyinterims site

IMTB Limited has 3 interim brands- Charityinterims, Babyinterims, Healthyinterims

Who gets the blame?

2010-09-09T02:23:00.000-07:00

We have in the last few months focused our attention on BP and the effects of the oil spill disaster in the Gulf of Mexico. Most organisations are to some degree, dependent on other entities for their survival or progress, and while it may be impossible to create a self sufficient business, many will consider outsourcing options more carefully in the future.

BP recently released their report of the spill, and, as expected, finger pointing is central to the unfortunate incident. While they accept some responsibility for cleaning the spill and paying the damages, BP claim the explosion was the result of a series of mistakes from their outsourced companies Halliburton and Transocean.

BP looks to be passing the buck, but this is a representation of the world we live in. It is easy to condemn those who try to shift the blame, especially a large company, as such actions without fail look cowardly. However, BP did outsource large and important tasks to these companies, and when outsourcing is involved who is really responsible?

Many companies outsource in today’s ultra competitive market, and in doing so, entrust their business, reputations and sometimes lives (as in this case) to their suppliers or partners. By shifting some of the responsibility to their partners, BP brings to light some of the disadvantages outsourcing can bring, especially if partners are incompatible or if the relationship is strained.

When something goes wrong, people are inclined to believe it was the doing of one entity, not the combined efforts of several smaller mistakes. It seems immature to think in such a way in the 21st Century, especially when so much is created by such group ventures, but blame is a very difficult feeling to avoid, and it is far easier to blame a general than it is to blame an army. And if the general tries to say “but my captains didn’t lead my soldiers properly”, this only serves to confirm people’s opinion that the general is incompetent, whether or not it is true.

As a business which relies on their clients outsourcing their problems, e-FM is very aware of the problems that can come with blame and responsibility. As finance experts, it will be our responsibility to admit any failures or successes, and this is our prerequisite for a successful partnership. As cement experts, it is Halliburton’s duty to admit any failure to properly deploy their product, especially when the consequences of failing to do so are so high. So if something goes wrong, who gets the blame? BP say Halliburton’s bad cementing of the well was part of the reason for the disaster. In response, Halliburton claim they followed BP’s specifications, which were in turn set by US law.

Halliburton may get away with a small (comparatively) fine and a slightly tarnished reputation, but BP will be feeling the repercussions of the accident for many years to come in the forms of fines, court cases and lampooning from the American press who are especially proficient at deciding who to blame.

Businesses outsourcing are aware of the risks of putting your livelihood into the hands of somebody else. We know businesses trust their reputation with us, and we are proud of the trust we receive. We know we receive such trust because of our own reputation, and when we are hired we put our reputation in the hands of our employers as much as they do us. For e-FM, anything less than a perfect reputation is not acceptable, and the only way to achieve such a record is through consistent quality of service.

People must feel safe hiring outsourced services, though all too often they will take the cheapest option, not the best, and may have to pay the price for somebody else’s mistake. And if they try to point the blame, who will believe them?

Financial Management Specialists Expand In The West Midlands

2010-08-12T01:55:00.000-07:00

e-Financial Management Limited (e-FM), the financial outsourcing/insourcing company is pleased to announce the opening of its office in Halesowen. Already, its first contract win has been sealed with a worldwide leading manufacturer of vacuum valves with turnover in excess of USD200m, and the new office seems to be attracting a significant amount of interest and enquiries within its first few weeks.

eFM provides a wide range of bookkeeping and financial management solutions on a flexible and scalable basis, with particular focus on growing businesses. This new office is part of e-FM’s growth strategy to strengthen its presence in the UK, and Halesowen is an ideal location for eFM to provide support to the thriving business community in the West Midlands whilst being fully supported by Head Office team in Luton.

As well as running any aspect of the finance function on either an insourced or outsourced basis, e-FM’s services include the provision of online accounting, project and finance support, board level support, and other financial management based ancillary services using its extensive network “This is an ideal role for me, commented Local Director, Steve Masters, “I am really looking forward to the challenge of helping e-FM become established in the local marketplace, while providing sound financial management solutions that will bring development and growth to local companies”

Prior to joining e-FM, Steve Masters had managed various interim assignments ranging from financial management and project accounting to developing computerised accounting systems. He has also worked extensively in manufacturing, distribution and service industries, significantly reducing processing times and associated costs as well as developing reporting packages.

With Steve’s s experience and drive, e-FM is confident in its strategy to profitably grow its network nationally as well as increase its level of support to its clients across the UK.

"Steve's timing was perfect said Gary Jesson, MD of e-FM - we have an ambitious growth and development programme and its success is dependent on getting the right people on board to make it happen. I am delighted that Steve has accepted our offer to join the network and I am confident that his skills and experience will be a tremendous asset to help the company meet its growth ambitions".

Steve Masters can be contacted on 0121 602 0596 / 07929 283272 or steve.masters@efmbib.com. Kindly visit our website for more information about our services: www.efm.uk.com.

Employers May Be Faced With Increased Liabilities Soon

2010-07-09T02:17:00.000-07:00

To protect agency workers from exploitation, a new directive to provide equal rights to agency workers is to be introduced in 2011. Currently, a large percentage of permanent workers have more entitlements than their colleagues who are temporary and agency workers. These include working conditions and employment rights relating to working hours, pay, pay rise, holiday entitlement, training support and job assignments, amongst others.

The implication is that companies that currently use temps and agency workers will be faced with increased responsibilities and possible rise in employment costs in the very near future. As the implementation day approaches, many companies have started to rethink their recruitment strategies.

This controversial directive has in the past been opposed by some organizations claiming that this legislation will result in huge job losses, leaving the workers in a more vulnerable situation; as well as hindering flexibility in the industry. Companies relying heavily on temporary staff now have to ask ‘Is this really cost-effective? Is this really sustainable? ‘

To bridge gaps in staffing, many companies are now resorting to the use of outsourcing companies and Interim Managers, depending on the period of cover required to do the work or the level of skills desired. These two options can save huge employment costs in National Insurance, pensions, healthcare, holidays, PAYE, training costs, severance pay, maternity pay, paternity pay as well as many other related expenses.

If you are not sure whether you need to consider using an interim manager, here are some basic FAQs:

Who is an Interim Manager?
An interim manager is a competent, senior level professional/manager that can provide management skills and resources up to MD/ CEO level, usually on a temporary basis. An interim manager may be sought if it is impossible or unnecessary to fill a position immediately or permanently. A company may also require an executive to handle a period of crisis or transformation within its organization, and an interim manager is usually an ideal choice, in terms of experience and period of cover.

How much does an Interim Manager cost?
There is usually a daily rate for an Interim Manager. Some are prohibitively expensive, but it is also possible to find top-level candidates that offer flexible, transparent and cost-effective rates without compromising skills and experience. Rates may be influenced by supply & demand, the hire period/length of assignment, how senior the role is, and in many cases the agencies though which this is contracted. Daily rates vary greatly and can be as high as £1000, so it is important to hunt around for the best rates before proceeding with a contract.

At these high rates, is this really an option I should consider?
The total cost of your employee includes National Insurance, pensions, healthcare, holidays, PAYE, training costs, severance pay, maternity/ paternity pay, search and selection fees, redundancy pay and working materials costs as well as many other related expenses. These costs are not applicable when you hire an Interim Manager, so it can be a cost-effective measure, depending on the day rate and responsibilities involved.

What is the usual contract period?
An Interim Manager is usually hired for a temporary period, with a start and end date defined. On some occasions however, the position may become available permanently, and it is possible for the Interim Manager to fill the position.

How quickly can an Interim Manager become effective?
Most Interim Managers have extensive experience that can be applied immediately after starting an assignment. They would normally add immediate value to organizations, as their responsibilities are clearly defined and they would usually possess a wealth of experience in their chosen field.

How quickly can I find an Interim Manager?
This may vary depending on the location of the job, the nature of the vacancy, and the provider/ network you choose.

What is the difference between a consultant and an Interim Manager?
A consultant provides professional advisory services and would normally establish an action plan, leaving the client company with the responsibility of executing the strategy. An Interim Manager is involved in the implementation process and would stay with the company until it achieves its desired result. This is a more appealing option for many businesses, and in some cases, the role may become part time, long term, or permanent.

IMTB Ltd provides top level Interim Managers at short notice in the UK and overseas. Run by commercial accountants, not recruiters, the company will have a clear understanding of detailed specifications for existing roles, and will be able to closely match requirements with potential candidates, usually within 24 hours of receiving a brief. Operating without geographical limitations, IMTB provides immediate access to hundreds of interim candidates with relevant industry experience and a verifiable track record of success in their field. For general enquiries, you can mail us at chinwe@imtb.uk.com, or call 01582516300. If you have an interim cover requirement, you can contact Martin Lloyd-Penny on 08451299908 or Gary Jesson on 0845 1299907. You can also visit our Interim Management Talent Bank www.imtb.uk.com

The Emergency Budget

2010-06-10T05:51:00.000-07:00

As we wait in anticipation for the emergency budget, many thoughts cross taxpayers' minds. Thoughts of pre-election promises to review funding for SMEs, proposals to create sustainable jobs, and plans to implement controls that would favour both employee and employer, including changes to NI contributions, personal allowance and retirement age.

Well, here is the irony of the situation. These promises have now been overtaken by quite desperate plans to reduce our huge overdraft,and though necessary, this now implies that it will take a long time before things get better.

Sadly, the proposed cuts will affect several government-aided schemes that have provided support and funding in these hard times, and for many who believed that they had survived the toughest economic climate, there might be tougher times ahead. Many of the government funded programs were vital to the survival of many small companies, and withdrawing support might cause a few more businesses, especially start-ups, to crumble under the strain of unsustained resources.

If you are worried about funding and cashflow management, please contact us on 01 582 516300 or chinwe@efm.uk.com.

e-Financial Management is a financial management company that offers a flexible, cost-effective solution for services ranging from bookkeeping and credit control through to Finance Director, with many levels in between. We consider ourselves as quasi-employees and as such, we are totally committed to the organisations we work within. For more information, please visit www.efm.uk.com.

Should Under-resourcing Be An Option?

2010-04-28T03:37:00.000-07:00

The business environment is constantly inundated with countless dilemmas that challenge most business owners. Sadly, for smaller companies, changes in economic activity are even more unwelcome as SMEs are more susceptible and have less control over their business environment. Every action the company, its customers or suppliers take in an uncertain situation, may create a risk to the survival of its business.

In an economic climate such as our current one, the pressure on companies to reduce staff costs is overwhelming, especially as more companies face extinction. The first cutback business owners and managers tend to make, will involve staff costs as that seems to have a more immediate effect than other expense lines. The danger however, is that in desperation, companies will make rash permanent decisions to save costs even when it results in such an unfortunate situation as under-resourcing. The consequence of this is that business opportunities from prospects or existing clients may be missed; administration gets behind, reporting gets delayed, all resulting in other pressures on the business.

So why isn’t under-resourcing an option - or, technically not an acceptable option? There are many risks to having insufficient capacity to deal with current or potential increase in demand. The business opportunity that may be lost can reverse the same situation which necessitated the cut back in the first place. Also additional costs often arise through fines, penalties, uncollected debts etc.

With this in mind, most businesses are in favor of an option that has become acceptable in today’s business world. With outsourcing and insourcing, entrusting another company with your finances and other strategic assets has become an acceptable – even essential business model. The advantage is that companies can afford to plug the gap in staffing as and when required, usually on a flexible payment platform, and often at a lower cost than full time employment.

Many companies deciding to do this for the first time are faced with issues of trust, security of information and level of expertise/service. The main question remains ‘How do you know which companies you can trust?’Here trust would encompass every single element of the relationship including reliability, flexibility, pricing and a true commitment to provide value. How does one find the right partner or supplier? How do you vet a vetting company- if you decide to use one? Do references really give a true picture? The truth is that there is nothing as effective as a personal, independent search; especially for high volume, long term contracts. Visit websites, speak with representatives from the company, get references and referrals from personal or professional networks, as well as the chambers of commerce or governing bodies. You may explore as many sources as possible until you are satisfied- and in some cases this may be only one source. Admittedly, you may discover subjective information but it at least tells you something about the provider. Find out who your competitors are using and it’s quite easy these days with close supplier networks and the internet. The most important point is not to depend on one single source, but when you decide to, make it subject to an ongoing review.

Contributor: www.efm.uk.com

Executive Maternity Cover From Baby Interims

2010-03-17T08:25:00.000-07:00

Launching ‘Baby interims’- The Unique Maternity Cover Service

This year, e-Financial Management is expanding its offering by teaming up with Mature Accountants to launch a unique new service, ‘baby interims’ . This service provides executive maternity cover, catering to a huge market not well served by regular interim agencies. With coverage across the UK and overseas, clients have immediate access to hundreds of experienced high calibre interim managers that are reference checked with a verifiable track record of success in their field. The model is flexible and transparent and provides a welcome alternative to existing models.

Run by commercial accountants, not recruiters, the company will have a clear understanding of detailed specifications for existing roles, and will be able to match requirements with potential candidates, usually within 24 hours of receiving a brief. Babyinterims has been launched as part of a wide range of niche markets that the parent company, ‘Interim Management Talent Bank’ will serve. Our first client, a private sector company says ‘I am very impressed with the cost, turnaround time and the high calibre of shortlisted candidates selected. The entire recruitment process was exhaustive, speedy and extremely pleasant’.

For more information about these services, please visit www.imtb.uk.com, www.babyinterims.com , www.efm.uk.com , or matureaccountants.com or call 0845 1299907

A reason to celebrate.....

2010-02-04T03:04:00.000-08:00

With Toyota facing its worst recall crisis ever, Chevron announcing a 37% fall in its 4th quarter net income, 'Shell'planning to cut 1000 extra jobs amidst a sharp fall in profits, and the entire economy still struggling to recover fully from the downturn, e-Financial Management has many reasons to celebrate its 10th anniversary of trading with pride and gratitude to staff, clients and people who recommend us to them.

To tour our past and find out more about our financial management solutions, including Finance Director, Financial Controller and Bookkeeping services; please visit us at http://www.efm.uk.com/newsarticle.php?id=261

Our offices:
e-Financial Management, London & North Home Counties(Luton office): gary@efm.uk.com
e-Financial Management, Northeast (Newcastle office): malcolm@efm.uk.com
e-Financial Management, Northwest (Manchester office): maurice@efm.uk.com
e-Financial Management, Midlands (Birmingham Office): ruth@efm.uk.com

e-Financial Management Celebrates Its 10th Anniversary Of Trading!

2010-02-02T06:12:00.000-08:00

2010 is a significant landmark for e-Financial Management (e-FM) as it celebrates its 10th anniversary of trading. Since it first opened its doors to clients in 2000, e-FM has grown from a small business in Luton to a fast growing company with regional presence across the UK and clients in various parts of the world.

By providing a wide range of services to SMEs on a flexible pay-as-you-go platform, e-FM has given small businesses access to specialist financial management services which they would otherwise, be unable to afford in-house. It’s Finance Director, Financial Controller and Bookkeeping Services are provided on an insourced or outsourced basis, and its flexible model ensures that the company provides the most cost-effective yet, efficient solution for clients.

For more information about our services, please visit http://www.efm.uk.com/services.php

Cash flow falling with the snow?

2010-01-06T04:38:00.000-08:00

Many businesss’ good intentions to make a vigorous start to the new year have been blown off course by the arctic conditions that have enveloped the country in this first week of 2010.

Research in previous cold spells suggests that productivity and trade, whilst temporarily disrupted, is not seriously affected in the long term. The old adage “Cash is King” reflects the importance of cash flow to all business’ and that remains in the current freezing conditions. Serious interruption to cash flow will threaten the survival of many business’ particularly those in the retail, hospitality and transport sectors. All business’ carry fixed costs and many of those cannot be defrayed.

There is no doubt that developments in mobile communications over the last 20 years have made business’ more adaptable in these conditions. At e-Financial Management we can easily keep in touch with clients and colleagues and address specific issues and ongoing workloads on an almost business as usual basis. So how can business’ address the cashflow issues:

Invoice as normal, even if this means remotely e mailing invoices, this can be followed up by putting a hard copy in the post when conditions improve. Delaying invoicing may cause a problem in the months to come.

Get customers to transfer outstanding funds electronically, thus avoiding the cheque in the post syndrome

If operating a skeleton staff ensure that someone has responsibility for banking cheques as normal

Revise your cash flow forecasts to reflect the current situation, the standing orders and direct debits will be charged whatever the weather.

If having cash flow problems speak to the bank, HMRC and significant creditors explain the situation, you won’t be the only one, “don’t bury your head in the snow!”.

In the cold snap last year it was estimated that over 2000 business went out of business, make sure that you survive again.

New tax rates

2009-12-22T06:54:00.000-08:00

As a company who run finance functions, we do not get involved in tax planning, however recent budget announcements have meant we, like many others, need to be aware that employees and employers are going to be taxed more heavily in the future and that this needs to be on everyone's agenda as a key financial financial managment concern. In particular the following items are worth noting:
In April 2010 a new 50 per cent tax rate will be introduced for those earning £150,000 or more. Personal allowances will also be reduced by £1 for every £2 of income above £100,000, falling to zero for people earning more than £112,950. These measures alone mean that someone earning £105,000 a year will pay approximately an extra £1,000 in income tax and national insurance from next April. Those earning between £112,950 and £150,000 a year will pay an extra £2,590, while the tax bill of someone earning £200,000 will jump by £7,590.
This is costly, however the real pain for high earners will be felt in April 2011. That is when the double sting of the NI increase and the restriction on pension tax relief comes into effect. From that date, those earning £150,000 will suffer a cut in their tax relief on pension contributions, tapering to the basic rate of 20 per cent for those earning more than £180,000. The package of measures means that someone earning £150,000 will pay £3,307 more in income tax and NI from 2011 whilst people earning £200,000 will pay an extra £8,557.

There are some simple measures companies can take to minimise tax such as paying remuneration and dividends before the new rates take effect (and if cash flow is difficult the money can be loaned back to the company). However we would encourage all directors, business owners and shareholders earning at these levels to take advice from their tax advisors to plan ways of minimising the effect of these changes on themselves and their staff.

Mitigate The Impact Of The Strike Action

2009-12-01T05:18:00.000-08:00

2009
With every indication that the national postal strike is due to start soon, there is an obvious need for companies to rely less on physical documents, their delivery methods and the operational processes that depend on them.

The Reality Of The Situation:
The action is certain to have a huge impact on businesses that depend heavily on Royal Mail. For those familiar with the 'cheque in the post' phrase, you might hear it a lot more this month as a valid excuse for non-payment. The last national stoppage in 2007 resulted in a backlog of about 200 million letters and parcels. It is also estimated that over 50 million postal items are sent through the Royal Mail system daily and one can only imagine how many of these items are vital to the survival of small businesses as over 90% of them use the Royal Mail as their only postal operator. To make matters worse, Royal Mail lorry drivers are taking part in the strike, so there is bound to be an enormous amount of undelivered letters, cheques and parcels. With indications that this action may last for days, the implications are huge.

Process Deterioration:
For companies that have to submit important documents such as statutory accounts and VAT returns, there is an increased likelihood of incurring penalty fines from HMRC/ Companies House as a result of late payments. Already, in anticipation of this predicament, HMRC has disclosed that anyone who misses the October 31 deadline will be able to appeal their fine. There may be similar offerings to ease some of the effects of the strike, but even providing proof to appeal fines may be time-consuming and expensive, or just frustrating.
In addition to this, companies that handle client payroll activities and send pay slips by post need to find alternative delivery methods to avoid significant disruption during the strike. Companies that outsource usually depend on documented information and the physical transfer of files and documents. These companies and their outsourcing partners may face increased delays in information sharing and utilization. For companies that are willing and able to pay their debts, late receipt of bills, credit card statements and lost orders may significantly delay payments. It is now more important than ever for companies to consider alternative means of communication such as electronic solutions and other forms of ecommerce and digital communication. Many companies might consider switching from outsourcing to insourcing, as data can be easily shared internally when service providers work within client organisations.

Possible Options:
To cushion your company against this disruption and other similar interferences in the future, you may wish to consider migrating to systems and procedures that are less dependent on external influences and more dependent on yours. e-FM will help review and build processes that have more emphasis on electronic communication;
Some of these processes can be done internally with minimal cost including email billing, online order processing, electronic cash management, telephonic or electronic credit control including handling collection letters. We will be able to assist in tracking missing invoices and payments as well as chase debtors more regularly. We also utilise a web-based online50 software to facilitate remote accounting for added client convenience.

For information about how we can help you, kindly contact any of our regional offices. You may also contact Gary on 0845 1299900/ 01582516300. For more information about our services, please browse this site or mail clientcare@efm.uk.com

Compulsory Online Filing

2009-11-27T03:06:00.000-08:00

PAYE, VAT and Corporation Tax

HM Revenue & Customs (HMRC) plans to phase out paper returns and introduce compulsory filing and electronic payments in 2010. Taxes moving to compulsory online filing include:

1. VAT
2. Corporation Tax
3. End-of-year and in-year PAYE (Pay As You Earn) forms.

From April 2010, companies that are newly VAT registered, or have a turnover of £100,000 pounds or above, will have to submit their return online and pay VAT electronically.

End of year PAYE forms will have to be filed online by April 2010 at the latest, and filing in-year forms online will become compulsory from April 2011 onwards. However, if you start filing your end of year forms online before these deadlines, you can claim tax-free payments.

The main change to managing your Corporation Tax will be that, for returns due after 31 March 2011, you'll need to supply your Company Tax Return and supporting documentation in Extensible Business Reporting Language (XBRL). You'll need to make sure your software can do this ahead of the deadline dates

Filing online and paying by direct debit can save your company a significant amount of time. e-FM are happy to help with setting up the new services.

Source: hmrc.gov.uk

For more information about our services, kindly visit us at www.efm.uk.com

Our offices
e-FM London and The North Home Counties
gary@efm.uk.com
0845 1299900/01582 516300

e-FM Northeast
malcolm@efm.uk.com
08451299900

e-FM Northwest
maurice@efm.uk.com
08451299909/ 0161 918 6784

e-FM Midlands
ruth@efm.uk.com
0845 1299906/07795 450754

Pay Changes From October 2009

2009-11-27T03:03:00.000-08:00

Minimum Wage & Redundancy Pay:

Despite arguments to freeze the National Minimum Wage, a 1.2% increase has been approved and this takes effect from the 1st of October 2009.

From the 1st, the National Minimum Wage increases to £5.80 per hour for adults from the previous rate of £5.73. For employees aged between 18 and 21 years, the development rate will now be £4.83 per hour, while the rate for 16 and 17 year olds is now £3.57.

There is also a change to redundancy pay, as this increases from £350 to £380 per week from the 1st of October 2009; with confirmation that this limit will not be subject to increase again until February 2011.

Employers have the responsibility to ensure they comply with legislation and instruct their payroll staff to make the necessary changes. Remember that "if a dispute arises, the burden will be on the employer to prove that the minimum wage has been paid, rather than on the worker to prove that it is not".

For more information about our services, kindly visit us at www.efm.uk.com

Our offices
e-FM London and The North Home Counties
gary@efm.uk.com
0845 1299900/01582 516300

e-FM Northeast
malcolm@efm.uk.com
08451299900

e-FM Northwest
maurice@efm.uk.com
08451299909/ 0161 918 6784

e-FM Midlands
ruth@efm.uk.com
0845 1299906/07795 450754