Helping your Clients out of Recession

Helping your Clients out of Recession

www.ifa.org.uk

Richard SimmsManaging Director, FA Simms

12.40 - 13.20

0845 200 8271www.fasimms.com

HELPING YOUR CLIENTS OUT OF RECESSION

29 APRIL 2014BY

Richard Simms FCA


PRESENTATION OVERVIEW (1)

• Compliance v Consultancy• Customer Service• Non-bank funding• Marketing


PRESENTATION OVERVIEW (2)

• Management accounts• Cash flow indicators• Solvent liquidations


Compliance v Consultancy

(1)• Accountants are now the people

directors turn to for business advice

• Role of the accountant is adapting to include a consultancy role


Compliance v Consultancy (2)

• Directors are looking for an accountant who has an opinion on their business not just their books

• Creating a closer relationship will benefit both parties


Customer Service

• Not just something for the retail industry

• Take more care of clients leading to better relations

• Turn a small fee into a larger fee


Non-Bank Funding (1)

• Growth in non-bank funding• Alternative sources of finance• Peer to peer lending• Grants and Start Up funds


Non-Bank Funding (2)

• Always seek security if re-investing personally

• Last minute protection is too late!


Marketing (1)

• Increase in competition from both old and new businesses

• Find clients unique selling point (USP)

• Extend reach into new markets


Marketing (2)

• Regular market sector & competitor analysis

• Always need to stay ahead of the competition

• Can any of your clients help each other?


Management Accounts• How many of accountants

currently do management accounts?

• Is there benefit to management accounts?

• Is the pricing different to annual accounts?


Benefits of Management Accounts

• Keep a closer eye on the cash flow

• Spot any issues early• Create a closer relationship with

clients


Cash flow indicators• There is an inherent lag

between an underlying problem and evidence of it showing up in cash flow


Cash flow indicators

• Drawing dividends v drawing a salary

• Year end review of director’s loan account position



• Directors/shareholders constantly propping up the company personally


Cash flow indicators• Threat of legal action or steps

taken by creditors to collect unpaid debts

• We expect businesses to become less patient as the marketplace picks up



• Constant reliance on the company’s overdraft

• Need for funding for growth



• Dealing with an employee dispute/tribunal


Cash flow indicators-What you can do

• May need to think for your client• Be pro-active• Stay informed


Members’ Voluntary Liquidation

• Can be straightforward• Tax advantages• HMRC clearance• Fast distribution


HELPING YOUR CLIENTS OUT OF RECESSION

29 APRIL 2014BY

Richard F Simms FCA

Documents

Helping your Clients out of Recession