As you may have seen on FreeAgent's company blog, I'm very happy to say that I'm now working with them as their in-house accountant.
So that means I won't be writing any more here for a while - if ever!
It also means that unfortunately I won't be taking on any more new clients, though I'm going to go on looking after those that I do have, becoming a "5 to 9" business as Emma Jones would say.
Do look out for home business tips and articles on Enterprise Nation, it's a great site.
Goodbye and thank you. Happy home business to all!
Wednesday, 28 October 2009
Monday, 28 September 2009
Payments on account kick in at £1,000 for 2008/09 onwards
I'm preparing 2008-09 tax returns for my clients (that's the ones for the tax year 6th April 2008 - 5th April 2009).
What I'm used to seeing is that if a self-employed client's income tax and class 4 NIC is over £500 for the year, they would make payments on account.
Eh?
After their first year of trading, they would pay, let's say, £600 on 31st January for that first year's tax, and £300 on the same day for half the current (second) year's tax. Then another £300 on 31st July. And then let's say the tax liability for the second tax year was £700. They've already paid £600 of that - those are the £300 instalments. That's a very brief explanation of payments on account.
But today, I was preparing a client's 2008-09 tax return and spotted that, although his income tax and class 4 NIC amounted to almost £700, the software said no payments on account were required?
[scratches forehead and wonders if she's done something silly...]
So I double-checked HMRC's website just to make sure.
Aha.
For 2008-09 onwards, the threshold at which payments on account become due is £1,000 - not £500.
Goodo. No payments on account for not-very-well-off client. Phew.
What I'm used to seeing is that if a self-employed client's income tax and class 4 NIC is over £500 for the year, they would make payments on account.
Eh?
After their first year of trading, they would pay, let's say, £600 on 31st January for that first year's tax, and £300 on the same day for half the current (second) year's tax. Then another £300 on 31st July. And then let's say the tax liability for the second tax year was £700. They've already paid £600 of that - those are the £300 instalments. That's a very brief explanation of payments on account.
But today, I was preparing a client's 2008-09 tax return and spotted that, although his income tax and class 4 NIC amounted to almost £700, the software said no payments on account were required?
[scratches forehead and wonders if she's done something silly...]
So I double-checked HMRC's website just to make sure.
Aha.
For 2008-09 onwards, the threshold at which payments on account become due is £1,000 - not £500.
Goodo. No payments on account for not-very-well-off client. Phew.
Monday, 21 September 2009
"When can I claim expenses?"
This is a question that often crops up. Because HM Revenue say that any expenses your business incurs must be "wholly and exclusively for the purpose of the trade", or else you can't claim tax relief on it.
So how does that work?
Let's take travel and accommodation expenses, which are a very thorny issue. (Please note this is general guidance only, and if you're not sure you should take advice about your own case and your own journey.)
For example, imagine I travel from my home in Cumbria to London, for a training day. It's a long journey and I decide to make double the use of it by staying an extra day and going to the theatre. So I've got the cost of a 2-night hotel stay and my train fare to think about.
The first point to consider is what is the purpose of the journey. Is it just for the trade (in which case it's fully allowable for tax) or is it for pleasure too?
It's for pleasure too, because when I booked the journey, I planned to go to the theatre too.
So that means there's a duality of purpose. Note that HM Revenue distinguish between purpose and benefit. If the journey is for the purpose of the trade only, and you only get incidental personal benefit from it, it counts as wholly for the trade.
For example, if you go to Morrisons to buy ingredients for your cupcake business and at the same time you buy a bar of chocolate for your son, I would say that would be only incidental personal benefit, not dual purpose - so you could claim the cost of your travel there and back, and the cost of the cupcake ingredients. You can't of course claim the cost of the chocolate bar!
If an expense has dual purpose, then the cost is not allowable for tax. It's completely disallowed.
But... if it's possible to apportion the cost between trade and non-trade, so that a definite part was for trade and a definite part for non-trade, HM Revenue do allow you to apportion cost, and claim tax relief on the "trade" bit of the cost.
So for my journey to London, I could split the hotel bill between the night I would have had to stay for the training day, and the night I chose to stay extra, and claim tax relief for one night only.
When I entered that in FreeAgent, I would put one night's cost as "Accommodation and Meals" and the other as "Drawings".
What about the train fare?
That's a difficult one. I could argue that I wouldn't have gone to London at all if it hadn't been for the training day. The primary purpose of the trip was for business, the train fare didn't cost any more because I stayed an extra day, so I would probably try and claim it.
But HM Revenue could come back with the "duality of purpose" argument and say that I planned the trip for both business and pleasure and therefore it wouldn't be allowed.
It's a grey area.
So do be prepared to argue your claim, keep all available receipts, and of course, take professional advice.
So how does that work?
Let's take travel and accommodation expenses, which are a very thorny issue. (Please note this is general guidance only, and if you're not sure you should take advice about your own case and your own journey.)
For example, imagine I travel from my home in Cumbria to London, for a training day. It's a long journey and I decide to make double the use of it by staying an extra day and going to the theatre. So I've got the cost of a 2-night hotel stay and my train fare to think about.
The first point to consider is what is the purpose of the journey. Is it just for the trade (in which case it's fully allowable for tax) or is it for pleasure too?
It's for pleasure too, because when I booked the journey, I planned to go to the theatre too.
So that means there's a duality of purpose. Note that HM Revenue distinguish between purpose and benefit. If the journey is for the purpose of the trade only, and you only get incidental personal benefit from it, it counts as wholly for the trade.
For example, if you go to Morrisons to buy ingredients for your cupcake business and at the same time you buy a bar of chocolate for your son, I would say that would be only incidental personal benefit, not dual purpose - so you could claim the cost of your travel there and back, and the cost of the cupcake ingredients. You can't of course claim the cost of the chocolate bar!
If an expense has dual purpose, then the cost is not allowable for tax. It's completely disallowed.
But... if it's possible to apportion the cost between trade and non-trade, so that a definite part was for trade and a definite part for non-trade, HM Revenue do allow you to apportion cost, and claim tax relief on the "trade" bit of the cost.
So for my journey to London, I could split the hotel bill between the night I would have had to stay for the training day, and the night I chose to stay extra, and claim tax relief for one night only.
When I entered that in FreeAgent, I would put one night's cost as "Accommodation and Meals" and the other as "Drawings".
What about the train fare?
That's a difficult one. I could argue that I wouldn't have gone to London at all if it hadn't been for the training day. The primary purpose of the trip was for business, the train fare didn't cost any more because I stayed an extra day, so I would probably try and claim it.
But HM Revenue could come back with the "duality of purpose" argument and say that I planned the trip for both business and pleasure and therefore it wouldn't be allowed.
It's a grey area.
So do be prepared to argue your claim, keep all available receipts, and of course, take professional advice.
Coming soon! New book and website builder for "5 to 9ers"
Do you have a full-time job, but are running a business from home in your free time?
Emma Jones of Enterprise Nation is writing a new book aimed squarely at you. It's called "Working 5 to 9: how to build a successful business in your spare time".
And, Emma's also teamed up with a creative agency called "Jump To", to provide a website builder for 5 to 9 'ers (that's people who work from 5pm to 9pm - or 9am! - on their home business).
Both the book and the website builder will be available from January 2010.
If Emma's last book, "Spare Room Start Up", is anything to go by, the new book will be fun, lively and packed with lots of useful tips and advice. And the website builder sounds a great tool, too, so long as it avoids churning out identikit websites :-)
To register your interest, head over to Enterprise Nation here.
Emma Jones of Enterprise Nation is writing a new book aimed squarely at you. It's called "Working 5 to 9: how to build a successful business in your spare time".
And, Emma's also teamed up with a creative agency called "Jump To", to provide a website builder for 5 to 9 'ers (that's people who work from 5pm to 9pm - or 9am! - on their home business).
Both the book and the website builder will be available from January 2010.
If Emma's last book, "Spare Room Start Up", is anything to go by, the new book will be fun, lively and packed with lots of useful tips and advice. And the website builder sounds a great tool, too, so long as it avoids churning out identikit websites :-)
To register your interest, head over to Enterprise Nation here.
Thursday, 10 September 2009
Training on the move
I seem to be spending a fair bit of my time on the train at the moment (and trying to resist the temptation to splash out on first class tickets).
It's great if I can spend that time working. But mobile broadband doesn't always work on the train, so it needs to be something that I can do offline.
As a qualified chartered accountant, particularly because I'm now looking after clients of my own, I have to make sure I'm up to speed with any changes in accounts and tax legislation. I can glean a certain amount from the online and offline media, but structured, targeted courses, written by professionals, are the best way to pick up on those changes.
But taking a day, or even half a day, out of my schedule isn't always practical, especially as there aren't that many courses taking place here in rural Cumbria, so it'd mean a long journey to Newcastle at best.
OK, how about finding courses I could work through on the train? That means online courses are a no-no. Courses on a CD-ROM? My netbook doesn't have a CD-ROM drive.
No problem, said a helpful gentleman called Matthew Page at training provider CCH today.
Before you travel, put the CD-ROM into your desktop. Put an empty memory stick into your desktop. Drag the files from the CD-ROM on to the memory stick.
When you're on the train, put the memory stick into your netbook.
Hey presto, training material that I can work through on the train even if my mobile broadband won't connect and even though my netbook doesn't have a CD-ROM drive.
And, even though they don't say so on their website, CCH take payment by monthly direct debit so I can spread the cost over 12 months.
Great stuff.
It's great if I can spend that time working. But mobile broadband doesn't always work on the train, so it needs to be something that I can do offline.
As a qualified chartered accountant, particularly because I'm now looking after clients of my own, I have to make sure I'm up to speed with any changes in accounts and tax legislation. I can glean a certain amount from the online and offline media, but structured, targeted courses, written by professionals, are the best way to pick up on those changes.
But taking a day, or even half a day, out of my schedule isn't always practical, especially as there aren't that many courses taking place here in rural Cumbria, so it'd mean a long journey to Newcastle at best.
OK, how about finding courses I could work through on the train? That means online courses are a no-no. Courses on a CD-ROM? My netbook doesn't have a CD-ROM drive.
No problem, said a helpful gentleman called Matthew Page at training provider CCH today.
Before you travel, put the CD-ROM into your desktop. Put an empty memory stick into your desktop. Drag the files from the CD-ROM on to the memory stick.
When you're on the train, put the memory stick into your netbook.
Hey presto, training material that I can work through on the train even if my mobile broadband won't connect and even though my netbook doesn't have a CD-ROM drive.
And, even though they don't say so on their website, CCH take payment by monthly direct debit so I can spread the cost over 12 months.
Great stuff.
Friday, 4 September 2009
Home business on the move
If you're anything like me, as well as an office at your home, you'll need to work on the move sometimes. That could be in a cafe, on the train, from a holiday cottage if you're really keen, etc. etc.
So you may need to use a BlackBerry, laptop, netbook or some other gizmo to access the Internet.
On my other blog today I've written about how the staff at a Carlisle cafe were helpful and flexible enough to work around me needing to plug in my netbook there.
I'm surprised, though, that in these days of mobile working, not everywhere has a policy about computer access by customers. Even cafes that don't provide WiFi may have customers with mobile broadband dongles who want to work there (like me).
There may be places which don't have convenient sockets, or who don't have a policy, or who say "no" and won't change their minds.
Do be aware that not everywhere is going to be as responsive to customer needs and as ready to think on their feet as these ladies at the Carlisle cafe.
Today's piece of advice is - if you are on the move, don't forget to fully charge your device at home before you go!
So you may need to use a BlackBerry, laptop, netbook or some other gizmo to access the Internet.
On my other blog today I've written about how the staff at a Carlisle cafe were helpful and flexible enough to work around me needing to plug in my netbook there.
I'm surprised, though, that in these days of mobile working, not everywhere has a policy about computer access by customers. Even cafes that don't provide WiFi may have customers with mobile broadband dongles who want to work there (like me).
There may be places which don't have convenient sockets, or who don't have a policy, or who say "no" and won't change their minds.
Do be aware that not everywhere is going to be as responsive to customer needs and as ready to think on their feet as these ladies at the Carlisle cafe.
Today's piece of advice is - if you are on the move, don't forget to fully charge your device at home before you go!
Friday, 28 August 2009
"Can I claim the cost of food when I'm at work?"
There's been a change in the rules about what self-employed people can claim for the cost of food and drink when they're out and about on business.
The rules are different depending on whether you're employed or self-employed. In this article I'm going to talk about the rules for self-employed people. Be careful - if you're employed by your own limited company, you're an employee!
Nichola Ross Martin publishes excellent guides for both employed and self-employed people on her website here. The one for self-employed people is particularly helpful as it uses several different home-based businesses as examples (freelance lecturer, jobbing gardener, accountant). I'd highly recommend buying a copy.
Here's a quick summary of the new rules.
Before 6th April 2009, HM Revenue wouldn't normally let self-employed people claim the cost of food and drink when they were out and about on business, on the basis that "well you'd have to eat anyway". The only exception was if you were staying away from home overnight on business.
After 6th April 2009, the rules have changed, by statute. If you're self-employed and either;
You can't claim any estimates or round-sum allowances for food and drink. Round-sum allowances apply only for employees.
More information is available via Nichola's website. Thanks to Nichola for allowing me to post this summary.
The rules are different depending on whether you're employed or self-employed. In this article I'm going to talk about the rules for self-employed people. Be careful - if you're employed by your own limited company, you're an employee!
Nichola Ross Martin publishes excellent guides for both employed and self-employed people on her website here. The one for self-employed people is particularly helpful as it uses several different home-based businesses as examples (freelance lecturer, jobbing gardener, accountant). I'd highly recommend buying a copy.
Here's a quick summary of the new rules.
Before 6th April 2009, HM Revenue wouldn't normally let self-employed people claim the cost of food and drink when they were out and about on business, on the basis that "well you'd have to eat anyway". The only exception was if you were staying away from home overnight on business.
After 6th April 2009, the rules have changed, by statute. If you're self-employed and either;
- in a travelling occupation (e.g. long-distance lorry driver), or;
- making a journey for work that is only occasional, or not part of your normal pattern of business, or;
- staying away from home overnight on business,
You can't claim any estimates or round-sum allowances for food and drink. Round-sum allowances apply only for employees.
More information is available via Nichola's website. Thanks to Nichola for allowing me to post this summary.
Monday, 24 August 2009
"What expenses can I claim?"
When you run a business from home, that's something you definitely need to know.
Can you claim tax relief on part of your mortgage, or rent? What about the running costs? Do you get any tax relief at all?
The answer is yes, you do - and my friend and fellow accountant Alan Young has explained it beautifully on his blog here.
Can you claim tax relief on part of your mortgage, or rent? What about the running costs? Do you get any tax relief at all?
The answer is yes, you do - and my friend and fellow accountant Alan Young has explained it beautifully on his blog here.
Wednesday, 12 August 2009
Show Me The Money - excellent advice from KashFlow
Duane Jackson of KashFlow has just written a superb piece on his blog with some very useful tips to help you make sure your customers pay you on time.
I particularly like the last point:
I've dealt with one estate agent who used always to knock a percentage off his suppliers' bills when he paid them and argue it later if and when they noticed. Ouch ouch ouch.
Put it this way - having seen what he was like as a customer to his suppliers, I'd never buy a house through him. What goes around comes around.
I particularly like the last point:
Customers paying late are a real pain. So don’t forget that you are a customer too. If you expect your customers to pay you promptly, then make sure you pay your suppliers promptly.I've read business writing by people who try and make their customers pay them yesterday, then don't pay their suppliers right up until the last minute, to keep the cash as long as possible. I don't like that.
I've dealt with one estate agent who used always to knock a percentage off his suppliers' bills when he paid them and argue it later if and when they noticed. Ouch ouch ouch.
Put it this way - having seen what he was like as a customer to his suppliers, I'd never buy a house through him. What goes around comes around.
Monday, 10 August 2009
The legal side of a home-based business
Picture the scene.
You've been made redundant from your job as a result of the credit crunch and have decided to turn your hobby - be that jewellery making, teaching French, or basket weaving - into a home-based business.
Great decision, because it means you're making money doing something you love. (I'm so much happier since I set up my home-based business. My husband's noticed that too.)
But when you're in business, you've got to think about so much more than if you were doing what you do, as a job.
If you were weaving baskets for an employer, all you have to do is - weave baskets. You don't have to find customers, pay bills, keep your books.
And you don't have to worry about whether your contracts with your customers and suppliers would stand up in a court of law.
If you're running a business weaving baskets, you have to do all of that.
So often, micro businesses don't put written contracts in place. Remember - a verbal contract's not worth the paper it's written on.
And then if your customer doesn't keep to your payment terms, could you sue them?
I would suggest thinking about that and talking to a lawyer.
But do remember that not all lawyers, like accountants, specialise in micro businesses. Many of them would charge you a huge amount and that's just what you don't need.
Try a service like Lime One (hat tip to Enterprise Nation for pointing me at them) that will give you "a template and minimal support" if that's what you want.
Thanks to Stefan for the tip to write this.
You've been made redundant from your job as a result of the credit crunch and have decided to turn your hobby - be that jewellery making, teaching French, or basket weaving - into a home-based business.
Great decision, because it means you're making money doing something you love. (I'm so much happier since I set up my home-based business. My husband's noticed that too.)
But when you're in business, you've got to think about so much more than if you were doing what you do, as a job.
If you were weaving baskets for an employer, all you have to do is - weave baskets. You don't have to find customers, pay bills, keep your books.
And you don't have to worry about whether your contracts with your customers and suppliers would stand up in a court of law.
If you're running a business weaving baskets, you have to do all of that.
So often, micro businesses don't put written contracts in place. Remember - a verbal contract's not worth the paper it's written on.
And then if your customer doesn't keep to your payment terms, could you sue them?
I would suggest thinking about that and talking to a lawyer.
But do remember that not all lawyers, like accountants, specialise in micro businesses. Many of them would charge you a huge amount and that's just what you don't need.
Try a service like Lime One (hat tip to Enterprise Nation for pointing me at them) that will give you "a template and minimal support" if that's what you want.
Thanks to Stefan for the tip to write this.
Tuesday, 4 August 2009
How complicated can a 4-page form be?
I visited another firm of accountants yesterday and during the meeting, we got to talking about tax returns. Sad isn't it.
We can remember the time when the shortest tax return was 10 pages long.
Now the shortest tax returns are 4 pages long.
Improvement?
Hang on a sec.
The guidance notes got longer when the return got shorter.
The 4-page return contains exactly the same information as the 10-page one. It's just that you have to add bits together to get the figures to go in the boxes on the 4-page form.
This is where it starts getting complicated. What figures should go in which box?...
I'm one of those people who thinks the UK's tax system is in serious need of simplification. Surely a form that has to be filled in every year shouldn't need a thick wad of guidance notes to fill it in.
And it's really scary that nobody in the winning team on University Challenge a couple of years ago could work out a tax credit claim correctly. If those bright sparks can't do it, what hope do the rest of us have? And that includes the staff at HM Revenue.
But until Mr Darling and co do make the form simpler, remember there are lots of friendly accountants out there who have done so many tax returns that we talk about them over coffee - and we're here to help YOU.
We can remember the time when the shortest tax return was 10 pages long.
Now the shortest tax returns are 4 pages long.
Improvement?
Hang on a sec.
The guidance notes got longer when the return got shorter.
The 4-page return contains exactly the same information as the 10-page one. It's just that you have to add bits together to get the figures to go in the boxes on the 4-page form.
This is where it starts getting complicated. What figures should go in which box?...
I'm one of those people who thinks the UK's tax system is in serious need of simplification. Surely a form that has to be filled in every year shouldn't need a thick wad of guidance notes to fill it in.
And it's really scary that nobody in the winning team on University Challenge a couple of years ago could work out a tax credit claim correctly. If those bright sparks can't do it, what hope do the rest of us have? And that includes the staff at HM Revenue.
But until Mr Darling and co do make the form simpler, remember there are lots of friendly accountants out there who have done so many tax returns that we talk about them over coffee - and we're here to help YOU.
Wednesday, 29 July 2009
What perks for no commute?
My friend and fellow accountant Shaun McGuinness of Tax Sorted writes about some of the perks that employees can receive from their employers without also receiving a whacking great tax bill.
One of them is a tax-free bicycle to ride to work and a tax-free breakfast when the cyclist arrives at work. (And hopefully the employer would also provide a changing room and shower.)
And cyclists who provide their own bike get a 20p/mile allowance, compared to 40p/mile for the first 10,000 miles driven in your own car and 25p/mile thereafter. That sounds generous to me.
Shaun says:
And what about those of us whose commute is a walk into the dining room / spare room / down the garden to the shed - home business owners and homeworking employees? How about a tax-free breakfast for us Mr Darling?!
One of them is a tax-free bicycle to ride to work and a tax-free breakfast when the cyclist arrives at work. (And hopefully the employer would also provide a changing room and shower.)
And cyclists who provide their own bike get a 20p/mile allowance, compared to 40p/mile for the first 10,000 miles driven in your own car and 25p/mile thereafter. That sounds generous to me.
Shaun says:
We have thus far waited in vain for the introduction of joggers’ breakfasts and walkers’ breakfasts!I agree - there's no mileage rate at all for walking to work and no provision for a tax-free breakfast for those who use shanks's pony to get to work.
And what about those of us whose commute is a walk into the dining room / spare room / down the garden to the shed - home business owners and homeworking employees? How about a tax-free breakfast for us Mr Darling?!
Thursday, 23 July 2009
What do you want from your accountant?
The clients who've so far come on board with me have wanted the same things from their accountant.
Someone who'll help them keep good records so that they know how their business is doing and keep the Revenue happy.
Someone who'll make sure they fill in the right forms and pay the right amount of tax at the right time.
Someone who'll give them advice on how to save tax, like buying a new piece of equipment just before the year end instead of just after it, so you get the tax relief a year earlier.
Someone who won't talk endless accountantese, or drown them in generic information sheets and newsletters.
And someone who charges reasonable fees for a small home-based business.
That's what I'm aiming to offer to my clients.
But I'd be interested to hear if there's anything else that home-based businesses would like from their accountants.
What makes you choose your accountant? Why did you pick that one? What would you like them to do differently?
Please tell me using the comments box.
Someone who'll help them keep good records so that they know how their business is doing and keep the Revenue happy.
Someone who'll make sure they fill in the right forms and pay the right amount of tax at the right time.
Someone who'll give them advice on how to save tax, like buying a new piece of equipment just before the year end instead of just after it, so you get the tax relief a year earlier.
Someone who won't talk endless accountantese, or drown them in generic information sheets and newsletters.
And someone who charges reasonable fees for a small home-based business.
That's what I'm aiming to offer to my clients.
But I'd be interested to hear if there's anything else that home-based businesses would like from their accountants.
What makes you choose your accountant? Why did you pick that one? What would you like them to do differently?
Please tell me using the comments box.
Monday, 20 July 2009
Business equipment on a shoestring
Emma Jones's book Spare Room Start Up, one of the books on my recommended list, gives a breakdown of how you can start your small business for under £500 - and that includes the price of a bottle of bubbly to celebrate!
The most expensive item on her list is a £335.99 laptop.
But you really don't need to spend that much on a computer.
It's not unknown for big organisations to off-load their old computer equipment in return for a small donation to charity. £25 to the Air Ambulance, and hey presto, I have a desktop. OK it's a few years old, but that doesn't worry me. In fact, I'm glad it's an older model, because it's running XP, not Vista.
And sometimes people even post computer equipment on Freecycle, and that means you could get it for nothing.
You don't need a top-of-the-range Apple Mac, or even a mid-range laptop, to be successful in home business. Spend your money where it will really make a difference - on a good website, or professional business stationery.
The most expensive item on her list is a £335.99 laptop.
But you really don't need to spend that much on a computer.
It's not unknown for big organisations to off-load their old computer equipment in return for a small donation to charity. £25 to the Air Ambulance, and hey presto, I have a desktop. OK it's a few years old, but that doesn't worry me. In fact, I'm glad it's an older model, because it's running XP, not Vista.
And sometimes people even post computer equipment on Freecycle, and that means you could get it for nothing.
You don't need a top-of-the-range Apple Mac, or even a mid-range laptop, to be successful in home business. Spend your money where it will really make a difference - on a good website, or professional business stationery.
Friday, 17 July 2009
Business cards with pizazz
Duane Jackson, MD of KashFlow, blogged some time ago about business cards.
Here's what he had to say:
Here's what he had to say:
Your business card should have your logo, web address and contact details - it doesn’t need much more than that.It doesn’t need to fold out into an origami duck, it doesn’t need to be inserted into a CD drive, it doesn’t need to tell us about your 10% discount to new customers, it doesn’t need to play the national anthem whenever it’s picked up and it doesn’t need to taste of strawberries when you lick it.
Putting anything on the back of your card is a big no-no too.
Well, Geoff Ramm would have a blue fit if he read that. His view is that business cards should have a bit of punch and a bit of pizazz. Because that's what makes them stand out from the dozens of other business cards that are dished out. And if they can be a different shape then so much the better.
And personally, I agree with Geoff.
I'd like to share two examples of great business card shapes with you.
First is a book-binder's in Haltwhistle, Northumberland. Their business card is shaped like a bookmark. Fab. It's relevant to the business, and as it's used as a bookmark, the reader remembers the company.
The second, which I was given last night, is for The Utility Warehouse, a company that saves you money on all your utility bills.
Here's their business card.
Shaped like a smiling fat pink piggy bank.
(The grey background is my printer, not the card.)
And it's headed up with the tagline, "Let's put money in your Piggy Bank".
That card grabbed my attention right away and made me laugh. And it ensured that if I'm looking for that sort of a company, I'll think of the one with the piggy bank card.
I did think of making my own cards shaped like a plus-sign, but my printer wasn't keen :-)
Tuesday, 14 July 2009
Mobile broadband; setup
One technological advance that's been at least partly responsible for the huge numbers of home businesses in the UK is broadband Internet connections.
Because I travel about a fair bit on business, I finally took the plunge yesterday and signed up for a mobile broadband connection, because my battered old laptop refuses to connect to any WiFi (even though it is wireless-enabled).
I chose a deal that gave me a free netbook, one that would be light enough to carry easily on the train, that I could just pop into an ordinary bag (sadly important for security, given I'll be travelling alone), and that could be used for web browsing and working on documents in Google.
No bells and whistles are needed, and I'm not planning to load any more programs than anti-virus software and my preferred browser (Firefox), so I opted for a straightforward Dell Inspiron.
The very helpful guys at the Carphone Warehouse in Carlisle checked my home postcode and said that the only network that offered any sort of mobile broadband coverage there was 3, which has the best overall coverage in the UK.
3's a new one for me. My personal mobile phone is with O2 and my business mobile phone is on what my brother calls "Skodafone". But apparently standard mobile phone coverage won't give you enough capacity for mobile broadband. It needs to be better than that. And 3 is the only network giving enough cover in my neck of the woods.
So I duly signed up to 3.
When I got my new netbook home and began setting it up, I discovered that there are two possible broadband speeds depending on the coverage in your area - fast or slow.
Guess what. In my area I get the slow one.
Which, speed-wise, is comparable to dial-up. Chug chug chug.
So the anti-virus software took till 8pm to download. Ow.
By which time I was fed up with the slow connection. So I unplugged the mobile broadband dongle and hooked up the netbook to my trusty landline broadband from BT.
Anti-virus update then downloaded in 5 minutes instead of 5 hours. And Firefox downloaded before I could say "Mozilla".
So my netbook is now all ready for taking on the train - and here's hoping that in the areas I go to, I'll be able to get the faster 3 speed.
But at least it means I can work on the train, even if I can't get the faster speed. I must just remember to do any downloads and updating here at home using the landline connection.
Moral; if you're off the beaten track, mobile broadband may be best for travelling and emergencies only.
Because I travel about a fair bit on business, I finally took the plunge yesterday and signed up for a mobile broadband connection, because my battered old laptop refuses to connect to any WiFi (even though it is wireless-enabled).
I chose a deal that gave me a free netbook, one that would be light enough to carry easily on the train, that I could just pop into an ordinary bag (sadly important for security, given I'll be travelling alone), and that could be used for web browsing and working on documents in Google.
No bells and whistles are needed, and I'm not planning to load any more programs than anti-virus software and my preferred browser (Firefox), so I opted for a straightforward Dell Inspiron.
The very helpful guys at the Carphone Warehouse in Carlisle checked my home postcode and said that the only network that offered any sort of mobile broadband coverage there was 3, which has the best overall coverage in the UK.
3's a new one for me. My personal mobile phone is with O2 and my business mobile phone is on what my brother calls "Skodafone". But apparently standard mobile phone coverage won't give you enough capacity for mobile broadband. It needs to be better than that. And 3 is the only network giving enough cover in my neck of the woods.
So I duly signed up to 3.
When I got my new netbook home and began setting it up, I discovered that there are two possible broadband speeds depending on the coverage in your area - fast or slow.
Guess what. In my area I get the slow one.
Which, speed-wise, is comparable to dial-up. Chug chug chug.
So the anti-virus software took till 8pm to download. Ow.
By which time I was fed up with the slow connection. So I unplugged the mobile broadband dongle and hooked up the netbook to my trusty landline broadband from BT.
Anti-virus update then downloaded in 5 minutes instead of 5 hours. And Firefox downloaded before I could say "Mozilla".
So my netbook is now all ready for taking on the train - and here's hoping that in the areas I go to, I'll be able to get the faster 3 speed.
But at least it means I can work on the train, even if I can't get the faster speed. I must just remember to do any downloads and updating here at home using the landline connection.
Moral; if you're off the beaten track, mobile broadband may be best for travelling and emergencies only.
Friday, 10 July 2009
Dressing for homeworking
When you're working from home, one of the great advantages is that you don't have to follow an office dress code.
You can work in your pyjamas if you want to (Liz Jackson admits that's what she used to do when she started her business from home). You can wear a favourite old sweater when it's cold, or pad around in shorts and bare feet when it's hot.
Some home business owners do prefer to dress up smart every day, to help them get into a "work" frame of mind.
But the point is, it's up to us. We don't have to do what some poor goons have to do and wear matching suits all day, even in the heat of summer.
And when you're your own boss, you get to pick what to wear when you visit your customers/clients. You can decide what image you want to project. I try and avoid the stereotypical "accountant" look of a pin-striped suit and white blouse. For one thing, I look ghastly in black and white, and for another, I'm not your average accountant, so I don't want to look like one.
My two smart jackets are 1) bright red and 2) deep rose pink. So I look smart and professional, but cheerful and approachable.
You can work in your pyjamas if you want to (Liz Jackson admits that's what she used to do when she started her business from home). You can wear a favourite old sweater when it's cold, or pad around in shorts and bare feet when it's hot.
Some home business owners do prefer to dress up smart every day, to help them get into a "work" frame of mind.
But the point is, it's up to us. We don't have to do what some poor goons have to do and wear matching suits all day, even in the heat of summer.
And when you're your own boss, you get to pick what to wear when you visit your customers/clients. You can decide what image you want to project. I try and avoid the stereotypical "accountant" look of a pin-striped suit and white blouse. For one thing, I look ghastly in black and white, and for another, I'm not your average accountant, so I don't want to look like one.
My two smart jackets are 1) bright red and 2) deep rose pink. So I look smart and professional, but cheerful and approachable.
Thursday, 9 July 2009
New magazine for home business
At a home business event yesterday, I was handed a copy of a new magazine for home business owners. It's the Home Business Network's magazine which is being distributed monthly with the Saturday Telegraph - or you can register FREE on their website and get the magazine online without having to buy a newspaper.
I've registered so that I can have a good read of the magazine, which is full of useful articles, case studies and tips, all written in straightforward, non-patronising terms, and share some thoughts.
Here's my thinking about the first issue.
There are some "Top Tips for Business Sellers" aimed at businesses trading on eBay. One of these tips is;
But you don't need to learn basic accounting, even if you choose not to outsource your bookkeeping. You didn't go into business to be an accountant. Instead I'd recommend you use a nice simple software package that will help you with your figures and add everything up for you. I use FreeAgent for my clients, or you could try KashFlow.
And talking of KashFlow, the Home Business Network site also mentions that you get a free trial of KashFlow if you sign up to the HBN. Sorry folks, this isn't a benefit of HBN. Every new user of KashFlow gets a free trial!
Also in the magazine was an article about bespoke tailor Harold Rose. He mentions how he doesn't directly employ staff, but instead outsources his bookkeeping, "web design, SEO, website management, accounts, warehousing and 'office reception'."
That's what I do too. I outsource my telephone answering to the excellent Moneypenny and my websites to 1973 Ltd (for my video business) and Greg Coltman, my brother-in-law, for Home Business Accountant. I'm not a web designer, and Chris, Dave and Greg know far more than I do about websites, CEO and design.
Don't be fooled by the government organisations who judge a business by the number of employees it has. You don't need to employ anyone if you don't want to. There's bound to be someone whose business it is to provide the service you need.
To quote Emma Jones at Enterprise Nation:
I've registered so that I can have a good read of the magazine, which is full of useful articles, case studies and tips, all written in straightforward, non-patronising terms, and share some thoughts.
Here's my thinking about the first issue.
There are some "Top Tips for Business Sellers" aimed at businesses trading on eBay. One of these tips is;
Think and act like a businessIt is true that you do need to learn a lot of new skills when you have your own business. You'll be chief sales(wo)man, chief marketer, production manager, chief coffee-maker, etc. etc. Some of it you can outsource (see below), but some of it you'll want to keep and do yourself, because nobody else has the same passion as you for your business. It's your baby.
Starting your own business means you need to master a whole load of skills from basic accounting to marketing. Too many traders don't know basic maths and this can cost them dearly in the future.
But you don't need to learn basic accounting, even if you choose not to outsource your bookkeeping. You didn't go into business to be an accountant. Instead I'd recommend you use a nice simple software package that will help you with your figures and add everything up for you. I use FreeAgent for my clients, or you could try KashFlow.
And talking of KashFlow, the Home Business Network site also mentions that you get a free trial of KashFlow if you sign up to the HBN. Sorry folks, this isn't a benefit of HBN. Every new user of KashFlow gets a free trial!
Also in the magazine was an article about bespoke tailor Harold Rose. He mentions how he doesn't directly employ staff, but instead outsources his bookkeeping, "web design, SEO, website management, accounts, warehousing and 'office reception'."
That's what I do too. I outsource my telephone answering to the excellent Moneypenny and my websites to 1973 Ltd (for my video business) and Greg Coltman, my brother-in-law, for Home Business Accountant. I'm not a web designer, and Chris, Dave and Greg know far more than I do about websites, CEO and design.
Don't be fooled by the government organisations who judge a business by the number of employees it has. You don't need to employ anyone if you don't want to. There's bound to be someone whose business it is to provide the service you need.
To quote Emma Jones at Enterprise Nation:
Do what you do best, and outsource the rest!
Monday, 6 July 2009
Why it's good to do the books
When you're running a home business, or even more so, setting one up, there always seem to be a thousand and one jobs to do.
"Doing the books" - keeping track of the money coming into and going out of the business - is just one of these jobs.
Hands up all those for whom "doing the books" is something you enjoy, look forward to doing, and put aside time for.
Now hands up everyone who thinks "doing the books" is a chore and a bore and puts it off as long as they can.
And finally, hands up those who are terrified of "the books" and ignore them hoping they'll go away if you leave them long enough.
Well the books might go away, if they get mouldy enough to grow feet and walk, but I'm afraid HM Revenue aren't going anywhere.
That's one reason for keeping your books up to date. If HM Revenue come sniffing round - and they do now have the power to visit us home-business owners at home - then you need to have some nice, neat, up-to-date records to show them. It's actually illegal not to.
The second, and what I think is the most important reason, is that if you keep your books up-to-date, you have a much better grasp of how the business is doing. Can you remember everything about your business's figures?
Did Mrs A pay you for digging her garden? How quickly? Do you need to collect cash from her next time because she took ages to post you a cheque? Did you remember to pay that bill from the gas man? Are you sure? And are you paying out too much to make your business worthwhile? Is the game worth the candle?
You won't know any of that without a good set of up-to-date figures.
And the third reason is that it keeps your accountant happy. In my career I've seen dozens of sets of inaccurate, messy, behind-schedule records. That really doesn't help client-accountant relationships. Because if the records are a mess, I'm cross with the client before I get even an hour into preparing their accounts, and by the time I've finished, I'm more inclined to show the client the door than to help them save some tax.
That's why anyone who'd like to be a client of mine needs to be ready to keep their books accurate. I want to build a good relationship with you and that'll be impossible if your records are rubbish!
Don't worry though, you don't have to be any good at sums. FreeAgent will take care of all that for you and it comes inclusive in my prices. And I'll teach you how to use it, so there really is nothing to worry about.
So those are my three reasons for why it's a good idea to keep your books accurate and up-to-date.
"Doing the books" - keeping track of the money coming into and going out of the business - is just one of these jobs.
Hands up all those for whom "doing the books" is something you enjoy, look forward to doing, and put aside time for.
Now hands up everyone who thinks "doing the books" is a chore and a bore and puts it off as long as they can.
And finally, hands up those who are terrified of "the books" and ignore them hoping they'll go away if you leave them long enough.
Well the books might go away, if they get mouldy enough to grow feet and walk, but I'm afraid HM Revenue aren't going anywhere.
That's one reason for keeping your books up to date. If HM Revenue come sniffing round - and they do now have the power to visit us home-business owners at home - then you need to have some nice, neat, up-to-date records to show them. It's actually illegal not to.
The second, and what I think is the most important reason, is that if you keep your books up-to-date, you have a much better grasp of how the business is doing. Can you remember everything about your business's figures?
Did Mrs A pay you for digging her garden? How quickly? Do you need to collect cash from her next time because she took ages to post you a cheque? Did you remember to pay that bill from the gas man? Are you sure? And are you paying out too much to make your business worthwhile? Is the game worth the candle?
You won't know any of that without a good set of up-to-date figures.
And the third reason is that it keeps your accountant happy. In my career I've seen dozens of sets of inaccurate, messy, behind-schedule records. That really doesn't help client-accountant relationships. Because if the records are a mess, I'm cross with the client before I get even an hour into preparing their accounts, and by the time I've finished, I'm more inclined to show the client the door than to help them save some tax.
That's why anyone who'd like to be a client of mine needs to be ready to keep their books accurate. I want to build a good relationship with you and that'll be impossible if your records are rubbish!
Don't worry though, you don't have to be any good at sums. FreeAgent will take care of all that for you and it comes inclusive in my prices. And I'll teach you how to use it, so there really is nothing to worry about.
So those are my three reasons for why it's a good idea to keep your books accurate and up-to-date.
- It's illegal not to.
- You're much more aware of how your business is doing.
- It makes your relationship with your accountant so much happier.
My own accounts; Why I recommend FreeAgent to clients
Another month end has passed, a statement has arrived from my business bank.
Guess that means it's time to do my own businesses' accounts. Because apart from the many excellent reasons why it's good to keep your accounts up to date (and more about that soon), it's also not much good me encouraging other home-business owners to keep their books up to date if I don't do it myself.
I keep Home Business Accountant's books on FreeAgent, the same software that I offer, inclusive as part of my fixed monthly fees, to my clients.
I'm getting more and more keen on FreeAgent as I go on using it.
Today, I had several out-of-pocket expenses to record, and the data entry for them is so quick and easy. I've talked more about this on my other blog, here.
And also, compared to other online software products I've seen, it's so simple to use, with lots of clearly written explanations.
It has only the "bells and whistles" that micro businesses really need. Out of pocket expenses? Check. Bank statement imports? Check. Stock control? Nope. Explanations in accountantese? Not on your nelly. They were written by non-accountants and it shows.
Guess that means it's time to do my own businesses' accounts. Because apart from the many excellent reasons why it's good to keep your accounts up to date (and more about that soon), it's also not much good me encouraging other home-business owners to keep their books up to date if I don't do it myself.
I keep Home Business Accountant's books on FreeAgent, the same software that I offer, inclusive as part of my fixed monthly fees, to my clients.
I'm getting more and more keen on FreeAgent as I go on using it.
Today, I had several out-of-pocket expenses to record, and the data entry for them is so quick and easy. I've talked more about this on my other blog, here.
And also, compared to other online software products I've seen, it's so simple to use, with lots of clearly written explanations.
It has only the "bells and whistles" that micro businesses really need. Out of pocket expenses? Check. Bank statement imports? Check. Stock control? Nope. Explanations in accountantese? Not on your nelly. They were written by non-accountants and it shows.
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