Best Of
Re: Practices for the future
Where I was just over 12 months ago
I had built a practice of around 300 clients and 3 staff. The staff all had client manager roles managing around 100 clients each with me supporting final checks and tax work. We were growing nicely but I felt we were hitting capacity limits and profitability was not what it should be.
What Changed
With work pressures and working hours increasing and profits not really changing I knew something wasn't right. I started working with a business coach to identify areas of weakness and how we could improve.
We changed the following:-
- Increased prices by almost 200% for new clients
- Increased prices by around 175% for existing clients
- Developed new and better packages
- Changed the staff roles to suit personality profiles (1 doing Bookkeeping and VAT, one doing Limited Company Accounts and Tax, One doing final checks and me doing CFO and practice development.
- We identified our worst clients and sold them (all to go on 1st February)
- We started working with Xero and more recently Receipt Bank
Where we are now
The business has changed considerably. We now target much larger clients who value us more and want bigger and better services. We know who our target clients are and say no much more than we did before especially when a potential client is not a good fit.
We have set processes we follow depending on the packages clients are on which are prescribed to them based on their requirements. We are built around systems and automation which has improved our efficiency hugely.
We now complete VAT returns by the 20th of every month whereas we struggled to meet deadline day before. Ltd company accounts are done well before deadlines with probably only around 10 due on the next 3 months.
After the worst clients all leave on 1 February we will have around 245 clients but have around £35k more income than when we started the process. Our average fee will have increased by around £250 per client per year.
Around 80% of our clients are on Xero too and we have outsourced payroll to free up time.
What does the future hold
We will be improving our offering again come 1 February and pushing ourselves forward for growth over the 6-12 months beyond. After that we will most likely rate our clients again and see how we move the worst rated to a level we are comfortable with or move them on.
We will be almost a 100% Xero practice with very clear processes and lots of automation to be able to deliver quality services to our clients.
New offices are likely to be needed as are new staff and we will continue to invest in software that improves the offering we have to clients. MTD will be of no concern at all and our clients will continue to allow us to control their finance function and want more services from us to help support them in the growth of their business.
I had built a practice of around 300 clients and 3 staff. The staff all had client manager roles managing around 100 clients each with me supporting final checks and tax work. We were growing nicely but I felt we were hitting capacity limits and profitability was not what it should be.
What Changed
With work pressures and working hours increasing and profits not really changing I knew something wasn't right. I started working with a business coach to identify areas of weakness and how we could improve.
We changed the following:-
- Increased prices by almost 200% for new clients
- Increased prices by around 175% for existing clients
- Developed new and better packages
- Changed the staff roles to suit personality profiles (1 doing Bookkeeping and VAT, one doing Limited Company Accounts and Tax, One doing final checks and me doing CFO and practice development.
- We identified our worst clients and sold them (all to go on 1st February)
- We started working with Xero and more recently Receipt Bank
Where we are now
The business has changed considerably. We now target much larger clients who value us more and want bigger and better services. We know who our target clients are and say no much more than we did before especially when a potential client is not a good fit.
We have set processes we follow depending on the packages clients are on which are prescribed to them based on their requirements. We are built around systems and automation which has improved our efficiency hugely.
We now complete VAT returns by the 20th of every month whereas we struggled to meet deadline day before. Ltd company accounts are done well before deadlines with probably only around 10 due on the next 3 months.
After the worst clients all leave on 1 February we will have around 245 clients but have around £35k more income than when we started the process. Our average fee will have increased by around £250 per client per year.
Around 80% of our clients are on Xero too and we have outsourced payroll to free up time.
What does the future hold
We will be improving our offering again come 1 February and pushing ourselves forward for growth over the 6-12 months beyond. After that we will most likely rate our clients again and see how we move the worst rated to a level we are comfortable with or move them on.
We will be almost a 100% Xero practice with very clear processes and lots of automation to be able to deliver quality services to our clients.
New offices are likely to be needed as are new staff and we will continue to invest in software that improves the offering we have to clients. MTD will be of no concern at all and our clients will continue to allow us to control their finance function and want more services from us to help support them in the growth of their business.
Re: Naming of documents before uploading on Task 13
I wouldn't think it would impact your mark as long as it was clear which question you are answering. Good luck
Re: BSTX practice assessment 2 task 6
In 17/18 his liability was £13,500 but he has already paid £15,450 in POA so he had paid £1,950 too much
His first POA in Jan 19 would be half of £13,500 which is £6,750 minus the overpaid £1,950 which makes £4,800
His first POA in Jan 19 would be half of £13,500 which is £6,750 minus the overpaid £1,950 which makes £4,800
FCA recognises AAT licensed accountants in relation to High Net Worth individuals
Financial Conduct Authority (FCA) Handbook changes have been made to recognise AAT members from 29 March 2019.
Under articles 60H and 60Q of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, credit and hire agreements with High Net Worth individuals are generally exempt from regulation, subject to certain conditions. One of these conditions is that a statement of the individual’s income or assets must be made and signed in accordance with FCA rules.
These rules state that the statement must be signed by the lender or by an accountant who is a member of any of the bodies listed. AAT was not previously listed, we pressed the FCA to change this, a public consultation was held and AAT has now been added to the approved list.
Full details are available at 3.2 -3.9 here: https://www.fca.org.uk/publication/handbook/handbook-notice-64.pdf
Under articles 60H and 60Q of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, credit and hire agreements with High Net Worth individuals are generally exempt from regulation, subject to certain conditions. One of these conditions is that a statement of the individual’s income or assets must be made and signed in accordance with FCA rules.
These rules state that the statement must be signed by the lender or by an accountant who is a member of any of the bodies listed. AAT was not previously listed, we pressed the FCA to change this, a public consultation was held and AAT has now been added to the approved list.
Full details are available at 3.2 -3.9 here: https://www.fca.org.uk/publication/handbook/handbook-notice-64.pdf
Re: Wanted: Any Level 3 Osborne/BPP AQ2016 books for sale, please?
Hi I have the full set( Osborne tutorials and workbooks) used plus one Kaplan Synoptic exam kit, bought last August. 50 pounds including postage
Let me know if you are interested
Let me know if you are interested
Re: Hello there, Can I have your support regarding treasurer role of charity if anyone have previous exp
Hi
Ive covered as treasurer of a very large scout group in the past. I would recommend that you try to undertake that role before you consider doing the district job if possible. But if you dont have that option consider the size and scope of the district as they seem to be ever expanding and you will be expected to give support to the group treasurers and will also quite likely have some charity commission reporting to do and potentially the gift aid claims (both of which you have mentioned in other posts). You will also be involved in reporting upwards to county level, who ultimately feed in to national.
Certainly start with reading the links on the other two queries Ive responded to. Plus I would have a chat with Head Office as they do provide some training (about both what is required in role, but about the wider scout movement) and dont be afraid to ask for help from other district treasurers.
You should also be involved in applying for grants for some of the groups. Some run fairly autonomously, but others you have to deal with and have them reporting in quarterly etc (the guidance from above should tell you all that). There will be a lot of reading initially.
Be prepared (ha, see what I did there) for a lot of meetings. But the job is what you make of it and when I was involved we increased a troup from 20+ to 100+, got two lottery grants and numerous local grants, took on new premises and all that entailed and got them fundraising as if their lives depended on it. Was fun, hard work but rewarding.Slightly more politics at district level!
Good luck and enjoy.
Ive covered as treasurer of a very large scout group in the past. I would recommend that you try to undertake that role before you consider doing the district job if possible. But if you dont have that option consider the size and scope of the district as they seem to be ever expanding and you will be expected to give support to the group treasurers and will also quite likely have some charity commission reporting to do and potentially the gift aid claims (both of which you have mentioned in other posts). You will also be involved in reporting upwards to county level, who ultimately feed in to national.
Certainly start with reading the links on the other two queries Ive responded to. Plus I would have a chat with Head Office as they do provide some training (about both what is required in role, but about the wider scout movement) and dont be afraid to ask for help from other district treasurers.
You should also be involved in applying for grants for some of the groups. Some run fairly autonomously, but others you have to deal with and have them reporting in quarterly etc (the guidance from above should tell you all that). There will be a lot of reading initially.
Be prepared (ha, see what I did there) for a lot of meetings. But the job is what you make of it and when I was involved we increased a troup from 20+ to 100+, got two lottery grants and numerous local grants, took on new premises and all that entailed and got them fundraising as if their lives depended on it. Was fun, hard work but rewarding.Slightly more politics at district level!
Good luck and enjoy.
Re: how does gift aid work?
You dont pay HMRC for the donation. You claim the gift aid element from HMRC. You need to sign up online for the gift aid service with HMRC although I suspect this has been done already.
You can go back, used to be 4 years, been a while since Ive been involved.
What type of charity is it?
This is only from the gov.uk site but will give you a start.https://www.gov.uk/claim-gift-aid
You can go back, used to be 4 years, been a while since Ive been involved.
What type of charity is it?
This is only from the gov.uk site but will give you a start.https://www.gov.uk/claim-gift-aid
Re: Career guidance required
Have you tried looking for local branch events? I know that Swindon has one in October on progressing after AAT.
Re: AAT studies
Thanks amurray for the feedback. I only work part-time currently. My youngest daughter will be going to secondary school in September. The Business and HR course is one full day and 1 evening a week and the AAT level 2 is 1 evening a week at college. I plan to reduce my work hours to 2 days a week. My husband is happy to support me in my studies and willing to fill in the gap wrt to our daughter etc. I was studying 2 evenings a week this year already at college, the only thing that probably worries me the most is not knowing what the workload will be for either course. Maybe after my first year, I will have a better idea of what to expect and make a decision of where I want to focus my energy if I can't manage both.It sounds like you have a great support structure in place to consider both options of study, and as you mentioned you can always review after your first year. I would just say; don't forget some 'YOU' time!
that has been my most hardest thing to adapt to whilst studying AAT.... the first two levels (Levels 2 & 3) I really struggled to have any 'me' time, its only since I decided to take a more relaxed journey to Level 4 where I have enjoyed some more social time... Just wish I had been able to adapt to this approach alot earlier. Best of luck to you! - there is a fantastic support Network on these forums and also on Facebook. 
Re: Career guidance required
Hi @Chris_Woods , we agree with @CSan89 our branches would be a great place to meet AAT professionals who would be able to offer more detailed advice, you can find your nearest branch here: https://www.aat.org.uk/branch-listing-uk
Are you thinking about further study (Chartered for example) or more along the lines of how to progress in an accounting role?
Are you thinking about further study (Chartered for example) or more along the lines of how to progress in an accounting role?
