October 19 Newsletter
September 30, 2019
BUSINESS UPDATE
5 ways to grow your profits
Profit is the key word here. We can get fixated with growing sales, but this does not always translate to an increase in profit. Here are some ideas for increasing your profit line and working smarter.
1) Increase your visibility of your business
Do you really understand how your business is operating? Understand who are your most profitable/unprofitable customers and why are they highly profitable/unprofitable. There are a number of non-financial factors that can also have an impact on profit. These could include things like; marketing performance, sales conversion ratios and customer satisfaction scores.
2) Reduce costs by increasing efficiency
Do you regularly review your systems and processes? Technology is changing all of the time and new advancements could mean that you could work in a more streamlined way. This could also include not using all of the functionality available in your existing software. Look at any overlaps and duplication of effort.
3) Sell more to your current customers
It is far cheaper to keep and upsell to an existing customer than it is to acquire a new customer. This could involve spending more time getting to know your existing customers so that you fully understand their pain points.
4) Sell through more channels
This has the benefit of increasing your company's exposure and boosting visibility. Selling on multiple channels also means that you can gain more data about your customers and their habits, which will help you in future marketing or sales campaigns.
5) Identify new revenue streams
Listen to feedback from existing and potential customers, requests for new features or services may lead to a new stream of income. This may solve a new customer problem and help to build loyalty for your product or service.
If you would like more visibility in your business, please contact us to find out how we can help you to grow your profits.
ACCOUNTING UPDATE
What subsistence can I claim?
This is a question that we are often asked, and the truth is, it's complicated!
HMRC's general rule is that you can only claim back expenses that are "wholly and exclusively" for the purposes of trade. So if you are travelling to the same workplace every day, it's unlikely that you can claim subsistence as an allowable expense.
What can I claim?
Travel for work, that is other than your normal commute
Food and drink during the day on journeys that are not your usual pattern of work
Overnight accomodation on work journeys
Dinner and breakfast when staying overnight
What can't I claim?
Normal commute travel costs
Food and drink on normal commute journeys
Parking fines, speeding tickets and other penalties
Travel costs for journeys that include an element of non-work travel
Alcohol, unless it is purchased with a meal and even then it must be reasonable, e.g. one drink or half a bottle of wine.
Also bear in mind that HMRC will disallow any expenses that they deem to be unreasonable, so be cautious.
APP OF THE MONTH
No Paper, No data entry!
What does this mean?
We use Receipt Bank to capture all of the data entry work and automate the processes. Receipt Bank will take your photo or PDF and upload a copy to Xero as well as extracting all the information for you.
No more bags of receipts!
We give Receipt Bank to all clients as it enables us to keep up to date with invoices and reconciliations, the integration with Xero is seamless.
Key thinks that I like:
Saves a copy of each bill to Receipt Bank and Xero - you no longer have to keep the paper copy!
Real-time information entered within a few minutes
Can process hundreds of invoices in minutes
Mobile app to take a picture and upload wherever you are
A simple email address you can forward all invoices to
Auto publish regular suppliers
Contact us if you would like to know more about how Receipt Bank could help you.
Until next month,
David & Katherine
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