Archive for the ‘Uncategorized’ Category

November 20, 2012

It never ceases to amaze me how many small businesses spend vast sums on their accounting. In my experience as an accountant and a  franchisee auditor, I see countless small businesses with turnover of less than half a million, spending  £1,2 or even £3k on their year end alone. This goes straight to the bottom line and against their working capital!

At CBCS, we recognise that many small and even medium sized businesses pay too much for their year end accounting. Frequently the process is unnecessarily complicated and drawn out over many weeks as your accountants carry out their checks and analysis of your accounts. Much of this is not needed.

Why spend a fortune using a firm of Chartered Accountants when we can help you prepare your accounts for much less?

We offer a range of Financial Management, Accounting and Bookkeeping services designed to make life easier for you. We can deliver your accounts quickly and accurately to prescribed deadlines and for a fraction of the price:

BOOKKEEPING and YEAR END ACCOUNTING

Suitable for a small Ltd company or sole trader, with only a small number of receipts and payments, supported either by spreadsheet or basic financial packages (e.g. Sage Instant Accounts, Line 50, Quick Books). You require you accounts to be prepared for Companies House and HMRC submission only.

We can prepare your documents for you, either by visiting and collecting on-line. As only a relatively short amount of time will be required to prepare your documents, the charge per hour would be nominal and agreed in advance. Generally the maximum cost of this package will be less than £500. This basic package is designed to help you fulfil your legal obligations and provide you with headline figures for your years trading. There is no need for a comprehensive all singing all dancing accounting service and you can therefore save hundreds of pounds by choosing us to carry out this service.

We also offer two more comprehensive packages , which obviously do cost more, but they provide a great deal more than just your year end accounting. These packages are designed to be flexible, with some overlap. It may be you require a mix of all three for your unique circumstances or that you have more specific requirements, for example a variance analysis of your costs for the last five years, a re-calculation of your fixed asset register, or a thorough scrutiny of your credit control policy. We are happy to discuss all your requirements and to design a financial management package just for you.

Our Principal Advisor, Chris Burton has over twenty- five year’s experience of generating accounts for submission to Companies House. As well as running his own businesses, he has headed up the Finance Team for several companies and is a qualified member of the Institute of Credit Management. If you ask us to provide your financial management requirements, you can be assured of a prompt, accurate and reliable service, with huge potential savings on your costs.

Do you want to know more? Please visit our website: www.cbcservices.org or contact me directly on 07759248490/01428 743932 or e-mail me at: chrisburton@cbcservices.org

 

 

 

 

Accountancy Fees a short poll…

April 2, 2012

I am carrying out a quick poll just to see how much small businesses are being charged for their accounting. This is not just your year end, it is also your payroll year end, your HMRC filing obligations both monthly and annually , budget advice, cash-flow advice, funding assistance, credit management and anything else your accountant helps you with.

I suspect the answers will make interesting reading….

 

 

 

‘CBCS make a compelling case to audit…’ (a UK based franchisor)

March 20, 2012

Spare a thought for your poor franchisees…

In this economic climate, times are tough for all of us. We all have to tighten our belts and your franchisees in particular have to scrutinise the spending of every penny. When trading is poor and the bank balance is shrinking fast; people do the strangest things. They start to think about where they can save it, which bills can they delay paying or who can they avoid paying….  Where can they hide the money, so that they don’t have to declare it? Suddenly those healthy and consistent sales returns from your franchisees can lower dramatically…

Does this sound familiar?

The problems that cash strapped or profit starved businesses face is very common. There is hardly a network of franchisees in the country where this is not an issue. It is highly likely that your business is suffering diminished returns as a result.

So how do you resolve this?

The obvious route is to chase the franchisee hard and question why their returns have reduced so markedly… But if they are trying to hide this information from you in the first place, this is unlikely to be successful. There is another solution.

Appointing a third party auditor to visit your randomly selected franchisees, will have a two-fold effect. On the one hand; just by announcing that an auditor has been appointed will result in a 3% increase in sales declared (US auditor source) and that is even before the auditor has visited. On the other, following an audit, on average we recover sufficient undeclared revenue to cover 95% of our fees, which are by the way, just £500 per audit (standard price, subject to variation).  

Our auditing visits are designed to make the franchisee feel comfortable about our attendance. We want them to feel that there is a mutual benefit to our being there and that we can genuinely assist them with their problems as well as uncover issues which need to be reported. Often this creates an opportunity for the franchisee to come clean and to make a fresh start with you; with any highlighted issues which you can assist with coming to the fore.

We offer a variety of different auditing solutions. The ‘Standard audit’ involves a maximum five hour visit to their premises, alternatively, we can carry out a ‘Take Away ‘Audit (where we visit, remove the files and return them once the audit is completed) or a ‘Virtual’ Audit (where records are passed to us on-line) We also offer a Franchisee Business Review service, where you are picking up the cost of our assisting your franchisee, we carry out an audit behind the scene. We even offer an International auditing service; often your overseas franchisees are the worst offenders! In each case, we will then generate a report to you within 48 hrs of the audit.

The report will highlight issues which the franchisee needs to address and of course undisclosed sales. You can then approach the franchisee and request payment of your missing fees.  We can take on the role of ‘Enforcer’, should this be required, where we will chase the franchisee to make payment, based on the findings in our report. 

Of course much of this is dependant on your franchise agreement and on what authority you have to access your franchisees financial records. Assuming this authority is in place, you can feel comfortable that engaging the services of CBCS to carry out your auditing requirements will result in increase revenue. 

CBCS offer the complete package of auditing and financial support and training solutions for your franchisees. We can be there at the outset, providing training as part of your new franchisee training course, we can provide additional financial training for your existing franchises and of course we can be sourced as a provider of support for the franchisee’s financial and administrative issues.

If you would like to know more, please do not hesitate to contact me on 01428 743932/ 07759 248490 or by e-mail on chrisburton@cbcservices.org 

Further information is available on our website: www.cbcservices.org

 

We look forward to hearing from you.

 

 

Franchisee Financial Training

March 12, 2012

http//:www.cbcservices.org/Training–and–Support.php

Often overlooked but critical to the success of your and their business. your new franchisee will walk away from their franchise training week with everything they need to start trading. Their business will soon be up and running and within a few weeks, they will start to incur their first ongoing trading costs. What they do with them and how they record them, pay them and prepare for them, is critical to their cash flow and profit cycle.

Of course, you may already offer an in house training solution to financial issues…. But in a week ( or however long your training course is) of often detailed product, administration and sales and marketing training; financial training can get buried in the detail. Sub -contracting an external partner to provide this resource will make this critical aspect of business stand out for the new franchisee.

We can work with you to establish a bespoke financial training seminar to form part of your new franchisee training course; including the development of a financial guidebook for new franchisees.

Would you like to know more?

How are your overseas franchisees / master franchisees performing?

March 9, 2012

Do you have issues receiving info, sales or MSF’s from your non-UK franchisees & if so how are you trying to resolve this? Receiving information & /or payment from far flung places can be much more complex than receiving the same from UK franchisees & often because revenue levels are lower, they can be overlooked. Of course, assuming you had the resources to chase your overseas franchisees, could you afford the cost of verifying how they are performing?

Looking to see how big a problem this is so would value your comments..

Franchise audit – 6 good reasons to start auditing today

February 2, 2012

1) Improved Revenue and Profitability. Auditing encourages your franchises to declare their revenues correctly; where previously you may have missed out on fees and profit.

2) Outsourcing to a trusted and professional business partner, takes away the contradiction between you and your franchisees. They will carry out the audit, as per the franchise agreement, allowing you to carry on supporting your franchise network, without the ‘we don’t trust you contradiction.’

3) The temptation to generate additional undeclared income for a franchisee is enormous, especially in these troubled times. It they know you are watching them; they are far less likely to try to defraud you.

4) The benefit of a partnership between the auditor and the franchisor creates a greater understanding of the requirements of both the franchisee and the franchisor. The auditing process frequently highlights areas where improvements can be made to the benefit of both of the franchise parties.

5) Cost. It need not cost you anything. If you can identify franchisees who you suspect our under-declaring, you can recover the cost of one or even multiple audits from just one visit.

6) Critical Mass. If your business is growing, the chances are that you are using your franchise recruitment fess to support your business. When you achieve Critical Mass, the revenue derived from your management service fees will reach a point where your business is self sustaining and gross profit from each and every new franchisee will go straight to your bottom line. If you audit you increase the prospect of achieving Critical Mass faster.

Outsourcing your audit to CBCS, gives you consistent and unbiased results; allowing you, the franchisor to concentrate on providing support to your franchisees. We would work in partnership with you to establish a bespoke audit method, which would work best with your franchisees and provide you with the reassurance that your franchisees were in compliance.

Because we can tailor services to suit you and because we are small, we can achieve all this at a surprisingly low cost to you and that’s the crunch in these difficult times.

Would you like to know more?

Please contact me directly on 07759 248490/01428 743932 or via e-mail at chrisburton@cbcservices.org. Alternatively you can access our website at http://www.cbcservices.org and complete our online form.

We look forward to hearing from you.


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