A Simple Key For Inn Control Unveiled
Deciding on and employing the right accountant or accountancy firm for your business, be it large or small, is an important decision. Not many people realise that almost anyone can set themselves up in business and advertise and label themselves as an accountant.
Here are some key factors you should consider when determining which accountant to employ if you are UK based:
Qualifications.
The qualification you need to be looking for is Chartered or a Chartered Certified Accountancy practice. (Whilst anyone can call themselves an accountant, only people who have passed rigorous professional examinations can call themselves chartered).
Chartered Accountants or Chartered Certified by passed the examinations set by the Institute of Chartered Accountants in England and Wales (ICAEW) or alternatively the Association of Chartered Certified Accountants (ACCA).
The ICAEW is the biggest professional accountancy body in the European Union with over one hundred and twenty five thousand members. The ICAEW's qualification is recognised throughout the world as a reputable business qualification. Upon passing this examination institute members can call themselves a Chartered Accountant and to use the letters ACA or FCA, which one they use depends on the amount of experience the member has and the length of membership.
ACCA offers the Chartered Certified Accountant qualification which carries with it the letters ACCA or FCCA.
Qualified accountants need to maintain their knowledge to ensure that it is up to date. Consequently members under take Continuing Professional Development or CPD for short. This is similar to other professions such as surveyors. CPD requirements normally involve so many hours each year furthering ones knowledge and can be achieved through a variety of methods including self study, attending workshops or courses. If the majority (typically 75%) of owners or partners of an accountancy firm have achieved chartered status then the firm is eligible to call itself 'Chartered Accountants'.
Whilst it is optional to use a chartered accountant for your accounts, in the UK if your company or firm has a turnover over a certain limit you will need to have your accounts audited. The auditing of your accounts however can only be done by a firm of registered auditors.
Essentially when deciding on which accountant to use you should select from a list of accountants who have professional qualifications or is from a firm labelled Chartered Accountants to adequately ensure your financial matters will be handled and supervised by fully qualified personnel.
Type of Firm
You should try to choose a type and size of accountancy practice suitable to your business. If you are a international enterprise a small regional accountancy firm is unlikely to be the correct choice. Likewise a small to medium sized enterprise (SME) with a small turnover or a start up business would probably not get the best service from an international accountancy firm.
One important factor to remember is that the firm you choose should be able to accommodate you as your business grows. So when selecting an accountancy firm choose one which has clients larger than you so that they have the experience of working with size of firms at a size which you intend to become. Also, whilst tax advice is the bread and butter of accountancy, most accountancy now offer a broad range of associated management functions and analysis to help you make informed decisions on how to structure and grow your business. These services can be of great benefit for people intending to grow their business.
The other item to check is the accountancy firms field of specialism. The major point to look for is if they are currently working for similar businesses from the same sector.
Personality
Knowledge aside for one moment, you need to get on with your accountant on a personal level. Without this it will be harder to get on with them. The best accountants will take a keen interest in your company and also in the business world in general. Remember also that your accountant is running his own business and will have had to address many of the issues and problems that you will face during the course of your daily business activities. The ability of your accountant to relate to you and to exchange information on how to deal with things will be a great asset to you and your business organisation. There will be however instances where your accountant will have to tell you that you are doing something wrong or there is something that you need to address. , if you have mutual respect for each other this process will be a lot easier.. Remember that your accountant will work for you as part of your team and is trying to ensure that you succeed
Technology.
Once upon a time all accounts were done by hand in ledgers. Nowadays this is almost unheard of. Also nowadays it is usual to find that many companies will keep their accounts on relatively easily to use software. What you need to check however is that your accountancy firm can accept the electronic files into their system. If they require the files using a proprietor y software system is this going to entail you investing in the software to be compatible with them. Electronic document management systems are becoming more and more popular. There are also systems that allow you to store copies of your documents on remote servers which you can then grant your accountant access to. This rapidly enables the transfer of information whereas previously it might have taken days, with the benefit being your accountant can respond faster and more efficiently.
Recommendation.
When selecting an accountant, many people rely on personal recommendation. Because they know that the personal recommendations that come from these networking groups produce good leads, almost every business networking group has an accountant on board. Choosing an accountant through recommendation does give you a significant amount of confidence when compared to, say, selecting an accountant from the phone book or from an advertisement on the internet. Consequently ask any friends or colleagues in business about which accountant they use 9or wouldn't use!) and the reasons for that. Also ask other professionals you come into contact with, such as bank managers or solicitors for any information they have on accountancy firms.
If you've made a decision on an accountant or accountancy firm on these five factors you should have ended up with a firm and an individual who will be able to work with you as your business expands and grows.
Buying a pub, entering into a tenancy or a lease (whether it's your first or just the latest) can be a cause of great anxiety, and such an undertaking presents a host of things to think about before you step through the doors and pull your first pint.
You really need to ask yourself is running a pub really the life you want and is it a life that your family can cope with? Most people have a very limited view of what running a pub is like and their view may be only that of an average pub customer (you know the ones that think the fairies come in and clean and stock up and that being mine host only involves sitting at the end of the bar socialising with customers).
Make no mistake this isn't just a lifestyle choice it is a demanding and skilled career path you are proposing to embark on. Not only is it your job but it will become your social life, often without much time off, very long hours (many of them spent on your feet), it can be even dangerous and dirty. Do you think you can hack the stress and have the kind of emotional strength to deal with all the slings and arrows of pub life? If you think you can then you'll find that running a pub can be fun, can be the source of immense personal satisfaction and pride and, yes, you can even make a fair living at it.
Your choice of public house will largely be dictated by what you can afford (in terms of cash, loans and the business' ability to pay here you what you need to live on). The costs involved in buying a pub (be it leasehold, tenancy or freehold) and your ability to afford the business need to be fully understood before you start looking at potential outlets.
As with any business transaction of this magnitude and importance once you have decided what you can afford, what type of pub (community, rural, city centre, food led etc), the agreement you might be on (tenancy or leasehold) or (if you can afford it) a freehold you must undertake as much research as you can about pubs that are available that match your criteria.
You have to think about the pros and cons of each one and visit them. Three or four pubs, visit them on several occasions at different times of the day and different times of the week when you have a short list of say. This will help you understand the type of customers, the trading patterns (such as seasonality). It will also give you the opportunity to study what the present operators do well (that you might want to continue with) and conversely look at what you think they are doing wrong (that you would discontinue or could improve upon).
Just like any other business purchase you need to get as much financial information from the current owners to base your business plan on. You will need to see their audited accounts (those prepared and signed off by an accountant), at least one year's VAT returns and any management figures for the current year, stock take reports, Brulines information (if they have the system installed) and at least the preceding 13 weeks figures for their weekly takings.
Whilst all accounting information is by its very nature of an historic nature and will only show you what has been, if you and your accountant study them carefully you will get a fair indication of what the business is capable of and how you might improve or maintain upon its profitability.
Most lenders and landlords (in the case of freeholds) will require a detailed business plan from you that details what you will do with the pub, a profit and loss account and a cash flow. Their primary focus will be on you demonstrating that you will be able to afford the rent (or in the case of a mortgage the repayments due).
As with buying any property, you need to obtain a survey of the property before proceeding with a purchase, do not rely solely upon any report provided by the seller or the landlord. To a varying degree you will be responsible for the repairs to the building and you need to be fully aware of the condition of the premises and responsibility you will be taking on before you sign up.
You've found the perfect pub (do let me do if you ever encounter one), you've researched it, got the figures, know what state of repair its in, now you'll need to assess what price you are prepared to pay. This includes the cost of any rent or loan, the glassware, stock and inventory and in some instances goodwill. Only you can decide if a pub is worth the asking price but taking independent advice from a specialist business valuer is something I would strongly recommend.
As with any significant (and potentially life-altering) business decision take professional advice; solicitors, surveyors, valuers and accountants may seem to rack up their fees, but if you and they get it right it will be money well spent. Go it alone and you could end up losing far more than your professional advisors would ever charge!
You'll need to have the necessary qualifications and training to get your personal licence and operate a pub. All businesses involve a clear understanding of health and safety, employment and financial laws. If you are taking a lease or tenancy from a Pub Company they will probably insist you go on their in-house training programme and this will give you some of the training you need.
Remember also that your accountant is running his own business and will have had to address many of the issues and problems that you will face during the course of your daily business activities. Choosing an accountant through recommendation does give you a significant amount of confidence when compared to, say, selecting an accountant from the phone book or from an advertisement on the internet. Remember also that your accountant is running his own business and will have had to address many of the issues and problems that you will face during the course of your daily business activities. Choosing an accountant through recommendation does give you a significant amount of confidence when compared to, say, selecting an accountant from the phone book or from an advertisement on the internet. If you've made a decision on an accountant or accountancy firm on these five factors you should have ended up with a firm and an individual who will be able to work with you as your business expands and grows.