robin

5 things to consider when starting a business

Starting a business is a serious investment and you want to give it every chance of success. Here are five top things to consider when starting a business from the ground up.

Building your own business from scratch can be rewarding, satisfying and empowering; however, it can also be daunting, challenging and absolutely terrifying too if you are not prepared. Before going ahead to find yourself an office and start assembling a team, let our small business accountants in London work with you through a few essential start-up issues.

1. The right business structure

Once you have decided to be your own boss, the next step is to decide how you want to structure your business.

Having the right business structure in place may not just have implications for your business, but it may even have implications on your personal life too. For example, you can easily register as a sole trader and the process is straightforward and inexpensive, but being a sole trader means you now have unlimited liability for any accrued business debt, meaning your debtors can go after your personal assets if your business owes them money.

On the other hand, a limited liability company (LLC) is costlier to set-up and maintain (in comparison to sole proprietorship), but as a shareholder of an LLC, you are not personally liable for any debt that the company accrues as long as you have acted in the best interests of the company in your role as director. In addition to that, a limited company is taxed on its profit and the corporate tax structure is rather attractive in the UK. Most directors also choose to take a low salary and use dividends to make up their income, reducing their tax obligations even further.

Every business legal structure has its own set of obligations, benefits and drawbacks. And there are some ill effects that can arise from choosing the wrong structure – particularly legal and tax consequences. This is precisely why you should approach experienced accountants – such as one of our small business accountants here at Berley – before making any final decisions surrounding the structure of your business.

2. A solid business plan

While creativity and ideas may flow in the early days of your entrepreneurial efforts, you need to ensure that these dreams can become realities. Putting together a solid business plan is the most effective way to establish structured steps to reach your short-term and long-term goals.

While there is no ‘one size fits all’ template for business plans, there are certain elements that will consistently appear in every business plan. For example, a good plan often includes an executive summary, information on the company’s goals, details on how these goals will be achieved, the company’s history, a background of directors/key figures, and marketing analysis on the relevant industry and markets. Follow the link if you want to know how to create a robust business plan.

A large misconception surrounding business plans is that, once written, they are set in stone. In reality, plans and goals can and do change. You may need to adapt your business plan to issues that arise, or you may want to grow your business and need a plan to outline how this will be achieved. In other words, a business plan is not a static document that will look the same in 10 years’ time, it will evolve with your business and its goals.

3. Available funding options

Every start-up needs cash before it can start generating revenue. Many aspiring entrepreneurs we know dip into their personal savings or borrow from friends and family members to fund the business initially.

The UK government also has a company called Start Up Loans, and as the name suggests, it aims to offer support in the form of loans (as well as mentoring) to early-stage businesses that often have not had success in securing funds from mainstream banks. This government-backed scheme offers loans from £500 up to £25,000, and you can repay the loan within 1 to 5 years at a fixed interest rate of 6% per annum.

In addition, your business can also borrow from strangers via one of the many peer-to-peer lending platforms, or even from a crowdfunding site. If you would like to know more about different funding options, follow this link to the article “What is the right source of funding for you?”.

It is worth mentioning that there are three forms of funding: debt, equity and mezzanine (a blend of debt and equity). Debt is pretty straightforward – if your business takes out a loan from a family member or a financial institution, it has debt that it needs to pay back. Equity, on the other hand, means your investors own a percentage of your company. Angel investors often fall into this category – they offer starting or growth capital to your company, in return, they own a percentage of your company (ownership equity) or debt that can be converted into equity at a later date.

4. The best talent

As any small business owner will tell you, finding the right people is challenging. The deck is even more stacked for start-ups. One wrong hire and your fledgeling business may not recover. In fact, you can do everything right to give your business the best chance of succeeding, but without the right people involved your business will struggle. From fellow directors to employees, there has to be a pool of talent that shares your vision for the business, willing to do what they can to help your project get to where it should be.

Start-ups in London do have a better chance of attracting top-tier talent. With that said, employment costs in London also prove to be more expensive as city living costs are obviously higher than start-ups based in smaller towns. To help entrepreneurs cope with various employment issues, we wrote the post “The hiring dilemma” in which we share the different employment options as well as some useful hiring tips for small business owners – give it a read if you are keen to explore this area in depth.

5. A cost-effective workspace

Start-ups offer entrepreneurs the freedom to pick a workplace that can be more creative or, crucially, cost-effective. For example, sole traders and partnerships without a permanent employee base may use their home as their workplace. They may also choose to hire hot desks in a co-working space if they do not want their personal and professional lives to mix, or look for office spaces that are serviced.

Quite a large percentage of entrepreneurs we know choose to establish from their living rooms first, before moving into an inexpensive workspace option that offers rent and utilities at decent rates. If you are expected to grow at an exceptional speed, then you may be better off to get a large office from the start, as moving can be costly and disruptive.

Berley can help you build your business

With the right advice, approach and attitude, growing your business from an idea into reality can be a positive experience that leads to growth in no time at all. At Berley, we know this because we have been there and we have done it. Over the past 30 years, we have been using our experiences and knowledge for good by helping other start-ups and small businesses across London achieve success too. During that time, we have also worked with start-ups and small businesses across many other industries, gaining even more knowledge and experience that we can continue to pass on.

Think of us as the old hero with the wisdom and knowledge, and you are the new entrepreneurial superhero – full of fresh ideas, drive and determination. Our team of chartered accountants and small business specialists will help guide you to success through a variety of services that have been tailored to suit the needs of your business.

Our accountants can help you decide on the right business legal structure, advise on business plans, discover and identify growth opportunities, perform due diligence to help you identify potential problems, choose the right tax approach, set goals that are realistic and help you track your growth as you go. In addition, we also offer all of those traditional accountancy services to ensure your business finances are kept in a good place too.

We offer all of these services because we understand what it takes to be an entrepreneur – and entrepreneurs need the right advice from the right people with the right experience. We think like you, we act like you and we are here to help you defeat the obstacles and defy the odds that stand in the way of your short-term and long-term successes and growth.

Call Berley on 020 7636 9094 to find out more about how we can help you unleash your true entrepreneurial potential today.

Berley is here for your small business.

If you liked this post, you might also like:

• What is the right source of funding for you?
• How to become a financially secure business
• 5 ways to manage rising business costs

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

Challenges of entrepreneurship: 8 things to watch out for

The life of an entrepreneur may be fraught with challenges, but that doesn’t mean that you can’t overcome them with the right approach, the right frame of mind and the right guidance.

There is undoubtedly something exciting about starting up a new business. However, regardless of whether this is your first attempt at entrepreneurship, or you have been here before, you will soon find that this excitement can dissipate as the realities of running a start-up or small business start to hit home.

According to the stats, 20% of small businesses would fail in their first year of establishment. It is a shame and got us to wonder what would happen if the company directors chose to tackle the issues that they were grappling with early on and sought the right help, would it make a difference?

At Berley, our small business accountants have spent years helping entrepreneurs in London overcome challenges, achieve their goals and, most importantly, grow their businesses into revenue-generating machines. In our 30 years of existence, we have seen all of the challenges that entrepreneurs face and we have come up with strategies to counteract these obstacles. In this article, we aim to share a few of the most common challenges that you may face (or have faced) as an entrepreneur.

Don’t let a poor business plan let you down

It takes more than a great idea to guarantee success. One of the basics behind the success of many businesses is how seriously their directors take their business plans. While some view a plan as a chore that offers little in the way of rewards, we don’t agree with that assessment. Not only will a business plan help to outline your business and its activities, but it can also be absolutely vital in securing funding. As such, a business plan needs to be excellent throughout and it most certainly should not be treated with contempt.

A business plan helps to test whether an idea really works when the numbers are broken down. It can also be a very helpful process if you find that you are a more of an ‘ideas’ person rather than someone who focuses on practical solutions. It can force you to step outside of your comfort side and throw your ideas at the wall to see if they really stick. Essentially, crafting an excellent business plan that works can help you build the discipline required to make it as an entrepreneur in both the short-term and long-term.

Additionally, no serious lender or investor is going to give you attention if you don’t spend time crafting a worthwhile, thorough business plan that outlines the financial details surrounding your business. At Berley, our experienced small business accountants often help our new clients with their business plan to make it more impactful, focused and lender-friendly.

Bad time management is costly

In the early days of a start-up or small business, owners tend to take on a lot of responsibility. Whether it is as a result of financial constraint, or an inability to ‘let go’ of control over their pet project, many start-up directors play multiple roles – accountant, sales team, operations manager, marketing director, graphic designer, web developer, janitor or even painter and decorator, to name but a few. While you may think that it is necessary to take on all, it can lead to bad time management habits if you are not careful. For instance, you may find yourself getting lost in the detail or even drawing up a blank at key moments as a result of the sheer mental exhaustion of wearing too many ‘hats’.

There are quite a few apps and planners which can help you on a personal basis to organise your time effectively and ensure you meet your own goals and objectives. If you cannot afford to hire a team, then outsource what you can. For example, bookkeeping is ‘such a thankless task’ as one of our clients puts it, especially when you don’t have experience in this field. Outsource your bookkeeping work to Berley, for instance, is highly cost-effective, as we take care of the administrative tasks while leaving you to focus on running your business.

Good time management is the key to being a successful entrepreneur, being more productive and having a better work-life balance.

Control rising costs

Every entrepreneur faces the challenge of costs. Things can start to add up as legal fees, rent, business registration fees, marketing, recruitment, utility bills, office supplies, inventory and stock management (to name but a few) begin to add up. This can be further compounded by changes to the economy that can unsettle your best-laid plans.

Ultimately, there are many costs that, if not properly managed and planned for, can prove to be fatal to a business. Whether the challenge of the costs was within or outside of your sphere of control, the struggle to keep your business afloat is the same. You may be tempted to find new clients or new investment to solve the problem but this can end up compounding the problem in the long-term – sending your business plummeting into a downward spiral from which there is no return. Thankfully, it need not have to be that way.

Here is the thing, every business has to deal with expenditure and rising costs and it comes down to working smarter with what you have got. In the article “5 ways to manage rising business costs”, we discuss in detail the five useful tips that can assist you with gaining control of your finances; give it a read if you like.

Examine your price structure

When it comes to generating revenue, you may want to re-assess how much you are charging clients and what value you are offering for that money. To do this you may want to examine how you frame your products and/or services, the way you present them and the value that they offer to your clients. One way to show value to clients is by better demonstrating the work that you are doing to make their lives easier.

Keep in mind that there is always someone out there offering cheaper prices than your business, so compete on price alone will not win. Focus on what value you can provide to your customers instead. In fact, you may be surprised by how much people value, for example, good customer service and friendly relations over the small savings offered by a competitor.

Hire the wrong people

The people whom you choose to work with can be a key component in determining if your business sinks or swims. When you hire the wrong people for the job, you can end up paying for that costly mistake. It is important to view recruitment as an investment. Think of it this way, in no other area of your business would you knowingly make poor investments, so don’t just view your recruits as automatons who can be replaced – look for people who offer distinct, individual sets of skills and traits. To ensure the success of your business, you need to hire quality people who have the right skills and temperament for the job. Don’t be afraid to try out interns or apprentices also. Many interns and apprentices are eager to apply their skillsets and have the dedication, determination and youthful energy to invest in your business and its vision.

Another excellent strategy is to look at alternative forms of employment. For example, contractors and freelancers can be employed as and when they are needed to complete projects without the additional overheads that come from permanent employment. If you would like to know more about different employment options and the 7C’s recruitment system, follow the link to this article “The hiring dilemma”.

Fail to stay on top of tax and financial affairs

There is no doubt that many business owners can be left absolutely overwhelmed by both their tax obligations and their financial situation. In fact, a recent poll of businesses by accountancy software firm Xero found that 77% of small business owners felt overwhelmed by the regulations on taxation, 54% had never submitted a tax return and 23% admitted to being fined because of an error when filing their taxes. From a financial perspective, 85% had less than one day of business education or financial education when starting their business.

This is why it is so important to hire an accountant to help you keep on top of finance and tax matters. While you may be tempted by the prospect of saving money, is the wasted time and effort worth it if you end up with a fine? Or is that energy better spent on improving your business and enabling growth? Our small business accountants at Berley can help you with all matters relating to tax and finance, ensuring that your financial requirements and bookkeeping are kept in check.

Don’t shun networking

Taking the time to network can provide incredible opportunities to your business that otherwise wouldn’t have existed.

Networking can help you build a strong contacts book of like-minded professionals whom you may be able to call upon for their expertise or services when it is needed. It may also get you in touch with an interested investor, a potential new business partner or it can, of course, provide you with a string of new, loyal clients. In a city like London, there is no shortage of networking opportunities. For many entrepreneurs running small and medium-sized enterprises (SMEs), networking is their lifeblood.

With that said, not everyone is comfortable when it comes to networking. If you are not a social butterfly and most definitely do not want to be the centre of attention, consider sending an employee or delegate who has all the social skills, charisma and charm to build an excellent network that will benefit you and your business.

Not having proper guidance

Being your own boss does not mean you have to work alone – in fact, we like to say that superheroes never save the day alone, they are always supported by a cast of sidekicks and well-wishers who help them achieve their goals and ‘save the day’.

As an entrepreneur, you need sidekicks to help you achieve your goals, which is exactly how we see ourselves at Berley. Our aim is to help you, our clients who run small businesses and start-ups in London, achieve your goals and be successful in your endeavours.

Berley can help your business overcome challenges

When entrepreneurial life is getting you down and the everyday challenges of your business are becoming overwhelming, it is time to re-energise and re-strategise your approach. At Berley, our small business chartered accountants are here to take the strain off of you and provide your company with a suite of services that will allow you to focus on growing your business like a true entrepreneur.

Like any good sidekick, we will handle the messy, administrative matters while you – our entrepreneurial superhero – can focus on generating revenue, reaching your goals and maybe even saving the world if you like. Our services include:

• Outsourced payroll services: setting up simple payroll processes to save you time, money and energy.
• Management accounts: providing vital advice, insights and reports into the financial health of your business.
• Business finance solutions: supercharging your chances of success by helping you to find and apply for funding opportunities and investment successfully.
• Bookkeeping: we can prepare annual and monthly accounts, VAT returns and even help you set up your own management accounting systems.
• Company audit: our holistic ‘health’ check will provide you with an incredibly detailed audit tailored to the specific requirements of your business.
• Online accounting: our accountants utilise the cloud-based Xero to deliver excellent online accounting that can save you time and money.

We know entrepreneurs and we love working with entrepreneurs. To find out how we can unlock your true entrepreneurial superpowers, simply aim your bat signal to the sky (or, if it is easier, call us on 020 7636 9094 today).

Berley is here for your small business.

If you liked this post, you might also like:

• What is the right source of funding for you?
• How to become a financially secure business
• The hiring dilemma
• 5 ways to manage rising business costs

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

What is the right source of funding for you?

Whether you have just launched a business or have kept it going for a while now, you want to boost the chances of success by having access to the right type of funding at the right time.

To kick-start a great idea, then to develop, expand and export internationally, businesses need funding boosts at various stages. At Berley, our small business accountants and business growth specialists work relentlessly with entrepreneurs across London, helping them with financial decisions.

As funding is an area that many small business owners seek to be informed in, in this article, we aim to highlight the different types of funding available and outline the steps they can take to increase their chance of securing funding.

1. Self-funding and love money

Turning to their own personal savings is often the first place most entrepreneurs look to find funds for their start-ups or when they are ready to take the business to the next level. The money could be from long-term savings or from selling personal assets.

Some entrepreneurs may also turn to their parents, family members or friends to borrow money. Known as love money, this form of funding is based on trust and may have highly flexible repayment terms.

While dipping into personal savings and acquiring love money are usually more straightforward than going to banks and filling up forms, they do have several disadvantages including:

• Self-funding poses a high personal risk.
• Love money may lead to ruined relationships, particularly if they have given you a significant portion of their savings and you cannot repay them due to losses.
• Personal funding and love money are also finite, while the business may require several rounds of funding throughout its journey.

2. Start-up loans

Assuming this is your first venture, then naturally it is worth looking at start-up loans backed by the UK government. Aiming to help entrepreneurs kick-start their business ideas, the scheme provides loans of £500 to £25,000 with a fixed low 6% interest per annum. It also includes free mentoring from experienced advisers to help you set sail. You can find out more at https://www.startuploans.co.uk.

3. Bank loans

If your business has a good credit history and a healthy business plan that demonstrates robust projections and profitability, chances are, your bank loan applications may be easily accepted, given that many banks compete to help small businesses in the UK.

For instance, HSBC offers Small Business Loans from between £1,000 and £25,000 with 7.4% APR Representative. There is a list of requirements on their site as well as an Eligibility Checker that you can use to see the likeliness of attaining a loan from HSBC. In addition to HSBC, Barclays also offers unsecured business loans of up to £100,000, which you can learn more here. If you are considering bank loans, shop around first.

4. Secured finance from a specialist lender

If your loan application is refused by a traditional bank, you may be able to obtain finance from a B2B specialist lender. For instance, Nationwide Corporate Finance can offer business loans to companies without a credit history, so if you have just launched a new venture and have not had a chance to establish any credit history, this option may suit you. Expectedly, this type of loan may come with a higher interest rate. But once you successfully secure the finance, you will be able to build your credit history if you keep up with your monthly repayments.

5. Angel investors

An angel investor is a high-net-worth individual who invests his/her money in a business with high growth potential typically in exchange for ownership equity. In the UK, angel investors abound, and many of them are successful, experienced entrepreneurs who can offer honest advice and guidance – after all, as they become equity partners, your success is their success too.

There are many sites which match budding entrepreneurs with angel investors, including Angel Investment Network, Syndicate Room and Angels Den.

6. Venture capital

Venture capital is similar to angel investing in the sense that it is a form of equity funding. But instead of an individual angel, you have a group of investors belonging to a venture capital firm who looks for companies with strong, fast growth which they can take to list in the London Stock Exchange sometime in the future.

To attract venture capitals, you need a solid business plan that shows high profitability and substantial growth potential. In return, they will inject a considerable amount of money into your business and work closely with you to make it successful. Top VC firms include London Venture Partners or LVP, Spark, and Episode 1.

7. Crowdfunding

In the last few years, crowdfunding has become a hugely successful alternative addition to the UK finance scene. Crowdfunding is where individuals or small businesses seeking capital can present their project to the online community and ask for donations to reach their target. The donations are usually small amounts of money and the supporters are often offered a reward in return; for instance, if the funds are being raised to get a book published, the reward may be a copy of the book. This is an especially attractive option if you are seeking investment for a creative project, as the majority of the campaigns on crowdfunding sites are creative-based. The most popular crowdfunding sites are Indiegogo and Kickstarter.

8. Peer-to-peer lending (P2P)

Peer-to-peer (P2P) lending is similar to acquiring a bank loan, but the loan comes from individuals and you, the borrower, may receive a lower interest rate compared to the rate from a bank. There are various P2P lending sites that act as a middleman between lenders and borrowers including Funding Circle which claims to approve a new loan every five minutes (on the average) and has helped 52,000 established small businesses access finance in the UK.

9. Grants

Appearing in the form of cash, equipment or tools, grants are a great way to boost your business and there are a few schemes that you should know about. The government’s ‘business finance support finder’ directory lists over 300 direct grant agencies across the UK, aiming to help you find the right scheme for your start-up or business, including many schemes directed at young people and women to increase their opportunities.

Increase your chance of securing business funding

Before you start preparing a business plan and financial forecast, talk to a business growth specialist like our team here at Berley who has gone through this with other companies before. We can help you prepare the financial data and run through your presentation, making sure that what you pitch will be relevant to your investors.

When it is time to face your investors, the following tips may prove useful:

• Compile your financial data into easy-to-understand charts.
• Keep your pitch or presentation short, focusing on vital aspects like how your services or products will help your potential customers. Do not ramble.
• Let them ask questions. Asking questions is a way of showing interest while seeking clarification and obtaining information.
• Apart from cash, check how they can help you. Investors usually have useful connections and are well-placed to help your business grow.

Trust Berley for expert business advice

At Berley, we believe in helping entrepreneurs with their finances, including funding advise that will help the business succeed. Kick-start the conversation by calling us on 020 7636 9094 today.

In addition, our small business accountants in London can also support your business in the following areas:

• Tax advice and tax planning
• Completing tax returns
• VAT
• Payroll and PAYE
• Management accounts
• Bookkeeping
• Company audit

If you liked this post, you might also like:

• How to become a financially secure business
• The hiring dilemma
• 5 ways to manage rising business costs

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

The hiring dilemma

As a small business owner, it is quite a major accomplishment to get to a point where you are ready to hire a team to help you out. This exciting time has its own set of challenges, however, so how should you go about hiring your dream team?

It is said that the average time taken to hire an employee is a month in the UK, longer if you do not want to settle for ‘okay’ individuals who are likely to cost you more money and headaches in the long run. As a small business owner in London, you also know first-hand how easy it is to hire and lose someone, considering the vast amount of talent and jobs available. At Berley, our small business accountants work with entrepreneurs and start-ups across London to grow their business and manage their payroll process, so it is natural to encounter issues posed by our clients pertaining to recruitment. With this in mind, we aim to share a few employment options and tips which can potentially help your business.

The different employment options

Permanent employee

This is the most common type of employment option. In a nutshell, your employee legally agrees to work towards the success of your business. In exchange, you are required by law to fulfil several obligations including registering with HMRC and issuing payslips showing all deductions including PAYE and National Insurance contributions. On top of that, you are required to give paid holidays, sick leave, maternity or paternity leave, and pension.

It is also possible to hire a permanent employee who wants to work reduced hours. For example, a stay-at-home mother who comes to work three days a week instead of five.

As companies are required by law to manage payroll for their permanent employees, most entrepreneurs look to outsource this function to an accounting firm like us the moment they start assembling a team. Regardless if you have a staff of five or fifty, our payroll team offers fully-managed and bespoke services which take care of all aspects of your payroll, leaving you free to focus on your business.

Contractors

Using self-employed contractors, freelancers or consultants to fill gaps in the workforce is an inexpensive and efficient option, as it requires less commitment from both parties. The obvious advantages include:

• Contractors are cheaper than permanent staff as you are not required to pay National Insurance, tax, pension and benefits.
• Contractors tend to be specialists working in niche areas which your business may only require from time to time.
• Contractors allow you to identify the desired knowledge, skills and qualifications you really need.
• The arrangement is highly flexible; contractors can come and go whenever you need them, meaning you can respond better to market changes by increasing or decreasing the number of contractors easily, this is something that you cannot do with permanent staff.
• Most contractors also issue you invoices which you pay as a business expense. While there is no payroll involved, it is vital that your bookkeeper keeps accurate records.

Zero-hour contract employee

Zero-hour contract refers to a casual working arrangement where the business offers a task to a worker when a need arises and the worker can accept or reject. Although zero-hour sounds similar to contractors, they are different in three ways:

• In a zero-hour arrangement, you actually have an employment contract with a worker; it is just that the contract does not guarantee the worker a minimum number of working hours each week or each month.
• A zero-hero contract worker is not self-employed but contractors are.
• HMRC has made it clear that zero-hour workers are entitled to statutory annual leave and must be paid the National Minimum Wage. And even if the zero-hour contract bars the workers from working with other competitors, the rule is not enforceable. On the contrary, contractors invoice you for the work done and they are not entitled to any benefits.

Temporary agency staff

Another possible option is temporary agency staff, which can be hired from an employment agency. This is a low-risk type of employment as you can hire people temporarily and set the amount of time or resources you need for a certain role. Although this is highly convenient, it is a costlier option than employing a person directly as you will have to pay agency fees and commission.

Apprentice

An apprenticeship is an increasingly popular option among growing businesses because it provides competent workers at a lower price. The idea behind an apprenticeship is to give young adults a chance to learn skills and gain experience, and as an employer in England, you may get government funding to cover some of the training costs provided the following criteria are met:

• Your apprentice is working with experienced staff.
• They are learning job-specific skills.
• They are studying during their working week with an organisation that offers additional training.
• You pay them at least the minimum wage, which is £3.90 per hour from April 2019 if the apprentice is younger than 19.
  

Useful hiring tips for small business

The recruitment process is far from easy. And you have probably heard from HR professionals advising small businesses to hire for personality over skill, focus on diversity, or be willing to invest. While those tips are useful, bear in mind that they are not silver bullets and do not apply to every situation.

In this article, we would like to share what Alan Hall, an entrepreneur and angel investor wrote in an article for Forbes.com where he shared a system called the 7 C’s that can help in the recruitment process:

• Competent: look for the necessary skills, experiences and education in relation to the tasks.
• Capability: look for a person who is capable of taking on more responsibility.
• Compatible: look for someone who can work harmoniously with colleagues and clients.
• Commitment: ideally, you want someone interested to stay long-term rather than this job being just a temporary stop on their journey.
• Character: fundamental values like time-keeping and honesty do not go out of fashion, so find a person who possesses similar values to you.
• Culture: values, expectations, policies and procedures shape the company culture; accordingly, cultural fit refers to aligned beliefs and behaviours.
• Compensation: it is essential that the employee is satisfied with the compensation package.

While the 7 C’s are highly useful, keep in mind that finding someone who is committed, pleasant, willing to grow, has the right skillsets, has good values with aligning personality and culture takes time and effort. Also, you may consider using DBS and background checks to narrow down the prospects.

• Disclosure and Barring Service (DBS) – The purpose of this service is to help employers make safer recruitment decisions by processing and issuing DBS checks. There are four types of DBS checks: basic, standard, enhanced and enhanced with barred lists. These checks will involve research into an individual’s background and will result in certificates that an employer can view to see if they are recruiting a suitable person for their company. It is worth noting that if you carry out criminal record checks, you must have a policy on employing ex-offenders and show it to any applicant who asks for it.

• Reference checks – To avoid hiring a candidate with a fraudulent degree or without the experience that they featured in their CV, it is essential to call up references.

The payroll process

Having a dream team helping you can spur growth. At this stage, your focus should be on taking the company to the next level; this means delegating administrative tasks or tasks that are time-consuming to someone else. Payroll is a good example. Instead of spending your time calculating holiday pay and filling out forms, outsource the payroll function to an accounting firm like us.

Our payroll services include:

• Preparing 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
• Completing of P45s
• Completing of year-end employer returns
• Liaising with you to assist in the preparation and filing of P11D

Berley can help you grow your business and manage your financial affairs

At Berley, we are passionate small business accountants in London who do not sit back and remain content with performing run-of-the-mill functions. Instead, we think and act differently to other accountants and strive to go above and beyond to guide and support you throughout your business journey.

Whether it is managing your tax and financial affairs or taking care of your payroll process, you can count on us to surpass your expectations.

Call us on 020 7636 9094 or use our Online Form to arrange a no-obligation meeting and find out how Berley can help you.

This article was first published in 2017 and has been updated on 07/08/19.

If you found the interesting, you might also like:

• What can Berley do for your business?
• Challenges of business growth and how to tackle them
• How to find the best small business accountants

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