While they are not a legal requirement, those companies that choose to prepare management accounts find that it not only helps to maintain healthy accounts, it provides them with vital insight to aid strategic decision making and improve performance.

If you have an ambition to grow your business, no matter how large or small, then a regular set of management accounts will arm you with the insight you need to improve profitability and avoid any financial roadblocks along the way.

Management Accounts in a Nutshell

Management accounting is the practice of producing regular financial reports to gauge business performance and to avoid financial pitfalls. These reports are designed by management, for management to provide a snapshot of how well the company is performing against a set of predefined goals. This valuable information highlights areas for improvement and development so that management can focus their efforts and make smarter business decisions.

Unlike statutory accounts, management accounts are for internal use only, therefore there is no set format to adhere to. They can include whatever data is useful to the company and their frequency is dictated by business needs, usually being produced on a monthly or quarterly basis. At the very least, they include a cash flow forecast, a profit and loss statement and a balance sheet.

Management Accounts – What Can They Do For Me?

The fundamental thing to understand, beyond the dictionary definition, is that management accounts are future focussed. Yes, they are beneficial in avoiding immediate cash flow problems and promoting good accounting practices, but their key value lies in providing a deeper understanding of your business in order to grow. Essentially, it’s all about improving your bottom line, and what company, large or small, doesn’t want to do that?

If you have any ambition to expand your business or increase profitability, then it’s essential to be well acquainted with your numbers. The data you gather should be presented in a clear, concise way that is meaningful and actionable. As well as providing a snapshot of your current financial position, it should also make comparisons to past performance to inform your strategic decision making.

It’s also worthwhile mentioning that good management accounts can be invaluable when it comes to securing funding. It provides a solid backbone to your business case that will help to convince potential investors.

The absence of regular management accounts, can be likened to captaining a ship without a compass – sure, you may have a rough idea where you are, but you cannot be pinpoint precise, and crucially, there could be icebergs up ahead that you cannot see. In the absence of dumb luck, it will take you far longer to get where you need to go, if indeed you get there at all.

Naff analogies aside, without an accurate picture of your financial performance, you are operating on the basis of guesswork. At best, this may cost you money and missed opportunities. At worst your business could succumb to the competition and even face financial ruin.

As in most disciplines, the devil is in the detail. The level of detail you include in your management accounts and how you analyse that detail can make the difference between moderate and considerable success. Successful businesses scrutinise the detail, they analyse the numbers over time to tell a story. This empowers more effective decision-making and helps them to gain a competitive advantage.

Be in no doubt that you have competitors out there that regularly prepare management accounts, own their numbers and are making better decisions for it.

Management Accounts – What Do They Look Like?

When deciding on the content of your management accounts, remember that it only has to work for one audience, that is you and other key decision-makers. In a small business, it may well be you alone, or a handful of people – it is no less valuable.

Your report should be geared up to provide the information you need to improve your performance and forecast confidently for the future. Ensure that whatever data is captured works for you and is fit for purpose – you are too busy to create reports for reporting’s sake.

Unlike statutory and year-end accounts, your management accounts should drill down into more detail about your current performance and provide comparisons and analysis. As a starting point, you should consider including the following elements.

Profit and Loss Report

In the midst of trading, with cash flowing in and out of the business, it can be easy to lose sight of exactly how much money you are making. A Profit and Loss Report (P&L) sets out how you have been trading over a set period of time, be that per month or per quarter, and shows how profitable that period has been.

It includes information such as sales revenue, cost of sales, operating expenses, net profit and net/gross profit margin. It can be split to show profitability by department, product, client type, region – whatever you find most insightful. This information can be compared month on month, or year on year, to identify trends and enable you to repeat your successes.

There are many free P&L templates available online, but if in doubt, professional accountants can advise on what will work for you.

Cash Flow Statement

An understanding of your cash flow and liquidity is fundamental to any business. By incorporating it into your management accounts, you encourage good accounting practice and will avoid any major cash flow problems.

With some simple analysis, your cash flow data can work even harder for you. For example, are there recurring cash flow problems within your business, if so how often and from where do they originate? Do operating costs differ from department to department, if so why? Measured over time, the data will shine a light on areas of improvement so that you can budget more confidently across the business.

Balance Sheet

Your balance sheet is your ‘statement of financial position’, and sets out your company’s assets and liabilities to establish its net worth (or ‘owner’s equity’).

Viewed as part of your management accounts, the balance sheet can help to inform debt and asset management long-term, for example, how to increase rates of return.

Key Performance Indicators (KPIs)

KPIs are not only for large corporations, they can be a powerful tool for businesses of any size. Their purpose is to show whether your business is moving in the right direction so that you can take appropriate action. A financial health check, if you like.

A set of well-thought-through KPIs will help to focus your efforts, remain consistent in your outlook, and make effective decisions. They also provide a clear roadmap for every department or division within your business to follow, which has the added benefit of being a motivator for success.

A limited company should aim to have at least three to four performance measures that are easy to track and benchmark. Here are just a few examples of some common measures included in KPIs:

• Sales turnover
• Sales conversions
• Return on investment for marketing activity
• Client retention and repeat business
• Stock management
• Debt management
• Net/Gross profit margin

Your set of goals could include all or none of the above, the point is to make them meaningful to the nature of your business and relevant to your ambitions.

When deciding on your KPIs ask yourself the questions – What does success look like for my company? What needs to happen to achieve that success? What are the key drivers? The result will be a set of clear and measurable KPIs that will help keep your business on track.

Improve Your Accounting and Financial Performance With Hayhursts

For many business owners, to produce management accounts may seem like one job too many, and for valid reasons. They may not have adequate accounting procedures or the in-house skill required to produce detailed reports. However, with a little investment in professional accounting services, even the smallest of businesses can reap the benefits that a regular set of management accounts can provide.

At Hayhursts, we believe that your ambition shouldn’t be limited by your company’s current size or level of accounting expertise. We can help your limited company to establish an efficient and watertight accounting system with our outsourced accounting services, to give you greater control of your finances. We can also provide valuable advice on how to present management accounts, and what information to include to help drive your business forward.

With our advice and expertise as a solid foundation, you can gain greater knowledge and insight into your financial performance. As the saying goes, knowledge is power, and management accounts can empower you to make the best decisions for the future of your company.

Call us today for a friendly, no-obligation conversation to find out more.

Management Accounts – Frequently Asked Questions

Are Management Accounts a legal requirement?

Unlike statutory accounts, management accounts are not required by law.

How often are management accounts produced?

This is entirely down to how often they are required, be that monthly or quarterly basis, or even weekly. It is entirely at the discretion of the management as to how often they are produced.

What’s included in a set of management accounts?

The content of management accounts can be designed to suit the requirements of the business, to show progress against key performance indicators (KPIs). The cornerstones of any good management report are a profit and loss report, a cash flow statement and a balance sheet.

Who sees a company’s management accounts?

Management accounts are for internal use only, although they can be shared with investors or shareholders at the discretion of the owners.

What is the difference between management and statutory accounts?

As the name suggests, statutory accounts are a legal requirement. All limited companies must prepare statutory accounts at the end of each financial year. It must be approved by the board of directors, made available to the shareholders and filed with Companies House within a prescribed timeframe.

For a deeper look at the differences between management accounts and statutory accounts, please see our useful article Statutory Accounts vs. Management Accounts – What’s the Difference?

The post What are Management Accounts? appeared first on Hayhursts.

In that vein, this article aims to clear up a question we’re often asked: what’s the difference between statutory accounts and management accounts?

While both are used to report on the financial performance of the company, they serve very different purposes.

Limited companies are required by law to submit statutory accounts each year to shareholders and Companies House. Management accounts are different as they are not mandatory. They are more frequent and are exclusively used for internal purposes to aid decision making.

While that is a simple summary, the finer points of difference between statutory accounts and management accounts are easy to understand. Here’s a useful guide outlining the key features and differences between the two types of accounts.

What are statutory accounts?

As the name suggests, statutory accounts are a legal requirement. All limited companies must prepare statutory accounts at the end of each financial year. It must be approved by the board of directors, made available to the shareholders and filed with Companies House within a prescribe timeframe.

What is the purpose of statutory accounts?

The primary reason for producing statutory accounts is to show the financial performance and position of the company during the past year and to calculate the corporation tax which is due. These accounts are shared with the shareholders of the company, to allow them to assess the performance of the company against their investment.

Companies House requires a signed copy of the accounts to be filed in a prescribe format and timetable. These accounts then become publicly available on their register.

Failure to submit statutory accounts in the right format and on time can incur hefty fines, and even result in being struck off the Companies House register.

What do statutory accounts look like?

Statutory accounts must be prepared in a certain format which is compliant with the Companies Act 2006. Dependant of the size of the company (based on a set criteria) certain disclosures can be exempt from inclusion within the accounts. In contrast to management accounts, these reports are not designed to include everyday details such as unique expenses or invoices.

Statutory accounts are comprised of two elements:

• Balance sheet: The balance sheet shows the position of the company at the year end date. It includes long-term and short-term assets, long-term and short-term liabilities and the equity make-up of the company. This must be approved by the board and signed by a director.
• Profit and loss report: The profit & loss account shows the financial performance of the company during the financial year. It includes revenue, associated cost of sales, administrative expenses, finance costs and corporation tax, resulting the overall profit or loss incurred in the year.

See our related post: Statutory Accounts Prep – Getting It Right

What are management accounts?

Most successful businesses rely on a regular management account report to gauge how well the company is performing. They are internal documents and therefore are not mandatory. Management will prepare the management account information based on what information they require to track the company’s performance. Their frequency is dictated by business needs, so that could be quarterly, monthly or even weekly.

What is the purpose of management accounts?

Management accounts provide a detailed view of a company’s current financial performance, as opposed to the annual view provided in statutory accounts. They serve as a regular business health check and showcase current progress (typically against budget and key performance indicators (KPIs)), previous successes and forecasts for the future. They are an essential tool to aid forecasting, spending and budgeting.

What do management accounts look like?

Management accounts drill down into more detail than statutory accounts. The management accounts may detail any capital expenditure incurred, ageing profile of any overdue customer accounts, along with a more detailed commentary to explain key movements or events within the period.

As opposed to a statutory account, a management account is specific to the individual requirements of a company so it can include anything you like. Most limited companies have a set of KPIs that define what success looks like for them and they will form the basis of the report.

Statutory and management accounts – key features at a glance

Here is a useful summary of the key differences between these two types of accounts.

• Legal requirement – Statutory accounts are mandatory for all limited companies, but management accounts are not compulsory. They are however deemed to be good practice.
• Frequency – Statutory accounts are completed once a year but the frequency of management accounts is dictated by the business.
• Format – Statutory accounts must follow a set format and include a profit and loss report, balance sheet and associated notes, whereas the content of management accounts can be designed to suit the requirements of the business.
• Audience – Statutory accounts are primarily for external distribution to shareholders and Companies House, whereas management accounts are internal reports.
• Purpose – the primary purpose of statutory accounts is to showcase financial actions taken by the company in the last year and to calculate business tax owed to HMRC, while a management account is used for internal decision making and planning for the future.

Allow Hayhursts to ease the burden of annual reporting

Compiling statutory reports and keeping up with the latest legislation can be a strain on time and resources, especially for SMEs. That is why many limited companies choose to outsource the task to a trusted accountant. At Hayhurst, we are highly experienced in statutory accounts preparation and we can help make the process swift and effortless.

When you outsource your annual reporting to us, not only will you save valuable time, you can also be confident that your report will be submitted accurately and on time. This eliminates the risk of non-compliance, providing you with valuable peace of mind and more time to focus on your business.

We can also provide support with management accounts to help you keep regular track your financial performance and allow you to make smarter management decisions.

Call us today for a friendly, no-obligation conversation to find out more.

The post Statutory Accounts vs Management Accounts – what’s the difference? appeared first on Hayhursts.

We as a nation have been hearing so much about climate change recently, and sadly the facts speak for themselves. With the abrupt end of the last ice age around 11,700 years ago – marking the beginning of the modern climate era – the current warming trend is so significant because most of it is extremely likely (with a probability rating of 95%) to have been caused by human activity. And more worryingly it’s growing, since the mid-20th century, at a rate that is unprecedented.

Whilst we’re bombarded with reports, news stories and Attenborough documentaries about climate change, pollution, wildlife declines and other environmental concerns, individuals often feel daunted and powerless about what they can do to help. But let’s face it, when the nation’s granddaddy David Attenborough talks, it’s probably worth listening, folks!

But how can we make a difference?

Here at Hayhursts, we’re not claiming to be beating climate change singlehandedly anytime soon, but we do believe in making just a few simple switches that may not make a huge impact on your day-to-day life, but could work wonders for our planet. With little changes, everyone (if they want to) can do their bit in small but meaningful ways – and often save money in the process.

The team at Hayhursts are currently collecting all their plastic bottle tops (from the office, and at home) and donating these to a UK not-for-profit community initiative which uses an innovative 3D printing technique to turn the bottle caps into prosthetic limbs for children. And whilst we as accountants couldn’t function without our caffeine fix, we’re making sure we recycle all of our Nespresso coffee capsules at our local Nespresso Recycling Centre.

Exploring paperless options

Meanwhile, we’re starting to explore paperless options for the business (such as scanned invoicing), and in the meantime we’re printed double-sided, only when we absolutely NEED to print, of course. Lots of the Hayhursts team have also moved away from dairy milk, and are now drinking a non-dairy alternative in our offices, which has resulted in much less plastic waste, not to mention the beneficial environmental impact of this change.

Our director’s eco journey

And it’s worth mentioning our very own Donna Blyth, Director, has been active in making little lifestyle changes at work and at home in an effort to live a greener life. Check out her Instagram @donnas_eco_journey for little tips and tricks on going eco-friendly as a family, and turning those good intentions into good habits.

The post One Eco Switch at a Time appeared first on Hayhursts.

It’s not the sexiest of subjects, sure – but if you’re here, it means you need to know what IR35 is and what it means to you, and before April 2020. So let’s talk IR35, and try and get your head around this pesky piece of legislation, once and for all.

What is IR35?

IR35 is the HMRC legislation that is used to determine if an individual working for a business is classed as employed or self-employed.

Why does IR35 matter?

There can be a significant difference in cost (to the individual and/or business) dependant on whether they are considered an employee or not. If IR35 applies, HMRC could apply tax and National Insurance, potentially retrospectively, as if that individual had been employed on the business payroll.

What are the changes to IR35 in 2020?

New rules are coming into place from April 2020 which places the burden of responsibility on to the business that has engaged the individual to establish whether IR35 applies.

When does IR35 apply?

If HMRC take the view that an individual and business are working in an employee and employer type relationship, then this is seen to be as inside IR35. There are a number of factors that should form part of the assessment, such as:

• Does the individual work for more than one business?
• How long typically are the engagements?
• Could the individual have a substitute perform the task which the business accepts?
• Does the individual work under their own guidance (i.e. they are not controlled/directed by the business)?
• Does the individual have any right to holiday or sick pay?
• Are there set start, end and break times?
• Who provides the equipment for the individual to use in their role?
• Is the individual seen as part of the business?

What happens if IR35 does apply?

If the business assesses that IR35 does apply, then they will have to apply tax and national insurance to the amount paid to the individual.

What happens if we get it wrong?

If you don’t correctly classify an engagement as falling within IR35, HMRC can investigate and insist on retrospective payment of taxes that would have been paid as well as fines.

Do all businesses need to do this?

No – currently the revised regulations are only applicable to medium and large businesses (as defined by the Companies Act). Small businesses are therefore exempt from the new regulations although individuals contracting through an intermediary still need to consider their status under IR35 as before.

Need IR35 Advice?

If you need more advice regarding the changes to IR35 in 2020, then please contact Hayhursts. We can help you.

The post IR35 Changes 2020 Explained appeared first on Hayhursts.

We live in a digital age, and advances in technology have changed the way we do business forever. People that can really, really help with the day to day operations of a company are no longer in a back office down the corridor or gossiping near the water-cooler – they’re outsourced and on hand to help immediately. Many companies in this day and age are using outsourcing as a means to boost business, and the figures speak for themselves…

Let’s talk Facts and Figures

• A recent KPMG survey concluded that around 40% of UK companies planned to increase their use of Outsourced Accounting Services
• CPA findings stated that almost 80% of companies that outsource accounting are likely to refer their accountants
• Approx two out of every five businesses use this services as an important means to reduce costs, improve efficiencies and, in many cases, ensure compliance
• The 2018 Client Accounting Services (CAS) Survey discovered:
  – 80% of clients who outsourced accounting say they have more time to focus on their business
  – Roughly 30% of these companies have received advice from their accounting firms that led to increased profit
  – 30% feel more prepared and knowledgeable to make business decisions

Why does your company need accounting outsourcing?

Unsure of whether or not you’d benefit? Or if you really need this service? We ask you:

• Do you find yourself spending more and more time struggling to keep up with your business’ accounts?
• Are you preparing for an all-important financial statement audit or review?
• Do you feel your margins could be improved – but you don’t know where to start?
• Are your investors requesting financial projections?
• Do you have difficulty understanding the cash requirements for your business, or tallying its profitability?
• Are you looking for investors, or capital investment from financial institutions?
• Do you have less time to focus on running your business and making important, informed decisions?
• Are you spending unnecessarily on staff training, software and IT support?
• Are you missing deadlines or making uneducated mistakes?
• Has your business recently grown?

If you answered yes to one or more of these questions, Hayhursts can help! Taking those day-to-day strains out of your schedule, a fully outsourced accounting service, like what we offer, is the stress-free solution to making your business work, covering all roles from bookkeeper to finance director using market-leading software and technology, and tailored to your individual needs. Let’s discuss the many, many benefits, shall we?

8 Benefits of Outsourced Accounting

1. Cost-effective: One of the major advantages and appeal of accounting outsourcing is the sheer cost-effectiveness of the service. Many people mistakenly believe that sending your accounts to an expert elsewhere is expensive. Not so, in fact outsourcing is actually cheaper than handling your accounts in house, eliminating expenses related to employee benefits, training, hardware, software, office supplies – no more ‘forking out’ to keep up with technological advances and software upgrades, or paying to keep Colin in Payroll in check. A recent study found that, on average, companies can save 30% to 40%! By outsourcing, you only pay for what you need: nothing more, nothing less.
2. Time saving: Accounting, payroll processing, balancing the books – it’s laborious and time-consuming. And companies can find they tend to lose focus on core competencies while trying to manage such tasks. Outsourcing accounting services means that ever-valuable time can be redirected back into managing and growing your business.
3. On-hand experts: Outsourced accounting experts make it their job, nay their LIFE (in our case) to keep up to date with complex requirements, ever-changing deadlines, trends, schemes and advancing technologies in the business world – keeping your business in mind. Making Tax Digital or Statutory Accounts Preparation is like second nature. By outsourcing, you’re putting your livelihood in the hands of professional, efficient, dedicated, HMRC authorised agent, jargon-busting EXPERTS in all thing ‘accounts’. Like us, at Hayhursts, for example.
4. Uninterrupted service: Each client will be assigned a client service team, so there will always be someone on hand, with knowledge of your business and the underlying transactions to answer any queries you may have. Now isn’t that better than your in-house finance team member going on holiday and you having to wait for their return to gain answers to you queries??
5. Speedy service: Your outsourced accounting team has a dedicated agenda and outcome, they’re motivated and focused, they’ll get the job done quickly, efficiently, on time and, most importantly, RIGHT the first time. They’ll be no lounging around on our watch!
6. Accuracy guaranteed: Accounting outsourcing means, through no additional stress, brain-bending or unnecessary cost of your own, your on-hand expert will have a detailed and up-to-date knowledge of accounting principles, payroll management, etc basically anything that can lead to inaccurate reporting or filings. Accuracy is always at the forefront of what we do, so you can rest easy that you won’t find yourself at the business end of an unwelcome fine or worse.
7. Minimising risk: Outsourced accounting ensures that all tasks are in safe hands and are given the importance they deserve, as well as being reliable, secure and entirely fool-proof. Little or no risk involved, guaranteed.
8. And finally, peace of mind: Whether your business needs to expand beyond basic bookkeeping, or requires a fully outsourced accountancy service covering all aspects including payroll, statutory accounts preparation, VAT returns or iXBRL tagging, you can feel confident that your chosen expert has everything in hand. And that’s peace of mind you can’t put a price on.

We at Hayhursts offer a wide range of services from our Southampton-based offices – and can ensure you have everything you need, when you need it, allowing you to focus purely on running your business.

What are you waiting for? Find out more about our outsourced accounting services here.

The post Benefits of an Outsourced Accounting Service appeared first on Hayhursts.

Hayhursts provide effective financial function whatever your industry, sure – but we have to say, we’re particularly shrewd when it comes to servicing businesses within the licensed trade.

We provide a full outsourced accounting service for pubs, clubs, restaurants, covering all roles from bookkeeper to finance director. With clients such as Upham, Antic and Ideal Pubs Company Ltd, we’ve years of experience and knowhow in this sector.

Here’s just a few reasons why you should choose us, like, yesterday!

1. Reducing stress, time and cost

In this current economic climate, licensed trades don’t often have the time or know-how to meet ever changing regulatory requirements. Enter, Hayhursts. Our fully outsourced service means we’ll take the burden from you – deadlines, regulations, returns – don’t even think about it! We’ve got it covered; reducing your infrastructure and overheads, meaning you can focus purely on running your pub/restaurant.

2. Financial control and confidence

Because every company is different, Hayhursts can create a bespoke service to suit YOUR needs. If you hand over the financial aspect of your company, we ensure all purchases go through the correct process, all invoices are matched to orders and authorised before payment. Hayhursts can also create a controlled environment to include best practice accounting policies and procedures, as well as maximising security and control of resources without choking day-to-day operations. In short, you’re safe and savvy!

3. Payroll

Behind every good business is a happy workforce (and an amazing accountant, of course), so ensuring employees are paid on time and correctly is a priority every pub/club/restaurant should meet.  Our outsourced payroll service is an efficient, dependable and affordable alternative to running your own in-house payroll system, and we’ll take care of all that HMRC reporting burden, so you don’t have to.

4. Transaction processing

Running a successful pub or restaurant means A LOT of day-to-day transactions; inventory, utilities, staff, maintenance – the list is endless. Accurate day-to-day processing is the essence of our outsourced accounting solution, as well as the foundation of an operationally well-run trade business. We’ll manage everything from purchase and sales ledger processing to everyday bank transactions. Sounds good, huh?

5. For Growth

Our bespoke outsourced accounting service, tailored to your pub/club/restaurant’s specific needs, can flex and grow as you do; a strong foundation on which you can scale – fast. And as your financial data becomes more complex, your dedicated Hayhursts team can identify, interpret and report the insights you need to manage your scaling business.

6. Financial Forecasting

It has been a tough few years for the pub industry, and while money is the lifeline of any business, even the most profitable licensed trades can suffer cash flow shortages. Through financial forecasting models, Hayhursts will help and support you in monitoring your results and advising on areas to focus on within the business. We’ll even alert you to any potential issues with future cashflow, whether it’s banking facility negotiations or weighing up the pros and cons of alternative sources of finance. Consider us your finance Guru. Or Sherpa. Or Yoda, even.

For more information see our Outsourced Accountancy for Licensed Trades, or contact us for a friendly, free, no-obligation consultation.

The post Top Reasons to use Hayhursts as your Licensed Trade Accountants appeared first on Hayhursts.

So, what are statutory accounts and what is the difference between management and statutory accounts?

Statutory accounts are an annual report showing the performance and position of a company. They have a prescribed format and need to be formally approved by your board and filed on the public register. Whereas management accounts are typically drawn up on a more frequent basis (usually monthly), have no prescribed format and are for internal use only.

What is included in statutory accounts?

Generally, accounts must include profit and loss, a balance sheet and notes to the accounts. Group accounts should also be included if appropriate. The accounts are generally accompanied by a directors’ report signed by a secretary or director, including a business review (or strategic report). Unless the company is exempt from audit, a signed audit report will also be required.

I’m only a small company, do I need to disclose the same information as a larger company?

You’ll be happy to hear that there are size classifications for companies and within this, smaller companies are exempt from certain disclosures. These size limits are as follows – you must meet at least two of the following and (unless it is your first year of trade) do so for two consecutive years:

Micro entity:

• turnover must be not more than £632,000
• the balance sheet total must be not more than £316,000
• the average number of employees must be not more than 10

Smaller company:

• annual turnover must be not more than £10.2 million
• the balance sheet total must be not more than £5.1 million
• the average number of employees must be not more than 50

Medium-sized company:

• annual turnover must be no more than £36 million
• the balance sheet total must be no more than £18 million
• the average number of employees must be no more than 250.

A large company is deemed to be those falling outside of the medium-sized company limits.

The above size limits are also applicable for Limited Liability Partnerships and guess what, we at Hayhursts are able to prepare this format of accounts using our specialist software.

No company wants to disclose more information than they have to, so to make sure you claim the correct exemptions and therefore only disclose what you absolutely need to, why not contact us to prepare these for you?

I’m a LLP, what impact does this have on my statutory accounts?

For Limited Liability Partnerships the size classifications and therefore exemptions shown above will still apply. There will be some disclosure differences due to the structure of an LLP company. If you have any questions then please get in touch with us.

Do I need an accountant to prepare my accounts?

No, you don’t. However, if you don’t have the experience of preparing statutory accounts, it can be a very daunting and lengthy process. So why wouldn’t you want someone to prepare these that has many years of experience, with market leading software to produce technically compliant financial statements?

How do you prepare financial accounts?

Statutory accounts can be produced in Word or spreadsheet form or by using specialist software (as we do), which certainly avoids the dreaded page number issue or chasing a rounding difference around a manual set of accounts (we’ve all been there)!

Can I file my accounts online?

Dormant and micro-entity accounts can be, using Companies House Web Filing service. Our software allows us to file for the above types of companies, making this an efficient filing process for you (no more manual signatures and posting of paper documents). So why not let us prepare and file the accounts on your behalf?

What is the deadline for submitting accounts?

Your private limited company accounts have to be filed with Companies House nine months after your company’s year-end e.g. for 31 December year-ends, your accounts need to have been delivered to Companies House on or before the following 30 September.

Whilst this seems like you have loads of time to get your accounts prepared and filed, if you aren’t familiar with preparing the accounts yourself, it can be a time-consuming process. Why not contact one of our experts to alleviate the pressure for you?

Where do I send our paper signed statutory accounts?

Companies House’s Cardiff office is open 24 hours a day for the receipt of documents, which should be sent to (for companies incorporated in England and Wales):

Companies House
Crown Way
Cardiff
CF14 3UZ

Remember your accounts must be on A4 paper and signed in black ink.

What happens if I am late in filing my accounts?

Please try not to, it’s a needless waste of your money! However, should you file your accounts late, but by no more than 1 month this will cost you £150, under 3 months £375, under 6 months £750, more than 6 months £1,500 and endless scary letters from Companies House. Afterall, it is a criminal offence to fail to deliver your accounts and all directors of the company risk prosecution!

Well, let’s try and finish this blog on a happy note, shall we?! Sure, this all sounds time-consuming and pretty daunting, but we thrive on ‘time-consuming’ and ‘daunting’!

Give Hayhursts a call – as always, we’re here to help.

The post Statutory Accounts Prep – Getting it Right appeared first on Hayhursts.

These factors have all coincided with a change in consumer behaviour. A traditional pub is not always what the younger generation want, supermarket prices encourage people to save money by drinking at home and there is more focus on healthy living (and therefore drinking less).

Filing your VAT returns and processing invoices

But out of adversity, comes opportunity. With the number of pub closures seeming to slow down, those that survive can flourish, if they can get it right.

So, with that backdrop, the last thing you want, as a pub operator, is to be worrying about processing invoices, filing VAT returns and working out profit margins? You need to be focussed on getting people through the door, delivering a quality product and getting them back again so that they tell their friends and family about the great pub they’ve found.

But it’s at times like these that you need to have the right financial information in front of you. If cashflow is tight, you need to know who you owe and when they need payment, so you can plan accordingly. You need to know what impact that “Happy Hour” had on your profit margins to see if it is worth repeating. You need to be able to spot trends in sales and costs so that you can act accordingly.

And that is where Hayhursts come in with our pub and landlord accounting services.

Stress-free business finances

We take all the stress of running the business finances away from you, so that you can spend time doing what you do best, running a great pub.

Give us the pile of invoices to process. Let us deal with suppliers and work out who needs paying and when. Let us make sure that HMRC have got the VAT and payroll submissions they need.

And at the end of all of that, we will deliver to you, when you want it, a reliable set of accounts that show the financial performance of the business. But we don’t leave it at that. We can talk you through the accounts so you are aware of what is going well and what needs to be looked at. We can offer comparison to industry performance so you can benchmark your business with similar pubs. We can help you to plan ahead.

Bespoke accounting for you

What’s more, all of the above is totally bespoke to suit you and your business needs. Just want us to do payroll? Fine. Want your accounts presented in a certain way that you like and are used to? No problem. We are here to work with you and deliver the services that you want, in the way you want it.

So, please give us a call. We would be happy to talk to you about your pub and how we can help.

The post Our speciality is accounting for your pub appeared first on Hayhursts.

As well as being the official sponsor of Oakwood Youth U14 Junior Premier League team for two years, the firm is an official “Friend” of The Saints Foundation; the charity of Southampton FC, to help change the lives of young people and adults at risk across Hampshire.

Hayhursts have also worked with the junior coaching at Fair Oak Squash Club, purchasing sports equipment and donating to charities of their choice, with an aim to increase children’s knowledge and involvement in the sport, motivating and helping to channel local kids’ potential.

Christmas is a time for celebration but also a time to recognise those less fortunate than ourselves. Each year the Hayhursts team all add an extra few presents to their Christmas shopping which are then brought together as a company and donated to a local hospital or children’s charity.

Every member of the team at Hayhursts is also encouraged to suggest local causes that are close to their heart for the company to contribute to and we are pleased to have contributed to a number of causes over the years.

If you have any questions about Hayhursts’ charity work or would like to discuss any potential partnerships, then don’t hesitate to get in touch.

The post Charity Begins at Hayhursts appeared first on Hayhursts.

1. You’ll always be needed

As long as people make money – you’ll be in demand. Sure, no profession is 100% recession-proof, but no matter the country’s financial state, accountants remain relatively unaffected by the flux and movement of the economy. In fact, the latest 2019 unemployment rates reported a teeny 2% for accountants and auditors, with further research showing that the UK alone will need around 80,000 additional accountants by 2050. See, despite the stigma, Accounting is one job that never goes out of style.

2. Great salary

A survey conducted by Prospects this year revealed that the average annual salary for a chartered accountant is £84,500. Meanwhile, AAT training provider Kaplan’s latest review stated that 60% of people taking an accounting course received financial support from their employer or training provider, meaning you could earn while gaining those all-important qualifications.

3. Room to grow

Because Accountants are in such high demand, there’s plenty of opportunity for advancement. Channel that ambitiousness and passion and, with a little hard work, you could make partner before you know it. The only way is up.

4. It’s more about advice than mathematics

Contrary to popular belief, you don’t have to be a maths wizard to be an accountant. Sure, numeracy is important, but it’s only a fraction of the required skillset. Consultancy and advice using expert knowledge of business, cash flow and tax expenditure really forms the bulk of what accountants offer, with the right software doing most of the number crunching.

5. You’re everyone’s go-to

Like helping people? Surprisingly, Accounting could just be the perfect career. Accountants help clients 24-7, be it solving problems or by achieving business goals. Often, their vision for the future is the one that gets implemented – and it’s pretty rewarding. Meanwhile, you know your loved ones are gonna need your advice – especially around mid-April – and while this may cue eye-rolling a’plenty, you know deep-down you pride yourself on being the one your family and friends go to for help.

6. You can work in almost any industry

Accountancy is at the heart of everything. From fashion to festivals, large or small, every organisation needs a finance department and accounting expertise. When you train as an accountant, you gain skills you can apply to almost any industry; corporate and commercial businesses; charities and none-profit organisations; entertainment and educational institutions. You have options. Lots of options.

7. You’ll never be bored

This one may surprise you, but that classic stereotype that accounting is dull is nothing more than a myth. For many accountants, each day is new and exciting. The industry is constantly evolving, and you’re at the forefront of this exciting business change. Accountants need to stay up-to-date on the best practises and techniques, your work will involve innovative problem solving and dynamic critical thinking. And with all the different accounting disciplines to explore – financial, management, auditing and tax – you’re sure to never be bored

8. We’re a happy bunch!

Accountants report VERY high job satisfaction rates, and the role even made the recent Forbes list of “Happiest Jobs.”

9. Like to travel?

Accounting – you can do it anywhere! Everyone speaks ‘money’, and not only are the principles universal, but the ACCA (the Association of Chartered Certified Accountants) is one membership recognised and respected the world over. Be it travelling for work or moving abroad, Accounting could be your passport to your dream locale.

10. Strong foundations for life

Managing your credit cards? Check. Applying for a mortgage? Check. Saving for retirement? Check. Running your own business? CHECK! Being financially literate and spend-savvy makes for some pretty impressive life skills, and that goes a long, long way.

Think this may be the career for you? Here at Hayhursts, we’d like to help. If you have any questions or need advice on a career in accounting, then contact us.

The post Top Ten Reasons YOU Should Become an Accountant appeared first on Hayhursts.