running your business in the cloud: freeagent
DESCRIPTION
'The essentials of business accounts' presentation by Matt Perkins, Head of SME Engagement at FreeAgent, for the 'Running your business in the cloud' event on Wednesday 17th July.TRANSCRIPT
Let’s talk about accounting
I’m a photographer - not a salesperson
I’m a graphic designer - not an accountant
Why is accounting such an issue?
The disconnect
• Accounting seen from a compliance point of view
• Bookkeeping tools limited for small businesses
• Business owners and accountants disconnected
change “technology changes; people don’t”
Deb Shultz
“Cloud” innately means...
collaborative
real-time
connected & present
From static to mobile
essential, not optional
E-invoicing
Companies House
Banks
Accountancy HMRC
Financing etc
Ecosystem
E-commerce
Web apps, APIs
What does that mean practically?
We have the technology
We just need to change the mindset!
The fundamental truth…
Whatever you want to achieve with your enterprise, you can only do it
with a viable business model.
All businesses are the same
All businesses are the same
The basic business flow Your Business
Cash in: from sales and other income
Cash out: in wages, bills and HMRC
Profit Cash out: to HMRC
Business viability
Cash in: from sales and other income
Cash out: in wages, bills and HMRC
Pricing Costs Volume Efficiency
What components make up a Sales flow?
Quote price for product or service
Sales flow
Take order
Complete order
Take payment
Find customer (or they find you)
File paperwork for compliance (eg: VAT due) Pay taxes due on sale/s
Invoice customer
Chase payments consistently
Tips to keep on top of your finances
Invoice in an inconsistent manner
Tips to keep on top of your finances
Keep track of taxes (inc VAT) owed
Tips to keep on top of your finances Keep track of business expenses incurred
Tips to keep on top of your finances Review your financial position regularly
