Berley

Accepting card payments, what are my options?

For many small and medium-sized enterprises (SMEs), and most businesses in general, the card payment economy represents a substantial source of their overall revenue and income. The most recent statistics collated by UK Finance indicate that contactless payments eclipsed cash for the first time in 2017, accounting for 63% of transactions overall, a figure that has only grown in subsequent years. Despite this, it’s estimated that around half of SMEs are yet to install electronic point of sale terminals and are therefore missing out on a significant share of card-based business.

Further to this, according to a survey conducted by Barclaycard, around 1 in 3 UK adults would consider cancelling a purchase if the retailer did not accept card payments. In essence, if you’re not accepting contactless as part of your business’s operations, you’re essentially jeopardising the profitability of your venture and potentially stunting its growth. In this article, Berley, London’s chartered accountants for entrepreneurs and small businesses discuss the best ways to integrate card payments for your business and the options available to small and medium-sized enterprises.

How can I start accepting card payments?

If you’re yet to install an electronic point of sale for your business, there are a few considerations you will have to make before you start accepting card payments. First and foremost, you will need to gauge the number of card machines required for your business. It is generally considered good practice to have one machine per till on your premises, while some businesses will have an additional machine in an office for over-the-phone payments.

Next, you will need to understand the different types of card machines available to small and medium sized businesses. There are generally three types of electronic points of sale that can be implemented by small businesses and small business owners:

• Countertop card machines: typically recommended for retailers such as high street stores and smaller goods and services providers. These are fixed terminals that make up part of a countertop till.
• Portable card machines: The ideal solution for retailers in the hospitality industry such as bars, cafes and restaurants, this format allows you to take credit and debit card payments from anywhere in your premises.
• Mobile card machines: Designed for businesses whose work involves a high volume of movement across the country, the mobile card machine utilises 3G connectivity and a handheld device to allow you to take payments wherever you have network reception. Intended for couriers, tradespeople and taxi drivers.

You should also consider whether you want to make contactless payments available to your customers, as well as Apple, Samsung and Android Pay. While it is not a requirement of these machines to be equipped with such capabilities, the increasing popularity of these payment methods means that this should certainly be a consideration if you are entering into the realm of digital payment.

Where can I get an EPOS machine?

There are various electronic point of sale merchants that are able to assist you with setting up your business’s card payment system. Before entering into a contract with one of these providers, however, you need to ensure that the machines they will be providing you with are compliant with Payment Card Industry Data Security Standards.

This essentially means that their machine stores, processes and transmits your customer’s credit card data securely, minimising fraud-related risks. When you’ve found a provider whose terms and fees you are satisfied with, you will enter into a contract with them that generally stipulates the service fees you will need to pay them at the end of each month. These vary between providers, so research and negotiation are important. Once this has been set up and your terminals are installed, you’re ready to start offering your customers the benefits of paying by card.

What are the benefits of paying by card?

Paying by card is an easy and efficient means of processing payment and a quick and simple way to pay for the customer. It also represents a great way for business owners to streamline their accounts and ledgers. With more and more businesses using digital cloud accounting software platforms to keep track of their finances, understanding your venture’s financial positioning can become much easier through the use of electronic points of sale.

Most cloud accounting platforms are compatible with digital banking systems, so integrating these and implementing them as part of your financial and fiscal operations can mean your business runs more smoothly. Settling cash accounts can be a menial and mind numbing task, particularly if you have other areas of your business that need attention. Linking your online banking, electronic payment terminals and digital accounting software can translate to less work for you and your business and a more accurate and informed financial operation.

Moreover, using PCI DSS (Payment Card Industry Data Security Standard) compliant card machines is an effective measure that businesses can take against potential defraudment, with customers’ credit card data being stored, processed and transmitted by secure hosting providers. This means that not only will your customers be better protected, but your business and its financial interests are also safeguarded when paying by card.

Is cash dying?

There has been a significant downturn in the number of cash-based transactions in recent years, with a large number of British institutions now going cashless in order to improve efficiency and hasten the transaction process. Transport for London is perhaps the most notable example of these, with cash on buses being phased out in 2014.

The fact that cash is untraceable means that its legitimacy can at times be questionable, whereas from a security standpoint, paying by card is fully traceable and secure, making it the preferred method of payment for Government institutions such as HMRC. According to statistics, the average UK adult carries less than £25 cash on them at any given time, with almost half stating they carry less than £5, meaning card and contactless payments are well-established as the number 1 method of payment for people in Britain.

Despite this, cash still holds a strong position as the second place majority for methods of payment, and many small business owners who believe that setting up electronic points of sale and card payment technologies are too expensive rely on cash for the bulk of their revenue and income. In any case, cash is still predicted to decline in the coming years, so investing in an electronic point of sale machine is something that all small businesses should be considering.

At Berley, London’s chartered accountants for entrepreneurs and small businesses, we have a proven track record of assisting SMEs and startups with growth strategies and improving the profitability of their venture. We know that having the ability to accept card payments is something that's worth considering for many of you the entrepreneurs out there, which is why we're writing this post and sharing the information. 

If you would like to know more about growing your business and boosting your company's operation,  please feel free to call us on 020 7788 8261 or alternatively, send us a message through our Contact Form.

For more small business advice, see the following:

• Business growth in 2019: Expert advice for small businesses
• How to find the best small business accountants
• Top 5 bookkeeping tips for small businesses
• Preparing your business for Making Tax Digital
• How to create a robust business plan

by Berley

Top 5 bookkeeping tips for small businesses

As a small business owner, the responsibility of managing all aspects of your operation can be challenging.

Whether you work in fashion retail or are a small marketing consultancy, running a small business offers owners and company directors unadulterated freedom and control when it comes to the logistics and coordination of their business – but as a result, also demands commitment, time and energy.

Balancing each and every aspect of your business is of the utmost importance, particularly when it comes to managing your finances. While it’s always good practice to have a dedicated bookkeeper employed, some business owners decide to do this themselves or outsource the activity to our bookkeeping team at Berley. Our bookkeeping service can be tailored to match your needs and we can also extend to a full accounting service including detailed monthly accounts and costing records. Payroll processing and VAT return preparations are also options that we can help with.

Bookkeeping tips for small businesses

Do little, often

It might be the simplest piece of advice you receive, but keeping on top of your finances is one of the best practices a business can have. Staying up-to-date with your business’s daily transactions, expenditures and income equates to a better understanding of your company’s operations and business dealings, as well as a less stressful overall accounting experience. In order to maintain the smooth operation of your business, a bookkeeper should perform the following tasks:

• Log daily financials: this encompasses the recording of day-to-day transactions and a daily income/revenue report, which should be logged in the company’s ledger.
• Handle the accounts, both payable and receivable: the bookkeeper is responsible for the sending of invoices, managing accounts receivable as well as making payments to suppliers and for expenses.
• Oversee cash flow: one of the primary responsibilities of the bookkeeper should be to protect the balance of revenue to expenses - meaning your company doesn’t run out of day-to-day money.
• Prepare the books for your accountant: essentially, it’s the job of the bookkeeper to maintain the accounts so that the accountant can complete the company’s tax returns – i.e. keeping them valid and up-to-date.

As well as this, reconciling your accounts each month is recommended in order to formulate a concrete understanding of the business’s performance. One of the simplest and most straightforward ways to ensure that you’re able to keep on top of your financial duties as a bookkeeper is through the use of a dedicated accounting software platform.

Use a cloud accounting software platform

Making Tax Digital represents a complete overhaul of the current tax structure under HMRC, with companies now required to lodge quarterly financial reports as well as an annual report – meaning there is less room for error and more likelihood that your business will receive the greatest return on its tax payments.

Using cloud accounting software is a highly effective way to manage your finances, as it makes updating and reconciling your finances a seamless affair. If your business chooses to use a platform with daily automatic bank feeds, whereby your bank statement lines feed into your accounting software, you’ll have an overview of the cash in the bank and ready to reconcile.

Not only does cloud accounting ensure that your finances are more easily manageable, but it’s also an effective mechanism for protecting your company’s data – with many platforms now using sophisticated encryption technology, you’re less likely to encounter fraud or cybercrime.

As a partner of Xero, our specialist team at Berley Chartered Accountants can assist you with migrating your business’s finances and setting up your cloud accounting software, as well as providing bespoke advice as to how you can make your bookkeeping as efficient as possible. You can read about Xero on this page ‘Get the most out of Xero with Berley’.

Keep your finances separate

It should go without saying that keeping your personal and business finances separate is good practice, however, many small businesses and start-ups encounter this problem in their formative stages without realising the possible ramifications, which can pose significant problems when lodging your personal and company tax return at the end of the financial year.

As soon as you’ve established your business, you should set up dedicated business accounts. This means banking and credit cards in the company name to avoid any confusion in the long run. Mixing expenses and income between owner and business can be incredibly problematic when it comes to reconciling your business’s financial situation – particularly when trying to manage and understand the business’s income when cross-referenced with your own personal expenses and vice versa.

Trying to gauge the standing of the company when these finances aren’t separate is also incredibly difficult, which is why it’s always advisable to make a clear distinction before you start operating. For assistance with setting up your small business’s accounts, Berley Chartered Accountants can provide advice regarding the best solution according to your business’s structure.

Monitor time sheets

One of the primary expenses a small business will incur is employment. Your employees are vital to the operation of your company, so getting the most out of them is of the utmost importance. If you are billing your customers on an hourly or per project basis, one way to manage time sheets is through the use of time tracking software that will log your employees’ hours.

There are a number of platforms that provide this software, with many of them cloud-based. Implementing this technology facilitates a more accurate log of your employees’ work hours, which represents a sound tool for tracking hours which have a direct impact on your profit and loss statement. In addition, they can also minimise your expenses with respect to casual and part-time employees.

Aside from the obvious benefits of getting a more precise insight into the hours being worked by your employees, these platforms also offer a simpler way to manage overtime, sick time and holiday time – providing a comprehensive platform for managing payroll and improving cost-efficiency.

Liaise with your accountant

For many businesses, an accountant is perceived as a superfluous expense with some business owners believing that they can perform this role themselves. While this might be true for someone with an educated knowledge of finance and tax, for those without, not hiring an accountant can be a significant oversight if you’re looking to maximise profits and efficiency.

An accountant can help you to manage tax returns in order to receive the greatest tax relief, they’re also able to analyse your company’s financial records in order to make astute business recommendations for growth and expansion. Many accountancy firms also offer bookkeeping services so that businesses can focus on strategy while the accounts are taken care of.

At Berley, we are London’s local chartered accountants for entrepreneurs, small businesses and start-ups and we can provide bespoke bookkeeping and accounting services for companies looking to gain an advantage in what is the most competitive business market in the world. As the start-up capital of Europe, London represents one of the most difficult places for a small business to succeed – which is why our services could be of value to you.

• Management of accounts
• Payroll
• Bookkeeping
• Company audits
• Tax
• VAT

In addition, we also help small businesses on business finance solutions, funding options and restructuring. Give us a call on 020 7636 9094 today. We look forward to discussing business with you.

If you liked this article, you might also like:

• How to create a robust business plan

by Berley

How to create a robust business plan

Every business requires a plan. Whether you’re a fledgling start-up or an established conglomerate, a clear and concise outline of your business’s goals, operation strategies, future progress and potential problems is an important and necessary tool. Not only does the business plan represent a valuable insight into your company’s approach to growth, but it also acts as a contingency plan in the event of an emergency.

Generally, a business plan is a prerequisite for companies looking to secure investment or funding from a bank, so if you’re not paying for the costs of your entire operation up front, chances are you’ll be required to have one drawn up. There are a number of different aspects that make up a business plan and preparing such a document can be an arduous task.

For small businesses across London who aim to grow with the right business finance solutions, a robust business plan is key. At Berley, our specialist small business accountants have been helping clients outlining the best practices when creating effective business plans and we are happy to share our experience with you. 

What should you include in a business plan?

There are a number of elements that contribute towards a comprehensive business plan, and all of them should be addressed when this document is being drawn up. The plan should provide an overview of your business’s aims for entering and operating in your desired industry/market; it should also provide extensive insights into the following:

1. An executive summary: business, aims, financial summary

• This should be a pitch to any potential investor that summarises the business plan, including the overall business, business aims and financial summary.

2. Background of the business owner/proprietor

• An overview of why you’re seeking investment in this business, why you want to start the company, your previous work experience and your qualifications and education background.

3. The goods and services you will be trading

• This section should detail what your business will be dealing in, a description of the goods or services you will provide, as well as any different varieties or types. If you are going to release a range of products incrementally, give specifics as to why this is.

4. Market research

• Here you should provide insight into who your customer base/target market is, a description of them, where they are located, why your product will appeal to them and whether you have already made sales to this audience/have got customers waiting for your product. It should also touch on other forms of market research including field research in the form of customer questionnaires.

5. Competitor analysis

• Analysis of the strengths and weaknesses of any businesses competing with you for a share of your target market, as well as an outline of who your competitors are, what they provide, what their price point is.

6. Your marketing strategy

• Provide an overview of your planned marketing strategy, including a specific breakdown of exactly what the strategy entails, why you’ve chosen this method and how much it’s going to cost.

7. The logistics of your business operation

• One of the most important aspects of the plan, the logistics of your business operation should account for the production, delivery and payment methods and terms of your operation. It should also discuss your supplier relationships, the items they supply you with, payment arrangements and the reasons for using them.

• Moreover, you should include a description of your premises, as well as the equipment required for operations, any transport requirements, legal requirements, insurance requirements and a manifesto of management and staffing requirements.

8. Detailed costs and pricing breakdown

• Here, you should describe in minute detail all of the costs you stand to incur, the prices of your products and the profits you stand to make on the sale of said products. This should include a price breakdown for products in components, as well as cost per unit, price per unit, profit margin, markup and profit percentage.

9. Financial forecasts, including a 5-Year Financial Plan Projection

• Here you should outline all operational costs for the first five years of business, leaving nothing out. This should also include a realistic assessment of any profits you are making through sales and a projection of the business’s finances for this time period. The first three years should be broken down into months with years 4 and 5 detailed annually.

• You should also include a personal budget, which details all of the estimated costs for the first 12 months of business, as well as your estimated income for this time period.

• A cashflow forecast detailing the amount of money coming in from investments and funding against the amount of money being paid back to loan sources is also a requirement, as is a costs table.

10. Contingency measures or a back-up plan

• As is good practice, you should conclude your business plan with a short-term, long-term and an alternate plan.

For a more detailed breakdown of the requirements of a business plan, or for a template, which you can use as a guide, Government resources are the best port of call and can be accessed here.

How should you write a business plan?

The key to a successful business plan is concise, specific information that provides no room for interpretation. Your statistics and facts should be rock solid and you need to provide evidence for substantiation by the bank or another financial institution. In essence, it should provide an accurate and detailed account of your business’s plans for the operation, taking into account all financial and economic matters for the next five years.

The tone should be formal and professional, taking into consideration that this plan needs to be able to explain your business to other people. In terms of the business plan’s intentions, it should be easily digestible and the information should be discernible for both the layman and a financial professional. Any superfluous information should not be included, only what is relevant to the business and its dealings. If you have supplementary information that you want to include, this can be added in an appendix.

Do I only have to write one?

While the initial drawing up of a business plan is one of the cornerstones of an early-development business, revising this document is an on-going process and businesses are advised to update their business plan annually in order to remain relevant to the market and the future goals of the business.

Once your business becomes more established, it may be necessary to re-evaluate the targets and aims laid out in your initial business plan. If your forecasts weren’t ambitious enough, or in the unfortunate event that they weren’t realistic enough, you should come back to the original document and draw an updated business plan to better align yourself with the future of your business.

How can Berley help?

As specialist chartered accountants focused on helping small businesses across London, we understand that when it comes to growth, you need a robust business plan. This will put you in good stead for securing business financing, as well as providing a comprehensive outline for your business’s future – clarifying your goals and targets and how you can realistically achieve them. We have over 30 years of experience in promoting advice on business growth, and we have the insights you’re looking for to help you establish a solid foundation and strategy for growth this year and beyond.

Call us on 020 7636 9094 to talk with someone from the Berley team to discuss how we can assist you in growing your business.

by Berley

What does Brexit mean for your small business?

As it stands, the imminence of the UK’s departure from the EU is causing a great deal of uncertainty and instability in the small business sector. For many proprietors, the implications of Brexit are still unclear, however, most people understand that their operations may be impacted in some capacity. The influence of Brexit on your small business will largely depend on what type of deal is struck with the EU, as well as on the type of small business that you own and operate.

Until such times as the EU leave has been effected, the full extent of Brexit’s influence on businesses in the UK is merely speculative. There are, however, some impacts that businesses have even prior to the beginning to Brexit being implemented. In this post, we at Berley, London’s small business accountants aim to share some considerations regarding Brexit and how they may impact your enterprise.

Less EU workers

Current statistics indicate that following the announcement of Brexit, the net migration level of EU workers coming into the UK has dropped, with the last count placing this number at 74,000. One theory attributes this to uncertainty pertaining to workers’ rights. Most workers’ rights today are determined by EU law, which the UK will not be subject to once Brexit is enacted. If your business currently relies on EU workers, retaining your staff should be a priority.

It is highly unlikely that many of the current workers’ rights will change, however, engaging with any EU workers you employ about their legal status will help to reinforce their understanding of their entitlements following Brexit. One thing you can do right now to ensure the security of your EU workforce is encouraging them to apply for “settled status” with the Home Office. This will need to be done by June 2021, but doing it sooner represents an effective way to consolidate confidence and allay any fears they have about their legal rights in the workplace. Your employees’ trust is paramount, so make sure you earn this trust and treat them fairly. Giving them a solid future will make them less likely to look for job prospects elsewhere.

Attract foreign investment

The pound has dropped in value following the Brexit referendum, sitting at around 1.14 Euros at the time of writing. Many experts predict the value will drop further if the UK leaves without an agreement, however, like all things that will be impacted by Brexit this is unclear. A weaker pound has its own challenges and advantages, but one clear advantage is the likelihood of an influx of foreign investment into UK businesses. With plenty of overseas companies looking to get a foothold in the UK, especially if the pound drops further, Brexit has the potential to put UK-based small businesses in the perfect position to forge some profitable connections and partnerships. To make your business look attractive to foreign investors, having a solid business plan with strong growth statistics is key.

Depending on what sort of deal is struck, the UK may be able to hold onto its current free trade status within the EU, however, this is uncertain until such times as Brexit is actually implemented. Free trade is obviously beneficial to businesses that rely on imported goods to sustain their business and operations, so small business enterprises should be mindful of what eventuates with respect to trade and any tariffs they may have to consider.

UK supply chains may be cheaper

Brexit could potentially force the introduction of new laws, which may include legislation pertaining to customs and excise duty being paid on anything imported from the EU, thereby increasing the price of anything shipped in. A full list of the tax implications of Brexit can be found on the government’s website, but the upshot is that it will cost more to import goods into the UK from EU countries if a free trade deal isn’t struck. You can prepare this now by factoring the increased cost and adjusting your business plans.

If this legislation is enacted and makes trade with the EU a more costly exercise, small businesses will have the opportunity to find new or existing suppliers within the UK, which is positive for the economy, or alternatives outside the EU (look at emerging markets from Africa or South Asia as they tend to be cheaper). If your cost is going to be less than your competitors with established EU suppliers, you know you will have a massive competitive advantage.

The best practice for minimising the potential damages that a non-free trade agreement will have is to draw up and quantify the increased costs and delay in movement of any goods that your business depends on from the EU. Likewise, you should review all contract material from EU distributors, and potentially consider putting contingency contracts into place with alternative suppliers to reduce the impact of Brexit if such an agreement does come into place.

Consider a new sales and marketing plan

With the impacts that Brexit is likely to have on your business, a revision of your business’s sales and marketing strategy may be required. If your business is forced to alter its suppliers, this will likely have a quantifiable impact on the way your product is received by your clientele. You should consider whether tariffs introduced under Brexit’s EU trade agreement are likely to impact sales, how your clients will potentially react to an increase in cost, as well as how this will influence the profitability of your business.

You should also be mindful of the ways in which a change of supplier might impact your target market and established clientele, particularly if the location and source of your product is a brand marketing or selling point. If you are planning on sourcing from inside the UK, a ‘Buy British’ marketing switch will be necessary, so too will any change to an alternative overseas supplier result in a change to your marketing tactics.

Brexit and financial planning

With experts suggesting that the small business industry will see the greatest impacts of Brexit, adapting to any changes in the post-Brexit climate is essential business practice. Regardless of which sector your business operates in, you’re likely to experience some sort of ripple effect following the leave. One aspect of this comes in the form of financial planning.

For many UK businesses that deal with clients in the EU, they invoice their clients in Euros, but their operational costs are in pounds. With the predicted changes to the economy set to see a rise in the Euro and a drop in the pound, this may be good news for some but bad news to others.

Taking into account this volatility of the economy, as well as the possibility of import tariffs, small businesses will need to be prepared for a revised financial strategy. Drawing up forward-looking cash flow forecasts is a good way to prepare yourself for the increased business costs of a worst case, no-deal Brexit, and doing so should be a valuable insight into where cash deficits may arise, and how best to manage these.

Financial planning can be a daunting and confusing task, so it is always advisable to seek professional advice in financial matters where you aren’t completely sure. At Berley, we are the small business specialist accountants in London and we understand that Brexit will have considerable impacts on small UK businesses, and this can be a difficult time for small enterprises. With over 30 years of experience in dealing with small business advice, we have the insights that can help consolidate your business’s foundations in the post-Brexit climate and beyond.

Call us on 020 7636 9094 to talk with someone from the Berley team to discuss how we can assist you in growing your business.

This post is intended to provide information of general interest about current business/ accounting issues. It should not replace professional advice tailored to your specific circumstances.

by Berley

Protect yourself against fraud

If you live in the UK, chances are you know someone who has experienced or been a victim of fraud.

It can seemingly happen to anyone, all it takes is an innocent click on the wrong email or an unsuspecting phone call from ‘the bank’ and you’re at risk. With an estimated 3.5 million fraud related incidents in 2018, we now have to be more vigilant than ever when it comes to protecting our data, our money and ourselves.

According to a report released by the Crime Survey for England and Wales (CSEW) in January 2019, fraud accounts for more than 30% of crimes nationwide. Of the 20.6% of individuals surveyed who said they had been victims of crime, 6.3% of them had experienced fraud. This is evidence of the changing criminal landscape in the UK, with fraud outscoring every other offence type by almost 15% of the total share.

As a society, we typically picture theft, damage and violence as the most commonly occurring criminal offences, however, this is no longer the case. CSEW’s year-on-year reports tell us that fraud has been the most consistently encountered crime in the UK for the last two years, and as such, we need to consider better protecting ourselves and our business from potential fraud.

Types of fraud affecting small businesses

Common types include but not limited to:

• Bank account fraud
• Cyber fraud
• Data theft
• Embezzlement
• Fake suppliers
• Inventory theft
• Payment fraud
• Procurement fraud

The statistics tell us that we need to do more than just be aware of possible fraud and potential scams. With the migration of so much information to digital platforms and the cloud, we need to re-evaluate our approach to online safety and data protection and stay vigilant when it comes to the threat of phishing and cyber fraud.

At Berley Chartered Accountants, London specialists for entrepreneurial businesses, we understand the importance of protecting your business from fraud, which is why we want to share tips on how to safeguard your company and its data.

Protect your data, use the cloud

With the imminent introduction of HMRC’s Making Tax Digital Scheme, migrating to digital, cloud accounting is on the horizon for all UK businesses. This transition comes into effect on 1 April 2019 for the approaching 2019/20 financial year, so there should be no excuse as to why you aren’t migrating now. Cloud accounting represents one of the most effective and efficient means of protecting your data and financial information and is a fantastic measure that your business can take to safeguard itself from fraud.

Not only does cloud accounting software facilitate seamless communication between business and accountant, but many providers also use sophisticated encryption technology to protect your data both when it is stored and when it is being transferred. This means that any attack or attempt at defrauding you is rendered moot. At Berley, we do the utmost to protect client data and have been using Xero the cloud accounting software, which encrypts your personal and financial data using industry-standard Transport Layer Security, for years.

Encrypt the important stuff

If your business manages sensitive information or holds a high volume of personal client data, then consider using a localised encryption software to protect yourself against fraud or a cyber-attack.

With a variety of intuitive and intelligent encryption software on the market, protecting your company’s sensitive data should be a straightforward and simple affair. This technology allows you to create encrypted storage on your computer, as well as encrypting files, folders and sometimes text. Moreover, there are platforms with public and private password decryption and some with two-factor authentication for added protection.

Keep a back-up

Not only is it good practice to back up your data to the cloud in the event that you need to restore previous versions of files, but a stored copy of your system should also be kept on a hard drive in case of emergency. An external back up hard drive will mitigate the potential damage of ransomware as you can load the existing files from the external source once the virus has been extracted and reboot without the fear of losing your data.

Don’t surrender to pressure

Fraudsters like to apply pressure on their victims, imposing time constraints and threatening some dire consequences if you don’t act right away (like if you don’t download a piece of software right away or transfer the money straight away). Tell them instead that you want to check out if the process is genuine. If they continue to pressure you, discontinue the discussion because a genuine company is not likely to behave that way.

Report it

In 2018, only 1 in 8 people who were victims of fraud reported this to authorities. That means that roughly 13% were reported overall, leaving 87% to go without investigation and potentially leaving the perpetrator to repeat their offence.

If you are unlucky enough to fall victim to fraud, report it ActionFraud. Many are reluctant to report because police only get involved if they believe the fraudsters are from an organised network who have stolen a large sum of money from multiple victims. 

Trust your accountant

Keeping a close eye on your books is one of the most effective ways to prevent fraud within a business, and outsourcing your business’s financial accounting to a qualified, trusted accounting firm is the best way to do this. Our team of chartered accountants specialises in small business and start-up operations, and have been serving entrepreneurs across London for years. Please give us a call to discuss how we can help your business reach its full potential and profitability.

Perform background checks

Embezzlement or other types of fraud committed by employees can cause significant damage to your small business. Use background checks to see if you can uncover any ‘red flag’. Beware that due to GDPR, you need to tell the applicants and/or your existing employees what data are being collected, why and how they are being used.

Berley Chartered Accountants

Founded by entrepreneurs, at Berley Chartered Accountants, our mission is to serve entrepreneurs and start-ups across London on matters pertaining to:

• Management accounts
• Payroll
• Bookkeeping
• Company Audits
• Tax 

In addition, we also help small businesses on business finance solutions, funding options and restructuring. Give us a call on 020 7636 9094 today. We look forward to discussing business with you.

by Berley