An accountant at work

Planning for the end of the accounting year

An accountant at work

Each year a company has to prepare its annual accounts, also known as statutory accounts, and pay tax on profit made. Our small business accountants explain the process.

What is an accounting year and is this different from a ‘financial year’?

When you first set up your company and recorded its first taxable revenue, you indirectly defined the accounting year of your company.

The accounting year usually starts from the actual month the company is set up, and it may be different from the ‘other’ important accounting period: the financial year. The financial year for Limited Companies refers to the one that the government follows and dictates budgetary policy changes. In the UK, the financial year runs from April 1st of each year. This is not to be confused with the ‘fiscal’ year for personal taxes which runs from April 6th to April 5th of the following year.

Financial year vs Accounting year end
The UK Government sets the financial year. It runs from April 1st to March 31st the following year. This is when the government’s policy changes and new tax rates start. On the other hand, the accounting year end is the date chosen by the directors of a limited company to prepare its accounts for each year. An accounting year may be different to the financial year, or it could also run on the same period as financial year.

When you first launched your company, your accountants might have aligned your accounting year with the financial year. This meant they either shortened or lengthened your first accounting year and submitted the accounts on March 31st to coincide with the financial year. From that point on your accounting year would run from April 1st to March 31st.

Irrespective of you have chosen to coincide your account year with the financial year or not, your ‘year end accounting date’ will require you to submit relevant documents to Companies House and HMRC, and to pay tax (on profits) accordingly. Most small business owners often leave this process to specialist small business accountants like our team here at Berley. If you would like to know more about different accounting periods, see this gov.uk page.

What year-end accounting documents do you need?

The government requires all business entities to file a report on their company’s financial activities and pay any tax due on the profits made. To do this you need to produce two sets of documents:

1. The company’s statutory accounts

The statutory accounts must be filed to Companies House within nine months after the end of your company’s accounting year via online submission or hand-delivery. You must also file these accounts to HMRC 12 months after the accounting period of your Corporate Tax ends.

Your statutory accounts should contain:

  • A ‘balance sheet’, which shows the value of everything the company owns, owes and is owed on the last day of the financial year. This must be printed with a director’s name and signed by the same director.
  • A ‘profit and loss account’, which shows the company’s sales, running costs and the profit or loss it has made over the financial year.
  • Notes about the accounts, usually made by your accountants.
  • A director’s report (unless you’re a ‘micro-entity’).
  • An auditor’s report (this depends on the size of your company; you can click on the article Company audit exemptions to find out more).

There are two ways to make sure this process is efficient, saving you valuable time and money. The first way is to use approved online accounting software like Xero. The second way is to work with a trusted accountant who can help to prepare these accounts for you.

It must be said that your accountant should also discuss tax planning and/or identify areas of improvement. If you have a substantial tax bill to pay, your accountant should also include that in your cash flow forecast so you won’t be caught off guard. If you are looking for an accountant with years of experience in helping entrepreneurs like you in London, please contact our small business accountants in London on 020 7636 9094.

2. company’s tax return - CT600

Your company tax return, the CT600, must be submitted within 12 months of the end of your accounting period. This form reports your business income and tax liability – the figure you need to pay HMRC within nine months (and a day) of the end of your accounting year - even though the actual CT600 can come three months later. You can pay this into your HMRC Corporation Tax account through your bank. Failing to do so can result in a fine.

Please note that even if your company makes a loss or has no Corporation Tax to pay, you must still submit a tax return.

It’s my first year of trading, what accounts and tax returns do I need to file?

If you are about to incorporate a limited company, reporting is a little different in your first year of trading. In this case, your statutory accounts are due 21 months after the end of your incorporation date (not accounting period). Thereafter it is the same as any normal company.

What accounts do sole traders need to prepare?

A sole trader is essentially a self-employed person. You report your trading profits through your Self Assessment tax return each year. Your accounting period is therefore the same as the ‘fiscal year’ - April 6th to April 5th the following year.

Naturally, not all sole traders start their business on April 6th and you are free to choose whatever accounting period you like. For example, if you were to start your business in September, you could set the end of your accounting period as of April 5th the following year. From then on your accounting could match the government’s fiscal year. If you choose to have a different accounting year from the fiscal year, you must inform HMRC accordingly in your Self Assessment tax return, so that they can work out your tax.

What tasks should a small business owner focus on at this time?

As a company shareholder and director, you have an obligation to manage the company efficiently and make it a success – this includes being as tax efficient as possible. Ideally, you have an accountant whom you can trust, and you can also choose to outsource your accounting needs to the accountant and their team. Together, they can make sure all of your expenses are properly accounted for, help you with cost control, and supply you with accurate cash flow forecasts, among other things like VAT and payroll.

In the following section, we aim to discuss seven focus areas which are expenses, invoices, bad debts, VAT, stocktake, liabilities, and PAYE and NI.

1. What expenses can a limited company claim?

A limited company can legitimately claim the following items as expenses.

  • Company formation expenses
  • Accountancy fees
  • Salaries and staff costs
  • Rent and utility bills
  • Fixed assets and their disposal
  • General office purchases, such as postage, stationery and other consumables
  • Business travel and accommodation expenses
  • Business mileage if you use your own car
  • Charitable donations
  • Childcare voucher scheme (now withdrawn to new entrants)
  • Tax-free child care scheme
  • Your company’s Christmas party expenses (up to £150+VAT per head)
  • Equipment expenses
  • Pension payments
  • Professional subscriptions (provided they are on HMRC’s approved list)
  • Communication costs - internet services
  • Mobile phone and landline - provided the contract is between the company and the provider
  • Medical insurance (although it becomes a benefit in kind to the employees)

The important thing to remember here is to make sure you keep a record of receipts and invoices paid, just in case HMRC wants to take a look.

The situation is a little different for a sole trader and the government has some good sole trader expense claim guidelines to follow here.

Now that Making Tax Digital is in operation, you should be scanning and saving these receipts as a natural course of business administration. Cloud-based accounting software services such as Xero make this a simple process to manage, enabling you to upload your receipts into your Xero account for easy access by yourself and your accountant.

2. Is your record of income and expenses correct and up-to-date?

For most businesses, this means going back over your invoicing and expenses, including:

  • Direct debits from your bank account
  • Credit card statements
  • Cash withdrawals
  • Cheque payments
  • Trade account purchases (including Amazon)
  • Invoices issued and paid

The important things to ensure here are:

  1. Make sure all your expenses are recorded accurately and you have the receipts (or have them scanned).
  2. Ensure all transactions are valid. Essentially you’re looking for potential incidents of fraud, so conduct regular reviews of your business credit cards. Fraud is now a major issue, happening more often than one would like to think, especially if your workforce can make purchases or use your trade accounts.

3. Do you have any invoices that are not being paid?

Late payment is a serious issue for small business owners. There are clients who just won’t pay or can’t pay (due to insolvency). For year end purposes, it is natural that small business owners do not want to pay tax or VAT on income that you stand no chance of receiving, so get tough on your debtors. Also, talk to your accountant and make sure there is a provision or a write off for bad debt.

4. Is your business VAT registered?

When you first start out in business, you may have decided not to register voluntarily for VAT. However, there are significant advantages to being VAT-registered and as the end of your accounting year approaches, it is a good time to reflect on this.

The biggest benefit of being a VAT-registered company is that the company can reclaim the VAT on many of the business purchases – and the reclaim can make a significant positive difference to your expenses (and cash flow). The process of filing VAT returns does involve a fair amount of paperwork but with the advent of cloud-based accounting software such as Xero, VAT becomes much easier to manage, and at the end of the year, it makes the VAT accounting job much easier for your accountant.

If you are a growing business, at some point you will likely exceed the VAT threshold, so it makes sense to consider the transition sooner than later.

5. Do you hold physical stock?

If you operate a supply or manufacturing business, you are likely to have inventory. In this case, you will need to conduct a stocktake and find out how much they are worth. Any damaged goods will need to be depreciated and any unfinished goods can be valued by applying a percentage completion against the end value of the goods. Please note that this process takes time, so it is best done as early as practical before you submit your return.

Make a complete list of all your assets, if you haven’t already. This would include computer equipment, buildings, machinery, vehicles, etc. You should keep a record of asset disposals and the income received from their disposal too. These figures will be used to calculate an overall depreciation value.

6. What liabilities do you have?

There are two types of liabilities, namely financial and operational.

Financial liabilities happen when you need to get a bank loan or borrow money from family or friends. These are debts against your business. You should be aware of your ability to pay the money back and record when they fall due.

Operational liabilities may include the lease on a vehicle or equipment. Make sure this information is readily available to your accountant.

7. Double check your PAYE and NI

Remember that if there is an error here, it is your firm that is liable. Make sure your employment dates are accurate and the sums paid as salary are correct so that your accountant can double check and make adjustments if necessary.

Berley assists companies with year end accounts

While the above are common areas you (the business owner) would focus on in planning for your accounting year, we are keenly aware that every business is unique in some way, so there may be other aspects of your business that differ or may require slightly different treatment from an accounting perspective. For instance, your company may have income in other overseas tax jurisdictions or benefit from some form of tax credits (such as R&D tax credits). It is best to discuss your circumstances with your accountant.

In addition, most small business owners start by doing the administrative tasks of day-to-day accounting themselves. But as your business grows, the tasks of accounting and also your year end accounting will become more complex. Eventually, these tasks could possibly reach beyond your immediate capabilities or to a point where they significantly interfere with your main role of running the business and making money. At this point you may decide to employ a part-time bookkeeper, although a better option to consider is to outsource your bookkeeping and accounting needs to a qualified accounting firm that can scale their service as your business growth; an accounting firm like Berley Chartered Accountants.

At Berley, we are a London-based firm of chartered accountants specialising in entrepreneurially-minded businesses. Talk to us today on 020 7636 9094 about your year end reporting and outsourcing your accounting. We can also get you set up with cloud-based accounting solutions, such as Xero.

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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 robin

Accounting concept

Top considerations and benefits of outsourcing your accounting needs

Accounting concept

Business growth is an exciting progression which is more likely to be successful if your business is already running efficiently, so are you still troubled by administrative burdens like accounting, tax and PAYE?

Business growth is an exciting progression desired by small business owners. Once you are in the growth stage, you naturally enjoy increased output and greater sales. Accordingly, you are likely to expand your workforce and take steps to control costs. In this article, our one-stop outsourced accounting team shares the opportunities growth presents and how small business owners can benefit from having our team working alongside you to increase efficiency and control costs.

Organic and inorganic growth

Broadly speaking there are two types of business growth – organic and inorganic. Organic growth means your business achieves better output and enhanced sales through internal resources and processes. This takes time and effort, but it is sustainable and less risky. Inorganic growth, on the contrary, means you gain instant market share and revenue boost by acquiring or merging with another company.

It must be noted that they are no one-size-fits-all strategies when it comes to growing your business – how you grow your company depends largely upon your business model, financial figures, and business acumen. Having said that, once you are in the growth stage, you will instantly notice the followings:

  • Your staff size will expand
  • Your administration overhead will increase
  • Your cash flow may get bigger but that may not mean you are making a profit
  • You are in need of good reporting systems whereby you can compare projections versus business performance and make informed decisions
  • Your growth is more likely to be successful if your business is already running efficiently

Temporary solutions

At this point in time, many business owners (particularly those who have been handling bookkeeping themselves) are faced with a stark choice: hire an account person who can also do payroll, or outsource the accounting and payroll functions to a company who can also act as your financial controller.

Quite often what happens is that the business owner brings in a part-time bookkeeper who comes in just a day a week, depending on the workload. This may be fine for some, but for those whose business is experiencing consistent growth, this is just a stop-gap rather than a scalable long-term solution.

The real challenge with a part-time bookkeeper is that they may not necessarily understand your business well enough to manage the accounting function in a scalable manner as the business expands. More often than not, part-time help leads the business owner to a situation where yet again, they are looking for a more permanent solution and the time and money invested in bringing the part-time help up-to-speed has been wasted.

Even if you have hired a full-time bookkeeper, there is no guarantee that the person has the expertise to review numbers like a chartered accountant does. So what are the options open to an established and growing business that needs help with its accounts and all that running a growing business entails? The answer – look for a one-stop outsourced accounting service firm like Berley.

The accounting challenges a growing business presents

Before we delve into the specific benefits outsourcing your accounting can bring, it is probably a good idea to understand what challenges a business faces with regard to its accounting needs as it grows.

One of the best ways to summarise where these challenges lie is to consider the primary aspects of running a business that will create increased accounting burden. Typically this relates to four main areas:

  1. Tax
  2. VAT
  3. Employees
  4. Costs

Tax

Most small business owners do not have the time to learn about tax returns, tax codes, tax allowances, year-end tax returns, National Insurance and Self Assessment. Things can also get out of hand quickly in the event that you don’t agree with a tax decision or can’t pay your tax bill on time.

For those using a cloud-based accounting package (such as Xero) and with turning over less than £85,000 per year, you may find it fairly straight forward to maintain the sales and purchase ledgers. Xero will produce the information you need to file a basic company tax return. However, the main challenge comes when you need to track sales and purchases, manage receipts, keep the books up-to-date and ensure that the company is actually profitable.

Among small business owners, using dividends to make up their income is a popular practice but your approach depends on your circumstances and it must also be legitimate. At Berley, we do not believe in ‘creative’ accounting practices that will put you in trouble with HMRC as it may jeopardise your business and your reputation, not to mention it may end up cost you more money.

So whenever you need advice on tax matters, give our team a call on 020 7636 9094.

VAT

Generally speaking, if your business turnover is below £85,000 a year, you do not need to register for VAT (although you can choose to do so voluntarily). However, once your business turnover passes £85,000 or when you expect your VAT taxable turnover to be more than £85,000 in the next 30-day period, you must register for VAT. If you register late, you must pay what you owe from when you should have registered. You may even get a penalty depending on how much you owe and how late your registration is.

Once you are VAT registered, you must complete VAT returns via software and keep your VAT records digitally to comply with Making Tax Digital which came into effect on 1 April 2019. Essentially, you will need to carefully maintain records for VAT on sales (to pay HMRC) and purchases (to claim back from HMRC) – this requires a knowledge of what you can claim and cannot claim for, which can be a little trickier than it might seem. A good cloud-based accounting package like Xero can help with this, but like any information system, it is only as good as the data it is fed with. This means small business owners may run into problems as their business grows and when the payments and claims become a significant accounting task that takes up much time and effort. Also, this accounting task requires good due diligence to avoid tax errors and VAT misfiling.

What we have shared above is a simplified overview. In reality, VAT is a complex subject and we strongly encourage small business owners to talk to one of our one-stop outsourced accounting team members first as we can help in various areas including:

  • Eligibility of Flat Rate VAT Scheme
  • VAT advice
  • VAT registration
  • Completion of VAT returns
  • Spector-specific VAT issues
  • VAT issues if you trade with EU countries and internationally

Employees

A growing business needs to be adequately resourced and this equates to increasing headcount. Whether they are contractors or full-time staff, employees are another source of administrative overhead. Full-time employees require PAYE, National Insurance and a pension system. Other benefits may apply too, depending on their individual circumstances and what your company benefits are. This all adds up to more work and for many small business owners who haven’t yet solved this problem; it often means late nights or worked weekends just to keep on top of things.

Controlling costs

A common question we receive from small business owners is why they aren’t making a profit even when the cash flow seems substantial? The answer to this seemingly simple question lies in how much control you have over your costs (particularly hidden costs) and how well you manage your cash flow.

Like business growth, there isn’t a standard cost-control recipe that’s applicable to every business. Ideally, you’d have an accountant you can count on to:

  • Review the financial figures
  • Make realistic projections
  • Help to compare results versus your goals and budgets
  • Discuss options with you if your business growth plan is not working out as it should

Essentially, you need a financial controller but without paying big money and this is where our one-stop outsourced accounting team can help.

What are the benefits of outsourcing your accounting needs?

At the very beginning of your business cycle, you have probably tried to manage the growing accounting tasks and challenges yourself, or hire a part-time/ full-time bookkeeper to run this for you, especially if you use cloud-based accounting software like Xero. In the event that your bookkeeper possesses all the skills required to prepare VAT and Tax filings, you will still need to have a professional accountant look over the numbers to make sure they are correct.

As your business continues to grow, attention will fall on tax planning, something your bookkeeper probably isn’t qualified to provide. Additionally, depending on the type of business you run, there may be schemes available to help mitigate tax or provide tax-efficient financing options, particularly where product R&D is concerned.

It is no secret that the tax system in the UK is always changing, something that most bookkeepers find it tough to keep up, not to mention small business owners. There are many possible considerations to be made, including issues such as:

  • Capitalisation of equipment
  • Depreciation of company assets
  • Directors salaries and dividend payments
  • Company structure and shareholding
  • Financing arrangements
  • Offsetting business expenses
  • Increased reporting requirements
  • Brexit related changes

This is why early consideration should be given to outsourcing your bookkeeping and accounting functions because they are key management issues required by any business with a real drive for growth to think about. “To be fore warned is to be fore armed” is a phrase most appropriate here. An early adoption of an outsourced accounting model will save you time and money in the long run, as you will avoid the costly learning exercise associated with a string of temporary internal accounting assistants that you may find yourself looking over their shoulder because potential mistakes in your books could lead to VAT penalties or even an investigation by HMRC.

The typical reason why business owners initially reject this idea is simply down to cost. They believe enlisting the services of a professional accounting firm is going to be expensive and that it is cheaper to do it themselves or hiring an in-house person. This isn’t necessarily true of course, as the costs of outsourcing your accounting can be significantly less than employing a full-time bookkeeper or accounting assistant.

Ten reasons to outsource your accounting and bookkeeping

In summary, the principle benefits of outsourcing your accounting to a professional accounting firm like Berley are:

  1. Consistency and reliability
  2. Time saved and no mistakes
  3. Up-to-date tax and VAT advice
  4. Your accounts are fully managed and maintained
  5. Full visibility of your accounts online (with Xero)
  6. Your VAT and Corporation Tax calculated and filled for you
  7. PAYE and pensions managed for you
  8. Business growth and cash flow management advice
  9. Tax-efficient planning
  10. Peace of mind and free weekends

Perhaps the biggest single benefit of outsourcing your accounting to a professional accounting firm like Berley is that you will have a professional working for you, somebody who is impartial and experienced, an expert who takes time to understand your business and your goals, and is prepared to give advice based on a solid understanding of your business and the experience they have in working with many companies like yours. Give us a call today on 020 7636 9094.

We’re also Silver Champion Partners of Xero, one of the biggest online accounting software companies around. This means we know the ins and outs of Xero and freely share them with our clients to ensure you can get the most out of your online accounting software.

Berley’s one-stop outsourced accounting services

At Berley, we offer efficient and convenient accounting services including:

Outsourced accounting

  • Bookkeeping
  • Compilation of management accounts
  • Accounts payable
  • Accounts receivable
  • Cash flow reporting
  • Sales reporting
  • Expenses and receipts management

Tax compliance

  • VAT returns
  • EC sales lists
  • Corporate tax returns and advice

Payroll

  • PAYE registration
  • Payroll administration
  • Pension processing
  • Benefits processing

Company secretarial services

  • Annual compliance with Companies House
  • Maintenance of statutory books

Call us today on 020 7636 9094.

If you liked this post, you might also enjoy:

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 robin

Café owners working behind the counter

How to generate more sales for your small business

Café owners working behind the counter

Every business needs sales and there are tactics which you can use to generate more sales for your brick-and-mortar shop and/or online site.

With 8.9 million people living in London, there are plenty of opportunities for small businesses to sell products and render services to the populace. From craft breweries to art galleries, brick-and-mortar shops are varied and numerous in London. Online eCommerce sites are equally prevalent. Entrepreneurs continue to set up sites and launch apps that aim to provide something that consumers need or want.

While the business scene is thriving, it is worth bearing in mind that not every business will be successful. There are numerous factors contributing to the success of a business, including but not limited to:

  • Failing to connect with the target audience
  • Failing to control cost
  • Failing to generate sales
  • Failing to stay on top of tax and financial affairs
  • Hiring the wrong people
  • Lack of a robust price structure
  • Lack of proper guidance
  • Bad time management

In this article, we will only look at sales. Conventional wisdom dictates that without a constant stream of sales, there is little chance for your business to survive and thrive. So how do you go about getting more sales for your small business? As this is a question worth discussing, our small business accountants and business growth specialists put together tips which we gather from working with entrepreneurs across London over the years. Hopefully these useful tips will make a difference to your business.

Do you have a sales strategy?

In the movie Field of Dreams, the character played by Kevin Costner heard a voice telling him, “If you build it, he will come”. The phrase was later modified slightly to “If you build it, they will come” by tech pioneers who seized the opportunities at the dawn of the internet when the competition was scarce. At that point, it became a phrase associating with building a website and customers would flock to it.

Today, many small business owners and online entrepreneurs know that “if you build it, they will come” does not happen naturally. No matter what business you are in, launching a company without knowing how you are going to get your customers is as useful as a chocolate teapot.

Needless to say, having a sales strategy is vital to the success of your small business, so let’s discuss what goes into a meaningful sales strategy.

What goes into a sales strategy?

Ideally, your sales strategy should include:

1. Profile of your target market

Who are your customers? Where are they based? What kind of lifestyle do they lead? What are their buying patterns? Questions like these will help you to focus on the next few points.

2. Know your competitors

Understand your competitors and know what they offer. You can divide your competitors into two groups – online and those who are near your business geographically.

3. Your unique selling proposition

Your unique selling proposition or USP in short, states the reasons why your customers would buy from you and not from your competitors.

4. Your goals

Set realistic goals that you want to achieve.

5. Create a marketing plan

This is about how you intend to reach your target audience so they are aware of you and your business.

Having a sound sales strategy is the first step, now we need to translate that into a series of actions. At this point, it makes sense to separate small business owners into two camps – those with a brick-and-mortar shop and those who trade online – as there are points relevant to one camp but not the other. After that, we will share seven tips that are applicable to both sides.

Generate more sales for your brick-and-mortar small business

We have a client who runs a transport service and he builds his business from a single car to running a fleet of vehicles catering to different groups. The three secret ingredients that are key to his success are being local, building relationships, and giving back.

Being local means you advertise locally, you network locally, and you set your sales target based on your customers in the local area. When it comes to your website, you have it optimised for the geographical area you are in and you also set your social media campaign to target the local market.

Being local does not mean that you lack the aspiration to go beyond a geographical area. Far from it – it is about building a strong foundation in your local area first, before venturing out to other regions.

Relationships create loyalty. Businesses thrive when they have good relationships with vendors, associates, and most importantly, the clients. Going the extra mile for your clients will ensure your company stand out and increase the chances of them refer you to other people.

Relationships aren’t just about warmth and happiness all the time, sometimes they can turn negative when your customers are unsatisfied about a certain aspect of the products or services. The best way to handle a negative relationship is to listen, then seek to improve.

Giving back to your community is a step further than just having positive relationships with your customers. It is about doing good deeds for all, including strangers whom you don’t know. Giving back comes in many forms, from sponsoring a local event to participating in a community program. When you give back selflessly, chances are, your action will indirectly help to raise your profile and your brand’s visibility, which in turn will help to attract new businesses.

Generate more sales for your online small business

If you are an eCommerce site owner, you have probably heard of the words ‘sales funnel’ many times. Essentially, a sales funnel refers to the process which converts prospects into paying customers, and the theory centres around website optimisation, meaning how your website can help you convert a customer who lands on one of your pages to putting products into a basket and checking out.

Theoretically, there are four common steps associating with an online sales funnel and they are awareness, interest, decision and action. How you can generate more sales online usually involves you analysing data and tweaking one of the steps. For example, if customers spend a considerable amount of time browsing a certain product, chances are, they want to know more about the product before making a purchase, so you facilitate the process by describing the product in detail, displaying customer reviews and testimonials, using a video clip to show how the product works, to name but a few.

Seven tips for generating more sales for small businesses, both brick-and-mortar and online sites

In this section, we will look at seven tips that are applicable to both brick-and-mortar shops as well as online businesses.

1. Bundle products or services

Combining several products or services into a package has several potential benefits including:

  • It helps you to shift less popular products or services.
  • It creates new categories.
  • It increases sales without higher transactional costs.
  • It appeals to more customers.
  • It makes it harder for customers to compare based on price alone.

2. Create new opportunities

If you discount creating new products or services outright, do pause and think again. The habits of consumers change and as the market evolves, new opportunities emerge. Learning to adapt means you can get ahead of the game.

Creating new opportunities does not mean you have to do it all by yourself. Work with complementary businesses to expand your market and increase sales. For example, if you design and sell yoga apparel online, work with gyms and yoga teachers. If you are a craft brewery, partner with local restaurants. There are plenty of opportunities if you seek to collaborate.

3. Think like a customer

No matter what business you are in, it pays to develop several personas and think like them. Ask questions such as what motivates them? How can you help them to solve a problem or address a need? How can your business be there before and after sales?

4. Nurture loyal customers

Routinely reach out to your customers is just part of the process, it pays to go further and incentivise them to keep coming back and buying from you. Incentives can come in many forms – giving discounts, providing after-sale follow-up, as well as offering exceptional customer service.

Having said that, do not push too hard to grow revenue from the same customers by suggesting products or services that they do not need. This will quickly drive loyal customers away.

Delivering positive customer experience is a big subject by itself, if you are interested in finding out more, this post Customer experience: a discussion worth having may make a good read.

5. Don’t ignore your less valuable customers

While retaining frequent buyers is a top priority for many small business owners, it pays to engage those who do not buy from you regularly. Keeping the conversation going is a way of showing that you value them and it may indirectly build a genuine connection. Even if they have no needs to purchase something from you, they can still refer other customers to you.

6. Have multiple felicitous campaigns ready

You have seen it – when it is raining, stores who know how to capitalise on the weather will display umbrellas and raincoats at the entrance and/or near the check-out.

Knowing how to run well-timed and well-chosen campaigns work exceptionally well online too. When the weather is wet and windy outside, a food delivery company runs real-time local ads targeting the rainy areas because it knows that people aren’t likely to go out in bad weather; they are more likely to have their food delivered instead.

Apart from weather-dependent ads, you can create other felicitous campaigns and make the most of the situations too. The trick is to plan for multiple scenarios in advance and have them ready so you can launch them as and when you need.

7. Monitor and review

There isn’t a standard recipe when it comes to increasing sales. Like all crucial business activities, regularly monitor and review your sales strategy will help you to determine whether it is working well and achieving the desired outcome.

Contact Berley if your small business needs a helping hand

It takes a lot to run and nurture a business. As a small business owner, you are probably wearing multiple hats – you are the salesperson, the marketing person, the IT guy, the negotiator, the web person, so on and so forth.

You know it is impossible to do it all, so use your resources wisely and delegate tasks that take up too much of your time. For example, leave it to our small business accountants to handle your accounts and financial affairs, so you can focus on managing and growing your business. To make it easier for you, our one-stop accounting services offer the full spectrum that seeks to ease your accounting workload, provide sound financial advice and manage regulatory risks, things that can support you grow and flourish.

One of the main advantages of working with us is that once we get a better view of your financial numbers, we can make honest recommendations that are applicable to your business. Treat us as your virtual finance director but without paying big money. If questions surrounding your financial numbers are stressing you out or you simply want an independent accountant to provide a valuable second opinion, kick start the conversation by calling us on 020 7636 9094 today or get in touch via our contact page.

If you liked this article, you might also like:
• Why negotiation skills are important for small business owners
• How business mentors can help small business owners
• What is the right source of funding for you?

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 robin

Two competitors working together can actually benefit each other

Why working with competitors can benefit small business owners

Two competitors working together can actually benefit each other

In business, we are conditioned to outsmart our competitors and think of them as enemies, so can we really turn things around and work with our competitors?

It is self-evident that entrepreneurs and small business owners are the driving force behind the UK’s economy. In London, it is said that SMEs make-up 99.8% of the business ecosystem here and they help London thrive as a global metropolis.

In order for small business owners to create jobs and drive economic growth in London and the UK, they must first thrive and achieve success individually. Most business owners attain that by creating opportunities beyond the limits of local high streets. They may choose to raise their online profile, form partnerships with other like-minded entrepreneurs, join a professional institution to strengthen business connections, to name but a few. Increasingly though, we have seen quite a number of small business owners also look to work with competitors.

Calling it “competitive collaboration” by Harvard Business Review, working with competitors is actually less radical but more beneficial than one would think. In this article, our small business accountants in London will discuss the benefits of working with competitors and methods that you can try.

Why work with your competitors?

Since the dawn of commerce, we have been conditioned to think that business is a zero-sum game and when our competitors and we aim for the same market, a person’s gain will result in another person’s loss.

To a great extent, it is true that global giants do compete fiercely and those who fail to capture any market share stand to lose out. In the UK, the news is also littered with brands that ceased to operate due to keen competition. But competition is not always bad. Competitors keep you on your toes and avoid complacency, they motivate you to explore the differentiators and even encourage you to narrow your focus on a niche market.

Working with competitors, on the other hand, can also yield several unexpected benefits, particularly when you join forces with them to:

  • Enter a new market
  • Create a new product
  • Create economies of scale and cut costs
  • Share business knowledge

Most importantly, we strongly believe that people outlive companies and strong business connections outlast competitions. The moment you stop treating your competitors as enemies and start treating them as your partners, you will see areas that you and they can collaborate and thrive.

Entering a new market with your competitors

The changing shopping habits of consumers, from buying products from a brick and mortar store to an online shop, are not new and yet they still catch many traditional small business owners by surprise. It is said that consumers now spend one in every five pounds online and if you have a traditional store, it means you are likely to see 20% less sales but your overhead (business rates, rents and wages) will continue to increase. Needless to say, this is not sustainable and you need to react swiftly.

To capture the online market, small business owners need a functional website with eCommerce capabilities which are not cheap to create and manage. To overcome this challenge, entrepreneurs can choose to pull their digital resources together or work with a competitor who already has an established online presence.

Creating a new product with your competitors

Toyota makes and sells cars worldwide, but that does not stop them from forming alliances with competitors to create new products. So far, they have partnered with Subaru to create the BRZ sports car, as well as BMW on the next-generation Supra.

Creating a complementary business is easier than one would think. We have seen traditional graphic designers work with web designers to combine both online and offline design into a single package, or brewers collaborate to produce a new beverage. If you are willing to try, the sky is the limit.

Creating economies of scale and cutting cost with your competitors

The theory of economies of scale is sound – when you can increase the scale of your operation, the cost per unit of output will decrease. This theory can apply to the full breadth of most business operations.

For small business owners who need to purchase raw materials for instance, it is easy to see cost-saving straight away if you can join forces with your competitors. When you combine your purchase with them, the higher volume of goods means a greater discount for you and your competitors.

Sharing business knowledge

Let’s be clear and say that we are not referring to trade secrets here, rather it is about sharing what works and what doesn’t when it comes to marketing and general business operations. Small business owners can learn a lot from their competitors and vice versa. When knowledge is shared, there is always a chance to solve each other’s problems and create opportunities to collaborate.

How can Berley help small businesses in London

Small businesses in London are important drivers of economic growth and sustainable job creation. At Berley, our small business accountants recognise that and will do whatever we can to help entrepreneurs thrive and make an impact.

One of the things we do to help small business owners is to lessen the workload pertaining to accounts, bookkeeping and payroll. Think of us as your financial controller (but without paying the big bucks), or view us as your sidekick who is always here and ready to assist. With us managing your business finances diligently, providing regular updates, and taking proactive steps to your accounting processes, you can concentrate on running your business and making it a success.

Talk to us today by calling on 020 7636 9094 or via our contact us page. We offer a transparent and honest approach to your accounting needs with no hidden charges.

If you liked this article, you might also be interested in:

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 robin

Launching a new business

A new year, a new business

Launching a new business

January may a good time to start a new business venture, but it's going to take more than resolutions to ensure that your new business is a success.

For many, January is a great time to start a brand new project. Whether it is fulfilling a dream or proving to yourself that you can make it happen, entrepreneurs like to turn ideas into reality through the sheer power of inspiration and positivity. However, it is worth noting that spark of launching a new idea or a new business could soon die out without you taking the much-needed first step to making it happen. In this article, our small business accountants in London would like to share five key points that are inherent in the success of any new business.

The five keys to planning for new business success

1. Research

Behind every innovative idea, there are many right questions asked in the right way to the right people. Collectively, these questions have one single objective, which is to help you learn about your idea, your customers, your competitors and your industry, ensuring that you are approaching your new business from a far more educated and prepared position.

Proper research allows you to identify:

  • Whether or not there is a demand for your products and/or services in your target area?
  • What are the key demographics of your market?
  • Who are your customers?
  • Who are your competitors?
  • What are your competitors’ main strengths and weaknesses?
  • What are the major trends or problems within your industry?
  • What other factors that will dictate the success of your venture?

Research does not need to be cost-prohibitive either. Common research methods include:

  • Personal interviews
  • Using social media or an online survey site to conduct online surveys
  • Telephone polling
  • Running focus groups

Once you have collected the data, the next step is to organise and analyse them. If you aren’t convinced of the result, run the research again but never ignore the data. For example, if your data indicate that 85% of your potential customers will pay with a credit or debit card, and despite you aren’t fully convinced, don’t ignore this and launch your business with cash as the only payment option.

2. Create a business plan

Constructing a robust and clear business plan will help you to prioritise, gets you funding, and it will also allow you to appropriately test your financial projections and establish whether or not your business can be profitable.

While every business plan is different, there are a number of things that will help to attract investors, such as the background and work experience of the entrepreneurs involved, the aims of the business, financial summaries, logistics, among others.

Contrary to popular belief, a business plan isn't a document that is set in stone – it's a continually evolving document that should be updated and revised as a business grows from strength to strength. As it plays a vital part in your business operations, it pays to know how to craft a strong business plan. For more information on how this can be achieved, please read our previous article on how to create a robust business plan.

3. Business funding

For many new businesses, a lot of early cash comes from self-funding as well as money from friends and family (known as 'love money'). While self-funding and love money are crucial in those early days to get the business off the ground, they are finite and usually can only sustain for a short period of time. They are also risky – potentially causing irreparable damage to long-standing relationships and friendships.

So wise entrepreneurs tend to also have other funding options in place. Start-up loans, bank loans, B2B specialist lender, angel investors, crowdfunding, venture capital, P2P lending, grants are all viable options available to help entrepreneurs meet their personal living expenses while the business strives towards the goal of profitability.

For more information on the various funding options available to small businesses, as well as advice on how to best secure the much-needed funding, our article What is the right source of funding for you? may make a good read.

4. Choose the right business structure

Sole proprietorship is the most popular business structure in the UK because it is easy to set-up. All it takes is for you to register with HMRC and you are good to go, running the business and keeping all of the profits as your income. You will, however, need to pay tax and National Insurance by filling out a Self Assessment Tax Return every year.

While sole proprietorship is easy, it does have its downsides, most notably:

  • As a sole trader, you are responsible for all liabilities (including any debts that your business might accrue) and they will affect your personal finances and assets.
  • Taxation rates of sole proprietorship can be less favourable in comparison to a limited company.

There is no 'right' or 'wrong' answer when it comes to choosing a business structure – it all depends on what will suit you and your business at this point in time. So it is best speaking to an experienced small business accountant like our team at Berley before you charge headfirst into setting up a sole proprietorship or a limited company.

5. Find a qualified mentor

Most entrepreneurs see their business as an extension of their being – they invest their time and effort and they are emotionally attached to its operation. While being dedicated is admirable, beware that it may also prevent you from looking at things objectively – this is where a business mentor can help.

A business mentor is someone who can work with you and assist your business to reach its potential. Ideally, they have experienced what you are going through now and they are here to encourage you, identify issues, and discuss with you the actions you need to take. They can assist in a number of areas including business planning, financial management, staffing, to name but a few. If you are interested to know more on this subject, check out this article How business mentor can help small business owners.

Berley can help you launch your new business

One of our clients told us that looking for a small business accountant from the very start wasn’t part of his initial plan but he was glad to find us early on and got us involved from financial matters to law and compliance, giving him and his business the best opportunity to succeed.

The thing that sets us apart is we are entrepreneurs too. We've been there and done it – we know what it takes to build a successful small business and we've been around working relentlessly with many other entrepreneurs in London who also have had great success. So we pride ourselves as specialist accountants in all matters relating to small business. Working with us, you will immediately notice that we take a ‘hands-on’ approach to clients embarking on a new business venture. We support our clients and help them navigate many accountancy and financial issues. With us by your side, you can truly focus on running your business, instead of getting bogged down by the administrative side.

So start your new year off with a bang by getting in touch with Berley and our team of small business accountants today on 020 7636 9094 and find out how we can best support you in the pursuit of exciting new opportunities.

If you liked this article, you might also like:

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 robin

Happy New Year

Happy New Year

Happy New Year

Let us all usher in 2020 with confidence and strength while building a strong foundation for the future.

This year, businesses in and around London will continue to see growth but also face uncertainty. Those who are undaunted by any challenges
will continue to press on and eventually succeed.

As your trusted small business accountants in London, we are here to provide outstanding accountancy service for entrepreneurs and small
business owners across London. Think of us as your one-stop efficient and convenient accounting services that span the full spectrum from
accounting, bookkeeping, finance, payroll and reporting.

With us working alongside you, you will have peace of mind and therefore can concentrate on growing your business. To find out more about how we can help your small business, get in touch with one of our expert advisors today on 020 7636 9094.

We wish you a fruitful 2020.

by robin

Merry Christmas

Merry Christmas from everyone at Berley

Merry Christmas

by robin

accountant hand holding pencil working on calculator to calculate financial data report

How to get the best out of your accountant

accountant hand holding pencil working on calculator to calculate financial data reportAs a business owner, it is what you require from your accountant that matters most. Since you’re going to be working closely with your accountant, it has to be the right fit too.

Do I have to hire an accountant?

No. There is nothing stopping you from taking on your financial administration yourself if your business has a low volume of transactions. However, tackling any financial obligations without complete assurance is inherently risky. Also, without having up-to-date knowledge of mandatory financial and legal legislation, there is a danger that you will make mistakes and your accounting will be incomplete.

For example, you may:

  • Fail to claim valid expenses.
  • Lose documentation such as proof of purchases.
  • Fall behind with invoicing.
  • Underestimate your tax bill and face difficulties with HMRC.
  • Be late on your tax returns and other compliance paperwork, resulting in fines.
  • Make mistakes entering data that take hours to fix and keep you short of valuable information.

Why hire an accountant?

Hiring an accountant to help you look after your business interests often starts at the moment you need to write a business plan and launch a new company, so let us go through a few areas where an accountant is most helpful to you:

  • Writing a business plan and accessing to finance – an accountant can help you to sharpen your business plan by making projections and planning different scenarios. As a result, you will have a solid business plan which you can present to your lenders or investors.
  • Launching a company – an accountant can advise about your company’s legal structure, set-up your accounting and payroll systems properly and register at Companies House.
  • Meeting statutory obligations – private limited companies need to prepare and submit VAT, annual accounts and tax returns, areas that your accountant can manage easily.
  • Giving general financial and tax advice – your accountant should also suggest ways your business can save money legally, present you with cash flow forecasts, offer sound tax advice, to name but a few.

In London, many small business owners also rely on their accountants to do bookkeeping, manage payroll and help with business growth. As having an accountant is an integral part of your business, it is essential to hire the right accountant and know how to get the best out of them, so that you and your accountant can work cohesively towards achieving your business goals.

Benefits of hiring an accountant

Hiring an accountant means you the business owner no longer need to manage the company finance by yourself, thereby providing you with peace of mind and allowing you to focus on pressing business matters and driving the success of your business. Tellingly, a survey from financial software company Intuit revealed that 89% of small businesses believed they noticed more success with an accountant on the side than without one.

The notion that you can save costs by not hiring an accountant is also not true. If you make a mistake on your accounts, it may take time and money to fix, not to mention the legal consequences if it is something serious.

How do I hire the right accountant?

We recommend hiring an accountant with a recognised professional qualification, ideally a chartered accountant. Chartered accountants in England and Wales are guided by the professional organisation ICAEW’s Code of Ethics which sets out five fundamental principles:

  • Integrity
  • Objectivity
  • Professional competence and due care
  • Confidentiality
  • Professional behaviour

In other words, a chartered accountant should be able to demonstrate the highest standards of professional conduct. To find a trusted chartered accountant, here are a few useful tips.

1. Do your research

Speak to ICAEW to help you find a chartered accountant.
Speak to friends or other businesses owners and ask them about their accountants.
Look for accountants with experience working with businesses in a similar sector (and of a similar size) to yours.

2. Interview them properly

An interview will provide a decent flavour of whether a candidate can help drive your business forward. Xero, one of the leading cloud accounting software companies, has provided a list of recommended questions:

  • How would we work together?
  • How frequently will we talk?
  • How do you usually work with clients?
  • Who will be my main point of contact?
  • Do you hire junior staff to do the day-to-day work?
  • What experience do you have in my industry?
  • What is your fee structure?
  • How would your clients describe you?
  • Why do you think we would be a good fit?

3. Verify the story

  • Ask for and check several references. Call their current and former clients if necessary.
  • Check their qualifications, experience and connections (LinkedIn is a good tool for researching this).
  • Request a copy of any accountant’s practising licence.
  • If in doubt, it is possible to outsource the background screening process.

4. Hire an accountant who understands and can meet your business needs

Knowledge of exactly why you are hiring an accountant will help you employ the right one, so ask yourself these questions:

  • Do I just need help producing my annual accounts?
  • Do I need help with all financial administration – payroll, bookkeeping, VAT returns?
  • Am I in need of tax advice and financial forecasts?
  • Am I in a position to grow my business?

5. Ensure they help you meet current legislation

Businesses must comply with current laws and legislation. A knowledgeable accountant will help your business comply with new laws, such as the government’s new Making Tax Digital legislation. For example:

  • From 1 April 2019, VAT-registered businesses earning over a threshold of £85,000 must submit their financial records to the government digitally via an HMRC-recognised cloud accounting software. From 1 April 2020, MTD (Making Tax Digital) will also apply to other businesses who fall below this threshold.
  • An accountant should be familiar with such software. Plus, they must also be knowledgeable about government compliance and keep your business out of legal trouble and prevents any fines.

6. Use your accountant efficiently

Delegate work that you cannot do yourself to make the most out of their expertise. Talk to them about tax advice and how your business can legally save money. Avoid using them for simple data-entry tasks.

7. Calibrate the costs

  • Ask for written quotes from potential candidates.
  • Consider your preferred method of payment: some charge hourly while others charge a monthly retainer.
  • Negotiate and settle the fee in writing.

Berley is your ideal small business accountant

At Berley, we are London’s chartered accountants for small businesses and we have a proven track record of assisting SMEs and start-ups with their financial matters.

If you are struggling to keep on top of your finances, our team of specialist small business accountants are here to help make your business financially stable. Whether employed on a full-time basis or merely for an afternoon – speak with one of our specialist accountants today and see how we can help your business. Give us a call on or fill up a simple form on our Contact us page.

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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 robin

Female looking at financial reports with one hand on her laptop

Are your payroll services working for you?

Payroll servicesAs a business owner, there are a number of rules and regulations that you need to consider regarding the payroll for your employees.

In April 2019, the UK government introduced a new legislation requiring all employers to provide payrolls to all workers (permanent or part-time) and show hours on payslips where the pay varies by the amount of time worked.

This has undoubtedly created another layer of responsibility for small business owners who also manage payroll. For peace of mind, we recommend you outsource your payroll service to a dedicated payroll team like us at Berley.

With years of experience running payroll to our clients, we can provide the following payroll services to meet your needs:

  • Prepare your monthly payroll
  • Providing summaries and analysis for general accounting purposes
  • Preparing and distributing payslips to your employees
  • Providing any compliance work for PAYE regulations
  • Completion of P45s online
  • Completion of year-end employer return forms P35, P14s and P60s
  • Liaising with you to assist in the preparation and filing of P11D forms

Berley will help you meet PAYE regulations

Every month, nearly every company must send a ‘Full Payment Submission’ (FPS) to HMRC’s system, PAYE, which collects Income Tax and National Insurance contributions. A company, therefore, has to make these deductions for PAYE every month, as well as disclose what they pay their employees: including any bonuses and sick or maternity pay. Outsourcing your payroll to Berley will enable you to complete this as accurately and efficiently as possible.

Do I have to outsource my payroll?

No. You can run your own payroll by using paid-for payroll software approved by HMRC. However, you must ensure that your chosen software enables you to:

  • Produce payslips
  • Record pension deductions
  • Make pension payments
  • Pay different people over different periods (for example both weekly and monthly)
  • Send an Employer Payment Summary (EPS) report or Earlier Year Update (EYU) to HMRC

As the management of payroll can be a repetitive hassle that takes time away from growing your business, many small businesses outsource their payroll administrative work to a qualified payroll company like our team at Berley.

Why outsourcing your payroll is the best option?

Outsourcing your payroll will save you immense time and money, which in turn will increase your efficiency.

Time

Submitting your payroll accurately and on time every month while keeping an eye on current legislation (to ensure you abide by law) burns immense time and energy. Let us free up time for you to spend elsewhere, on the success of your business.

Money

Our team of payroll specialists do not make mistakes. By submitting your Full Payment Submission to HMRC detailing your employee payments and any deductions accurately, you will avoid any potential fines.

In short, if you outsource your payroll function to us, you do not need to hire a full-time employee dedicated to run your payroll, and do not need to worry about employee sickness and holidays.

Berley is here to help with your payroll function

As chartered accountants, Berley can provide you with the support and advice you need when it comes to accounts and taxes. We also have a team of payroll staff working relentlessly to support small business owners who find that it is more cost-effective to outsource the payroll function.

If you would like to know more about how we can help to reduce your payroll costs and streamline your payroll systems, give us a call on 020 7636 9094 today.

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by robin

Customer service

Customer experience: a discussion worth having

Customer serviceFor a business to successfully grow and distinguish itself in any competitive marketplace, it must focus on offering superior customer experience.

Customer experience is a subject that has always piqued our interest.

According to consultancy.uk, companies across the UK that fail to provide good customer experience could loss out astronomical £100 billion in revenues in coming years. With the rise of new technology and increased competition, many management gurus also argue that it is becoming more vital for businesses to provide a positive customer experience to help build brand loyalty. But how should one do it? We think this point is worth discussing.

At Berley, we are small business accountants and business growth specialists working with entrepreneurs across London. As chartered accountants, we are guided by the Institute of Chartered Accountants in England and Wales or ICAEW’s Code of Ethics which sets out five fundamental principles:

  • Integrity
  • Objectivity
  • Professional competence and due care
  • Confidentiality
  • Professional behaviour

Working with business owners and resolving their financial and company issues are tasks that involve a high level of due care and personal interactions. There are skill and behavioural standards which our customers would expect from us and we duly deliver – in fact, we strive to exceed expectations.

Perhaps in more ways than one, our professionalism has helped us to retain customers and build loyalty. But if you are a retailer in London or run an online business, what can you do to deliver outstanding customer experience that will help build loyalty? Also, do you need to apply different methods to create an outstanding customer experience in physical and digital worlds respectively? These questions deserve a closer look, so let us go on a journey to discuss and learn together.

The importance of customer experience

Let’s kick-start the conversation by asking why we, and every company we know, want to deliver outstanding customer experience. The reasons are:

  • We know that it costs money and effort to acquire new customers. So once they become our customers, we want to retain them.
  • We want customers to advocate for us – tell their friends, mention us in their social media posts, refer other customers to us.
  • We want to be better than our competitors. As competing on price alone will not get us very far, providing outstanding customer experience is one of the few value-adds that we can offer without costing us a significant amount of money.
  • All the above reasons will contribute to profitable growth, the objective of many businesses.

Suffice to say, creating outstanding customer experience is a vital part of any business strategy.

Can you give a perfect experience that maximises satisfaction?

Customer experience, broadly speaking, is about how one sums up their experience with your business, your products/services, and your brands. It is also highly personal – what works for one may not work for the others. For examples:

  • In a brick and mortar shop: customer A likes to be greeted warmly and with staff standing in close proximity ready to assist, while customer B prefers to be left alone while browsing in-store.
  • Online: customer C values your follow-up email once they have made a purchase online, while customer D considers the email spam.

We believe that it is almost impossible to understand every single customer (especially if you are in retail) and render a highly personal and perfect experience to maximise satisfaction every time. However, we would like to think that there are a couple of common principles which we all can apply to help gain happier customers and build brand loyalty.

Creating an emotional connection

We humans have emotions and we use them to help us make decisions consciously and unconsciously. Marketing executives know this, which is why they design advertisements that make us smile, tap into our fear, provoke us, trigger a sense of belonging, just to name but a few.

Naturally, many companies learn the trick and now look to connect with their customers emotionally. In your brick and mortar store, for instance, you may train your staff to say something positive when interacting with customers, use humour and draw some kind of personal connection.

In the digital world, you can use content to tell stories and connect, publish testimonials to create trust, keep the purchasing journey straightforward and reduce risks (like offering money-back guarantee) to evoke a sense of comfort and trust, delight your customers with suggestions or small offers, excite your customers with contests, so on and so forth.

The key takeaway is that what you provide may not need to be a highly memorable experience, but it needs to be genuine and positive.

Using Artificial Intelligence to deliver a better experience

It seems oxymoronic that we jump right into Artificial Intelligence the moment we finished talking emotional connection but hear us out – we are not suggesting replacing human with robots, instead, this is about using AI to enhance one’s online experience. For examples:

  • Using AI to guide your customers when they navigate online, or
  • Using AI to reduce customer frustration by responding quickly to your customers when complaints arise online.

Making use of technology is a sensible approach because technology is available 24x7, it can engage with multiple customers at once, it can provide quick and measured responses, and above all, it can help sort out customers and let your staff handle more complex matters.

It is said that AI will slowly creep into brick-and-mortar retail shops too. Customer service experts predict that AI will soon help staff with enquiries, recommend options and handle dynamic pricing in store. The sky is the limit here.

Multidisciplinary approach

Using a multidisciplinary approach to deliver customer experience is a phrase that many of us hear often – but what does it really mean? It turns out it means different things to different people, and it can encompass sophisticated data science to timeless practice like making sure that your employees have the right skills.

As there is no silver bullet that will make better relationships between brands and customers overnight, it makes sense to do things from your heart, build and nourish a customer-centric culture and keep discovering.

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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 robin