HELPING YOUR CLIENTS OUT OF RECESSION

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• HELPING YOUR CLIENTS OUT OF RECESSION
• 27 MARCH 2014
• BY
• Richard Simms FCA

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PRESENTATION OVERVIEW (1)

• Compliance v Consultancy
• Customer Service
• Non-bank funding
• Marketing

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PRESENTATION OVERVIEW (2)

• Management accounts
• Cash flow indicators
• Solvent liquidations

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Compliance v Consultancy(1)

• Accountants are now the people directors turn to
  for business advice
• Role of the accountant is adapting to include a
  consultancy role

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Compliance v Consultancy (2)

• Directors are looking for an accountant who has
  an opinion on their business not just their books
• Creating a closer relationship will benefit both
  parties

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Customer Service

• Not just something for the retail industry
• Take more care of clients leading to better
  relations
• Turn a small fee into a larger fee

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Non-Bank Funding (1)

• Growth in non-bank funding
• Alternative sources of finance
• Peer to peer lending
• Grants and Start Up funds

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Non-Bank Funding (2)

• Always seek security if re-investing personally
• Last minute protection is too late!

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Marketing (1)

• Increase in competition from both old and new
  businesses
• Find clients unique selling point (USP)
• Extend reach into new markets

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Marketing (2)

• Regular market sector competitor analysis
• Always need to stay ahead of the competition
• Can any of your clients help each other?

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Management Accounts

• How many of accountants currently do management
  accounts?
• Is there benefit to management accounts?
• Is the pricing different to annual accounts?

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Benefits of Management Accounts

• Keep a closer eye on the cash flow
• Spot any issues early
• Create a closer relationship with clients

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Cash flow indicators

• There is an inherent lag between an underlying
  problem and evidence of it showing up in cash
  flow

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Cash flow indicators

• Drawing dividends v drawing a salary
• Year end review of directors loan account
  position

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Cash flow indicators

• Directors/shareholders constantly propping up the
  company personally

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Cash flow indicators

• Threat of legal action or steps taken by
  creditors to collect unpaid debts
• We expect businesses to become less patient as
  the marketplace picks up

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Cash flow indicators

• Constant reliance on the companys overdraft
• Need for funding for growth

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Cash flow indicators

• Dealing with an employee dispute/tribunal

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Cash flow indicators-What you can do

• May need to think for your client
• Be pro-active
• Stay informed

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Members Voluntary Liquidation

• Can be straightforward
• Tax advantages
• HMRC clearance
• Fast distribution

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• HELPING YOUR CLIENTS OUT OF RECESSION
• 27 MARCH 2014
• BY
• Richard F Simms FCA