lady with camera - creative business
By Katie Business Advice • Startups 0 Comments

Return on Marketing Investment

lady with camera - creative business

Calculating return on investment (ROI) on marketing activity has been a longstanding challenge for businesses.

Return on marketing investment is a metric used to measure the overall effectiveness of a firm’s marketing strategy in order to help the management team to make better decisions around future marketing investments.

Marketing activity adds value to different business functions in different ways. Your sales team might define marketing value in terms of revenue growth whereas your operations team might view it in terms of cost management or pricing strategy. As such, you should map out what value means to each function and create metrics that measure the impact of marketing for each part of the business.

In order to track and measure ROI on marketing, you need to know how much you are spending on it – this is where your marketing budget comes in. Set a marketing budget at the start of the year alongside clear objectives which focus on areas such as new client acquisition, client retention, brand and reputation development, etc.

It can be helpful to explain the marketing budget to colleagues.

By providing visibility on how each spend in the marketing budget aligns with the firm’s key strategic objectives, you can educate your colleagues and establish the credibility of your marketing function.

It is often necessary to educate your colleagues in relation to the uncertainties of marketing. Just because the firm invests £100 in marketing doesn’t necessarily mean it will make £1,000 in new sales. There are various uncontrollable factors which influence the outcomes of marketing activities and you should take the time to help your colleagues to understand this.

You can then create some KPI’s which illustrate the return on marketing investment against each strategic objective and also measure how the marketing investment has delivered value to each business function in your firm.

If your business has a client relationship management (CRM) system you can track how many customers your marketing campaign has targeted. You can also track the conversion rate – i.e. what percentage of customers who were marketed to by your firm purchased from you each quarter.

Marketing is a long-term investment in developing relationships with potential customers. The ROI may take several months to start coming through. As such your reporting should focus on longer-term measures (i.e. quarterly rather than monthly measures). As time goes by you should be able to show how business growth followed each marketing campaign.

Need more information?

A&C Chartered Accountants have helped many digital marketing businesses. We offer a wide range of services which are unique to your business and advice to ensure you are tax compliant and reaching your full potential. Between our team of accountants, we have a wealth of experience in all sectors; from restaurants, fashion brands, fitness centres and many creatives startups. The team work hard to ensure they create smart and effective tax-efficient solutions for your business to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively, you can email us using the form below and we will contact you as soon as possible.

Our fantastic team at A&C Chartered Accountants are here to help.

Contact us below

Fields marked with an * are required





    environmentally friendly business
    By Katie Business Advice • Startups 0 Comments

    Become an environmentally friendly business

    There is a general increase in environmental awareness and businesses are expected to play a part in the drive for reduced emissions.  Environmental issues have moved to the top of the agenda since recent climate change demonstrations by people across the world as part of the “extinction rebellion”. This included protests involving thousands of people across London.

    All businesses, regardless of their size, have a part to play when it comes to reducing emissions, recycling and reducing waste. Society is becoming increasingly focused on environmental issues and if businesses want to attract and retain the best talent, they need to move with the times and get involved.

    environmentally friendly business

    Do a waste audit

    Before you start creating plans to reduce waste, you need to get a sense of what’s in your firm’s waste stream. By conducting a simple audit of waste across your business, you can identify the main areas that need attention and create a strategy to start tackling the biggest issues. Some waste management companies offer a service where they will assess your firm’s waste output and create a report, which you can use as a starting point for your waste-reduction strategy.

    Printing-related waste

    Most businesses produce a lot of paper from their printers. Very often, this ends up being shredded. To reduce your paper-related waste, start by encouraging your team to read emails on screen rather than print them. Where documents do need to be printed, take actions such as setting your printer’s default settings to double-sided to eliminate as much waste as possible.

    Food-related waste

    Plastic or paper cups are another culprit in the office environment. By providing water fountains and encouraging employees to use refillable bottles or ceramic cups, you can drastically reduce the amount of waste produced. If you provide paper plates, replace them with reusable ceramic plates.

    Encourage recycling

    Introduce recycling bins to your office(s). Label them clearly and consider appointing a recycling company to collect and empty them regularly.

    Cut your electricity usage

    Cutting your electricity usage not only reduces the firm’s electricity bills but has the added benefit of being good for the environment. Simple changes like switching to low voltage LED light bulbs throughout your office and using sensors and timers to switch lights off when they are not in use can all contribute significantly to reducing your firm’s carbon footprint.

    Training

    Once you have created your waste reduction strategy, it’s important to invest time in sharing the strategy with your team in order to reduce waste company-wide.

    What can businesses do who deal with so much paper?

    As accountants we used to deal with so much paper. Client papers would mount up and we knew something needed to change. Our team have made the conscious effort to move all our accounting systems online and all communications with clients through email. Using cloud accounting software like Xero and Sage Business Cloud have helped make our accounting firm become more environmentally friendly.

    Another big way is having a paper bin by each employee’s desk and in the kitchen. This means when we do need to use papers on the odd occasion, we make sure it does get recycled. We also have a plastic bin for any plastic food waste, but also ensure we keep this to a minimum. There is so much we can do as small business owners and it is so important as a business to be more friendly.

    Please feel free to contact our team if you would like to know more about what we do to stay environmentally friendly and what you can do. Alternatively, you can email us using the form below and we will contact you as soon as possible.

    Need more information?

    Contact us below

    Fields marked with an * are required





      Self-employed florist
      By Katie Business News • Startups • Tax Advice 0 Comments

      Limited Company or Self-employed – which is right for my business?

      Self-employed florist

      Limited Company or Self-employed – which is right for my business?

      As you start on your own there are many things to consider. One of the important questions to really think through is whether you will operate as a self-employed sole trader or set your business up as a limited company. Below we will highlight some of the differences of each. If you need anymore guidance your accountant can guide you further.

      Self-employed

      Setting up as self-employed is the quickest option as it requires minimal effort as opposed to setting up as a limited company. You can do this all online and all you need to do is register for Self-Assessment. Therefore, it is the most popular option amongst new business owners in the UK. Day-to-day it is important to get into the habit of keeping accurate records of your invoices, receipts and expenses.

      The advantage of being self-employed is that you can take as much money as you want from the business. However, the downfall of this is when you are self-employed you as an individual are the business. This means if the business occurs any debts or for any reason fails, you are personally liable for this.

      If you are self-employed, you have until the 5 October of the following tax year to tell HMRC that you are trading. This means that if you began trading in June 2018, you have until 5 October 2019 to tell HMRC, should you want to. You will complete your self-assessment tax return and tell HMRC what profit you have made during that tax year and then you pay tax on this profit. You will need to submit a self-assessment tax return by the 31 January after the end of the tax year.

      Limited company

      If you decide to trade through a Limited Company, you will need to create the Limited Company before you are able to do anything. Setting up as a Limited Company is not as straightforward as registering as self-employed. Your Limited Company will need to submit its own company tax return and accounts to HMRC as well as a shorter set of accounts to Companies House both within nine months of its year end. As a Director, if your own income will give rise to a tax liability, you will need to complete a self-assessment tax return as well.

      When you trade through a Limited Company, you should not mix personal expenditure with that of the company. This is because the Limited Company is a separate legal entity to yourself. As your Limited Company will have to complete its own company tax return, it should come as no surprise that it will also have its own tax liability. The Limited Company will pay corporation tax, and this will be due nine months after its financial year end. An advantage of setting up this way, however, is that you could pay considerably less tax than you would if you were self-employed.

      A Limited Company doesn’t have a personal allowance however, so it will begin to pay tax from the moment it makes £1 in profit. But then there is your personal income that you will extract from the Limited Company in the form of a salary and dividends.

      A limited company is classed as a separate legal entity to its shareholders and directors. This is the biggest difference between the two ways to set up your business and is an important note to consider. Unless any fraudulent activity takes place, you as a director will not be held personally accountable for any financial difficulties the company finds itself in. Many businesses favour this as it helps to reduce the financial risk to those individuals involved with the company.

      Need more information?

      A&C Chartered Accountants have helped many businesses with setting up as self-employed or a limited company. We offer a wide range of services which are unique to your business and advice on the best way to set up. As chartered accountants we have a wealth of experience in all sectors between our team. From restaurants, fashion brands, fitness centres and many creatives start their business correctly and ensure they are staying tax compliant. The team work hard to ensure they create smart and effective tax-efficient solutions for your business to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

      Our fantastic team at A&C Chartered Accountants are here to help.

      Contact us below

      Fields marked with an * are required





        business spreadsheets explaining VAT
        By Katie Making Tax Digital • Startups • Tax Advice 0 Comments

        The UK VAT rate explained

        Firstly, what is VAT?

        VAT, or Value Added Tax, is levied on the sale of goods and services in the UK. It is a type of ‘consumption tax’ because it is charged on items that people buy. It is also known as an ‘indirect tax’ because it is collected by businesses on behalf of the Government. However, it is important to remember that it is not charged on products of services. Duty-free goods are exempt, and this explains why it can be known as destination-based tax, meaning the tax rate is normally based on the location of the consumer and the sales price. In the UK, the tax plays a huge role in generating the third largest revenue for the government behind Income Tax and National Insurance.

        Does your business need to register for VAT?

        Business owners need to be fully aware of the value-added tax (VAT) and all other things related to it no matter what. The value-added registration threshold in the UK starts from £85,000. Therefore, when your turnover is more than this amount you need to make sure you are VAT registered. You can also register your business on a voluntary basis. It is important to remember as a business owner, that this figure is more than likely to change every so often. Businesses need to consider the great benefits that come with registering even if your VAT return is way below the threshold.

        Responsibilities for VAT-registered businesses

        • You must charge VAT on your goods or services.
        • Likewise you may reclaim any VAT they’ve paid on business-related goods or services.
        • You must report to HM Revenue and Customs (HMRC) the amount you have charged and paid.

        It is important to note that if you have charged more than you have paid; you must pay the difference to HMRC. Alternatively, if you have paid more than you have charged, you are eligible to reclaim the difference back from HMRC.

        The UK VAT rates for 2019  

        • The Standard Rate is 20% and it applies to most goods and services that are taxable in the UK
        • The Reduced  Rate is 5% and this applies to some goods and services such as children’s car seats and home energy.
        • The Zero Rate currently stands at 0%. Zero-rated goods and services include children’s clothes and most food items. Despite their being no charges on zero  rates, the sale of goods and services under this category should always be recorded by businesses.

        Deadlines for VAT 

        It is vital that you do not miss the deadline. Your accountant will ensure this does not happen. For submission, the deadline is due on the first calendar month including the seven days duration following your VAT end period. Every business is different, and your period end can be monthly, quarterly, twice a year or annually.

        Making Tax Digital for VAT 

        From April 2019, all VAT-registered businesses with a taxable turnover above the threshold (£85,000) are now required to keep digital VAT business records. Every business with a turnover exceeding the current threshold will have to now ensure that their records are kept digitally. Businesses with a taxable turnover below the threshold are welcome to sign up on a voluntary basis for MTD.

        Our team at A&C have helped many existing and new clients prepare for MTD. Ann, our dedicated client manager uses the latest Making Tax Digital compatible software to ensure you are effectively prepared for MTD.

        A&C Chartered Accountants in Manchester and London offer a wide range of services that relate to all aspects of VAT. A&C can provide in-house VAT training, alongside tax compliance visit support. The team provide a vast array of innovate solutions to give clients the peace of mind they need.

         

         

        startup business diagram
        By Katie Business News • Startups 0 Comments

        How can an accountant help a start-up business?

        startup business diagram

        When you first think of an accountant you think of them being very different to you and your business. Well that is not entirely true. Many accountants have either been a start-up themselves or have a wealth of experience helping business start-up. Accountants no longer just sit behind a desk all day; they are genuinely interested in what you do and are just as passionate about helping you succeed.

        Getting you off on the right foot from the start is crucial. Hiring an accountant to make sure you are tax compliant and have a healthy cash flow will allow you to be able to put more energy into what you do best.

        Financial forecast and control

        As a business starting up you are about to embark on an incredible journey of doing something you love. However, to keep the business alive you need to ensure you have a healthy cash flow. A financial forecast produced by your accountant will help safeguard your finances and plan a prosperous future.

        It is vital to be as realistic as possible and this is where your accountant comes in. You do not want to underestimate or overestimate the revenue your business will generate. Your accountant will work with you to create an accurate financial forecast to set your business up the right way. As a start-up it is useful to use cloud based accounting software like Xero, who can be as adaptive as you are. Having everything online so you keep all your invoices and expense claims up to date is crucial from the start. Xero also allows you to see your bank account in real time.

        Make sure you are tax compliant

        Accountants are always one step ahead of changing tax legislation’s and start-up businesses can often benefit from these. Thinking about tax is not what you want to be doing when starting up. Let your accountant take care of all your tax needs to ensure you are tax complaint. An accountant will minimise any penalties that could arise. You will never need to be concerned about submitting a tax return before the deadline!

        Construct a business plan together

        If you do not already have a business plan or need further guidance your accountant can help you. For investment, a strategic though out business plan is crucial.

        Your favourite agony aunt

        Starting up can be lonely, but it does not have to be. Alongside networking events an accountant is a great person to talk to. It is fantastic when a client can ring up and to just simply get things off their chest. Consider your accountant as your agony aunt!

        Need more information?

        We love nothing more than learning about new start-ups and helping you get off on the right foot! We offer a wide range of services which are unique to businesses who are just getting going! As start-up accountants we have a wealth of experience in all sectors between our team. From restaurants, fashion brands, fitness centres and many creatives start their business correctly and ensure they are staying tax compliant. The team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

        Our fantastic team at A&C Chartered Accountants are here to help.

        Contact us below

        Fields marked with an * are required