Category: Running your own business

Improve your business by changing your accountants

Poor quality accountants are like KGB sleepers, you may not know you’ve got one until it’s too late.

As a business owner, you entrust your accountant with the financial health of your company.

But how can you be certain they’re providing the services your business truly needs?

Evaluating your accountant’s performance can be challenging, especially if you’re unsure what best practice looks like.

Signs that it’s time to change accountants

  • Your accountant just doesn’t understand your business – they apply their standard approach to every business client whether it fits or not
  • You feel you’re in the dark about financial performance – bookkeeping, accounting and financial information are ongoing, not a once-a-year task
  • Their fees are not good value for money – “our previous accountants cost even more and did even less!”
  • There’s no personal chemistry – relationships matter

If you’re seeing some or more of these signs then you definitely should be questioning the effectiveness of your current accountant.

In which case, it might be time to change.

At Blue Dot Consulting Limited, we want you to be able to recognise your business in your numbers.

We’re partners with leading software providers such as FreeAgent, Xero and QuickBooks and our focus is on:

  • Accurate bookkeeping: Ensuring your financial records are complete and up-to-date.
  • Efficient processes: Redesigning workflows to be more streamlined and, where possible, paperless.
  • Profitability analysis: Identifying key drivers that boost your bottom line.
  • Customised reporting: Tailoring financial reports to meet the specific needs of your company.
  • Cashflow management: Monitoring and optimising cashflow to maintain financial stability.
  • Robust credit control: Implementing effective strategies to get paid quicker.
  • Technology assessment: Evaluating and recommending the right technology tools for your business, cutting through the hype to find what truly works.

Get the basics right and we lay the foundation for sound financial management, making tasks like VAT returns, PAYE payments, and annual accounts & tax returns more straightforward.

💡 Pro tip: It’s rarely a good idea to change payroll provider or payroll software in any month other than April, the start of the payroll year. So, change accountants whenever it suits but maybe keep the payroll where it is until next April.

Case studies

High-volume, low-value transactions business

These guys had gone through two firms of accountants and neither could deal with a part of the business that yields a high-volume of low-value repetitive transactions.

With a bit of tech and a bit of fresh thinking we got the transactions flowing through the books easily and efficiently every day.

Everything else – management reports, VAT, year-end – now gets done in good time because the high-volume beast has been tamed.

I use the family accountants but they don’t really deal with businesses like mine

One thing is non-negotiable – your accountant MUST understand your business!

We stepped in here and changed the way the bookkeeping is done so that reports now reflect real business activity and the owner can see recognisable business performance in the numbers.

My accountant only gets in touch once a year

Businesses are continuous and therefore accounting should be continuous, not once a year well after the financial year has ended.

We did some QuickBooks training with this business owner who is happy to do the bookkeeping and she now has less work to do and VAT is a walk in the park.

Through the client’s eyes:

“Michael and the Blue Dot team have been an essential part of our journey from startup through to being an established company, and we look forward to continuing working together long into the future. They have always been on hand to offer support and sound advice whenever it is needed.“

MD

Take the next step

It’s a big step and not one to be taken lightly.

As members of the ICAEW Business Advice Service (BAS) we offer a free, confidential initial consultation to discuss your business needs.

So, if you’re thinking about changing accountants let’s talk about your business, we’d be happy to hear from you.

☎️ 020 7125 0270

📧 info@bluedotconsulting.co.uk

Michael Austin

What’s actually involved in changing accountants?

Firstly, make a list of what you’re looking for in a new accountant.

Then, look online, ask around and go and meet some potential alternatives. Only progress with people that really understand your business.

Agree a basis for fees.

Once you’ve made a decision then break the news to your current accountant. None of us likes to find out from the new accountant!

There will be a transfer of information such as:

  • Previous years’ accounts and tax returns and supporting documents
  • Reference numbers for HMRC, Companies House and others
  • Transfer ownership of the accounting software being used

Don’t worry about this – accountants all know what’s required and how it’s done.

Get to work!

Related links:

Bookkeeping, accounts and tax for a one-person company

We’re a small business, I do all the bookkeeping – I just need someone to keep us on the right track

Overhaul and rebuild your finance function

At Blue Dot Consulting, we work with owner-managed businesses across Central, West and South West London, including Fulham, Hammersmith, Richmond, Putney, Wandsworth, Kensington and Chelsea. If you’d like to improve your financial reporting, bookkeeping or decision-making, we’d be delighted to help.

Š Blue Dot Consulting Limited, Chartered Accountants, Bedford House, Fulham Green, London, SW6 3JW

You can teach me all you want but I’ll never be able to do what you do.

Most businesses in the UK don’t need a full-time bookkeeper or finance team. But they all need to get their accounting work done well.

Running your own business is full of challenges and trade-offs and one of them is how much of the bookkeeping you do in-house vs outsourced accounting.

Whether it’s just you in your business or there’s several of you, one of whom does the bookkeeping, the trade-off remains.

And although there’s no absolutely right answer, here are some options.

Financial information

What information do you need to run your business?

That’s where this conversation has to start because the reason for doing bookkeeping and accounting in the first place is so you can measure and improve financial performance.

➡️ We can help you understand and use your financial information.

Outsource most of your accounting

You could be on your own in the business or maybe your business has several people in it – outsourcing all the bookkeeping and accounting can be a great solution.

It allows everyone in the business to do what they do best and you know the financial side of life is in good hands.

It’s scalable and uncomplicated.

⚠️ Just make sure you outsource to people who really understand your business!

Hybrid solution

The most common hybrid solution is where the sales invoices are raised in-house and perhaps credit control and some of the other routine bookkeeping is also in-house.

The external bookkeeper or accountant will take care of everything else such as:

  • bank reconciliations
  • VAT returns
  • management accounts
  • accounting for one-off transactions such as fixed asset purchases

Over time the balance of a hybrid solution may change as your business evolves and people come and go.

☑️ Hybrid solutions bring flexibility and resilience to your financial management and may be the best way to outsource your accounting

You do most of your bookkeeping

This may be where you start and it also may be where you end up.

Bookkeeping’s not for everyone, some people just never warm to it. But if you enjoy the work and can make the time to keep your bookkeeping up to date then it’s a great idea.

But make sure you invest in some training so you do it right!

The related link below tells the story of how Maria, a sole trader for many years, mastered the art of bookkeeping.

💡 Take a look at our training services for Xero, QuickBooks and FreeAgent

Making Tax Digital for income tax

HMRC are going live with Making Tax digital for income tax (MTD) from April 2026.

If you’re affected because you’re either a sole trader, a private landlord or both the best way to get prepared is to:

  • set up a separate bank account for your business and also for your property activities
  • get your bookkeeping running smoothly

➡️ Making tax digital – the useful bits have little to do with tax!

Most businesses in the UK are small businesses and therefore most businesses don’t need a full-time bookkeeper or finance team.

But they all need to get their accounting work done well.

We offer a free 30-minute review** of your business accounting on Teams or Zoom. If this sounds interesting then please contact us:

📞 Call Michael Austin on 020 7125 0270 or

📧 info@bluedotconsulting.co.uk

Michael

** 30-minute review of your business accounting – terms & conditions apply

Related links:

Bookkeeping for business

Why Every SME Needs Solid Bookkeeping — And How to Make It Work

How did we solve a problem like Maria’s?

At Blue Dot Consulting, we work with ambitious owner-managed businesses across Central, West and South West London, including Fulham, Hammersmith, Richmond, Wandsworth, Kensington and Chelsea. If you’d like to improve your financial reporting, bookkeeping or decision-making, we’d be delighted to help.

Š Blue Dot Consulting Limited, Chartered Accountants, Bedford House, Fulham Green, London, SW6 3JW

Why Every SME Needs Solid Bookkeeping — And How to Make It Work

I stopped doing my books when I realised I was making them worse!

Running a small or medium‑sized enterprise (SME) means juggling sales, marketing, operations, staffing, compliance, and countless daily challenges. With so much to do and so little time, it’s tempting to push bookkeeping down the priority list. But weak bookkeeping isn’t just an administrative nuisance — it can undermine the very foundation of your business.

In this blog, we’ll cover why SMEs need good bookkeeping, the risks of neglecting it, why training matters, and how outsourcing can help. We’ll also show how Blue Dot Consulting Ltd can support your business in building strong financial systems.

What Is “Good Bookkeeping”?

Good bookkeeping goes beyond entering invoices and receipts. It means:

  • Recording every transaction consistently and accurately
  • Reconciling bank accounts and supplier statements regularly
  • Categorising income and expenses correctly
  • Storing and managing supporting documentation
  • Producing clear, timely management accounts and reports
  • Staying compliant with HMRC requirements (VAT, payroll, tax)

It’s about creating a reliable financial record that supports decision‑making, compliance, and growth.

Why SMEs Need Good Bookkeeping

1. Cash Flow Visibility

Cash is the lifeblood of your business. Without accurate records, you risk overdrafts, missed payments, or late payroll. Good bookkeeping keeps you in control by showing exactly what’s coming in and going out.

➡️ The VAT payment you were worrying about? That got paid last week!

2. Informed Decision‑Making

Accurate books let you see which products, services, or clients are profitable. They provide insight into costs, margins, and growth opportunities.

Without them, you’re flying blind.

3. Compliance and HMRC Readiness

Missed deadlines or errors on tax returns can lead to penalties and investigations. Good bookkeeping makes VAT returns, payroll, and year‑end accounts smoother and less stressful.

➡️ Making tax digital – the useful bits have very little to do with tax

4. Credibility With Lenders and Investors

If you need funding or investment, you’ll be asked for financial reports. Clean, up‑to‑date books build trust and open doors. Poor records, on the other hand, can scare off potential partners.

5. Fraud Prevention

Neglected books can hide errors and fraud. Regular reconciliations and oversight catch problems before they escalate.

6. Scalability

Growth brings complexity: more transactions, more staff, maybe multiple locations. Good bookkeeping ensures your systems scale with you.

➡️ In-house accounting for a growing business – often the right answer but how do you get there?

Why Training Is Essential

Some businesses hand bookkeeping to an untrained team member or assume accounting software will do the job.

Which means there are two strands of training to consider.

  • Accounting software – FreeAgent, Xero, QuickBooks, spreadsheets
  • Accounting knowledge and applying it to your business

It isn’t enough simply to know how to use the software. Numbers reach across every business and so must your finance team. They need to be confident to:

  • chase customers for payment
  • chivvy sales people to get their contracts signed and invoices ready
  • deal with suppliers who want paying yesetrday
  • communicate financial information to non-financial colleagues

Your finance team should be an investment not a cost.

➡️ You’ve got the people, let’s help them do the job

The Alternative: Outsourcing Bookkeeping

Not every SME has the time or resources to manage bookkeeping in‑house. Outsourcing is a powerful alternative.

Benefits of outsourcing:

  • Access to experienced professionals
  • Predictable monthly costs
  • Scalable service that grows with your business
  • Reduced risk of errors
  • Freeing up time to focus on sales and operations
  • Continuity — no disruption if staff leave or are absent

For many smaller businesses outsourcing bookkeeping is more cost‑effective and reliable than building in‑house capability.

➡️ Outsourced accounting and bookkeeping

How Blue Dot Consulting can help

We specialise in helping businesses take control of their bookkeeping whether through training, outsourcing, or a hybrid model.

Our services include:

You’ll always have clear, accurate books and financial information you can trust.

Bringing It All Together

Consider two businesses:

  • Company A lets bookkeeping slide. Invoices pile up, VAT returns are rushed, and management can’t tell whether the business is profitable. Eventually, penalties, cash shortages, and poor decisions cause serious damage.
  • Company B invests in bookkeeping discipline. They train staff, use software effectively, and get professional support. As a result, they have real‑time cash flow visibility, credible accounts for lenders, and the confidence to grow.

Which company do you want to be?

Final thoughts

Every successful business is built on a solid foundation of good bookkeeping and accounting.

Training is essential for your in-house team.

Outsourcing is a good option and it can be a hybrid option.

Ready to get started?

📞 Call Michael Austin on 020 7125 0270 or

📧 info@bluedotconsulting.co.uk

Let’s talk about your business and discuss how we can take your bookkeeping from a weakness to a strength.

Michael

Blue Dot Consulting provides accounting and business advisory services to clients across Central London, West London and South West London, with particular focus on Fulham, Hammersmith, Richmond, Wandsworth, Kensington and Chelsea. We help local business owners make better financial decisions and plan confidently for the future.

Š Blue Dot Consulting Limited, Chartered Accountants, Bedford House, Fulham Green, London, SW6 3JW

In-house accounting for a growing business – often the right answer but how do you get there?

Sooner or later, largely as a function of business growth, the time comes to bring your finance function in-house.

“We need to take our accounting work by the scruff of the neck and bring it in-house, away from our accountants!”

The situation above was a little extreme but it’s the right direction of travel for many businesses as they grow.

Bookkeeping and accounting is a role that lends itself well to outsourcing (it’s a service we offer) but sooner or later, largely as a function of business growth, the time comes to bring your finance function in-house.

The building blocks of in-house accounting

You need to give some thought to:

  • staffing
  • training
  • software and workflows
  • management
  • integration with the rest of the business

Building an in-house accounting team begins with choosing the right people.

I’d look for someone with experience of running a finance team who knows what it takes to establish a financial footprint within a business where there hasn’t been one previously. It’s a great opportunity for someone.

➡️ Hold out for the right person. And take good care of them, they’ll need a lot of support.

Workflows will change – for the better!

If you’re no longer outsourcing then your workflows, systems and process are going to change.

Expect a feeding-frenzy of getting hold of passwords for software and for your HMRC portal but take some time to figure out the best way of gathering the transactional data that needs to be entered into your accounts.

Everything can be done sooner than it was before and you now have the opportunity to share financial information with non-finance colleagues as it’s being generated.

➡️ Seize that opportunity – sunlight is the best disinfectant!

Finance should fit your business like a glove

This is the game-changer!

When you bring your accounting in-house you can mould it to fit your business as it grows.

Bear in mind that your accountants who have been doing the work for a long time will have their own, internal ways of doing their work. They’ll be doing it in a way that fits their business and this might not suit you.

There are four areas to take a good look at:

  • data entry – bookkeeping in-house looks very different
  • software – accountants have their favourites but you can change!
  • chart of accounts – this is the DNA of your bookkeeping so make it bespoke
  • financial reports – customise the ones your business needs, share them and use them

➡️ Take your time and build a framework that will evolve with your business

Can we help you bring your accounting in-house?

If switching to in-house is the right move then you need to get it right.

All of our people have worked in or run in-house finance teams so we know very well what they look like, how they work and what it takes to create a finance function that’s a well-oiled machine!

Our part-time / fractional CFO service might also offer some higher-level guidance and give you extra peace of mind as you navigate the transition.

So, if you know you’re in the wrong place at the moment, know you need to make a change and just need someone to show you the way then let’s meet and talk about what you want to do.

It’s free, it’s confidential and it’s a fresh pair of eyes and ears.

Give Michael Austin a call on 020 7125 0270 or email info@bluedotconsulting.co.uk

Michael

Related links:

Overhaul and rebuild your finance function

Build a useful Xero chart of accounts

Upskilling for accountants

Blue Dot Consulting provides accounting and business advisory services to clients across Central London, West London and South West London, with particular focus on Fulham, Hammersmith, Richmond, Wandsworth, Kensington and Chelsea. We help local business owners make better financial decisions and plan confidently for the future.

Š Blue Dot Consulting Limited, Chartered Accountants, Bedford House, Fulham Green, London, SW6 3JW

Blue Dot Consulting supports Grow London Local

We’re very pleased to be a business support provider for Grow London Local specialising in all things financial from bookkeeping and cashflow to year-end accounts.

We’re very pleased to be a business support provider for Grow London Local, helping London businesses to fulfil and surpass their potential.

London’s a great city to do business in

London’s an economic powerhouse. Could you choose a better place to run your business?

Sometimes it doesn’t feel like it but London really does have everything you need to support a growing business. We’ve got:

  • amazing public transport
  • local and global reach
  • schools and universities that consistently rank among the best in the UK
  • thriving local business communities, Chambers of Commerce and business hubs
  • nine million people and who knows how many businesses on your doorstep

Grow London Local is part of an ambitious growth plan run by London & Partners to build on where we are and take London forwards into the future.

Running your own business – there’s nothing quite like it

There really is nothing quite like running your own business – it’s not easy but it’s so worthwhile.

As a business owner, you have to juggle and balance:

  • sales and marketing
  • pricing
  • cashflow & funding
  • accounting & tax
  • HR
  • business operations and ever-changing technology

We can’t all be experts in all these areas and everyone can use a little help along the way.

And Grow London Local is a big part of London’s SME support network.

How can Blue Dot Consulting and Grow London Local help me and my business?

We’re Chartered Accountants and we’ve been helping London businesses with their bookkeeping, accounting, cashflow and tax for over twenty years.

Our clients are just like you!

Owner-managed businesses with great ideas, loads of energy and the insight to know that a successful business has to be built on a solid financial foundation.

From start-ups to multi-million turnover companies, we continue to offer practical financial help and advice across all these areas:

As a business support provider for Grow London Local, how can we help you?

Maybe it’s because I’m a Londoner

It’s true. I’m a Londoner born and bred.

I’ve seen boom times and hard times, change as a constant, diversity that builds bridges and an epic Olympic Games.

I want London to succeed and I want London businesses, like yours and mine, to be a big part of the success story.

Let’s move forwards and have a chat about you and your business.

Call Michael Austin on 020 7125 0270 or email info@bluedotconsulting.co.uk

Grow London Local – here to help.

Michael

Related links:

The loneliness of the small-business price increase

Our accounting services for your business

How do we solve a problem like Maria’s?

Š Blue Dot Consulting Limited

Blue Dot Consulting Limited, Chartered Accountants – Bedford House, Fulham Green, London, SW6 3JW

Overhaul and rebuild your finance function

An optimised finance function is not just about crunching numbers, it’s about providing useful financial information and insight into business performance that people take action on.

From time to time a business has to overhaul and rebuild its finance function.

Don’t put it off for a rainy day – you’re fighting with one arm tied behind your back if your finance function isn’t fit for purpose.

It’s going to be a game-changer – so, what do you need to think about?

Why overhaul your finance function?

Information and insight

Accurate and timely financial reporting is essential and an optimised finance function is not just about crunching numbers, it’s about providing useful financial information and insight into business performance that people take action on.

Enhance efficiency and productivity

Inefficient financial processes and outdated systems can slow down operations and increase costs.

By overhauling your finance function, you can automate routine tasks, reduce manual errors, and free up your team to focus on other business initiatives. This boost in efficiency can lead to significant cost savings and improved productivity.

Reduce risks and improve compliance

In today’s regulatory environment, compliance is critical.

A fit-for-purpose finance function can help ensure that your organisation stays compliant with all relevant regulations, reducing the risk of penalties and reputational damage.

Additionally, robust financial controls and risk management processes can safeguard your company against fraud and financial mismanagement.

Steps to overhaul and rebuild your finance function

Define your objectives

Your objectives might include:

  • Quicker and more accurate financial reporting
  • Closer ties with all the other areas of the business
  • Improved efficiency in processing transactions
  • More effective credit control
  • Improved cashflow
  • Fewer queries from customers, suppliers and colleagues

By defining what you want to achieve, everyone will know where they’re heading and you can easily see if the objectives have been met.

Assess where you are at the moment

You know where you’re heading but where do you start from?

Look at:

  • The skills and experience of the current team
  • Workflows
  • Technology being deployed
  • Current pain points across your business
  • Whether and how other parts of your business don’t help the finance team

Now you have a starting point and a destination. All you have to do is get there!

Invest in technology and training

Technology is the backbone of every finance function and cloud-based platforms offer accessibility, scalability and flexibility..

At the centre is cloud-based accounting software such as QuickBooks, FreeAgent or Xero. But make sure you choose software that produces the reports you need and make sure all users are trained properly to use the software.

Look at which tasks can be sensibly automated. Adopt document management software, such as Dext or Autoentry for data entry.

If your sales invoices are produced in CRM software then invest in software that will import the sales invoices into your accounting software.

Much of the software you introduce will contain machine-learning code that will speed up data processing as you do more of it.

But right at the moment – be a little wary of the promises made about AI in accounting.

Streamline processes and workflows

Review and streamline your financial processes and workflows. Identify redundant tasks, eliminate bottlenecks, and standardise procedures across the organisation. Implementing better practices will improve efficiency and reduce costs. 

Set a target for producing a monthly reporting pack within, say, five working days of every month-end and organise workflows to do so.

Reporting, data management and analytics

Information is everything so ensure the right financial reports are coming from your finance function in good time, going to the right people and being acted on to improve business performance.

If your financial data set is large enough to make the investment worthwhile then investigate analytics tools which can provide insight above and beyond what your accounting software can provide.

And from time to time, because businesses evolve, loop back to data entry and make sure it remains complete, accurate and up-to-date.

Can we help you overhaul and rebuild your finance function?

We help many business to bring their finance functions up to scratch and this is what they say when we do it:

Blue Dot Consulting went above and beyond in helping us navigate not only the transition to cloud-based accounting but also in leading our accounts team through a broader period of transformation.  

Their deep understanding of our unique needs and challenges was evident from the outset. They provided unwavering support to our team, ensuring they felt confident and well-prepared for the changes ahead. 

Senior finance manager

Projects range from:

  • implementing QuickBooks, FreeAgent or Xero properly
  • becoming the finance team of a ÂŁ15m business, helping them to develop an in-house finance department
  • installing cloud accounting software for a global business, making sure the top team receives the management information it needs to grow profitably

We’ve helped a wide range of organisations – can we help you?

Call Michael Austin on 020 7125 0270, email info@bluedotconsulting.co.uk or simply pop in for a chat – we’re at Bedford House, Fulham Green, London, SW6 3JW.

Michael

Related links:

Part time finance director

Measure business performance and make more money

Gross Profit Officer – appoint one today!

Š Blue Dot Consulting Limited

Chartered Accountants – Bedford House, Fulham Green, London, SW6 3JW

Cashflow – sit down, have a cup of tea and let’s mend your business

It matters less what happens to sales, so long as profits are increasing and the objective is to earn good gross profits from the best-selling products.

I got a tap on the shoulder recently when I was walking to the office; it was the MD of a local retail business I know. We got chatting and it emerged she has a number of business problems caused by recent losses and faltering cashflow.

We were next to a cafe, so I said let’s have a cup of tea and see if we can’t fix your business.

1. Is each shop making money?

Look at the margin being made from the sales, can you have a conversation with the landlord about a rent-free period, can you only open for a few days a week?

If you can’t make a shop make money then if it’s cheaper to close it, close it.

2. Put your cashflow model front and centre in your business

Amazingly, they weren’t using a cashflow model. I bet they are now!

Once the cashflow model is in place, go to the bank and have a grown-up discussion.

3. Review the prices of your best-selling lines

Even when times are hard, customers who will spend, say, ÂŁ1,000 on a particular item will probably spend ÂŁ1,100 on it rather than drop down to a much lower price / quality point.

The MD has many product lines and can test very easily whether raising prices increases profits or reducing prices loses profits. It matters less what happens to sales, so long as profits are increasing and the objective is to earn good gross profits from the best-selling products.

Test, test, learn, change, test……….you’d be surprised the effect a change in margins has on a change in profits.

4. Cut your costs of sale and overheads

In her market many competitors have gone to the wall, so she is relatively successful and you can bet her suppliers will want her to succeed. So ask for price reductions and share the pain down through the supply chain.

The main suppliers should be happy to make 90 – 95% of what they used to make instead of 0%!. Again, think of the effect of gross profit margin on the bottom line.

Will the staff share a 5 or 10% pay cut or swap some part of fixed salary for a sales-based commission? Put pressure on your landlord (them again).

5. Use your own time sensibly

I was surprised she said that she was dragged down by all the stuff that comes across the desk every day. Focus on the important things. In this case:

  • cashflow
  • reducing costs of sale and overheads
  • viability of shops
  • testing sales and margins

Give the rest of the work to other people, do it later, ignore it altogether but DON’T let it get in the way of the important stuff.

And don’t forget the therapeutic effect of a nice cup of tea!

Michael

Related links:

Cashflow

Clients – are they profitable and will I be paid in good time?

The 3 Cs of pricing

Cloud accounting and AI may not a good accountant make

Make sure your accountant knows what they’re doing because the best golfers don’t have to use the latest clubs, but they do need to know how to play golf

My golf clubs are more than twenty years old.

I love playing golf but I’m not very good at it. If I go for lessons and play more frequently then I get better.

Training and experience help but simply buying a new set of golf clubs, embracing twenty-first century technology, would make next to no difference.

Cloud accounting and AI

Back at the day job and the hype just keeps increasing.

Cloud accounting, SaaS, this app, that platform and now AI.

Judge a business and its accountant by the size of their tech-stack!

If you’re not digital you’re not doing it right!

No Luddite, me, I get the benefits of adopting some of the new technology, we’ve been paper-free and operating 100% in the cloud since 2014, but I also see “tech”, “the cloud” and “AI” as cloaks to hide behind.

Accountants may say “we’re great accountants because we use this tech and that tech.”

Software providers may say “the accountants that use our tech are the enlightened great and the good and who wouldn’t want an accountant like that?”

Reality check – just because they use new technology doesn’t mean the accountant is any good or that the latest app is good value for money

We’ve seen too many examples of accountants making a virtue of being in the cloud but not actually delivering a useful service to their clients.

So if you’re running a business and you’re wondering if and how this hype in the accounting world can make a difference to your bottom line, peace of mind, efficient workflow and prospects of growth, the answer is almost certainly YES.

But make sure the accountant knows what they’re doing because the best golfers don’t have to use the latest clubs, but they do need to know how to play golf.

Michael

Related links:

We can’t send you your invoice because our accountants are so behind with processing direct debits

This is bookkeeping in the 21st century

Technology is the servant not the master

Š Blue Dot Consulting Limited

Outsourced accounting and bookkeeping

Partner with Blue Dot Consulting to experience the power of outsourced accounting solutions tailored to meet your unique business needs.

Elevate Your Business with Blue Dot’s Outsourced Accounting Services

The business landscape is competitive and dynamic, and managing your finances efficiently is crucial for success. Partner with Blue Dot Consulting to experience the power of outsourced accounting solutions tailored to meet your unique business needs.

Why Choose Outsourced Accounting with Blue Dot?

  • Cost efficiency – Save on overhead costs associated with in-house accounting teams.
  • Focus on your strengths – Free up your time and resources to concentrate on growing your business.
  • Access to expertise and experience – Tap into the knowledge of our experienced accountants and financial professionals.

Our outsourced accounting services

We can do as much or as little as you need and typically our work covers:

  • Accurate and timely bookkeeping that fits your business.
  • Relevant financial information you can use to make better decisions and improve financial performance
  • Payroll and VAT – two headaches which we can take care of
  • We’ll use the right technology to make your finance work efficient and accessible
  • Part-time FD / CFO – we bring a breadth and depth of financial experience to your business which gives us a wider perspective

Why outsource?

You and your colleagues get to do what you do best, knowing that the financial management of your business is up to date and in good shape.

Outsourced accounting is scalable. As you grow, we do more. If times are tough and there is less to do then we do less.

Whisper it but it’s not unusual to find a bit of a mess at the start of an outsourced accounting project. But once everything is tidied up your financial work should be on automatic pilot.

How do we get started?

The starting point is for us to meet and discuss what you’re looking to achieve from outsourcing your accounting.

We’ll need to understand:

  • what your business does and how it works
  • what financial information is imperative for business success
  • how is your accounting done at the moment – Xero, QuickBooks, FreeAgent, spreadsheet?

If you’re interested in outsourcing some or all of your finance needs then please call Michael Austin on 020 7125 0270 or email info@bluedotconsulting.co.uk

Michael

Relevant links:

Upskilling for accountants

Is your finance team fit for purpose?

Why two bank accounts are better than one

Winter is coming – be prepared!

The economic headwinds are blowing stronger and there’s plenty you can do to batten down the hatches and prepare your business for a recession.

There may be trouble ahead.

But forewarned is forearmed and there is plenty you can do to batten down the hatches and prepare your business for a recession.

And be ready to take advantage of the better days that will follow.

Know your numbers

Your bookkeeping must be up to date and stay that way so you know exactly where you are and you minimise the surprises that will surely come your way.

Make sure you understand what the numbers are telling you and take action based on this information.

Look ahead – at profit and cashflow

There are two forecasts you need:

  • Profit forecast
  • Cashflow forecast

In your profit forecast be realistic about future sales and be prepared that you’ll lose some customers and that some contracts and projects may be postponed or cancelled – sometimes at the last minute.

On the cost side of your profit forecast identify which costs you can reduce or cut completely and get on with it. People and premises are usually the areas that will yield the biggest savings.

It’s often best to cut hard and cut early.

As for cashflow – go backwards before you go forwards. Get a simple cashflow model working by modelling the last six months of actual cashflows and then, using your profit forecast and your up to date bookkeeping information, model the next six months or so.

In both forecasts – be realistic and don’t forecast too far into the future.

And keep updating the forecasts because circumstances will change.

Credit control is paramount

If you’re not on top of credit control then get on top of credit control now, and stay there. Make sure you have an aged debtors list to review at least once a week.

If you can, set up your customers to pay by direct debit. Be wary of any that won’t sign up as this could be a sign that they are going to be slow and payers.

Difficult customers? You might be better off without them.

Get on the phone and, if you have to, go out and visit customers that owe you money.

Don’t rely on automated messages and simply sending statements from your software. By all means set them up so there is a steady trickle of credit control reminders going out to customers but nothing beats talking to customers if you want to get paid.

Cut costs and do more with less

Take a thorough look at workflows and ask if they can be made more efficient and, indeed, if they need to be done at all. Can you redesign workflows and processes to make them simpler and cheaper?

Counter-intuitively, is now the time to invest in new software, automation and other capital items to improve productivity?

Look closely at costs of sales and margins. If sales are likely to reduce in the coming months then are there deals to be done with key suppliers, who want to keep your business as a customer, which will lower your costs of sale, meaning you make more money from each sale you do make?

Finally, run through all of the business overheads and see which can be cut.

Cost cutting doesn’t need to be “all or nothing”. It may be that all colleagues share the pain with a pay cut across the board rather than some people lose their jobs but not others.

Build a cash reserve

It shouldn’t take the threat of a recession to prompt any business to build up a cash reserve, there should already be funds in place. But, in the real world, that may not be the case.

Charities and other not-for-profit organisations are compelled to build up reserves that amount to, say, three or six months’ of operating costs. If charities can do it, why not you?

Building up a cash reserve now means you have to work harder on your cashflow and in practical terms, if you don’t already operate two bank accounts, then open a second account now.

=> Why two bank accounts are better than one

Marketing opportunities

Go right back to basics – the four “P”s of marketing:

  • Product – can you diversify or discontinue less-profitable products or services?
  • Price – don’t lose sight of the value you add as prices come under pressure. Protect your margin!
  • Promotion – as market conditions change for everyone then communications must adapt
  • Place – do you need to be everywhere? Perhaps regroup and simplify.

It’s important to be positive with marketing and recognise there will be opportunities in your market. Simply put – not everyone will get through to the other side.

Be different and be seen to be different. Innovate with products and services and make sure you communicate effectively to customers and prospects.

And if opportunities arise then try to capture market share.

Know who your friends are – customers, suppliers and colleagues

In hard times it pays to have strong relationships with customers, suppliers, colleagues and other stakeholders.

Provide great service and clear communications and perhaps now would be a good time to set up a customer loyalty scheme that rewards repeat business.

Continue to build close relationships with customers (not forgetting to jettison any that are not profitable) and, provided your cashflow supports it, pay everyone consistently on time.

In fact, if you can consistently pay your suppliers on time then use this as a negotiating tool to agree lower prices.

There seems no doubt that the economic headwinds are blowing stronger and running your business will become more difficult.

Be prepared. Take action sooner rather than later and come through it stronger than before!

Michael

Related links:

Blue Dot Consulting Limited