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Wood and Disney leading the way in Best Business Practice

Mon, 03 Mar 2025 10:00:01 GMT

Wood and Disney's professional best practice recognised with another award!

Wood and Disney pride ourselves on leading the way in Best Business Practices . Our professionalism and high ethical standards, delivering expert financial and business advice and services to our clients, has been recognised many times, most recently in 2024 when we won the national award for Client Service in the Accountancy Excellence Awards . Now the highest standards we set for our professional relationships with our suppliers and business partners has also been recognised.

Wood and Disney are delighted to announce they have been awarded the Gold Award for the high standard of our payment practices.

What is the Fair Payment Code?

The Fair Payment Code (FPC) sets standards for payment practices and best practice and is administered by the Small Business Commissioner on behalf of the Department for Business and Trade (DBT).

The Fair Payment Code awards businesses based on three thresholds:

The Bronze Award is awarded to those paying at least 95% of all invoices within 60 days
The Silver Award is awarded to those paying at least 95% of all invoices within 60 days, including at least 95% of invoices to small businesses within 30 days
The Gold Award is awarded to those paying at least 95% of all invoices within 30 days

Wood and Disney have been awarded the highest level - The Gold Award

Why is the Fair Payment code needed?

The Fair Payment Code is designed to address the longstanding issue of late payments, which has been a major challenge for small businesses. By enforcing stricter payment terms and promoting a culture of prompt payments, the Code aims to alleviate cash flow problems that often hinder small firms' operations and growth prospects.

The Department for Business and Trade published a report focusing on “Payment and Cashflow”, in 2023, highlighting the damage done to the UK economy (https://assets.publishing.service.gov.uk/media/65df15d2b8da630f42c86223/the-prompt-payment-and-cashflow-review-2023_.pdf)

The reports key findings are:

In 2022, Small and Medium-sized Enterprises (SMEs) were owed on average an estimated £22,000 in late payments.
FSB research estimates that 50,000 SMEs go out of business each year referencing cash flow as a cause.
Intuit Quickbooks estimates that 56.4 million hours are wasted each year by businesses chasing late payments, across cross the UK.
Xero estimate that late payments cost small businesses £684 million each year.

Why do Wood and Disney consider prompt payment so important?

Wood and Disney lead the way in delivering best business practice. We believe that we cannot advise our clients on best practice, if we do not adhere to the highest ethical and professional standards. We dedicate ourselves to delivering to our clients the most expert and best, business and financial advice to help them each achieve their goals and aspirations. In October 2024, Wood and Disney won the national award for Client Service in the Accountancy Excellence Awards. We also uphold those standards in the way that we run our business. We want our suppliers and business partners to thrive and trust in doing business with us.

Why?

We get the best possible customer service from our suppliers and business partners, because they know that we treat them professionally, with respect and that they will be paid promptly.

Many of our suppliers are local businesses. Supporting local businesses is important to us, as a thriving local economy will benefit us all.

We receive many referrals from our suppliers and business partners enabling us to grow our business. Many of our suppliers have themselves become long-standing, valued clients.

Trust and Reputation. We have worked tirelessly over the years to build a reputation for financial expertise, professionalism and pragmatic, experience backed, business advice. Our reputation and the highest standard of service we deliver means that our clients listen to us and trust the advice we give them. How we treat our suppliers is a key part of building a reputation for professionalism in the business community. We will not do anything that damages that reputation.

Find out more about how Wood and Disney can help you lead the way in Best Business Practice .

Call us on 012026 233170

Email on info@wood-disney.co.uk

Or use the form below , and we'll get back to you.

Managing Exchange Rate Risks for Business Growth

Thu, 04 Apr 2024 10:30:25 GMT

A Simple Guide to Exchange Rate Risk

The world is more connected than ever before. We order clothes from across the globe, vacation in exotic locations, and invest in companies on foreign stock exchanges. This interconnectedness brings fantastic opportunities, but it also introduces new challenges, one of which is exchange rate risk.

Imagine you're planning a trip to Thailand. You head to the currency exchange and swap your pounds for Thai baht. That exchange rate determines how many baht you get for your pound. But what if, by the time you reach Thailand, the exchange rate has changed? Maybe you could have gotten more baht for your pound if you'd waited. That's the essence of exchange rate risk: the potential loss or gain that arises from fluctuations in the value of one currency relative to another.

This risk isn't just for tourists. Businesses that import and export goods, investors with overseas holdings, and even companies with international branches all face exchange rate risk.

Let's delve deeper into the three main types of exchange rate risk and how they can impact your finances :

Transaction Risk: This is the most straightforward type of risk. It occurs when the exchange rate changes between the time a transaction is agreed upon and the time it's settled . Imagine a company agrees to buy supplies from a Chinese manufacturer for $10,000 USD in a month. If the Chinese yuan weakens against the US dollar during that month, the company will have to pay more dollars to cover the same amount in yuan.

Translation Risk: This risk applies to companies with assets and liabilities (debts) denominated in foreign currencies. Let's say a UK company has a factory in Germany. If the euro weakens against the GBP, the value of the factory, measured in pounds, will decrease on paper, even if the factory itself is running smoothly. This is because the euro you used to value the factory is now worth fewer pounds.

Economic Risk: This is the broader impact of exchange rate fluctuations on a company's overall operations. If a company exports goods to a country with a weakening currency, their products become more expensive for foreign buyers. This can lead to a decrease in sales and profits. Conversely, a strengthening domestic currency can make a company's exports cheaper abroad, potentially boosting sales.

The foreign exchange market, where currencies are traded, is a complex beast influenced by a multitude of factors.

Here are some of the key players that can cause exchange rates to fluctuate:

Interest Rates: Countries with higher interest rates tend to attract more foreign investment, which can strengthen their currency.

Inflation : If inflation (the rise in prices) is higher in one country compared to another, its currency tends to weaken as its purchasing power diminishes.

Economic Growth: A strong and growing economy typically leads to a stronger currency, as investors become more confident in that country's future.

Political Events: Political instability or uncertainty can weaken a country's currency as investors become wary of putting their money there.

So, how can you navigate this ever-changing currency landscape and mitigate exchange rate risk?

Here are some key strategies:

Hedging : This involves entering into financial contracts that lock in an exchange rate today for a future transaction. Imagine you're a company about to import goods from Japan in three months. You can use a forward contract to guarantee the exchange rate at which you'll buy yen in three months, protecting yourself from any unfavourable fluctuations.

Diversification : Don't put all your eggs in one basket! By spreading your investments or business operations across different currencies, you reduce your exposure to any single currency's fluctuations.

Natural Hedges: Sometimes, a company's business activities can provide a natural hedge. For example, a company that both exports and imports goods from the same country might benefit from opposing currency movements. If the foreign currency weakens, their exports become cheaper, potentially offsetting the increased cost of imports.

Monitoring and Forecasting: Staying informed about economic trends and political events that could impact exchange rates can help you anticipate potential risks and adjust your strategies accordingly. There are many resources available online and from financial institutions to help you stay informed.

Understanding and managing exchange rate risk is crucial for businesses and investors operating in a globalised world. By familiarising yourself with the different types of risk, the factors that influence exchange rates, and the available mitigation strategies, you can navigate the currency landscape with more confidence and protect your financial bottom line.

Wood and Disney have built relationships with trusted FX advisors , so if you would like to lower the risks and costs relating to your FX activities please contact us.

Hold That Wallet Tight

Wed, 31 Jan 2024 09:09:59 GMT

Why Strategic Cash Retention Trumps Cash Flow in a Recession (A Deep Dive)

The winds of recession are whistling through the economic landscape, sending shivers down the spines of business owners and their teams alike. Budgets are scrutinised under magnifying glasses, expense reports undergo vigorous interrogations, and growth projections are revised with pessimism. In this climate of uncertainty, the mantra "cash is king" resonates louder than ever. But is focusing solely on that cash flow forecast the wisest strategy during an economic downturn? The answer, I believe, lies in a more nuanced approach: strategic cash retention .

While monitoring cash flow is undoubtedly crucial, prioritising intentional, thoughtful cash preservation can elevate your business from survivor to thriver in these turbulent times. This article delves deep into the reasons why strategic cash retention should be your recessionary battle cry, equipping you with the knowledge and tactics to navigate these choppy waters and emerge stronger on the other side.

Cash in the Bank: Your Financial Lifeline in Stormy Seas

Imagine a raging recession as a tumultuous ocean. Traditional revenue streams, once steady ships, now bob precariously in the waves. This is where a robust cash reserve acts as your unsinkable life raft. With ample cash in the bank, you can weather temporary dips in income without resorting to panic-stricken measures like emergency loans or draconian cost-cutting. This financial breathing room empowers you to make calculated, strategic decisions instead of being swept away by the tide of desperation.

Think of it this way: having a healthy cash reserve is like stocking your pantry before a storm. You anticipate the hardship, prepare accordingly, and face the challenge with confidence and resilience. You're not scrambling for scraps when hunger pangs hit; you have the resources to nourish your business and keep it functioning at its best.

Seizing Opportunities When Others See Only Threat

Recessions, contrary to popular belief, are not just about hunkering down and clinging to hope. They present unique opportunities for savvy, forward-thinking companies. Distressed competitors, struggling to stay afloat, may be forced to sell valuable assets at bargain-basement prices. With your cash reserves readily available, you can take advantage of these strategic acquisitions, expanding your market share, talent pool, or service offerings at a fraction of the usual cost.

Imagine your competitor, battered by the recession, is forced to offload their cutting-edge technology at a discount. With your cash reserves handy, you can swoop in, acquiring this valuable asset and gaining a crucial advantage in the marketplace. This proactive approach allows you to emerge from the recession not just unscathed, but strengthened and ready to dominate.

Fuelling Innovation: Investing in Your Future While Others Cut Back

While many companies slash budgets and play it safe during downturns, those who prioritise strategic investment often reap the greatest rewards. Use your retained cash to fuel innovation, developing new products or services that cater to the changing needs of a recession-weary market. This proactive approach positions you for a head start when the economy rebounds, allowing you to capture a loyal customer base before your competitors even wake up from their cost-cutting slumber.

Remember, while others are busy cutting costs, you can be cultivating fertile ground for future growth. This counter intuitive strategy may seem risky, but history is littered with examples of companies that thrived during recessions by doubling down on innovation. Think of Apple launching the iconic iMac during the dot-com crash, or Netflix emerging as a streaming giant amidst the early 2000s recession. Both companies, faced with economic hardship, chose to invest in the future, a decision that propelled them to unimaginable heights.

Loyalty in the Face of Adversity: Building Unbreakable Bonds with Your Customers

Recessions are not the time to neglect your existing customer base. In fact, they present a golden opportunity to solidify customer loyalty and ensure a steady stream of revenue even when new customer acquisition becomes more challenging. Invest in customer retention strategies like personalised experiences, loyalty programs, and exceptional customer service. These gestures demonstrate your unwavering commitment to your customers, even during tough times, fostering unbreakable bonds and unwavering trust.

Imagine a loyal customer, facing their own financial uncertainty, torn between staying with your brand and seeking cheaper alternatives. Your proactive retention efforts, the personalised discounts, the extra mile you go for their satisfaction – these are the factors that tip the scales in your favour. By prioritising customer loyalty during a recession, you build a fortress of trust and ensure a stable foundation for your business when the storm eventually passes.

Attracting and Retaining the Best Talent: Your Most Valuable Asset

During a recession, top talent becomes even more crucial. They are the skilled navigators who can steer your ship through choppy waters, the resourceful engineers who can keep the engines running, and the creative minds who can innovate and adapt. But in challenging times, attracting and retaining these bright minds becomes a tougher feat. This is where strategic cash retention once again proves its worth. Would potential new recruits prefer to join a company with a strong balance sheet with lots of cash or a competitor with an overdraft and a potentially insolvent balance sheet.

Use your cash reserves to offer competitive compensation packages and attractive benefits that stand out from the cost-cutting measures your competitors are likely implementing. Invest in employee development programs, upskilling your workforce and ensuring they remain adaptable and valuable assets even as the economy shifts. This sends a powerful message of stability and commitment, making your company a beacon of opportunity in a sea of uncertainty.

Remember, talent is your most valuable asset in a recession. By prioritising their well-being and growth, you not only retain your high performers but also attract the best minds seeking refuge from the economic storm.

Strategic Cost-Cutting: Optimising Efficiency Without Crippling Growth

While blind cost-cutting can be detrimental, strategic optimisation of expenses is crucial for maximising your cash retention efforts. Conduct a thorough analysis of your operational costs, identifying areas where streamlining processes, renegotiating supplier contracts, or implementing automation can yield significant savings without compromising quality or employee morale.

Think of it as trimming the unnecessary branches of your financial tree to allow essential functions to flourish. Optimise your marketing budget to focus on targeted, data-driven campaigns instead of scatter-gun approaches. Renegotiate rent or lease agreements, taking advantage of lower market rates during an economic downturn. Explore alternative cost-effective solutions for essential services without sacrificing quality.

Remember, strategic cost-cutting is not about slashing and burning, but about optimising your resource allocation for maximum efficiency and long-term sustainability.

Embracing Technology: Your Automation Ally in Times of Uncertainty

Technology can be your knight in shining armour during a recession. Invest in automation tools and software that streamline tasks, reduce manual labour, and improve operational efficiency. This not only frees up valuable resources for higher-level tasks but also minimises human error and maximises output.

Imagine a robotic arm seamlessly taking over repetitive tasks in your production line, freeing up employees to focus on innovation and quality control. Or consider investing in AI-powered customer service chatbots that handle routine inquiries, allowing your human representatives to tackle complex issues and build deeper customer relationships.

By embracing technology, you augment your workforce capabilities and squeeze the most value out of your resources, allowing you to weather the recessionary storm with greater resilience and efficiency.

Building the Recession-Proof Portfolio: Diversification for Stability

Finally, don't put all your eggs in one basket. During a recession, diversifying your revenue streams and income sources can provide much-needed stability. Explore new markets, experiment with alternative product lines, or offer additional services that cater to emerging needs in the face of economic hardship.

Think of spreading your cash reserves across different types of investments, because even banks can fail so by spreading your cash across a number of banks offers greater protection as the Financial Services Compensation Scheme automatically compensates savers up to £85,000 per bank. This multi-pronged approach mitigates the risks associated with any single income source, providing a safety net and fostering long-term financial stability.

Remember, a recession is not a death sentence; it's an opportunity to reshape, adapt, and emerge stronger. By prioritising strategic cash retention, investing in the right areas, and navigating the challenges with a clear head, you can not only survive the storm but thrive in its aftermath. So, hold that wallet tight, make conscious choices, and let strategic cash retention be your compass as you navigate the turbulent waters of economic uncertainty.

Bonus Tip:

Communication is key! Keep your employees, customers, and stakeholders informed about your strategic cash retention efforts and how they benefit the company as a whole. Employees can be comforted by their employer’s prudence; customers can be confident that their orders will be delivered, and suppliers will be relieved that their bills will be paid. Transparency and open communication build trust and foster a sense of shared responsibility during challenging times.

By implementing these strategies and prioritising thoughtful cash retention, you can transform your business from a recessionary victim to a thriving victor. Remember, the storm will eventually pass, and when it does, your strategic foresight and proactive approach will leave you well-positioned to capitalise on the sunshine that follows.

Wood and Disney's Strategic Cash Retention Programme ®

Wood and Disney created The Strategic Cash Retention Program® in 2020 during the height of the Covid impacts. It is a program developed to help all businesses stabilise today, build cash reserves and strengthen future resilience. It certainly helped our clients during a period of huge uncertainty, and it allowed many to emerge from that time stronger and more financially astute.

Let strategic cash retention be your recessionary superpower. Weather the storm, emerge stronger, and claim your rightful place as a post-recessionary leader.

Discover more about how Wood and Disney can help your business beef up cash reserves and survive and thrive through the storms of recession with our

Strategic Cash Retention Program®

Take a look at more ways that you can build your business resilience

Business Resilience Blogs

Let us help you ride out the waves of recession and build a stronger business.

Call us on 012026 233170

Email on info@wood-disney.co.uk

Or use the form below , and we'll get back to you.

Appointing an accountant should be an investment in your business

Tue, 23 Jan 2024 12:53:48 GMT

Your accountant must have TIME to invest in your business.

TIME

TIME – this, we believe is the big difference. If you look at different accountancy firms’ websites, they will all state the compliance and tax services they offer, the business advice they will give you, how they will help you grow your business and make a myriad of other promises. When you have a meeting with them before you choose who to appoint, they will promise you, with good intention, business advice and support. BUT, to deliver on their promises they need TIME .

If an accountant has 1000 clients, how can they possibly find the TIME to develop a deep understanding of your business and your personal situation and challenges? If they quote you a low price, then how can they afford to deliver a quality service? To build a close relationship with you? To give you pro-active advice?

Most accountants have a business model based on maximising the number of clients they have, to maximise turnover and profits. They will quote an attractive fee to gain your business, to add you to their client base, with the intention of delivering on the promises of business advice and support they make but in reality are unable to give you the TIME needed to fulfill their promises. To cover their costs and make a profit at the fees they quote, it’s a numbers game. Lower fees mean more clients are needed to deliver a profit, which in turn means less TIME per client, hence less advice and support.

Why is Wood and Disney's quote often more expensive than others?

Time costs money. That is why Wood and Disney is not the cheapest quote you will receive. We do not have a business model based on maximising the number of clients. We are up-front that we only work for Ambitious Entrepreneurs . We work with clients who are serious about building a successful, resilient business for the long term. Clients who work with us, in partnership, to grow their business, achieve their goals, and build resilient, sustainable businesses. Because, with Wood and Disney, you are investing in your business not just paying for a set of accounts you are investing in:

TIME to get to know you and your business

Wood and Disney take the TIME to personally get to know all our clients and their businesses so that we understand each client’s unique situation and challenges. We visit their business premises. We respond promptly to their questions. We hold review meetings with most of our clients quarterly if not monthly. We are available to talk through their problems and are a sounding board for their ideas. We take the TIME to build trust and confidence.

TIME to deliver quality

Our clients invest in the TIME Wood and Disney spend thoroughly analysing their issues, conducting research into their problems, and developing comprehensive solutions. Rushing through client business problems can lead to superficial advice, missed opportunities, and ultimately costs you money. It can lead to errors, omissions in your accounts, tax returns and financial affairs which, with fines and penalties, can prove extremely expensive. Plus, it can lead to costly mistakes if you make decisions based on inaccurate or completely wrong financial data. By investing in Wood and Disney you are buying the TIME and expertise, that Wood and Disney take with each individual client to deliver accurate financial data and high-quality, tailored solutions that effectively address each client’s individual needs to achieve their personal, desired outcomes.

TIME to deliver proactive advice

When you appoint Wood and Disney you won’t just hear from us once or twice a year when your final accounts are due or at tax return time. Investing in Wood and Disney means that we have the TIME to regularly actively engage with our clients, providing ongoing proactive support and guidance. We monitor progress, anticipate potential obstacles, and adjusting strategies as needed. We work with our clients to set financial, business and personal goals, which we support them in achieving with proactive advice based on a foundation of in-depth knowledge of their business, and unique challenges.

TIME to deliver success

Building a successful business requires TIME , it doesn't happen overnight. To build a thriving, resilient business you need a strong foundation, to overcome challenges, and continuously improve. Wood and Disney help our clients throughout their journey. For some, we are there at the beginning, making sure that their new business gets the best possible start, grows and thrives. Other clients come to us when their business lacks direction, has ceased to grow or has started to decline. We help them reboot their business, find a renewed vision and drive them back on to the road of long term sustainable success. Others come to us when they have hit a challenge of which there are a myriad of examples. We help them identify the root cause of their business problems and come up with strategies and solutions to get them out of trouble and set them back on the road to success. When you appoint Wood and Disney , you are investing in the TIME we commit to you to deliver sustainable success.

Appointing Wood and Disney is investing in your future

The EXPERTISE and TIME we devote to our clients, is not cheap. Wood and Disney limit the number of clients we take on so that we can dedicate TIME to each client. That’s the Wood and Disney way. We are rarely the cheapest option, but we are the best investment you will ever make in your business!

Find out more about how Wood and Disney can help you Build a Better Future .

Call us on 012026 233170

Email on info@wood-disney.co.uk

Or use the form below , and we'll get back to you.

Buying, Selling or Merging your business

Fri, 19 Jan 2024 10:31:35 GMT

Wood and Disney, helping you make the right decisions

Content

Buying a business

Do the accounts and financials reflect accurately the financial position of the business?
Are you paying the right price for the business?
Is the purchase is tax efficient?
Are the contracts legally binding and protect your position?
After the purchase, the new business needs to be integrated into your current business financial systems

Selling your business

Preparing to sell
Valuing your business
Optimising your tax position
Standing by your side during the sales process

Merging your business

Pre-merger phase
Merger phase
Post-merger phase

Buying a business

Buying a business takes time. It is a marathon not a sprint. It often takes many months and takes determination to continue when it seems easier to give up. The advice and support of professionally qualified chartered accountants like Wood and Disney is essential if you are to be sure that:

The accounts and financials reflect accurately the financial position of the business
You are paying the right price for the business
The purchase is tax efficient
The contracts are legally binding and protect your position
The new business is integrated into your current business financial systems

Do the accounts and financials reflect accurately the financial position of the business?

Wood and Disney , as the accountant for the purchaser, are there to dissect and uncover a targets true financials. We review the target’s accounting software for accuracy and appropriateness. We analyse profit margins, find any skeletons hidden in cupboards, find undisclosed liabilities or overstated assets and assess potential financial risks.

Are you paying the right price for the business?

Wood and Disney can determine the right price to pay for a business by using our valuation skills utilising various methods to estimate a targets real worth. We help you negotiate from a position of real knowledge and avoid overpaying and sometimes avoid buying altogether when we discover that it is a glossy brochure with no substance underneath. We have dissuaded more clients from buying businesses than helping them to buy as there are a lot of very poor businesses which would give our clients more headaches and liabilities than opportunities. Sometimes the same business comes up with different buyers looking at it and having done the due diligence once we can fast track rejection by subsequent would be purchasers saving them a lot of time and money.

Is the purchase tax efficient?

Taxation can add to a cost of an acquisition so Wood and Disney can advise on the implications of different acquisition structures such as buying the shares in a target or just buying the Goodwill and assets out of the business.

Are the contracts are legally binding and protect your position?

Wood and Disney work with your lawyer to help you achieve your goal with the minimum risk.

After the purchase, the new business needs to be integrated into your current business financial systems

Once acquired Wood and Disney set up systems to integrate your purchase with your existing business ensuring smooth financial reporting, systems reviews to select which system is best moving forward and integrating the two sets of data, and of course tax compliance.

Selling your business

Sadly most business owners overvalue their businesses. They may have spent decades building their business up and often see it as their pension fund. It may have given them a reasonable living but a purchaser is looking for a profit probably using a management team rather than work in the business themselves. What may have been a decent living for you is no where near large enough to attract a purchaser or investor. Most businesses NEVER sell and those that do will often sell for half what the owners thought they were worth.

With this sorry background what can Wood and Disney , as your accountant, do to help.

Preparing to sell

Firstly, Wood and Disney can help you prepare for a sale. You cannot start the preparation process and hope to sell in under 12 months. It doesn’t work that way. Purchasers will be looking for decent profits over the 3 previous years so you need to take that length of time to prepare for a sale. Your business is like a gemstone which needs polishing. It takes time. It takes scrutiny. It takes care. We would need to meticulously review and refine your record keeping ensuring completeness and accuracy. We would be looking to reduce unneeded costs and remove any extravagances or directors’ personal costs. Does your plumbing business really need both a pickup truck and a van when you are the only driver?

Valuing your business

Wood and Disney then apply our valuation skills over the three year period to ensure that your valuation increases every year.

Optimising your tax position

What is the best way to sell a business and pay the minimum level of tax legally allowed? Again selling your business in the wrong way will lead to higher tax bills. Wood and Disney ensure that your business is sold in a manner to minimise the tax you will have to pay on the sale.

Standing by your side during the sales process

Wood and Disney will be by your side during the sales process, y our defence against the questioning of the purchaser’s accountants who will be looking for ways to reduce how much their client is paying. During the sale we are there to counter any excuses why the price should be reduced.

Merging your business

Merging your business with another can be a complex process, but it can also be a great way to achieve growth, expand your market, and reduce overheads boosting profitability. Before you go ahead, there are 3 phases to a merger which Wood and Disney have experience and a structured system to advise and support you through :

Pre-Merger phase - making sure you choose the right partner business and that the merger is beneficial.
Merger phase - ensuring the businesses merge smoothly, integrating systems and optimising operations.
Post-Merger phase - the new business becomes a single entity with financial reporting structures, compliance and performance monitoring systems all in place and operational.

Pre-Merger Phase

This is perhaps the most important phase and absolutely essential to get right. At this stage you haven't incurred any significant costs or commitments and you can still back out. Wood and Disney help you make sure that the deal is with the right partner business and will be good for your business. We also ensure in conjunction with your legal representatives, that your interests are protected. Below are some of the most important areas that Wood and Disney carry out at this stage:

Due Diligence : Wood and Disney meticulously analyse both companies' financials, identifying potential risks, hidden liabilities, and areas of synergy. This information informs the valuation process and sets realistic expectations for both parties.

Valuation Expertise : Your accountant determine the fair market value of each company using various methods, ensuring an equitable exchange in the merger. This protects both businesses and prevents resentment down the line.

Tax Optimisation : Mergers can have complex tax implications. Wood and Disney explore different merger structures and advises on the most tax-efficient approach, minimising the overall tax burden and maximising post-merger profitability.

Financial Modelling: Wood and Disney build financial models to forecast the combined entity's future performance, assess potential cost savings, and identify integration challenges. This data-driven approach helps make informed decisions and mitigate risks.

Merger Phase:

This is a busy time. The decision has been made to merge businesses, now those plans must be put into action! Wood and Disney ...

Accounting System Integration: Combining two accounting systems is no small feat. Wood and Disney guide the process, ensuring smooth data migration, standardised reporting practices, and compliance with accounting regulations.

Internal Controls: Wood and Disney review and streamline internal controls across the merged businesses, identifying vulnerabilities and implementing strategies to mitigate fraud and financial mismanagement.

Cost Analysis and Optimisation : Wood and Disney identify opportunities for cost savings, such as streamlining operations, eliminating redundancies, and renegotiating contracts. This maximises value and boosts the merged businesses' profitability.

Post-Merger Phase:

Performance Monitoring: Wood and Disney track the merged businesses' financial performance against previously established metrics, identifying deviations and recommending corrective actions. This ensures the merger remains on track to achieve its goals.

Regulatory Compliance: Wood and Disney keep you updated on relevant regulations and reporting requirements, ensuring the merged businesses adhere to all financial and tax regulations.

Reporting and Analysis: Wood and Disney prepare consolidated financial statements and provides insightful reports that paint a clear picture of the merged businesses' financial health and performance. This enables informed decision-making and strategic planning.

Solving small business pain

Fri, 19 Jan 2024 10:25:28 GMT

Wood and Disney - just what the doctor ordered to ease your Business headaches

Small business owners often face a multitude of challenges that can take a toll on their mental and emotional well-being. They may grapple with financial pressures, operational hurdles, and the constant pressure to succeed. These challenges can lead to feelings of anxiety, stress, and even burnout.

Some of the causes of headaches that prospective clients often come to us with looking for advice and support to ease their pain are:

Tax complexities
Financial Management
Cash Flow Issues
Bookkeeping Errors
Payroll Management
Business Planning and Forecasting
Raising Finance
Mergers and Acquisitions
Exit Strategies

Accountants are ideally placed to help with these problems but are not known for their empathy so usually when they talk about solving problems for their clients, they would usually talk about specific issues and are very black and white. Very logical and very unemotional. Not necessarily very helpful when a business owner is struggling with stress and pressure.

Below we talk through the challenges listed above and Wood and Disney's approach to supporting our clients and the practical advice and solutions we offer.

1. Tax Complexities

Small business owners often find tax compliance to be a daunting and time-consuming task. Accountants can help by preparing and filing tax returns, advising on tax planning strategies, and ensuring that businesses are compliant with all applicable tax laws.

Tax problems can manifest in various ways, ranging from minor errors on tax returns to significant financial discrepancies that attract the attention of HMRC. Some common tax problems include late or incorrect filings, unfiled tax returns, tax investigations, disputes with tax authorities, and dealing with tax penalties and interest charges. These challenges can arise due to the complexity of tax laws, lack of knowledge or expertise, inadequate record-keeping, or simply human error.

You don't need to be a tax expert because Wood and Disney are!

We've been solving tax problems for too many decades, so to say we are tax experts is an understatement!

Taxation is an essential aspect of our financial lives, impacting individuals and businesses alike. While tax problems can pose significant challenges, as at team of qualified chartered accountant Wood and Disney have the tax solutions to set you on the right path and keep you on the straight and narrow, so that you keep your tax down to the legal minimum and still sleep soundly at night.

Wood and Disney excel at strategic tax planning. We possess in-depth knowledge of tax laws and regulations, enabling us to devise effective tax solutions and strategies that minimise tax liabilities and maximise deductions. By analysing your financial situation, we can identify opportunities for tax optimisation, such as utilising tax-efficient investment vehicles, taking advantage of tax credits and incentives, or structuring transactions in a tax-efficient manner.

Wood and Disney can also help individuals and businesses plan tax solutions for the long term, anticipating potential tax implications and offering proactive advice. By considering the tax consequences of various financial decisions, such as expanding a business, selling assets, or estate planning, we can help you make informed choices that align with your financial goals while minimising your tax burden.

You can read more about Wood and Disney's tax solutions and the problems we solve on our dedicated web pages:

>> Tax Problems

>> Tax Solutions

2. Financial Management

Small business owners often struggle with managing their finances effectively. Accountants can help by developing budgets, tracking expenses, and providing financial reporting. This can help businesses make informed decisions about their finances and improve their bottom line.

Wood and Disney are professionally Qualified Chartered Accountants and Business Advisors - Experts in Financial Management

Wood and Disney provide our clients with proactive financial support and business advice to ensure their long term success and give them the time, confidence and freedom to enjoy their business and family life.

Wood and Disney passionately believe (yes, Accountants with passion) that a successful business owner needs:

“ Real Time Financial Information ” that is dependable and accurate, so you know the impact of yesterday's decisions, can make better decisions today and can plan for tomorrow AND

Strong and close support and business advice to help you manage your finances and understand the true impact of your numbers on your business. Wood and Disney guide you with strategic decisions, keep you out of trouble and are there when you need someone who understands your business and the pressures you face.

Wood and Disney put in place:

Protection: to identify potential threats to you and your business's financial security today and in the future.

Advice: we give you the knowledge to collect, analyse and understand your business numbers with confidence and show you how small changes can play a huge role in your company’s momentum.

Control : Wood and Disney put in place the right planning and control in your business gives reliable cash flows and healthy profits.

Wood and Disney ensure that our clients understand their accounts and our advice. We will never ask you to sign paperwork that you have not read and understood.

3. Cash Flow Issues

Cash flow is the lifeblood of any business, and small businesses are particularly susceptible to cash flow problems. Accountants can help by analysing cash flow statements, identifying potential problems, and developing strategies to improve cash flow.

Wood and Disney's Cash Flow strategies and solutions get you back on track.

Cash flow is the lifeblood of any business. However, many businesses, regardless of size or industry, often encounter cash flow problems that can threaten their survival. To get a better understanding of the causes read our page on >> Cash Flow Problems . A business can on paper, be profitable with a full and growing orders book, but still fail due to cash flow problems. If your business is constantly under pressure and struggling to balance the cash coming in against the demands for payment to your creditors, staff, suppliers etc.., then the amount of profit you are making and the orders you are receiving, become irrelevant if you don't have and can't raise the money you need to run your business day to day.

Fortunately, Wood and Disney are expert at sorting out your cash flow problems to keep your business afloat in the short term with immediate cash flow solutions, strategies to get you back on track today. Once we have your "working" cash flow under control, we then help you build a stronger business with long term cash flow solutions. We use our Strategic Cash Retention Programme® to build your business a cash reserve, to make your business resilient to turbulent economic conditions in the future and enable you to grow your business without the fear of running out of cash. You can read on our dedicated web page, more about our short term and long term >> Cash Flow Solutions .

We have also written a number of blogs which go into more more details about cash flow management and building resilience into your business.

4. Bookkeeping Errors

Accurate bookkeeping is essential for any business, but small business owners often don't have the time or expertise to do it themselves. Accountants can help by providing bookkeeping services, including recording transactions, preparing financial statements, and reconciling accounts.

With Wood and Disney Bookkeeping doesn't have to be a headache!

Bookkeeping is the first step in the accounting process and arguably the most important one as it is the foundation of everything else regarding business finances. Accurate and timely bookkeeping will keep you out of trouble with HMRC. You will know exactly who to pay and when ensuring that your remain on good terms with suppliers. You will know which customers owe you money and help you chase them efficiently ensuring that cash flow remains positive, stress levels are kept to a minimum and you can focus on generating more sales and profits.

At Wood and Disney our meticulous attention to detail ensures that your bookkeeping is accurate and up to date, minimising costly errors. In fact, when new members of staff have joined our accounts team, they have frequently been amazed at the level of detail and drilling down we go into.

Wood and Disney's bookkeeping solutions will enable you to

pay less tax because you will not lose any receipts and bills
make more profit because you can focus on sales rather than spend time on low value admin work
feel less stressed because of deadlines or simply not knowing where you are
have more family time because you don’t have to work on your books on evenings or weekends.

You can read more about how Wood and Disney can take the stress out of bookkeeping on our dedicated web page

>> Accountancy Solutions > Bookkeeping

5. Payroll Management

Payroll can be a complex and time-consuming task, especially for small businesses. Accountants can help by calculating payroll taxes, withholding taxes from employees' payments, and preparing and filing payroll reports.

Wood and Disney's Payroll Services frees up your time to focus on your business!

On the surface payroll seems easy with so many cheap tools available to help you but in reality there are many potential issues to trip you up. Get it wrong and you have some seriously upset employees. Dealing with their questions and concerns is time consuming and if relying just on a piece of software you can sometimes have difficulty in answering their questions to a level which they understand.

Wood and Disney's Payroll solutions ensure that you get payroll right and the benefits are massive:

Run the payroll accurately and your happy employees will waste less time and make more profit for you.
Run your payroll on time rather than leaving it until the last moment will cause both you and your employees less stress and you will all be more effective.
Free up time perhaps better used to focus on more sales and more profit.

Finally Wood and Disney's payroll solution is fully GDPR compliant ensuring that you do not accidentally disclose embarrassing salary details followed by the inevitable penalties which can amount to 4% of turnover.

You can read more about how Wood and Disney can take the stress out of payroll management on our dedicated web page

>> Accounting Solutions > Payroll

6. Business Planning and Forecasting

Accountants can help small business owners develop business plans, create financial forecasts, and make informed decisions about their businesses. This can help businesses grow and succeed in the long run.

Planning is central to the success of any business

Often business owners feel like headless chickens, running around putting out fires not having any sense of direction or targets to aim for. Knowing where you are going and how you are going to get there can take an awful lot of the stress of running a business away.

Business planning and forecasting is not straight forward. This is where Wood and Disney can make a real difference to you and your business.

We put you back in control , firmly in the driver's seat, driving your business forward.
We help you set your destination and develop a road map with you to guide your course.
We are with you on the journey , with regular meetings to make sure you stay on course. We meet most of our clients at least quarterly and often monthly and are always available in between if you need additional help, advice or support.
We give you targets to monitor your progress to keep you on track. Wood and Disney set up systems and structures to monitor the key areas of your business, including customer service metrics, clearly defined sales and marketing targets, key performance indicators for each area of your business and check that you are getting real time, accurate and reliable data.
We give you the controls to to get you back on course when you hit the inevitable bumps in the road that can derail even the best thought out plans. Planning gives you predictability, it gives you choices ~ Control makes those choices become reality, it gives you stability.

7. Raising Finance

Accountants can help small business owners obtain financing by preparing financial statements, conducting business valuations, and writing loan applications. This can help businesses raise the capital they need to grow and expand.

Most entrepreneurs say that one of the most difficult parts of being in business is raising money

Raising finance for your business can be fraught with problems and can be difficult. Sometimes you need funding to support the growth of you business - an exciting time - you can see the opportunity and the rosy future ahead. You now just need to convince lenders of your vision and your ability to make it a reality. At other times you may need emergency cash to see you through a bad debt or an unexpected cost that can threaten the survival of your business. You need that loan now so it's vital that your books and accounts are in good order so that you don't have to waste time getting your paperwork in order to demonstrate that your business is solvent and a low risk investment.

Fortunately Wood and Disney are expert at providing raising finance solutions. We have successfully supported many clients over the years raise finance to fund their business growth, see them through difficult times. We help you adopt best practice in managing your business so that you are in the best possible position to approach lenders if the need arises. Wood and Disney's raising finance solutions help you provide easy-to-understand information that’s attractive to lenders. Our team are highly experienced in helping our clients raising finance and will support you through all stages of the process. Our raising finance solutions will make sure we position your business in the best possible light, giving you every chance to secure funding.

You can read more about how Wood and Disney can take the stress out of raising finance on our dedicated web page >> Raising Finance Solutions

8. Mergers and Acquisitions

Accountants can provide valuable advice to small business owners who are considering merging with or acquiring another business. This can help businesses make informed decisions about these complex transactions.

Wood and Disney have extensive experience of helping our clients buy businesses, merge or sell their businesses. We want you to understand and have access to, as much information on your future choices and the consequences of these as possible before any decision is made, as getting this right is critical to your future.

You can find out more about how Wood and Disney help advise and guide our clients through the myriad of decisions that need to be made when buying, selling or merging businesses in our blog:

>> Buying, Selling or Merging a Business

9. Exit Strategies

Accountants can help small business owners develop exit strategies for when they are ready to sell their businesses. This can help businesses maximize their value and achieve their financial goals.

There comes a time when we all want to step back from our business and enjoy the fruits of our labour or pass the reins over to the next generation. At Wood and Disney , we have a team of experts experienced in retirement and succession planning. We help our clients navigate the complex processes involved. Ensuring optimal tax strategies, accurate business valuation, compliance with all legal requirements, and comprehensive retirement planning.

Wood and Disney help you achieve your goals by giving you as much information on your choices and the consequences of these as possible before you make any decisions. For example, you may wish to sell and exit. If so, how does that work? What’s the best approach? What about timing? How will any deal be funded and does this have an impact on any tax due? What about tax relief? Can you claim any? When you sell the business, what about the cash you’ll have? How will this affect your estate and Inheritance tax? Will you get any reliefs on this or do you need to plan how to invest the funds? Wood and Disney ensure any sale is carefully planned so you can sleep soundly knowing any questions HMRC may have can be answered thoroughly.

Wood and Disney revisit your personal goals. What are your priorities now? Do you want more free time to relax or travel, have fun with your family? Are you driven to focus more on your business and take it in new directions or start a new business? Would you like to spend more time on charitable work?

What about if you want to pass the business to your children? As well as the tax planning for you and the business, how will it affect them? What about when they come to sell? Wood and Disney plan and put in place strategies early giving them choices too. When you are ready to handover the reins, we will be there for the next generation with advice and support, so you know that they and your business are in safe hands.

Most importantly, Wood and Disney make your transition smooth and worry-free. Allowing you to focus on the next chapter of your life while knowing your business is in good hands.

You can read more about how Wood and Disney can take the stress out of raising finance on our dedicated web page:

>> Business Solutions > Transforming your business > Destiny

>> Retirement or succession planning

Notice that these are very black and white. Very logical and very unemotional. Not necessarily very helpful when a business owner is struggling with stress and pressure.

The Wood and Disney Difference

Wood and Disney understand what it’s like to face the pressures of running a business, the worry, the sleepless nights, the feeling of being alone and not sure of the best course of action, working all hours. Working to provide a better future for yourself and those that are important to you. We’ve been there and done it. We’ve made mistakes and learnt from them. We’ve survived through the early 1990’s recession (inflation peaked at 9.5% in 1990, with interest rates hitting a high of 14.8% on Black Wednesday), the 2008 recession (the deepest UK recession since WWII) and the Covid-19 pandemic. We use our experience of running our own businesses and helping our clients through the good times and bad, to make sure that the advice we give you is practical and works so that your business is resilient and thrives.

That's why at Wood and Disney we look at these same technical problems but view them rather differently. Wood and Disney play a crucial role in alleviating the mental and emotional pain experienced by our clients by providing guidance, support, and expertise to help them navigate the complexities of running a business informed by our own experiences running businesses and our many years of experience advising our clients.

Here are some specific ways in which we can help:

1. Financial clarity:

Wood and Disney specialise in helping small business owners gain a clear understanding of their finances, which can reduce uncertainty and alleviate anxiety. By developing budgets, tracking expenses, and preparing financial reports, we can help business owners make informed decisions about their financial health and identify potential problems early on.

2. Stress reduction:

Wood and Disney can help reduce the stress associated with tax preparation and compliance by taking on the burden of these tasks. By ensuring that businesses are compliant with all applicable tax laws, we can free up business owners' time and energy to focus on other aspects of their operations.

3. Confidence building:

Wood and Disney can provide valuable insights and expertise that can help business owners make sound decisions. This can boost their confidence in their abilities to run their businesses effectively and achieve their goals.

4. Goal setting and tracking:

Wood and Disney can help business owners set realistic goals and develop strategies to achieve them. By providing regular financial reports and analysis, we can help business owners track their progress and make adjustments as needed to remain on track.

5. Emotional support:

Wood and Disney can provide a listening ear and offer emotional support to small business owners who may be struggling with stress, anxiety, or burnout. They can also connect business owners with resources that can provide additional support, such as mental health professionals or business counselling organisations.

By addressing the mental and emotional pain faced by small business owners, Wood and Disney can play a vital role in their overall success. By providing guidance, support, and expertise, we can help business owners navigate the challenges they face and build a stronger, more resilient business.

The Numbers Game

Thu, 28 Dec 2023 11:00:00 GMT

The Numbers Game: Unleashing Business Potential

As an accountant I am bound to say that numbers play a pivotal role in determining success. Every decision, every strategy, and every action is ultimately measured against a set of numerical metrics, providing insights into the company's potential. While qualitative factors undoubtedly influence business outcomes, it is the quantitative aspect that provides a tangible framework for evaluation and improvement.

Consider the fundamental elements of business success:

Income,
Profit,
Customer satisfaction,
Employee engagement, and
Market share.

These metrics, expressed in numerical terms, serve as benchmarks against which a company's performance can be assessed. By analysing these numbers, businesses can identify areas for improvement, track their progress towards their goals, and make informed decisions that drive growth.

Let’s look at these in a little more detail an how Wood and Disney can help you use your numbers to Build a Better Future .

Income

Income generated from sales or services, stands as the primary financial indicator of a company's health. A positive trend in revenue indicates that the business is attracting customers, meeting their needs, and generating value. Increasing revenue is essential for expanding operations, investing in growth initiatives, and ultimately enhancing profitability.

How Wood and Disney harness the power of your numbers to unleash income growth.

Assuming you aren't a start up business, you already have a customer base. We look at sales trends and customer behaviour. Could you increase how much and how often your existing customers spend money with you? Wood and Disney use their own tried and tested business growth toolkits to look at expanding your business. What are the future growth opportunities in your current business? Should you be considering buying another business? How are you going to fund your growth? Could you add to your product range? What's the next big thing in your market? Are there any gaps/niches you could fill?

Profit

Profit, the difference between income and expenses, represents the financial reward for a company's efforts. A healthy gross profit margin demonstrates that the business is operating efficiently, generating sufficient gross profit to cover overhead costs and produce a surplus. Profitability is crucial for sustainability, allowing companies to reinvest in their future and provide returns to shareholders.

How can Wood and Disney help you leverage your numbers to boost profits?

Wood and Disney breakdown and analyse your existing accounts using a series of tools that we have developed to identify areas of potential improved profit and cash flow. We take you through a series of “What If?” scenarios using your figures to show you the impact on profit and cash flow of changing pricing, costs, overheads, supply chain… We model the scenarios using your real time data and your business environment to help you understand and give you confidence in the decisions you make.

Customer Satisfaction

Customer satisfaction, measured through surveys, feedback mechanisms, and repurchase rates, gauges the level of contentment among a company's customer base. Satisfied customers are more likely to become repeat buyers, spread positive word-of-mouth, and contribute to long-term revenue growth.

Are your customers happy with your service and products or could you do more?

Wood and Disney set up systems and structures to monitor and control the key areas of your business, including customer service metrics so that you can measure your customer service targets, bench marking performance. We advise you on the technology that will help you to achieve these goals including CRM and performance measurement technology. Leveraging technology is currently where the most successful businesses are spending their money.

Employee Engagement

Employee engagement, assessed through surveys, interviews, and performance metrics, reflects the level of motivation, commitment, and enthusiasm among a company's workforce. Engaged employees are more productive, innovative, and customer-centric, contributing to overall business success.

Your people are your most valuable asset.

In most businesses your team are your biggest asset. Wood and Disney talk to you and your team and develop an action plan to equip your business with the people and skills it needs to adapt, change and achieve your business targets. We also look at the knowledge, skills and experience you have built up in your team and work with you and them to leverage that human asset to build a stronger business that is mutually beneficial by rewarding staff and security into the future.

Advice Wood and Disney have given most recently to clients includes:

Involve members of staff in a discussion of likely trading conditions and get their input on maintaining revenues, new products and services or re-targeting existing products and services.
Encourage team members to suggest ways to streamline and simplify processes (e.g. sit down and brainstorm about efficiencies and cost reduction).
Reviewing staffing needs over the next few months.
Employee commitment: Pull everyone together and explain the business strategy and get their buy-in.

Market Share

Market share, the percentage of a company's sales compared to the total market sales, indicates its position within the industry. A growing market share suggests that the company is outperforming competitors and expanding its reach.

Wood and Disney help you make data driven decisions to increase your market share.

Wood and Disney set up systems to monitor and analyse your performance in your market:

We use your data and analytics to measure and evaluate your performance against your targets, to measure your market share and the effectiveness of your strategies.

We use financial "what if" tools combined with market data to study scenarios for pricing strategies to ensure you p rice your products or services competitively.

We make sure you understand your target market and look at differentiating your products and services.

We look at the growth opportunities in your current business. Should you be considering buying another business? Could you add to your product range? What's the next big thing in your market? Are there any gaps/niches you could fill?

Harnessing the Power of Numbers

Businesses that effectively utilise data analytics and numerical insights can gain a competitive edge. By analysing sales trends, customer behaviour, employee performance, and market dynamics, companies can identify patterns, predict outcomes, and make data-driven decisions that optimise their operations and maximise their potential.

The Wood and Disney Difference

Most accountants are merely recorders of historical information with the sole intention of working out how much tax to pay. Wood and Disney however have been harnessing the power of numbers for decades to help our clients build future proof businesses and leave a legacy for the next generation.

Would you like to learn more?

Call us on 012026 233170

Email on info@wood-disney.co.uk

Or use the form below , and we'll get back to you.

Strategies to improve Customer Retention

Thu, 21 Dec 2023 08:30:00 GMT

New customers are great but don't forget the customers you already have!

Content:

The drive to acquire new customers can come at an unexpected cost.
Why is it so important to keep hold of your existing customers?
Strategies to maximise customer retention

1. Focus on exceptional customer service

2. Exceed expectations

3. Personalised communications

4. Gather and act on feedback

5. Address customer concerns promptly

6. Continuously improve

7. Encourage customer referrals and testimonials

8. A few other ideas

To summarise

The drive to acquire new customers can come at an unexpected cost.

Most small business owners are focused on new customer acquisition, pouring their limited resources into attracting new customers. Sadly the importance of customer retention often gets overlooked. Nurturing existing customer relationships and encouraging repeat business is absolutely crucial for long-term sustainability and growth.

Why is it so important to keep hold of your existing customers?

Retaining existing customers is paramount for several reasons:

Reduced Customer Acquisition Costs: Acquiring new customers is significantly more expensive than retaining existing ones. By fostering customer retention, businesses can reduce the need for costly marketing campaigns.

Increased Customer Lifetime Value (CLV) : CLV represents the total revenue a business can expect to generate from a customer throughout their relationship. By retaining customers for longer, businesses can enhance CLV, leading to long term growth and profitability.

Stronger Customer Relationships : By encouraging repeat purchases, businesses can build stronger relationships with their customers. This fosters trust, advocacy, and positive word-of-mouth, translating into enhanced brand reputation.

Strategies t o maximise customer retention.

Businesses can adopt many strategies to retain and maximise business with their existing customers. Below are a few key customer retention strategies and how Wood and Disney use these strategies with our own clients to deliver the best possible service which has led to our enviable record of client retention!

Our client retention record is one thing that gives prospective clients complete peace of mind, helping them feel in the safest possible hands. We firmly believe that high levels of honesty, trust, and just following through with what we say is what keeps our clients from going anywhere. That and the ball and chain of course.

1. Focus on Exceptional Customer Service

Prioritise exceptional customer service by providing friendly interactions, prompt responses, and efficient problem solving. This creates positive experiences that encourage repeat business.

Wood and Disney place excellent customer service at the heart of our business.

How do we deliver excellence?

Friendly interactions: At Wood and Disney you will find familiar faces. We have been advising clients in Colchester, Essex, for over 45 years. We have been incredibly lucky to retain so many of our staff for such a long time. Three of our team have been with us for over 20 years so we must be quite nice to work for. This means that you will continue to see the same faces for the many years you are with us. You will get to know key members of our team and importantly they will get to know you and understand your business.

Prompt responses:
Our office is manned 5 days a week 9am to 5pm. There will always be someone on hand for you to speak to.
We aim to respond within 24 hrs to every email or message we receive. We may not always be able to give you an immediate detailed answer to your query, sometimes we will need a few days to fully answer you, but you’ll know that we’ve got your message and that we are working on it.
All our clients records are held in the cloud so we can access them anywhere and any time.

Efficient problem solving: “Our mission is to provide our clients with proactive financial support and business advice to ensure their long term success and give them the time, confidence and freedom to enjoy their business and family life.”
We meet our clients at least quarterly, often monthly to track progress, to make decisions and set new goals. So we are up to date on what’s going on in their business and their lives.
We are experts . We are professional Chartered Accountants. We have been in business, helping our clients for many years – Peter and Brendon alone have between them 70 years of business experience.
We give structured business advice. P ractical advice and help in delivering and implementing proven, workable solutions for your business. We don’t just give you one-off, stand alone solutions then walk away and just let you muddle through.

2. Exceed Expectations

Go beyond customer expectations by going above and beyond in terms of service delivery, being proactive and anticipating customers' needs or by providing surprise gifts, offering early access to new products, or extending exclusive benefits. This over-delivery fosters loyalty and encourages repeat business.

Wood and Disney's clients have high expectations, and rightly so! Most of our clients have been with us for many years so they are used to, and have come to expect, the exceptionally high levels of professionalism and care, that we provide to every client. But, we continue to strive to exceed their expectations! How?

Expertise and Experience : Wood and Disney have been Chartered Accountants and Professional Accredited Business Advisors for a long time with many, many, many years of experience behind us. As the old saying goes “Experience is the Father of Wisdom” . But, the quality of our advice is based on more than just letters after our names. Fundamentally we are business owners who happen to run the business of an accountancy practice. It’s not a sideline, or an after-thought, or pretty words to put on our website. It’s what we do day in and day out and that means practical advice that is proven to work. In 2023, Peter was named Top 10 Global Business Advisor of the Year in the Helm global awards .

Pro-active advice: We don't just wait for your business to get in to trouble before we give you advice. In our view, that's too late and we have failed in our goal of keeping you and your business out of trouble. Wood and Disney use your financial figures as a window into your business to understand and resolve any underlying weaknesses in your business. We believe an accountant's role isn't just about balancing the books. It's about providing strategic, pro-active advice based on our in-depth understanding of your business, you and your aspirations for the future. We plan, control, monitor and advice you on how and when to act so that your business not only survives but also thrives!

3. Personalised Communication

Utilise customer data to provide personalised communication, tailoring marketing messages, product recommendations, and offers based on individual preferences. This enhances relevance and fosters stronger connections.

We get to really know our clients.

Wood and Disney keep in touch with our clients through:

Emailed newsletter that goes to all clients and interested business people with the latest financial and business news.
Specialised emails about financial and business matters that are particularly pertinent to you, your business or your market sector.
By telephone and email to answer your questions or advise you about matters particular to your business and finance.
Monthly or quarterly meetings to track progress, to make decisions and set new goals.
We have embraced virtual meetings to keep in touch with clients as frequently as needed. This option is ideal for more distant and overseas clients but is also an option frequently adopted by local clients as it saves travel time and is good for the environment.
We also visit clients on their own premises. We find it particularly beneficial at the early stages as it gives us a real “feel” for your business to meet you in your place of work.
Plus every client is always welcome to come and see us at our offices. We have free parking for our visitors and awesome coffee.

It's not just about keeping in touch. Wood and Disney operate a jargon free, friendly, no nonsense approach. We’re easy to work with. We are professionally qualified chartered accountants with all the technical knowledge and expertise that our qualifications encompass. But,

we keep things simple and offer a friendly, practical and no nonsense approach to advice, accountancy and tax. We don’t use complicated language, keeping our office a “ jargon free zone ”. Even the mention of “debit” or “credit” in front of a client is a hanging offence.

4. Gather and Act on Feedback

Regularly gather customer feedback through surveys, reviews, and social media interactions. Use this feedback to identify areas for improvement, address customer concerns, and enhance their overall experience.

Wood and Disney gather feedback from our clients in a variety of different ways:

We talk to our clients regularly and check that they are happy with the service we provide or if there is room for improvement.

We welcome, check and respond to reviews on Google, Facebook etc.

In 2023 we carried out an Impact Survey, where clients were asked to rate our services and identify areas that they felt could be improved. We had a great response with:
an overall satisfaction rating of 4.9 and
100% would recommend us to a friend/colleague .
100% believed that using our services has been a good investment for their business.

Take a look for yourself at the feedback we have received from clients on our dedicated web page >> What our clients say about working with us

5. Address Customer Concerns Promptly

Respond promptly to customer inquiries, complaints, and feedback. Acknowledge their concerns, apologise for any issues, and take proactive steps to resolve problems.

At Wood and Disney we believe in addressing our client's concerns promptly and satisfactorily. Wood and Disney aim to respond within 24 hrs to every email or message we receive. We may not always be able to give an immediate detailed answer to a query, sometimes we will need a few days to fully answer, but you’ll know that we’ve got your message and that we are working on it.

If a query or problem is more complex or a client isn't initially satisfied with our response, then we will keep looking for an answer or solution until we are all happy that the question is resolved. We will keep you updated with progress at all times so that you are in the loop and know what we are doing and how we are working to resolve your issue.

Wood and Disney are interested in long term relationships with our clients. Our approach is centred on your confidence in our ability to manage your financial matters for the long term. Don’t forget it’s our mission to “Build Better Futures” . Our approach with our clients is to act for them for decades rather than for our own short term gain and to uphold our reputation for excellence.

6. Continuously Improve

Continuously strive to improve your products, services, and customer experience. Stay up-to-date with industry trends, and adapt to evolving customer needs.

Wood and Disney never rest on our laurels and are always looking to improve the quality of our service.

We have a long history of innovation and leveraging technology, always with the aim of providing a better service to our clients.

We are leaders in technology with 4 technology awards under our belt including the 2015 “Most Innovative 2-4 Partner Firm” awarded by the 2020 Group of Accountants in 2015. We won the AVN Practice Differentiation award in 2017 and the AVN Changing Lives award in 2018. We are a paperless office and have been since 2003 meaning no lost files and immediate document recovery.

Wood and Disney have been using cloud accounting software since 2008, in fact we were one of the first practices in the UK to see the potential of the cloud and start to move our clients onto cloud accounting systems. We are experts in many cloud accounting apps and use many apps to manage our own business, saving us both time and money. For more information take a look at our web page >> Cloud Accounting Solutions

Wood and Disney have been at the forefront of innovation for decades using technology to assist us since the 1980's.

Going paperless in 2003 we became a paperless office meaning no lost files and immediate document recovery.

We adopted cloud bookkeeping in 2008, and going fully cloud-based in 2016.

Our Wood and Disney “ Accountant in your Pocket ” mobile app went live in 2015.

In 2022 we launched our very successful “ Future Proof Business Assessment ” a free to use on-line assessment of how future proof your business really is.

In the Spring of 2023, we researched and developed an NTAG215 NFC tag marketing solution, to enable visitors at exhibitions with NFT enabled mobiles, to access web based information from tags attached to our displays and literature.

Most recently we have been assessing new Apps which utilise AI based tools to increase business and financial efficiency for their usefulness within our own business and to our clients.

Wood and Disney's most recent business tool kits include:

The structured advisory process called " Your Journey To Freedom ",

Long term cash flow management and business resilience builder: " The Strategic Cash Retention Program " and

Our Net Asset Growth toolkit: "The NAG Index" .

Wood and Disney constantly strive to improve our service. We are always looking for ways to innovate, embrace and leverage new technology to provide our clients with a better service and to help them Build Better Futures.

7. Encourage Customer Referrals and Testimonials

Encourage customers to become advocates for your brand by sharing their positive experiences with others. Offer incentives for referrals, testimonials, and social media engagement.

We are always delighted when we get positive feedback from clients whether it takes the form of a review on Google, a like for a post, or an email or phone call saying thank you. It make a huge difference to all of us at Wood and Disney .

Client referrals have always been important to us as they not only demonstrate that a client is pleased with the service we offer and is happy to recommend us to others, but it is also an excellent way of acquiring new clients. In our 2023 Impact Survey,

55% of respondents stated that one of the reasons that they chose Wood and Disney as their accountant was through personal referral.

100% of respondents aid that they would you recommend Wood and Disney to a friend/colleague.

Wood and Disney see positive client testimonials as an important way of building trust and credibility with potential customers. When potential customers see that clients have had positive experiences working with us, they are more likely to believe and trust that we will deliver the expertise and quality of professional advice that we promise. You can t ake a look for yourself at the feedback we have received from clients on our dedicated web page >> What our clients say about working with us

8. A few other ideas

Depending on the market that your business operates in you could also consider implementing:

Loyalty Programs: Implement loyalty programs that reward customers for their long term patronage. Offer points, discounts, or exclusive benefits for loyal customers, incentivising them to continue making purchases.

Express Gratitude: Regularly express gratitude to your customers for their continued patronage. Send thank-you notes, offer special promotions, or celebrate their anniversaries with the brand.

Create a Sense of Community: Foster a sense of community among your customers by organising events, hosting online forums, or creating social media groups. This builds engagement, loyalty, and a sense of belonging.

To summarise

By implementing these strategies, businesses can effectively enhance customer retention, increase customer lifetime value, and achieve long-term success. Remember, a loyal customer base is the bedrock of a sustainable and thriving business.

Wood and Disney's client retention record is one thing that gives prospective clients complete peace of mind, helping them feel in the safest possible hands. We firmly believe that high levels of honesty, trust, and just following through with what we say is what keeps our clients from going anywhere. That and the ball and chain of course.

Would you like to learn more?

Call us on 012026 233170

Email on info@wood-disney.co.uk

Or use the form below , and we'll get back to you.

Targeting Your Ideal Customer for Maximum Marketing Impact

peterd@wood-disney.co.uk (Peter Disney) — Mon, 18 Dec 2023 10:45:00 GMT

Targeted marketing for maximum profits.

The most successful marketing strategies for small businesses are not about reaching the masses but about connecting with the right people – your ideal customers. This is where the concept of an ideal customer avatar (ICA) comes into play.

What is an Ideal Customer Avatar (ICA)?

An ICA is a detailed representation of your ideal customer, encompassing their:

Demographics: population-based on factors such as age, race, and sex.
Psychographics: customers psychological characteristics and traits such as values, desires, goals, interests, and lifestyle choices
Buying behaviours: customers' actions and thought processes which govern when and what they decide to buy and how they use products. It comprises multiple variables, including the customer's motivations, mood, product accessibility and mentality.

It's a fictional persona that embodies the characteristics of the customer you want to attract and more importantly retain for the long term. By understanding your ICA, you can tailor your marketing efforts to resonate with their specific needs and preferences.

What are the benefits to your business of creating an Ideal Customer Avatar (ICA)?

The benefits of creating an ICA are numerous:

Focused Marketing : An ICA helps you define your target audience with precision, ensuring that your marketing messages reach the right people at the right time. No more wasting resources on irrelevant campaigns that fall on deaf ears.

Personalised Engagement : With a clear understanding of your ICA's needs and desires, you can craft personalised marketing messages that resonate with them on a deeper level. It makes customers believe that you know them and that they are important to you. This personal touch fosters stronger customer relationships and increases loyalty.

Effective Resource Allocation: By targeting your ideal customer, you can allocate your marketing resources much more effectively, ensuring that your efforts are maximising the return on your investment. No more scattergun marketing that spreads resources too thinly.

Improved Customer Acquisition : By understanding your ICA's preferences and buying behaviors, you can identify the most effective channels and strategies to reach them. This targeted approach leads to more qualified leads and a higher customer acquisition rate.

Enhanced Customer Retention : By understanding your ICA's real pain points, you can develop strategies to keep them engaged and happy. This ultimately leads to increased customer retention and reduced churn.

How do you create an Ideal Customer Avatar (ICA)?

Creating an ICA involves conducting market research, analysing existing customer profiles, and gathering insights from team members. It's an ongoing process that requires continuous refinement as your business and customer base evolve.

Here are some steps to create your Ideal Customer Avatar:

Define Your Customer Segments : Divide your customer base into distinct segments based on shared characteristics and behaviors.

Identify Customer Personas: Within each segment, identify individuals who represent the ideal customer for that segment.

Research and Analyse : Gather data to understand each persona's demographics, psychographics, and buying behaviours by using surveys, interviews, and customer interactions.

Develop Detailed Profiles: Create comprehensive profiles for each persona, including their age, gender, location, interests, values, motivations, and of course most importantly their pain points.

Continuously Refine: Regularly review and update your ICAs as your business and customer base evolve.

Once you have a well-defined ICA, you can use it to focus all aspects of your marketing strategy, from content creation to channel selection to ad targeting. This targeted approach will help you connect with the right people, build stronger relationships, and ultimately achieve your business goals.

How have Wood and Disney used their ICA to target their marketing?

At Wood and Disney we have been using this process for many years so if you look at our home page we very clearly tell our audience that we are:

"The advisors to ambitious entrepreneurs".

Why "Ambitious Entrepreneurs"?

Because ambitious entrepreneurs need structured advice on a regular basis in order to drive growth in their businesses. Wood and Disney have a structured advisory process created over the last three decades based upon practical knowledge and experience of the team rather than just learnt from books.

The end result? Our clients want to build better futures for themselves, their families, their teams and their communities. They want to still have a successful business long into the future to either sell or pass on to the next generation. This is what Wood and Disney excel at.

How can Wood and Disney help you identify your ICA?

Wood and Disney have successfully created a structured approach to identifying an Ideal Customer Avatar for any business. We use a combination of market data, your business's Unique Selling Points (USP), your financial data and your goals and aspirations for the future, to identify your ICA.

Identifying your ICA is just the first step. Once we have an ICA profile, we can then move forward to help you to develop your products, services, marketing and systems to maximise the profitability and sales potential of your ICA. Then we set up systems to control and monitor your progress, to keep you on track to deliver maximum profits and stable growth whilst maintaining business resilience.

Would you like to learn more?

Call us on 012026 233170

Email on info@wood-disney.co.uk

Or use the form below , and we'll get back to you.

How to find a good accountant; comparing accountants

Mon, 27 Nov 2023 14:19:52 GMT

"You get what you pay for" is never truer than when choosing an accountant

You've made the decision to change accountants. The next step is how to find a good accountant? You have already carried out extensive research as you are on this website reading this article, but we do not expect you to make a final decision without comparing our services and fees with other accountants.

Although Wood and Disney are well known for our business advisory expertise, especially “Your Journey to Freedom®”, the likelihood is that first and foremost you need a set of accounts and a tax return.

So, let’s clear the air regarding accountancy fees for such a service.

Are you looking for the cheapest deal or are service, care and accuracy important to you?

We accept we are not the cheapest but it’s not all about price. There are other factors we recommend you consider when making this incredibly important decision, not least to make sure you are comparing like with like.

Your first problem is there is a difference between preparing a set of accounts and …. preparing a set of accounts. Yes, I really did say that twice.

Some accountants adopt an approach where they simply take their client’s numbers, input them into accounts or tax software and push the “go button” to generate reports.

They work on the basis that these reports have been prepared from their client’s records and consequently all risks lie with the client, i.e. YOU. Their fees will be the cheapest because they are spending the least amount of not only time, but also care, on your financial affairs.

Contrast with the approach we take at Wood and Disney where we carry out a number of checks and tests of your financial data, including detailed reviews of the following areas:

Your balance sheet and profit and loss account – do the numbers actually make sense?

Identifying and correcting any obvious errors or omissions to reduce the risk of an enquiry from HMRC.

Contacting you about any complex issues that arise and discussing accordingly so we can take appropriate action fast.

Reviewing your numbers to make sure we have legitimately maximised claims for tax relief in all relevant areas.

Identifying accruals and prepayments to ensure your profit is not over/understated.

Revenue recognition and its impact on profit.

Assessing the level of work-in-progress in your business and how this has been calculated.

Considering your stock levels and the impact of writing-off any obsolete or slow-moving stock items.

Should the book value any of your tangible fixed assets be written down. Do you indeed still own and use these assets in the business, or have they been scrapped as they’ve become obsolete?

How much do your customers owe you and how old are these debts? Should we make a specific provision for doubtful debts if recovery is unlikely and claim the relevant tax relief in this accounting period.

One of our key aims is to reduce wherever possible our clients’ tax or VAT liabilities in line with the tax legislation , as well as minimising exposure to potential tax enquiries. This work is often carried out in the background, with our clients completely unaware we are doing it for them.

But how can you compare prices when you don't know which set of accounts you are paying for?

If you are looking for the cheapest deal, then you should stop reading and look elsewhere for your new accountant.

Wood and Disney have a great reputation and to maintain this we must always work to our high standards, do things properly and act with integrity.

We believe we offer an exceptional service which we have achieved by investing heavily in our staff, in their training and development, and by using the latest technology and being innovative in our approach.

This high-quality service provided by suitably qualified and experienced professionals is reflected in our fees.

Trust is the most important element in the relationship between a business owner and their accountant and this starts with being absolutely transparent about fees.

You can find out more about Wood and Disney's transparent pricing policy by reading >> Do you know exactly what you are paying your accountant for?

Think of us as an investment

You may not see that the cost of an accountant is actually an investment, and right now may not be the right time in your business life to choose Wood and Disney.

So, if you choose not to go any further with us that’s absolutely fine, but just remember that the average age of a company at Companies House is just 8 years old and that only 28% of businesses survive more than 10 years.

Our most recent client data shows that the average age of our company clients is 12.68 years and that their net asset values (retained profits after dividends and an indicator of resilience and longevity) have grown on average by 241% in the last five years and 582% in the last 10 years.

This proves that we are living our vision which is: -

To defy the norm of business failure statistics and help 100% of our clients not only survive more than 10 years but to create a genuine asset to pass on to another generation.

Find out why paying a little more for your business advice could be the best investment in your business that you've ever made

>> Appointing an accountant should be an investment in your business.

What's you next decision going to be?

Leave our website and find another accountant? If so, I wish you every success in the future and should your circumstances change, and you need to speak to us please contact us again another time.

Are you going to contact us for more information?

If you want to find out more about the Wood and Disney difference take a look at our dedicated page " 12 signs you need to change your accountant " , where we talk in more detail about the minimum levels of service you should expect from a good accountant and how Wood and Disney don't just deliver each service point but will exceed your expectations!

If you're ready to talk through how Wood and Disney can help you Build a Better Business then why not give us a call on 01206 233170 or fill in the contact form below and we'll get back to you.

Credibility is more important than likes

Tue, 26 Sep 2023 14:34:56 GMT

Credibility - why is it so important?

In today's fast-paced, ever-changing world, it can be difficult to know who to trust when selecting a supplier. Social media has given rise to a world of noise, where anyone can post anything, and it can be challenging to know what is true and what is not. As a result, credibility has become more critical than ever when selecting any supplier. In this article, we discuss the importance of credibility, the challenges posed by social media noise, and how to identify credible suppliers.

What does credibility actually mean?

Credibility is the quality of being trusted and believed in. It encompasses sincerity, integrity, authenticity and reliability but fundamentally it is based upon trustworthiness and expertise. Credibility gives employees, suppliers, investors and your customers confidence that you will fulfill your promises. It is a combination of both emotion and logic.

Why is business credibility important?

Trust : Credible businesses are trusted by customers, partners, and investors. Trust is the foundation of successful relationships, and without it, it's challenging to attract and retain stakeholders.

Reputation : A good reputation is built on credibility. A positive reputation can lead to increased customer loyalty, referrals, and higher customer lifetime value. Customer confidence in your business is perhaps the most obvious judgement on the credibility of your business. Your customers need to believe that you will fulfill your promises to them intrinsic in the quality of the product or service you provide, the price is fair, your delivery promises will be fulfilled and you will be responsive in resolving any queries or issues which might arise in your relationship.

Competitive Advantage : Credible businesses often have a competitive edge. They can charge premium prices, secure better partnerships, and attract top talent, giving them an advantage in the market.

Raising Finance : Credible businesses are more likely to attract investors and secure loans or credit. Financial stability is essential for growth and long-term success. Credibility works both ways when raising finance . You want to borrow money from a reputable lender and they want to lend to a business they can trust to make repayments on time and in full. The credibility of your business will be a determining factor in deciding how much and on what terms a financier will lend you funds.

Legal and Regulatory Compliance : Credible businesses tend to adhere to laws and regulations, reducing the risk of legal issues that can harm a company's operations and finances.

Risk Mitigation : Credibility helps mitigate risks. It can help a business weather crises, such as negative publicity or product recalls, more effectively.

Business Relationships : Credibility is vital for building strong relationships with suppliers, customers, and business partners. It can lead to more favorable terms and cooperation. Credibility is a critical factor when you are selecting a supplier because it determines whether you can rely on them to deliver what they promise. Making the wrong choice can lead to delays, quality issues, and inevitably financial losses. Credibility works both ways. A supplier will look at the credibility of your business when determining payment terms and whether they want to do business with you. Will you pay their invoices on time? Will you change specifications or be "difficult" to deal with?

Employee Satisfaction : Credible businesses often attract and retain high-quality employees who want to work for an ethical and trustworthy company, leading to a more productive and engaged workforce. Credibility is vital in attracting the right employees and retaining them and therefore can reduce business costs as hiring and training staff is costly so low staff turnover, lowers costs. The best and most successful businesses have employees who believe and are personally invested in the success of the business. They trust the business to act ethically and do the right thing by them and in return they are willing to go the extra mile.

Why is business credibility more important than social media likes?

Long-Term Impact: Credibility is foundational and contributes to the long-term success of a business. Social media likes, while providing short-term visibility, may not translate into sustained credibility. For example, selecting a supplier based solely on their social media presence can be risky because social media noise can make it difficult to know what is genuine and what is not. Short term trends and viral stories tend to dominate the narrative on Social Media. When you are looking at building long term relationships with suppliers or clients you need to take a long term view. Social media likes should not be totally disregarded but should be considered in context.

Trust and Relationships: Credibility builds trust, which is fundamental for meaningful relationships with customers, partners, and stakeholders. Social media likes, on the other hand, might not necessarily reflect genuine trust or loyalty. In today's world, anyone can post anything on social media, and it can be challenging to separate the truth from the noise. Some people take great delight from unjustly posting negative review and there have been many stories about paid positive reviews distorting the market and giving companies an unfair advantage over their competitors.

Quality Over Quantity: Credibility is about the quality of the business, its products or services, and its commitment to ethical practices. Social media likes can be superficial and not necessarily indicative of the substance or quality of a business. For example, there was a recent news story about an accountant who had hundreds of 5 star reviews based upon getting massive tax refunds for their clients. It transpired that the refunds were fictitious and HMRC subsequently demanded the refunds back together with interest leaving those taxpayers with massive debts and long repayment terms. The accountant denied any responsibility and blamed both HMRC and their clients.

Adaptability: Social media trends can change rapidly, and likes may not guarantee adaptability. Credibility, on the other hand, involves consistent values and practices that can withstand changing trends. The market place is always changing. A company that has many 5 star reviews for a product or service may not offer the same service through all its product range or adapt to changing market conditions and maintain the quality of its products. Today's trending product may not be in vogue tomorrow. A credible company will have the controls and systems in place to maintain the quality of it offerings even when market conditions become more challenging.

Business Decisions: Credibility influences critical business decisions, such as partnerships, investments, and collaborations. Social media likes might not hold the same weight in such decision-making processes. "Likes" can be looked upon as the icing sugar dusting the top of a cake. They blow away easily. Business decisions should be based upon looking at the whole entity of the business, its operations and market with social media likes and reviews considered in the context of short term snap shots, some genuine, but with a lot of noise that is hard to filter out.

How do you build your business credibility?

Consistent Quality : Deliver high-quality products or services consistently. Consistency builds trust and reinforces credibility.

Transparency : Be transparent about business practices, pricing, and policies. Open communication fosters trust and credibility among customers and stakeholders.

Customer Reviews and Testimonials : Encourage and showcase positive customer reviews and testimonials. Real experiences from satisfied customers contribute to a positive reputation.

Ethical Practices : Uphold ethical standards in all business operations. Ethical behavior builds credibility and enhances the perception of the business.

Effective Communication : Communicate clearly and effectively with customers, employees, and stakeholders. Clear communication helps avoid misunderstandings and builds trust.

Professionalism : Maintain a professional image in all aspects of the business, from appearance to communication. Professionalism enhances credibility in the eyes of customers and partners.

Community Involvement : Engage in community initiatives or support charitable causes. Social responsibility contributes to a positive perception of the business.

Industry Expertise : Showcase expertise in your industry through thought leadership, participation in industry events, and sharing valuable insights. Being seen as an authority enhances credibility.

Responsive Customer Service : Provide excellent and responsive customer service. Addressing customer concerns promptly and effectively builds trust and confidence.

Consistent Branding : Ensure consistency in branding across all platforms. A cohesive and recognizable brand identity contributes to credibility.

Remember, building credibility takes time, and it's an ongoing process. It's about creating a positive and trustworthy image that resonates with customers and stakeholders.

How do you find out if suppliers' or customers' businesses are credible?

Research the business's track record including their length of experience. Whilst new businesses may have recent technical skills learnt from college or university, they will lack the practical experience that comes from working with many clients over many years. For example, a more experienced accountant is likely to have seen a wider range of financial issues and developed a deeper understanding of the unique challenges businesses face especially in regard to surviving recessions. So, you ask how long a supplier has been in business, and what is their experience? This information can be found through online searches, industry publications, or by speaking with other businesses in your industry.

Verify Contact Information : Ensure that the business provides accurate and transparent contact information. A credible business is usually accessible and transparent about its location, phone number, and email address.

Values and ethics: There is a lot of discussion over recent years that you should consider the company's values and ethics before doing business with them. Simon Sinek’s view is we don’t buy what a supplier sells, we buy why they sell it. We like to understand our supplier’s “purpose”. Whether you believe that or not asking questions about their culture, codes of conduct or ethical guidelines will ensure that you feel comfortable in dealing with them. So, choosing a business that aligns with your values and ethics can help ensure a long-term, mutually beneficial relationship.

Check for third party evidence: One way to ensure credibility is to look for reliable third-party evidence. For example, has the business won any industry awards or hold recognised professional qualifications. Formal qualifications not only provide evidence of expertise but also ensure adherence to standards of behaviour. or perhaps a referral from another professional you already know and trust. Ask for References , if dealing with a B2B (business-to-business) situation, ask for references from other clients or partners. Independent endorsements by the supplier’s peers provide a level of reassurance not provided by online reviews. Contacting these references can give you a better understanding of the business's credibility. Check for Reviews and Testimonials on reputable platforms. Customer testimonials and experiences can provide insights into the business's credibility.

Investigate Complaints : Check for any history of complaints against the business. Consumer protection agencies and the Better Business Bureau are resources where you can find such information.

Assess Financial Stability : A company that is financially stable is more likely to have the resources to deliver on their promises. Consider their financial statements, credit reports, and any other relevant financial information to ensure they are financially sound. We often see advertisements claiming to be able to achieve amazing results yet when you check their own accounts at Companies House they are often insolvent. If they cannot get their own house in order how can they achieve those results for you?

Look for Transparent Policies: A credible business is open about its policies, such as refund or return policies. Read through these to understand the terms and conditions.

Evaluate Customer Service and communication skills : Reach out to the business's customer service with questions. The responsiveness and helpfulness of their customer service can be an indicator of their commitment to customer satisfaction. Do they respond to your inquiries promptly and professionally? Do they communicate clearly and effectively? A business that is responsive and communicates well is more likely to be reliable and trustworthy.

Check Legal and Regulatory Compliance: Ensure that the business complies with relevant laws and regulations in its industry. Non-compliance may be a red flag.

Level of innovation: Finally, it is important to evaluate the level of innovation . In today's rapidly changing business environment, it is crucial to choose a business that can adapt to changes and innovations quickly. Consider their investment in technology and R&D.

In conclusion, credibility is essential when selecting a business to work with , particularly today where social media noise can make it difficult to know who to trust. Combining information from various sources, you can form a comprehensive understanding of a business's credibility. By looking for third-party endorsements, researching track record, evaluating financial stability, considering their values and ethics, and assessing their level of innovation, businesses can ensure they select a business that is reliable, trustworthy, and can deliver on their promises. Keep in mind that no business is perfect, but a credible one is transparent, responsive, and maintains a positive reputation overall.

How can you build your business resilience in these tough times?

Wed, 13 Sep 2023 08:53:09 GMT

How to build resilience so that your business survives and thrives!

Increasing UK business costs in 2023 have impacted profits and growth

According to the Office for National Statistics (ONS), the cost of goods and services bought by businesses in the UK increased by 19.2% in the 12 months to September 2023. This is the highest rate of inflation for business costs since records began in 1997. The biggest drivers of costs increase are still energy costs with prices seeing a rise of 99.3% over the 12 months. Energy prices are still rising due to ongoing supply shortages as a result of the Ukraine War and global demand upsurge following the Covid pandemic. In the UK cost rises have been exasperated by the weak pound against the dollar making buying energy from the global market more expensive, and the UK reliance on natural gas as it transitions to renewable energies making the UK market more exposed to global natural gas price fluctuations.

Other significant cost increases in the UK included raw materials (29.7%), transport (13.2%), and labour (9.5%), with upward pressure from high UK interest rates, a weak £, global inflation, and increasing demand and limited supply, all playing their part.

The relative impact of rising costs on individual businesses will depend on the nature of their business and market sector. For example, manufacturing businesses have been particularly hit hard by the rise in raw material and energy costs but service sectors have struggled more with the increases in labour costs.

It doesn't look like the pressure from increasing costs on UK business will end anytime soon. The ONS also found that businesses in the UK expect their costs to continue to rise in the coming months. Around two-thirds of businesses expect their costs to rise in the 12 months to September 2024.

What is the impact on profits and growth?

According to a recent survey by the Confederation of British Industry (CBI), 60% of businesses in the UK are reporting a decline in profits due to rising costs with 75% of businesses expecting their costs to continue to rise in the coming months. The impact on employment is negative with the Institute of Chartered Accountants in England and Wales (ICAEW) finding that 60% of businesses in the UK are planning to cut jobs due to rising costs. Overall the cost pressures on business are already impacting business profits and by extension this will inevitably lead to a fall in growth as consumer and business demand falls and investment is cut.

What about business failures?

In the past 12 months (to September 2023), 585,807 businesses failed in the UK, a year-on-year increase of 0.7%. This means that an average of 1,600 businesses closed down every day.

Is it all doom and gloom or can you make changes in your business now and plan forward, to mitigate economic pressures?

Some of our clients have been with us for over 30 years although they may be a little greyer and more wrinkled now. So it's not all doom and gloom - you can build resilience into your business, ride out the storms and emerge stronger. Our experience is that business owners are a resilient group and those that are the most successful are also flexible in their planning.

Protect your business today and put in place protection for tomorrow.

Security Today ~ Wood and Disney ring fence assets that you have already acquired. To limit today’s risks; what you could lose if things go wrong both from a personal point of view and for your business.

Security in the Future ~ Wood and Disney think ahead to future risks. We identify and make sure you have in place business and financial structures, insurances and the right legal frameworks to protect your personal and business assets if the unexpected happens in the future.

Financial Resilience

Financial Management

Wood and Disney make sure that you have the right financial management systems and controls in place so that you know and understand exactly what is going on in your business and have up to date data to control your business and take action to avoid and mitigate problems and plan for a secure future.

Wood and Disney ensure you have:

Management accounts: accurate and timely management accounts are essential to plan better and make better decisions. You will spot opportunities sooner and stop negative actions faster leading to a stronger business.
Budgets : Review your Budgets and set realistic and achievable targets for the remainder of 2023 and know your cash flow forecast inside out.
Key Performance Indicators: Establish and understand your key performance indicators (KPI’s) and measure them on a weekly basis.
Control Costs - Bottom up budgeting: Look at your expenses and see if you can make small cut backs in lots of areas. Use ‘bottom up’ budgeting where everyone in the office gives input on areas over which they have control – target a 10% cost savin g.
Know what you are spending and on what: Look at your detailed expense list in your profit and loss account and assess if there is room for negotiation in any of your fixed expenses and whether there are alternative suppliers. Be careful to consider the affect of changing suppliers on both your team and on your customers before just hacking away at costs.

Cash Flows

You need both short term cash flow solutions to get the money coming into your business today, tomorrow and over the coming days and weeks PLUS you need long term cash flow solutions to build cash reserves in your business to keep you out of trouble in the future.

Wood and Disney provide both short and long term cash management systems and solutions. Find out more on our dedicated web page:

>> Cash flow solutions for today

>> Building a cash reserve ~ Strategic Cash Retention Programme

Some of the actions we have advised our clients to do recently to firm up their cash flow in these tough times, include:

Credit control:
Assign responsibility to one individual for invoicing and collections.
Make sure your terms of business contain explicit payment terms.
Review debtors list and chase up overdue invoices (if appropriate). If applicable, offer existing debtors extended payment terms and/or discounts.
Get rid of “Won’t Pay” customers.

Risk Reduction

Over-reliance on a single product, supplier or customer can expose a business to cash flow risks.

Diversifying revenue streams by expanding into new markets, launching new products, or targeting additional customer segments can help mitigate the impact of fluctuations in a single area of the business.
The same applies to suppliers. If you are dependent on a single supplier they will command pricing and delivery. By finding additional suppliers even if they charge a little more initially helps you should the supply market be affected by external influences.

The whole idea of risk reduction is to consider these dependencies and look for opportunities to build stability and longevity

Processes and Systems

Creating Business Systems is the only way to achieve results that are consistent, measurable and resilient. Wood and Disney identify each and every process in your business and turn it into a system. Having effective business systems is the only practical way to manage the important details of your operation.

Some of the actions Wood and Disney have advised our clients to do recently to improve their systems and processes, include:

Review and flow chart the main processes in a business (e.g. Sales processing, order fulfillment, shipping etc) and challenge the need for each step.
Reviewing lists of products and services and eliminate those that are unprofitable or not core products/services.
Outsourcing: Reviewing efficiency of business processes and considering alternatives such as outsourcing certain activities locally or overseas.

Relationships with stakeholders

Building strong relationships with stakeholders is important can be mutually beneficial. Business credibility is particularly important when you are building relationships; it is about being trusted and believed in. Credibility gives employees, suppliers, investors and your customers confidence that you will fulfill your promises. Wood and Disney have a blog dedicated to how to build credibility in your business:

>> Credibility - why is it so important?

Wood and Disney have recently helped our clients to build resilience into their businesses by:

Customers : Put extra effort into making sure your relationships with your customers is strong. It is much easier to grow business with an existing customer whether that is adding sales value to existing products and services bought, cross selling, or gaining referrals than finding and starting afresh with a new customer.

Banks and lenders: If appropriate, review banking facilities and discuss future needs. Build personal relationships with your bank manager and other financial stakeholders. Building goodwill now will help to gander a more positive attitude to your business in the future.
Don't ignore debt. Ask for help if you are struggling.

Suppliers : Build positive relationships with suppliers, particularly those that are critical to your business.
Negotiate. Engage in proactive communication with suppliers to negotiate more favourable payment terms. Request extended payment periods or explore vendor financing options.
Avoid becoming dependent on one key supplier.

Your People

In most businesses your team are your biggest asset. Wood and Disney talk to you and your team and develop an action plan to equip your business with the people and skills it needs to adapt, change and deliver resilience. We also look at the knowledge, skills and experience you have built up in your team and work with you and them to leverage that human asset to build a stronger business that is mutually beneficial by rewarding staff and security into the future.

Advice we have given most recently to clients includes:

Involve members of staff in a discussion of likely trading conditions and get their input on maintaining revenues, new products and services or re-targeting existing products and services.
Encourage team members to suggest ways to streamline and simplify processes (e.g. sit down and brainstorm about efficiencies and cost reduction).
Reviewing staffing needs over the next few months.
Employee commitment: Pull everyone together and explain the business strategy and get their buy-in.

It's NOT all doom and gloom!

Your business can survive and thrive despite the maelstrom of economic bad news that seem to hit us every day. If you have in place ...

the right Protection
Financial management
Controls and Processes
Strong relationships
the right People

Wood and Disney have a proven track record of helping our clients weather the storms of business life and we will be there for you .

Please tal k to us about planning ahead because we have considerable experience with helping our clients with their strategy and sustainability in turbulent times.

You can get in touch by calling: 01206 233170

Or by completing the message form and we'll get back to you.

Flourishing in Colchester: A Fusion of Business Potential and Expert Financial Management

Mon, 21 Aug 2023 10:32:02 GMT

Wood and Disney - expert financial and business advice in a city where enterprise flourishes.

Colchester: A great place to start and run a business

Colchester, a name synonymous with historical grandeur, is not just a city resting on its rich past; it's a booming hub for modern businesses. The fusion of its vibrant business community and supportive economic infrastructure makes it one of the most ideal locations for enterprises in the UK

There are many reasons why Colchester is a great place to run a business and here are just a few:

Colchester’s Business Ecosystem The business community in Colchester is as diverse as it is dynamic. From tech start-ups to established retail giants, the city boasts an eclectic mix of businesses, all thriving and contributing to a bustling local economy. This diversity ensures resilience, adaptability, and continuous growth.
Local Authority and Central Government Support Colchester has benefitted immensely from targeted initiatives by both the local authorities and central government. They've prioritised business support, offering incentives, grants, and programmes tailored for business needs. This backing provides a robust foundation for businesses, giving them a competitive edge not just locally but on the national stage as well.
Business Support Initiatives Apart from government interventions, there are various local business support initiatives in Colchester. Networking groups, workshops, and seminars are regularly hosted, facilitating knowledge sharing, collaboration, and community building. This spirit of communal growth ensures businesses don’t just operate in isolation but as part of a thriving, supportive network.
A Skilled Workforce There is a skilled workforce available emanating from the local colleges, Colchester Institute and the University of Essex. Many students attending the University, including those from over 130 countries around the world, decide to stay in the area adding to the rich skillsets available.
Strategic Location Colchester is located just 60 miles from London. This makes it an ideal base for businesses that want to access the national and international markets. The city is also well-connected by road, rail, and even airports such as Stanstead and Southend both of which are within a short distance. Felixstowe, the UK’s largest container port, is only 28 miles away.
Harnessing Colchester’s Potential with Expert Guidance While Colchester offers a plethora of opportunities, navigating its business landscape requires skill and insight. Wood and Disney provides just that. Whether it's aligning with local incentives, tapping into the city’s network of professionals, or crafting growth strategies tailored to Colchester’s unique economic climate, we are perfectly equipped to guide businesses towards sustainable success.

Colchester is more than just its historical landmarks, the late Queen Elizabeth II thought so too, awarding Colchester City status in her Platinum Jubilee celebrations in November 2022. It's a city where businesses thrive, bolstered by a supportive community and a proactive approach from local authorities and the central government.

Colchester leads the way in active businesses and new business start ups!

It's not just us extolling the virtues of Colchester as a great place to set up and run a business. TFM equity partners have been studying new data and can confirm that while London leads on a lot of metrics, Colchester ranks 9th in the country, with 5,316 active businesses per 100,000 adults! Outranking most major cities and business hotspots like Cambridge, Birmingham, York, Liverpool, Edinburgh ...

Colchester doesn't just lead the way in active businesses. It's also an innovation leader and a flourishing nursery for new businesses to grow and thrive. TFM equity partners found that Colchester ranks 11th in the country, for business births per 100,000 adults with up to date data between Q3 2022 and Q2 2023. with 563 new businesses choosing Colchester to start up per 100,000 adults! Outranking most major cities and innovation hotspots like Bristol, Bradford, York, Edinburgh ...

TFM report caught the attention of Sky News . You can read the whole article at: What is the most innovative town or city in the UK? (5th February 2024)

Why did Wood and Disney choose Colchester ?

If you are, quite rightly, considering relocating, or starting a business in this flourishing environment, as a Colchester-based chartered accountants and business advisors, Wood and Disney stand as a beacon for businesses , offering expert financial management tailored to the Colchester business ecosystem. For those moving here or already operating here, aligning with such expertise will undoubtedly catapult your journey to success.

Why did Wood and Disney choose Colchester? The decision to establish our accountancy firm in Colchester in 1987 was no coincidence. Recognising the city’s potential and the unique financial needs of its business community, we saw the opportunity to offer specialised business growth services which were not being offered by the very traditional firms operating in the area. Our understanding of the local landscape, combined with our expert financial knowledge, makes us an invaluable partner for any Colchester-based business.

Wood and Disney’s mission is to provide our clients with proactive financial support and business advice to ensure long term success. And with our understanding of the local economy, we are perfectly poised to help your business navigate and harness the city’s abundant opportunities.

Wood and Disney's business community commitment in Colchester

Over the years Wood and Disney , while providing both traditional chartered accountant services and business advisory services to our clients, we have used our business acumen to work with local authorities, business hubs, the chamber of commerce, and the university. Representing local businesses, supporting various initiatives to improve support for Colchester businesses, and helping foster an environment that helps Colchester businesses grow. Here are a few examples:

Wood and Disney has supported the Colchester Games Hub, which provided a range of support services to Games and App businesses in the city, including help to deliver workshops and training courses on topics such as accounting software, finance, and business planning.
Wood and Disney are also a member of both Essex and Suffolk Chambers of Commerce. The Chamber of Commerce represents the interests of businesses in the area and works to promote their growth. Wood and Disney have been involved in a number of Chamber of Commerce maintaining strong links by attending and promoting their services to our client base..
Wood and Disney also have strong links with the University of Essex. The University has a number of research centres that focus on business and entrepreneurship. Wood and Disney have worked with these centres to develop projects that help businesses to grow and are regularly called upon to present to students who are looking to set up new businesses.
Wood and Disney also support local networks building our contacts with local trades and professionals so we can help our clients by sign posting them to those who we have got to know and trust over many years.

Wood and Disney continues to innovate and serve the Colchester business community.

Learn more about Wood and Disney on our home page , where you can read about:

Why our CEO, Peter Disney was named Top 10 Business Advisor in Global Awards .
Why we are finalists in the Accounting Excellence - ‘Small Firm of the Year award (South of England) .

And find FREE content, such as:

The Future Proof Business Quiz which is unique in that it enables you to “self-measure” the likelihood of your business surviving more than ten years. Clients run it regularly to see how they have improved their scores over time.

Our 2023/24 New Business Kit which looks at the various financial, tax and accounting considerations of starting a new business. Over 50 pages from business structures, tax, VAT, Making Tax Digital, Payroll, cash planning and forecasting, raising finance and even insurances.

And don’t forget our Wood and Disney Mobile App which is full of useful features such as:

18 calculators including a mortgage calculator, inflation, APR, savings and even a currency calculator.
22 tax tables including from Corporation Tax, car and fuel benefits, national insurance, links to cloud accounting logins and even details of the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS).
You can check the prices of precious metals as well as share and fund prices.
And it gives you access to our weekly Tax and Business News in both written and video formats.

In conclusion you can see that not only does Colchester offer so much potential for its local businesses but that Wood and Disney , chartered accountants are at the forefront in supporting those businesses with its unique mix of traditional compliance and expert financial management.

How do you choose the right accountant for your business?

Tue, 23 May 2023 14:20:44 GMT

How to make sure you choose a great accountant

As a business owner, having a good accountant is essential for your financial success. But what happens when your accountant is no longer meeting your needs? I talked about 12 signs to look out for if you're unhappy with your accountant or just unsure whether you could do better by changing accountants, in an earlier blog and on our dedicated web page " 12 signs you need to change your accountant" . In this blog, I go into more detail about how to choose the right accountant for your business and the questions you should be asking them to make sure you choose the right one.

One of the most common searches by business owners if they are looking for new accountants is simply "Accountant near me". Despite technology enabling you to choose an accountant potentially thousands of miles away, people are looking for someone local. A friendly face, someone to talk to, proper advice from a proper person. We definitely don't want to take advice from a machine or from someone miles away who treats us like a machine.

Whether you're a small business owner, a freelancer, or an individual in need of tax help, finding the right accountant can make a big difference in your financial success. Here are some tips to help you choose the right "local" accountant for your needs.

Define your needs

Before you start your search for an accountant near you, it's important to define what you're looking for. Are you looking for someone to just handle your taxes? Or do you need help with full bookkeeping services? Or are you looking for someone to provide advice for your business? Some accountants just want to file your returns and will not give any form of advice. Are you looking to build your business to sell or to pass on to your children? Knowing what you need will help you narrow down your search.

Ask for recommendations

One of the best ways to find an accountant near you is to ask for recommendations from others in business or local professionals such as solicitors or bank managers. If you have a professional network, such as a chamber of commerce or business association, you can also ask for recommendations there. You can look at the membership of Accountancy bodies and select a few local ones. Then back all of this up by looking at Google reviews. Probably best not to take advice from an acquaintance at the local pub.

Research potential candidates

Once you have a list of potential accountants, it's important to research them before making a decision. Check their credentials, such as their certifications and licenses. Look for reviews online and check their website for information about their services.

You can check with the online directory for ICAEW Chartered Accountants, for ICAEW‐licensed individuals, and ICAEW licensed/accredited firms, to see if the accountant is a member >> ICAEW on-line directory of members .

Check out recommendations very carefully. We recently saw an accountant with hundreds of five star reviews appear on the national news accused of over inflating expense claims. HMRC was sending clients of the firm demands for thousands of pounds of underpaid tax.

Have a meeting

Before hiring an accountant, it's important to schedule a meeting to get to know them better. (To avoid wasting your time we always start with a simple 15 minute discovery call to see if we can help you and then if we can, we will arrange a meeting). During the meeting, ask about any experience working with clients in your industry, and make sure you feel comfortable with their communication style. The professional accountant will be transparent about their services and how they charge. If you have discussed all of your needs and they confirm that they have all the relevant information to quote you should expect that written proposal within 24 hours. If the accountant only gives you a verbal figure or says "between £x and £y" then probably best avoided.

Make a decision

Once you've completed your research and meetings, it's time to make a decision. Choose the accountant who you feel most comfortable working with and who you believe will provide the best service for your needs. If you cannot decide on the basis of service and instead start comparing on price STOP and start the whole process again. When it comes to professional advice the cheapest deal is likely to be the worse deal.

12 signs that it's time to change your accountant

peterd@wood-disney.co.uk (Peter Disney) — Mon, 22 May 2023 13:42:15 GMT

Does the success of your business REALLY matter to your accountant?

Does your Accountant care about your business?

As a business owner, having a good accountant is essential for your financial success. An accountant that cares about your business is essential if they are to give you the right advice for your business to succeed. The first step is to make sure that your accountant takes an active interest in your business.

They should

Get to know you as a person . What are your goals both personal and business? What pressures are you under financially and in terms of business stresses.
Get to know your business . Have they visited your business premises? Do they know who your key staff are? Do they understand the structure of your business and operations? What your key products and services are? What about the market you are operating in?
Offer you pro-active advice . Do they ask the questions you haven't thought of? Do they bring to your attention risks for the future and advice you on how to avoid them? Do they give you sensible, practical business advice that you can put into practice and which achieves results?
Care about your business . Are they willing to go the extra mile when you need that extra help and support? Do they listen when you need someone to talk through problems with? Do you feel that you matter to them?

What signs should you be looking out for if your business no longer matters to your accountant?

To wet your appetite, here's a run down of the 12 signs to look out for, to find out more on our dedicated page "12 signs you need to change your accountant" .

1.Lack of availability

If you find that your accountant is difficult to get in touch with or takes a long time to respond to your calls or emails, it may be a sign that they aren't prioritizing your needs. Good communication is key to a successful accountant-client relationship.

2.Lack of expertise

Your accountant should have expertise in your industry and be able to provide you with the specific financial advice you need. If you find that your accountant doesn't have the necessary expertise or knowledge, it may be time to look for someone with more experience in your field.

3.No proactive advice

A good accountant should not only be reactive to your needs but should also be proactive in providing you with financial advice. If your accountant is simply processing your paperwork without offering any proactive advice, it may be time to find someone who will provide more value.

4.Errors in your financial statements

If you notice errors in your financial statements or tax returns, it could be a sign that your accountant is not paying enough attention to detail. These mistakes could cost you money in the long run, so it's important to find an accountant who is meticulous and detail oriented.

5.Ethical concerns

If you have ethical concerns about your accountant's practices, such as questionable tax strategies or advice which you feel uncomfortable with then you need to distance yourself from them. If HMRC decide that an accountant is doing something dishonest then all of that accountant’s clients will be drawn into the same investigation at significant cost both financially and emotionally.

6.Lack of transparency

Your accountant should be transparent about their fees, services, and any issues that arise. If you find that your accountant is not transparent or is withholding information, it could be a sign that they are not acting in your best interests.

7.Unresolved issues

If you have raised issues or concerns with your accountant and they have not been resolved to your satisfaction, it may be time to find a new accountant. You should feel comfortable and confident in your accountant's ability to handle your financial needs, and if you don't, it's time to move on.

8.Lack of innovation

If your accountant is still using outdated methods and technologies, it may be time to find someone who is more innovative and up to date with the latest accounting tools and practices. An accountant who is not constantly learning and improving their skills may not be able to provide the best service possible.

9.Geographical constraints

If you have moved to a new location, it may be difficult to continue working with your current accountant. It may be time to find a new accountant who is located closer to your new home or business location and has the necessary expertise to handle your financial needs.

10.Incompatibility

If your accountant's values, work ethic, or communication style does not align with yours, it may be difficult to work together effectively. Finding an accountant who shares similar values and work ethics can lead to a better working relationship and a more successful financial partnership.

11.Business growth

As your business grows, your financial needs will become more complex and may require a higher level of service than your current accountant can provide. It may be time to find an accountant who can help you navigate the challenges of business growth and provide the expertise and support you need to take your business to the next level.

12.Retirement or succession planning

If you are planning to retire or pass on your business to a successor, it may be time to find an accountant who can help you with succession planning and ensure a smooth transition for your business. An accountant with experience in retirement and succession planning can provide valuable advice and guidance to help you plan for your future.

How do you go about changing your accountant?

We've suggested twelve signs that it may be time to change accountants. Of course you may have experienced other times when your accountant has let you down or just have that nagging feeling that you are not getting the help and support that you need from them. Switching accountants may be a difficult decision, but once made it is quick and easy to do. It is important to remember that your financial success depends on having the right professionals in your corner.

What should you do next?

You can start by finding out more about how Wood and Disney approach the 12 signs that we've listed above. On our dedicated page "12 signs you need to change your accountant" , we talk in more detail about the minimum levels of service you should expect from a good accountant. We tell you about the Wood and Disney difference. H ow we not just deliver each service point but exceed your expectations!

If you're ready to talk through how Wood and Disney can help you Build a Better Business then why not give us a call on 01206 233170 or fill in the contact form below and we'll get back to you.

What does a future proof business need to succeed in the future?

Wed, 26 Apr 2023 15:43:54 GMT

How to Future Proof your Business

What do we mean by a "future proof" business?

A future proof business is one that is well-positioned to succeed in the future, regardless of the challenges and changes that may come. It's about anticipating and preparing for future changes and challenges and taking actions beforehand to mitigate their impact on your business. These challenges could be from:

economic downturns that may effect all businesses,
technological changes such as AI,
changes in your marketplace such as competitors introducing new products, licences coming up for renewal or new consumer trends.
changes in your business such as key staff retirements or the lease expiring on your business premises

Not all of the changes will be negative, so future proofing is also about making sure your business is ready to take advantage of opportunities as well as avoiding pitfalls.

Future proofing is a combination of mindset and preparedness.

How does the right "mindset" future proof your business?

Mindset means being adaptable, innovative, and responsive to the needs of customers and the market.

Under mindset we would include:

Investing in research and development . This is essential for staying ahead of the curve and developing new products and services that meet the needs of customers.

Emphasising innovation . This means being open to new ideas and willing to take risks. Businesses that are not innovative are more likely to be left behind by their competitors.

Being responsive to customer needs . This means listening to what customers want and need, and then developing products and services that meet those needs. Businesses that are not customer-focused are more likely to lose out to their competitors.

Being adaptable to change . The world is constantly changing, and businesses need to be able to adapt to those changes in order to survive. This means being willing to change business models, strategies, and even products and services as needed.

Building a strong team . A strong team is essential for any business, but it is especially important for businesses that want to be future proof. A strong team is one that is made up of talented and dedicated individuals who are committed to the success of the business.

Build a network . Having a strong network of friends, family, and colleagues can be invaluable in times of need. Referrers, cheerleaders, supporters etc. A mentor and advisors. Make an effort to connect with people from different walks of life, and build relationships that you can rely on.

Stay informed . The more you know about the world around you, the better prepared you will be for whatever comes your way. Read newspapers, magazines, and blogs, and watch the news. Talk to people from different walks of life, and learn about their experiences.

What do we mean by "preparedness"?

Preparedness is about building security.

Under preparedness we would include:

There are many reasons why it is important for a future proof business to retain cash and build reserves . Here are a few of the most important:

To cover unexpected expenses . No business is immune to unexpected expenses, such as natural disasters, equipment failures, or lawsuits. Having a cash reserve on hand can help businesses cover these expenses without having to borrow money or dip into their operating budget.

To take advantage of opportunities . When a good opportunity comes along, businesses need to be able to act quickly. Having a cash reserve on hand can give businesses the financial flexibility they need to take advantage of these opportunities, even if they are not immediately profitable.

To weather economic downturns . Economic downturns can have a devastating impact on businesses, especially small businesses. Having a cash reserve on hand can help businesses weather these downturns and stay afloat until the economy recovers.

To improve creditworthiness . Banks and other lenders are more likely to lend money to businesses that have a strong financial history and a healthy cash reserve. Having a cash reserve can help businesses improve their creditworthiness, which can make it easier to get financing when they need it.

By retaining cash and building reserves, businesses can improve their financial security and position themselves for long-term success.

How do you go about building reserves and retaining cash?

Obviously as accountants we have some tips for businesses that want to retain cash and build reserves:

Create a budget and stick to it . One of the best ways to retain cash is to create a budget and stick to it. This means tracking your income and expenses, and making sure that you are not spending more money than you are bringing in.

Pay down debt . The more debt you have, the less cash you will have on hand. Make a plan to pay down your debt as quickly as possible.

Invest in your business . When you invest in your business, you are essentially investing in your future. This could mean investing in new equipment, marketing, or training for your employees.

Save some money each month to cover unexpected expenses. This could be a rainy day fund, or a separate account for unexpected expenses.

How can Wood and Disney help you retain cash and build reserves?

To help our clients build cash reserves and retain cash Wood and Disney have developed a Strategic Cash Retention Programme. It starts with having a strategic plan and setting goals so you stay focused on retaining cash. By understanding where your money is being spent you regain control and can either reduce/eliminate any borrowing or build cash reserves to achieve financial freedom. You can find out more about how Wood and Disney build cash reserves in your business on our Cash Flow Solutions page .

If you are struggling to retain cash or build reserves, talk to us . We can put the systems and controls in place to build strength in to your business by developing a cash reserve to see you through the hard times and build financial security into your business operations and personal finances.

Is your business future proof?

Take our FREE, FUTURE BUSINESS ASSESSMENT to find out how future proof your business is!

It's multiple choice, easy and quick to complete and you'll receive a personal PDF report with detailed feedback on what we can do to improve your business longevity and resilience.

Talk to us to find out how Wood and Disney can help you future proof your business

Don't be afraid to ask for help. If you are concerned about the future of your business or your own financial security then get in touch. We can help you create a plan to improve your financial situation today in anticipation of the uncertainties which will inevitably come your way.

Call us on 01206 233170 or message us below and we'll get back to you .

Why is the journey more important than the destination?

Wed, 26 Apr 2023 12:03:05 GMT

My journey to Building Better Futures

The road traveled ...

At a meeting earlier this week I spoke about my journey from boring accountant to ....an older and just as boring accountant.

However, the road traveled has been interesting. I qualified as a chartered accountant in 1981. We had just about moved on from using abacuses, with calculators a welcome addition to our toolkit. In those days hand written records were the norm, excel spreadsheets were cutting edge and accounts preparation packages and cloud accounting unimaginable.

I started my own practice on a part time basis and then joined Wood & Disney, with Philip Wood, based in Wivenhoe, in 1987. In 1992 the recession caused chaos and I lost many of my clients and I kept thinking whether could I have done more for them? In those days the function of an accountant was to churn through the client's figures, produce a set of accounts and tell them how much tax they owed. Most clients paid their tax and filed their accounts, until the process repeated the following year. They rarely used the information given to them as they largely didn't understand what it meant to their business or how they could use the data to help their business grow. I saw an opportunity to add meaning to my role as an accountant by helping my clients understand how important their financial data is to their business and how they could use it to develop and grow their business. Business advice from your accountant; a bit of a novelty in the early 90's.

In the 90's, I bought a management consultancy system from the USA and rewrote it for the English market. I designed and automated a system that took the business finance function and viewed it as an integral part of the whole business interdependent on HR, production, development, sales etc... Technology was starting to evolve. The internet hadn't taken off but I wrote it in an Access database so I could automate some of the responses. I renamed it Question Master . I then created an analytical system which could analyse accounts and create "what if" scenarios. I called this Troubleshooter Plus and again it was written within an Access database.

As a result of my promotion of business advisory services I was invited to the USA to attend a conference of The Institute of Profit Advisors which subsequently was brought to the UK and I qualified as a Certified Profit Consultant . Around this time I also took a certification with the ACCA to become a Business Navigator .

In early 2002 I launched the first ever interactive business advice website, Plus4Business which flopped spectacularly and I still have the two IBM servers as mementos. The system was web based, designed to be fully automated. I initially blamed its failure on a lack of broadband but in reality clients wanted face to face advice not rely on generic explanations generated by a program.

An important life lesson was learnt. Don't be afraid of taking risks and failure - just learn from your mistakes and try not to repeat them!

Plus4Business may have been a commercial failure but I learnt so much from the process of designing the system and setting it up. It formed the foundation of the finance combined with advice, that we now offer to all our clients. It also demonstrated the importance of a structured advice approach that looks at a business as a complete entity with all functions of a business interdependent and finance at the heart, rather than a piecemeal, firefighting approach.

In 2003, we started the transition to a paperless office, moving all the administration and systems in our office firstly onto our own servers and eventually into the cloud. We got ahead of our competitors by learning when the technology was in its infancy, about the different software systems and later, cloud based systems. We also incurred all the costs at an early stage, with a steep learning curve, investing in technology and setting up systems and processes .

In 2008 we first started to introduce cloud accounting to our clients. Initially with Kashflow, closely followed by Xero and QuickBooks on-line. This has made advising our clients far easier as we had access to their real time information. It changed the way we looked at bookkeeping from a monthly task to a daily task. It means that the advise we give is no longer based on historical data and we can be proactive instead of reactive.

In 2020, this investment gave us an enormous advantage when covid hit. All our systems and processes were set up to work remotely as were nearly all of our clients'. Our work output didn't falter, as we all worked from home in exactly the same way as we would in the office. We were able to focus on helping and advising clients at their time of greatest need for advice and reassurance. We embraced Zoom and Microsoft Teams, having virtual face to face meetings with all our clients. We're now back to in person meetings but still use virtual meetings to catch up with our own team daily as we've adopted blended working as the best of both worlds, home and office.

The road today ...

My research and experience led to our current human led advisory process called " Your Journey To Freedom " . And a few spin off programs called " The Strategic Cash Retention Program " and "The NAG Index" .

And of course last year we launched www.thefutureproofbusiness.co.uk . This is a free assessment to help businesses improve their chances of surviving into the long term. For six minutes of your time completing the assessment, we give you a free 12 page report. All part of my desire to reduce the failure rate of businesses in the UK which has been appalling over quite a long time.

I've learnt over the years that the destination may not be where you originally thought it would be. Life is always throwing you curved balls. Technology evolves, the economic environment changes, you meet new people, you gain new experiences and learn new things. Last month my 21 year old, youngest son, showed me NFC-enabled tags. I learnt how to program them and used them at an exhibition to automatically direct visitors with NFC enabled devices direct to our website. There's always something new to learn - that's what makes the journey so fresh, exciting and rewarding!

The road ahead ...

As you move through your career your perspective on the past and future changes. For me, building for the future has become the focus. Not just building for my own future, but helping clients build better futures for themselves and for the next generation. I suppose it's all about leaving a legacy or in your own small way being useful, not just for your own benefit but also for others. So my professional focus is about giving advice to clients to help them future proof their businesses and pass on some of the hard earned knowledge and experience I've gained from being in business for over 40 years.

So, don't be put off by the journey. You may not get to your original destination but maybe somewhere a lot better and have a great deal of fun and experiences along the way. I still continue to learn, get new ideas and move our business forward. I'm still on that journey and suspect it will never be truly "finished" but that's the fun of doing this.

Anyway the journey will continue.

ICAEW Business Advice Service. Why it matters to your business.

Fri, 10 Mar 2023 11:17:46 GMT

Business Advisors you can trust.

What is the ICAEW Business Advice Service?

You may have noticed the BAS ( Business Advice Service ) logo on our website. The ICAEW launched the BAS in 2011 and the service can only be offered by ICAEW regulated firms. Both of the directors of Wood and Disney Ltd are recognised by the ICAEW to deliver business advice and are able to use the designation BFP meaning Business and Finance Professional . The BFP designation is an internationally recognised professional status.

What services do accredited ICAEW Business Advice Service firm provide?

The BAS service provides any UK business with a free initial consultation, of up to one hour, with an ICAEW regulated BAS firm. Chartered Accountants holding the BFP designation, have been rigorously trained in advising businesses and provide high quality, professional services providing the support and guidance you need to run and grow a successful business operation. Businesses can use this consultation to seek information on a wide range of topics, typically business finance, cash flow management, growth strategy, and restructuring/insolvency.

Whether you are just starting out or established and looking to grow, an ICAEW Business Advice Service firm can provide regular or one-off advice on:

Setting up your business
Obtaining finance for the business through loans, grants and investment
Cashflow Management
Taking on staff, payroll and employee benefits
How to pay yourself as a business owner
Managing customers who owe you money
Agreeing contractual terms with suppliers
Meeting company deadlines
Tax and dealing with HMRC
Software for accounting, receiving payments and stock
How to grow your business
Planning for a business sale or merger
Exiting the business and retirement

Accreditation - your guarantee of expert and experienced business advice

Business Advisory Service (BAS) firms are regulated by the ICAEW and must comply with the ICAEW code of ethics and hold professional indemnity insurance.

Chartered accountants are members of the ICAEW have been rigorously trained in advising businesses and provide high quality, professional services.

Anyone can claim to be an accountant and set themselves up with a website and office . Some may have technical qualifications such as being members of the Association of Accounting Technicians (AAT) or Association of Taxation Technicians (ATT). AAT and ATT are level 4 qualifications, the same level as an HNC, i.e. one year of university, equivalent to a dental nurse for example. These are good technical qualifications but they are not Chartered Accountants. Chartered Accountants (ACA) are level 7 qualifications, equivalent to a masters degree. ACA holders have usually spent 3 years gaining an honours BSc or BA at university followed by a further 3 years of professional exams and training. AAT and ATT do not give the holders the same in depth and detailed level of knowledge; they do not convey full professional status.

Wood and Disney are qualified Chartered Accountants, Members and Fellows of the Institute of Chartered Accountants of England and Wales (ICAEW) and accredited members of the ICAEW Business Advice Service. We are regulated by the ICAEW and have to undergo continuous professional development (CPD) training each and every year to ensure and prove that we are fully up to date with the latest changes in financial standards and laws.

The word ‘accountant’ is not a protected title so there are unregulated parts of the industry that may not uphold the same standards as ICAEW chartered accountants.

Why choose a Qualified Chartered Accountant?

Fri, 10 Mar 2023 11:14:57 GMT

Anyone can claim to be an accountant and set themselves up with a website and office.

The economy is affecting some businesses more than others forcing them to review their costs including those of their accountants. However, the term accountant is not regulated and we are facing competition from those claiming they can do what we can do but for less.

So why should you choose a qualified and strictly regulated chartered accountant?

Professional qualifications: As qualified chartered accountants, we have a higher level of expertise and qualifications compared to an unqualified accountant. We have completed a rigorous professional qualification and are subject to ongoing professional development and ethical standards which are monitored regularly. This demonstrates our expertise and commitment to improving ourselves and learning more which can then provide greater assurance to the business owner that we have the knowledge and skills to provide high-quality, life changing advice.

Range of services: As Chartered Accountants, we are able to offer a wide range of services beyond just basic accounting and tax compliance. This may include tax planning, business strategy, financial planning, risk management, cloud accounting software training and much more. By offering a comprehensive suite of services, we are a valuable and trusted business advisor who can help our business clients achieve their goals.

Industry experience: Due to our long time in business we have accumulated expertise in many different industries. This can be a valuable asset when working with business owners in those industries, as we can provide tailored advice and insights based on our knowledge of industry trends, challenges and opportunities. However, our breadth of experience can lead to cross pollination of ideas benefiting our clients in many diverse industries. We will also have knowledge of specific regulations affecting some industries but not others.

Professional network : As chartered accountants, we have access to a professional network of other qualified accountants, solicitors, and consultants. This can be invaluable to the business owner in terms of accessing a wider range of expertise and support.

Risk reduction: Business by its very nature means taking risk, however. One of our roles is to ensure risks are considered and if possible reduced or avoided altogether. For example, we will consider the risk to personal wealth of business activity. We will consider the risk of tax enquiries and how we can prevent them occurring and if they do occur we can get them completed and shut down faster. One risk often forgotten by business owners is the risk that a potential purchaser of their business in the future will carry out extensive due diligence with the intention of uncovering issues to enable them to pay you less than you think your business is worth. Using a chartered accountant reduces that potential issue as we are careful to ensure you comply with all legal and regulatory requirements.

Track record: We have a track record of success in working with similar businesses or industries and can share relevant case studies or testimonials from other clients in the same industry to demonstrate the value we have provided and the results we have achieved.

Personal approach: As business advisors, our role goes far beyond just providing technical accounts and tax advice. By taking a personal approach and developing strong relationships with our business clients, we are positioned as a trusted advisor who is invested in their success. We build trust and rapport with each business owner and understand their unique needs and goals.

Value for money: While it may be more expensive to use a qualified chartered accountant compared to an unqualified accountant, we cannot emphasise enough the value that our services provide. By providing expert advice and guidance, we can help the business owner make informed decisions that can ultimately save them money and help their business grow.

We believe the above sets us apart and proves us to be a valuable business resource to our clients.

H ow do you know if your accountant is qualified and their practice regulated?

In the United Kingdom the two most widely recognised professional bodies for qualified chartered accountants in general practice are the Institute of Chartered Accountants of England and Wales (ICAEW) whose full members use the post-nominal letters "ACA" standing for Associate Chartered Accountant, and the Association of Chartered Certified Accountants (ACCA), whose full members use the post-nominal letters "ACCA". In Scotland, the Institute of Chartered Accountants of Scotland (IAS) is also active with full members use the post-nominal letters "CA" standing for Chartered Accountant.

For a practice displaying the ICAEW logo: more than 50% of the controlling members must be members of the ICAEW, i.e. chartered accountants ACA.

For a practice displaying the ACCA logo: "A firm that has at least one ACCA member as a partner or director may use the AC CA logo, subject to the restriction that it may not be used unless a firm is controlled overall by holders of recognised accountancy qualifications."

Not confident your accountant has the expertise, skills and knowledge to give you the right advice and support?

Are you thinking of changing your accountant because you're not confident they have expertise, skills and knowledge to give you the right advice and support? Then maybe it's time for a change?

Read ...

>> 12 signs that you need to change your accountant

We tell you the twelve signs that it may be time to change accountants. We talk in more detail about the minimum levels of service you should expect from a good accountant. We tell you about the Wood and Disney difference . How we not just deliver each service point but exceed your expectations!

Then take a look at ...

>> How do you choose the right accountant for your business?

We go into more detail about how to choose the right accountant for your business and the questions you should be asking them to make sure you choose the right one.

If you're thinking of making a change or interested in talking through how Wood and Disney can help you Build a Better Business then why not give us a call on 01206 233170 or fill in the contact form below and we'll get back to you.

How can I improve my business credit rating?

Wed, 01 Mar 2023 10:02:20 GMT

Why your Business Credit Rating is vital to successfully Raising Finance

What is your business credit rating?

A business credit rating is a measure of a business's creditworthiness. It is used by lenders to assess how likely your business is to default on your debt - it a measure of risk. Credit rating scores range from 0 to 100, with 0 representing a high risk and 100 representing a low risk.

Who decides what your credit rating score is?

The financial institution you approach to raise finance will ask a third party independent intermediary, a credit reference agency, for a credit report on your business. A credit report assesses the credit worthiness of your business looking at the total debt, current balances, credit limits, and history of defaults, County Court Judgments and bankruptcies if any, of your business. Credit rating agencies use this information in a complex set of algorithms to calculate a credit score for your business.

The main business credit reference agencies in the UK are:

Red Flag
Experian
Dunn & Bradstreet
Creditsafe
Equifax

Why is your business credit rating so important in raising finance?

Improving your business credit rating is important as it can help you secure better financing options, lower interest rates, and access to more business opportunities. It is also essential for establishing credibility with lenders, suppliers, and other business partners.

In the same way that a great personal credit rating is important if you want to get a credit card or apply for a mortgage, a good business credit score will make your business an attractive investment when you are trying to raise finance. Lenders will have faith that you will be able to repay the money they are lending you as promised and on time. You will have a greater choice of lenders who will feel confident to offer you better deals and lower interest rates as the risk of lending to you is lower.

Conversely, if you have a lower credit score, fewer lenders will be willing to offer you finance. The deals on offer will be less attractive and at higher interest rates, pushing up your business costs.

A good credit score is not only important when raising finance. New suppliers and business partners will also often complete a company credit check. They'll want to check that your company is financially healthy before agreeing to do business with you or agreeing credit terms. A new customer will hesitate in ordering from you if they see that you have a low credit score, inferring that your business may not be around for much longer or may default on supplying the products or services they are ordering from you.

What is a good credit rating?

80 or over: A business credit score above 80 is typically considered excellent. It could also help you access better deals on financial products like business loans, including lower interest rates.

40 to 80: You could be asked to provide additional information by lenders or other businesses such as suppliers, to help them understand your financial position and creditworthiness. Especially if your score is at the lower end of the range.

40 and below : Usually, lenders are looking for a credit score above 40 before they will agree to a loan for example. Providing additional information may help, but your business credit rating could still impact the decision. Similarly, it could put other businesses off working with you.

How can Wood and Disney help you to improve your credit rating?

Having a poor credit rating isn't the end of the world. Wood and Disney can work with you to improve your score. It may take a little time but we have a lot of experience making sure our clients rank highly to secure the best possible finance deals.

Below, you'll find a few tips on how you can start to push your score higher and how Wood and Disney can help you and make sure that your credit score stays high!

File full accounts with HMRC and Companies House , on time and in line with guidelines, to provide more data about the financial health of your business. Wood and Disney are chartered accountants. Compliance work forms the cornerstone of our business from which the advice we offer and other services flow. We make sure that your accounts are accurate , consistent and up to date AND filed on time. We also make sure that you file the correct information at Companies House. Your filed accounts are used by credit referencing agencies and lenders to assess the viability of your business. Accurate, consistent and up to date accounts will improve your credit rating and make raising finance easier. Take a look at our >> Accountancy Solutions - Compliance page.

Check your credit report : The first step to improving your credit rating is to check your credit report for errors or inaccuracies. If you find any errors, you should dispute them with the credit reference agency to have them corrected. Wood and Disney can show you how to do this or carry out the checks on your behalf.

Monitor your credit report: Check your business credit report regularly to ensure that all the information is accurate and up-to-date. If you find any errors, report them to the credit reporting agencies immediately. Wood and Disney can set up systems for you to remind you to check your credit report at predetermined intervals. This is part of the control systems that we set up Strengthening your Business . Take a look at how we protect and strengthen your business for stability and resilience in our >> Business Solutions - Strengthening your Business - Control .

Pay your bills on time : Late payments can significantly damage your business credit rating. Make sure to pay your bills on time, including your credit cards, loans, and other accounts. For Wood and Disney this is part and parcel of having the right control systems and cash flow management systems in place >> Business Solutions - Strengthening your Business - Control . Once we've helped you set up the right systems we can help you with their practical implementation using cloud based apps to make managing your cash flow and paying your bills seamless with your control and accounts systems >> Cloud Accounting Apps .

Use credit wisely: Only use credit when you need it and avoid maxing out your credit lines. Lenders and other creditors prefer to see that you have available credit that you're not using. This is known as credit utilisation and ideally your credit debt should be no more than 30% of your total available credit. Wood and Disney use their Strategic Cash Retention Programme to build a cash reserve in your business to make your business resilient and to support growth. This means that you have the liquidity strength in your business to not be dependent on raising finance externally to get you over short term blips in cash flow. Plus you have a strong business, with good liquidity, to be looked upon very favourably by lenders, if you need to finance capital investments and growth expansion plans. >> Cash Flow Solutions to Build Cash Reserves.

Establish credit accounts: Open credit accounts with suppliers and vendors that report to credit bureaus. Regularly using these accounts and paying them on time can help you build a positive credit history. Credit referencing agencies want to see proof that you are low risk by paying off bills from suppliers in full and on time.

Build a business credit history: Consider getting a business credit card or small business loan to establish a credit history for your business. Make sure to pay these accounts on time and in full. Again, credit referencing agencies want to see proof that you are low risk - the more evidence they have that you can be relied upon to settle your debts fully and promptly, the higher your credit score.

Incorporate your business: Incorporating your business can help separate your personal and business finances, which can improve your business credit rating. Protecting you and your business is fundamental to building a strong foundation for business growth. Wood and Disney put in place business and financial structures, and the right legal frameworks to protect your personal and business assets. Find out more >> Business - Solutions - Strengthening your Business - Protect .

Maintain good relationships with lenders and suppliers: Good relationships with your lenders and suppliers can help you negotiate better terms and rates, which can ultimately improve your business credit rating. Wood and Disney can help you negotiate more favourable payment terms, such as extended payment periods or explore vendor financing options.

Let Wood and Disney start to help you to improve your credit rating

Improving your business credit rating takes time and effort, but it's essential for the success of your business. If you think your business credit rating is hindering your chances of getting a good finance deal or negatively affecting your dealings with suppliers or customers, then get in touch with Wood and Disney . We can work with you to push up your credit score, put you in touch with the right lenders to give you the best deals in raising finance and put in place the control systems to keep your business out of trouble and maintain a great credit rating.

Call us on 01206 233170 or message us and we'll get back to you.

Peter Disney named Top 10 Business Advisor of the Year in global awards.

Thu, 23 Feb 2023 16:15:46 GMT

Wood and Disney's founder, Peter Disney, named Global Top 10 Business Advisor

Peter Disney, chartered accountant and managing director of Wood and Disney , has been announced as Top 10 Advisor of the Year in the Helm’s annual global ranking of independent accountancy and business advisors.

A truly international Award

This award from financial software company, Helm, celebrates the hard work of advisors around the world , including those that are reshaping what it means to be an advisor and helping their clients to grow, succeed, and thrive. The judging panel, which included senior representatives from Sage, Xero and Intuit QuickBooks, considered all nominations based on their client experiences, successful outcomes and how they are innovating client service and delivery.

Peter focuses on "the support and guidance we provide to ambitious entrepreneurs"

Confirms Peter Disney, “To receive the news that we are one of Helm’s global top 10 advisors in their latest awards is quite a shock! The judging panel included representatives from the world's biggest cloud accounting software companies and so to be recognised by such big names in the accountancy world is a huge achievement.

“While general accountancy and tax services are a major part of what we do, a significant aspect is the support and guidance we provide to ambitious entrepreneurs. We do not focus on a specific industry rather a specific attitude of the owners; those who are motivated by building a better future for family, team and community, and who wish to last at least 20 years - representing less than 10% of firms registered at Companies House. To be recognised not just mine, but the whole team’s approach to supporting business owners succeed is an amazing boost for 2023!”

Peter's " success is centered around business-focussed goals" - Kelvin Gieck, Helm Co-Founder

Discussing Peter’s nomination, Kelvin Gieck, Helm Co-Founder said: “It’s been inspiring to read so many applications and hear some of the amazing things advisors are doing to support their clients. Having personally reviewed Peter’s nomination, his success is centred around business-focussed goals , rather than "filing on time". This resonated with me as I know how important this is to business owners, but often ignored by professionals. Peter also shows an amazing balance of utilising tools and tech yet realizing that they are just tools at the end of the day and that clients value a trustworthy advisor with human, face to face advice.”

Wood and Disney can help you Build a Better Future

Wood and Disney’s mission is to provide clients with proactive financial support and business advice to ensure their long term success and give them the time, confidence and freedom to enjoy their business and family life.

The team passionately believes that a successful business owner needs Real Time Financial Information that is dependable and accurate, and structured business advice and support to help guide business owners with strategic decisions.

Together Wood and Disney builds long term partnerships with its clients, giving them the advice and support they need to achieve their dreams and ambitions.

If you're ready to talk through how Peter and the Wood and Disney team can help you Build a Better Business then why not give us a call on 01206 233170 or fill in the contact form below and we'll get back to you.

Why are making the right critical financial choices vital for your business to succeed?

Thu, 29 Sep 2022 08:15:00 GMT

The essential financial systems you need for your business to thrive and survive

People start businesses because of their technical skills but often don't have the financial skills to build a successful business. So you've either got to master those skills yourself or bring in the experts who have them.

Financial Plan

It is very easy when you start up in business to become so focused on sales that you neglect the control systems that must be in place and run parallel to sales generation. You need to have a financial plan. What happens if….? If it doesn’t work at what point do you get out to avoid losing all of your capital? You need to plan for various options and stick to the plan.

A financial plan encompasses the financial systems and tools to keep your business out of trouble, to survive and thrive! You need the control and monitoring systems in place so that, for example, if you have the opportunity for a large order that you can finance purchasing the stock to make and deliver that order, that your cash flow is sufficient to pay your wages until the invoices are settled. You need up to date financial figures to hand. You need accurate cash flow forecasts . You need credit control systems . You need to measure your performance against goals and targets.

Wood and Disney will make sure that you have those control systems in place and that you know and understand how to use them and leverage the technology and systems to build a strong business on launching and the first year. Wood and Disney identify your key performance indicators for each area of your business and check that you are getting real time, accurate and reliable data.

What financial systems make up a good financial plan?

You need a budget and a cash flow forecast so you know where you're going.

Each budget should be broken down into 12 monthly targets .

Break each of those 12 monthly targets down into the 20 working day targets . If you get one bill per month simply divide it into 20 because you need to know your daily costs.

Only focus on hitting that daily target , whether that's to hit a sales goal or a profit goal. At the very least you must breakeven.

You need a set of monthly Management Accounts so you can compare your progress to the plan.

Always know your debtor, stock, creditor and cash position .

Understand how long your cash is tied up for between placing the order for stock and eventually getting your cash in.

Everything changes so quickly so have quarterly reviews where you make material changes to the plan if you absolutely need to.

You need SALES, PROFIT and CASH . Focusing just on sales will inevitably lead to failure.

Get sales invoices OUT as fast as possible . “While the tears of gratitude are still wet in your customers’ eyes”.

Get money IN as fast as possible . Customers must accept your terms and not impose theirs on to you. You are not a bank.

Cash to your business is like blood in your body . Keep it flowing.

Don't spend it before you earn it . Many small businesses struggle due to their owners’ demands for personal gratification. They want to project an image of success before they've got there.

Be disciplined .

People setup businesses because they want freedom, options and choices.

The reality is that in order to build a successful business, you have far fewer choices than you think.

What is Working Capital Finance? Why does it matter to your business?

Wed, 21 Sep 2022 08:00:03 GMT

Raising Finance through Working Capital Finance Solutions.

What is Working Capital Finance?

Working capital finance is a type of business financing that allows businesses to borrow against their unpaid invoices, business assets or other forms of working capital. It is used by businesses to raise cash, to improve cash flow to cover financing day-to-day expenses, such as inventory, payroll, and accounts payable. It is often used by businesses that have seasonal fluctuations in their cash flow, or by businesses that are growing rapidly and need additional funding to support their expansion.

How can your business use Working Capital Finance?

Working Capital Finance can be used for the same purposes as any other form of Raising Finance. It is particularly useful for funding up-front costs , for example:

Funding inventory purchases: Businesses often need to purchase inventory upfront before they can sell it to customers. Working capital finance can be used to bridge the gap between paying for inventory and receiving cash from sales.

Paying for marketing and advertising: Businesses often need to invest in marketing and advertising to acquire new customers. Working capital finance can be used to cover these upfront costs.

Expand their operations: Working capital finance can help businesses to expand their operations by funding new investments in inventory, equipment, or marketing. before the growth in sales receipts is realised.

Taking on new contracts: Businesses that are taking on new contracts often need additional working capital to cover the costs of increased production or staffing. Working capital finance can help businesses to take on new business without having to wait until they have the cash on hand.

Investing in new equipment: Businesses that are investing in new equipment often need additional working capital to cover the upfront costs.

Working capital finance can be a lifesaver for businesses that are facing unexpected costs. It can help businesses to avoid disruptions to their operations and maintain their financial stability.

Sudden changes in the market: Working capital finance can help businesses to cover unexpected expenses, such as a sudden increase in demand or a supplier payment that is delayed.

To cover damages: Broken equipment, accidental storm damage; these sort of unexpected events can put a real strain on business finance. Working Capital Finance can be used to smooth over unexpected rough patches.

What are the benefits of using Working Capital Finance to raise finance?

The benefits of arranging working capital include:

Up to 90% of outstanding invoice value can be advanced within 24 hours;
Flexible lending – funding increases in line with your growth (UK and Export);
Confidentiality – lenders can offer a completely confidential service – your customers need not know you have a facility in place;
Lenders allow you to manage your funding at all times;
Sector-specific finance is often available;
Structured ABL – funding for management buy-outs/management buy-ins;
Trade Finance & Supply Chain Finance Solutions.

Types of Working Capital Finance

The world of commercial finance and asset-based lending (ABL) is complex and expansive with products, terminology and contractual interpretation varying from lender to lender.

Specialists in this area can advise on:

Invoice Finance - an effective way of quickly accessing a proportion of the value (up to 90%) of your invoices. Effectively, a business ‘sells’ its invoices to the lender in return for accessing cash at the point products and services are sold. Specific sector-based offerings are available, as is the ability to arrange finance for selected invoices only.
Structured ABL - generate a higher level of funding by unlocking the maximum value tied up in the combined assets within your business, including Debtors, Inventory, Plant & Machinery and Property. Additional forms of funding can be structured in addition to this, such as top-up loans in order to drive growth.
Trade Finance - supply chain finance with various options, enabling the purchasing of goods from overseas where you are otherwise unable to obtain credit from suppliers.

How do I go about raising Working Capital Finance?

When choosing a working capital finance option, it is important to consider the specific needs of your business. Some factors to consider include the amount of money you need, the length of time you need the money for, and your creditworthiness.

Typically, you will need:

Business plan : Lenders will want to see that you have a well-thought-out business plan that outlines your goals and how you plan to use the working capital finance.

Financial statements : Lenders will want to see your financial statements so that they can assess your creditworthiness and risk. Typically, you will need to ensure that your management accounts are up to date, you make available current detailed lists of debtors and creditors, and you might need to provide up-to-date projections before an expert will consider your application.

How can Wood and Disney help you raise Working Capital Finance?

Getting the right loan involves more than just completing an application. Successfully raising funding for your business needs planning and preparation and the right choice of lender. Fortunately Wood and Disney are expert at raising finance through Working Capital Finance.

You can start by finding out more about how Wood and Disney approach raising finance on our dedicated "Raising Finance Solutions" page. There we talk in more detail about the The three stages to successfully raising finance:

PLANNING: Know how much funding you require and the type of funding.

APPLYING - YOUR PITCH: Have a business plan backed up by accurate facts and figures - you need to be credible.

SECURING FINANCE: Choose the right investor or source of funding that will look favourably upon your proposal.

We support you throughout the application process and ensure you have easy access to the right finance at the most advantageous rates.

Please talk to us about finance - our working capital finance experts have many years of experience and success in advising businesses across a wide range of sectors in obtaining working capital finance solutions. We can help you find a specialist to help you find the right solution for your business.

If you're ready to talk through how Wood and Disney can help you Raise Finance then why not give us a call on 01206 233170 or fill in the contact form below and we'll get back to you.

Companies House webinars now available as recordings

Tue, 09 Aug 2022 08:19:04 GMT

Webinars for business owners and directors from Companies House

Companies House have recordings of webinar presentations that you can watch whenever suits your schedule. The webinars cover a range of topics, including:

Starting a limited company and your responsibilities to Companies House and HM Revenue & Customs (HMRC).
How intellectual property, such as patents, trademarks and copyrights can affect your business.
Guidance on starting a community interest company (CIC).
How to register company mortgages and other charges at Companies House.
How to restore a company to the register.

Click on the links below to view the recordings:

Why is Cash flow is the single most important issue right now?

Mon, 06 Jun 2022 14:18:25 GMT

Cash Flow is the number 1 issue facing UK small businesses.

Do you agree?

Most of our other clients do. In this economy CASH IS KING and managing your cash flow is more important than ever.

If you are concerned about the future of the economy, then take some time to reflect on where you are and what could happen in the next few months. It is now vitally important for all businesses to plan ahead for a range of scenarios. Cash flow and business planning in these uncertain times may appear difficult but there are some practical steps you can take to minimise potential disruption to your business.

Review your Budgets and set realistic and achievable targets for the remainder of 2022.
Get your employees involved in a discussion of likely trading conditions and get their input on reducing costs and maintaining revenues.
Review and flowchart the main processes in your business (e.g. Sales processing, order fulfilment, shipping etc.) and challenge the need for each step.
Put extra effort into making sure your relationships with your customers are solid.
Review your list of products and services and eliminate those that are unprofitable or not core products/services.
Pull everyone together and explain the business strategy and get their buy-in.

We specialise in helping our clients manage their cash flow. We do this by preparing and updating detailed cash flow forecasts, using the latest and most powerful software. We can also help you negotiate or renegotiate overdraft facilities and find specific funding to help you grow!

Please talk to us about cash flow planning for the next few months, we can help you to produce estimates for a variety of scenarios.

Discover more about how Wood and Disney's can help you solve your cash flow problems:

On our dedicated web page:

Cash flow solutions

Talk to Wood and Disney to find out how we can help you solve your cash flow problems

Call us on 012026 233170

Email on info@wood-disney.co.uk

Or use the form below , and we'll get back to you.

Are negative headlines in the media getting you down?

Tue, 31 May 2022 14:31:37 GMT

Looking for the positives in today's media headlines

So many headlines are negative at the moment. “UK Economic Growth Slows”, or “Cost of Living Rockets” or “Inflation at highest rate for 30 years”. All very depressing.

Obviously, much of this stuff is well beyond our control and even beyond the control of the UK Government despite the media claiming that they should do more. These are worldwide effects and not just impacting on us in the UK.

The nice thing about acting for small business owners is that they already know that no one is going to help them. If they want financial security, they have to create it themselves. They seldom waste time complaining about how hard life is, they just get on with it. However, a bit of education and a few tips will hopefully prove beneficial.

Firstly let's get some definitions clear

An economist will say that the term inflation is used to describe a general rise in the prices we pay for goods and services over a given time period.

There are two measures of inflation used in the UK. The Consumer Price Index (CPI) and the Retail Price Index (RPI). The RPI includes housing costs while CPI does not. So, your own inflation will depend on whether you are spending your money on items within the “basket of goods” used by these inflation measures. It is unlikely that you are in fact “average” and that in reality prices are rising unevenly and inconsistently.

The same £1 coin in the future will buy you less as a result of the level of inflation. High inflation therefore encourages expenditure now because you believe you will be able to buy less in the future. It may also encourage the taking on of high borrowing as the value of the debt decreases more rapidly as the value of the asset purchased increases. This can lead to people believing that high inflation is a good thing. However, the Bank of England also know this and as inflation increases, they increase the bank base rate to discourage such borrowing.

Many people believe that inflation is good for businesses as their customers are more willing to accept price increases, but many small businesses absorb their own cost increases because they are scared to pass those onto their customers in fear of losing them to a bigger business which can demand lower prices from their suppliers. High inflation will cause employees to demand higher pay rises and if these are not forthcoming will then tend to consider moving elsewhere.

What can small businesses do to mitigate the risks posed by inflation

First of all prepare a detailed budget. You need to know what you are spending your money on before you can assess reductions or cheaper alternatives. Cost cutting is often done at the last minute as disaster is striking and simply looks at the largest costs in the Profit and Loss Account without considering what impact those changes will have on the longevity of the business. When we are helping clients consider cost cutting, we score the impacts on both their team members and on their customers.

Prepare a personal budget too. One of the easiest ways to beat inflation is to simply lower your own standard of living. It doesn’t impact on your team and doesn’t impact on your customers. Temporarily cut all unnecessary luxury items and go back to basics. Warren Buffett’s business partner and vice chairman of Berkshire Hathaway, Charlie Munger, said in 2004 how best to cope with high inflation: “One of the great defenses to being worried about inflation is not having a lot of silly needs in your life,” “In other words, if you haven’t created a lot of artificial demand to drown in consumer goods, you have a considerable defense against the vicissitudes of life”.

The best businesses to run during a high inflation period are those which need lower than average capital investment. Being forced to buy new plant and equipment at higher and higher prices especially if you need to borrow at higher and higher interest rates is not a recipe for success. Having a business with low capital needs means it can react faster and run leaner.

Having a business which can pass on its own cost increases in higher prices without losing customers obviously has a huge advantage particularly if that business is using paid for fixed assets which still have a long life before they need replacing. Customers will accept price increases as long as they understand why so be proactive in your explanations.

Another asset you should exploit is your investment in yourself. You are benefiting from a foundation of education paid for perhaps many years ago and only needing a relatively small investment to maintain or improve what you already have.

Look for the positives and take advantage of any opportunities.

Environmental Standards and Certification for Small Businesses

Tue, 14 Dec 2021 15:56:04 GMT

An introduction to the environmental standards and certifications available to small UK businesses.

Many companies often consider themselves to be sustainable and/or carbon neutral, but the accuracy of these claims may be debatable. For your company to be recognised as a carbon neutral business, it is important to meet certain environmental standards and certifications.

B Corporations

One certification Wood & Disney are aiming to achieve is to become a B Corporation . B Corps are defined as “businesses that meet the highest standards of verified social and environmental performance, public transparency and legal accountability” (B Lab). Certified B Corps are expected to measure their impact across five areas:

Governance,
Workers,
Customers,
Community, and
Environment.

Any company can do this via the free and confidential online assessment B Labs offer called the B Impact Assessment (BIA).

ISO Certification

ISO offer several standards your company can certify for. Among these, the ISO 14001 Environmental Management standard is an important step for environmental protection. It sets out criteria for an environmental management system and provides your company with a framework to minimise your environmental impacts (ISO-Cert Online Ltd).

Another standard which may be beneficial for companies aiming for carbon neutrality is the ISO 50001 Energy Management standard . This framework is an excellent tool for companies attempting to become more resilient against energy availability and costs, helping them implement an energy management system (EnMS) (British Standards Institution).

Certifying for both of these standards may potentially play an important part in your journey to carbon neutrality and they offer many more which individual companies may find useful. To become certified, companies are required to update their ISO template and submit the required documents to their website. Once your company has passed, they guarantee to issue your certification within 24 hours.

PAS 2060

PAS 2060 is an internationally recognised standard designed to verify the accuracy of business’ claim to be carbon neutral, and help companies achieve true carbon neutrality through earnest means (NQA). Built on existing environmental standards, such as PAS 2050 and ISO 14001, companies are considered carbon neutral after progressing through four stages:

measurement,
reduction,
offsetting, and
documentation.

Once complete, they can be verified through an independent third party, such as NQA.

SA8000 Social Accountability

Social Accountability International’s SA8000 is a widely recognised global standard aimed at managing human rights in your workplace ( British Standards Institution ). Whilst not directly focused on the environment, achieving this standard is important in ensuring transparent business practices and a fair working environment for your workers. This is often assessed by NGOs and investment analysts, and is included in some environmental certifications such as B Corporations. You can request a quote for your company on the British Standards Institution’s website.

These are just a few of the many standards and certifications available for your business. It is recommended you research those which you determine best for your company as the path towards becoming carbon neutral is often specific to individual businesses.

Discover more about Wood and Disney's environmental commitments

On our dedicated web page:

Wood and Disney's environmental impact

Or you could take a look at our blogs on the environment and your business:

A quick guide to Climate Change and associated terms

Tue, 30 Nov 2021 17:14:08 GMT

An introduction to climate change an its relevance to your business

Just like Wood & Disney , your business may have begun its own journey to carbon neutrality or you may be thinking about how to start making the right changes. From the beginning, you’ll be struck by a wide range of technical terms which you may not have previously heard of, or aren’t fully aware of their meaning.

In this blog, I’ve gone through some technical terms related to climate change and defined them with reference to definitions provided by the Intergovernmental Panel on Climate Change (IPCC) . For instance, its likely you have heard the terms ‘carbon neutrality’ and ‘zero carbon’, especially in light of COP26 , but are you aware of the difference between them?

Climate Change

The IPCC refers to climate change as “a change in the state of the climate that can be identified by changes in the mean and/or the variability of its properties and that persists for an extended period, typically decades or longer. Climate change may be due to natural internal processes or external forcings such as modulations of the solar cycles, volcanic eruptions and persistent anthropogenic changes in the composition of the atmosphere or in land use”.

Climate change has only become a bigger problem over the last few years and despite the action being taken, more needs to be done by everyone. When determining what can be done under the effects of climate change, the terms ‘ adaptation ’ and ‘ mitigation ’ are often used. These are described below.

Adaptation

The IPCC refers to adaptation as the “process of adjustment to actual or expected climate and its effects, in order to moderate harm or exploit beneficial opportunities”. This involves making alterations to your daily life to facilitate the impacts associated with climate change.

Around the world, countries have made significant changes to adapt under increasing climatic changes. For example, many countries have constructed sea walls to protect urban areas from sea level rise and/or flooding, including the UK. As the severity of climate change increases in the years to come, more adaptation strategies will be required. For smaller UK businesses, adapting to climate change will largely depend on your company and right now may not be significant. However, you can still act against climate change through mitigation .

Mitigation

The IPCC refers to mitigation as a “human intervention to reduce emissions or enhance the sinks of greenhouse gases”. This simply means making small changes to be more environmentally friendly.

As a business, you may have already begun to make small changes to mitigate the effects of climate change. Mitigation techniques include use of renewable energy (such as solar and wind power); planting trees to offset your emissions and increase carbon sequestration; switching to virtual and paperless offices to discourage deforestation; encourage ride sharing, public transport and cycling to work; encouraging recycling, and more. Even the smallest changes are a step towards mitigating climate change.

Tipping Point

As defined by the IPCC, the tipping point is “a level of change in system properties beyond which a system reorganises, often abruptly, and does not return to the initial state even if the drivers of the change are abated. For the climate system, it refers to a critical threshold when global or regional climate changes from one stable state to another stable state.” To translate, the tipping point is the point of no return where the effects of climate change are too severe for us to mitigate and reverse.

It is crucial we all take responsibility in mitigating the effects of climate change and avoid reaching this point. As a business, you may have already made significant changes to your company to become sustainable but there is always more that can be done. Wood & Disney are one of these companies and, as described in my previous post, are aiming to become a ‘carbon neutral’ company.

Carbon Neutrality and Net Zero

Many organisations define ‘carbon neutral’ and ‘net zero’ with the same meaning. According to the IPCC, “Net zero carbon dioxide (CO ₂ ) emissions are achieved when anthropogenic CO ₂ emissions are balanced globally by anthropogenic CO ₂ removals over a specified period.” In the IPCCs definition, net zero CO ₂ emissions are also referred to as carbon neutrality.

Broken down, this simply means no net carbon dioxide should be released into the air, and any quantity that is should be offset by taking out the same amount. So which of these terms should be used? Whilst both have very similar meanings, they can also be simply distinguished as followed:

‘Carbon neutral’ involves achieving a state of zero carbon dioxide emissions (alike the IPCCs definition).
‘Net zero’ involves producing zero carbon dioxide emissions.

Wood & Disney have made many positive changes within their company on their path to carbon neutrality. Just recently, they’ve offset their carbon emissions over the last 12 months through planting 144 trees .

It is crucial that all businesses take action and work on achieving carbon neutrality for their own company. Together, tackling global climate change is possible.

Discover more about Wood and Disney's environmental commitments

On our dedicated web page:

Wood and Disney's environmental impact

Or you could take a look at our blogs on the environment and your business:

Is it really greener to work from home?

Thu, 18 Nov 2021 14:19:02 GMT

The green credentials of working from home are not always as clear cut as they seem

Full or part time working from home is now the norm.

Since the start of the COVID-19 pandemic, remote working has become a widespread norm among many businesses and is continuing today. Whilst this change is seen as beneficial to the environment, the answer may not be so clear cut.

The most often quoted reason that working from home is better is the question of reduced commuting travel but there are many more things to consider when looking to balance the pros and cons and these will vary with every business. There is no one size fits all answer.

Whilst remote working removes a company’s contribution to climate change from travel emissions, Wood and Disney realised that working at home might actually raise the carbon footprint of their employees, due to the greater use of electricity and gas compared to when their homes are empty all day. The average British home is often poorer in terms of energy efficiency compared to what has been achieved at their office. The majority of household CO2 emissions come from heating (including generating hot water). In 2017, the average household generated 2,745 kg of CO2 emissions from heating (Energy Catapult Analysis). In comparison, in the UK, average CO2 emissions per car are 141.8 grams per km (or 228.2 grams per mile), according to latest 2018 data from the Department for Transport.

So we need to consider both the distance from the office that employees work for which homeworking offers CO2 savings, compared to the additional heating and lighting CO2 generation from working from home taking into account the energy efficiency of the office.

CO2 savings are not as simple as just cutting the emissions from commuting

A big decider in the question of whether it is really greener to work from home or the office is the carbon footprint of the employer and their processes. Wood and Disney are interested in becoming carbon neutral, particularly in light of COP26, although they have been on a journey to reduce their impact on the environment for a number of years. They moved from draughty old offices to a modern energy efficient one in 2003, and took on a paperless office system as a result of having less nooks and crannies to hide their paper files. Within two years they were saving 90% of their paper cost and had given up a warehouse previously full of old files. They have since moved all of their systems into the cloud and even their tax returns and accounts are digitally approved rather than having signed documents. Obviously, this has worked to their advantage during the various lockdowns because their accounts and tax teams have simply taken their laptops home and carried on working safe in the knowledge that their clients’ data remains secure (they are ISO 27001 certified but that’s another subject).

Wood and Disney have invested heavily in cutting their carbon footprint.

Wood and Disney's investment in technology would allow them to remain completely virtual if they chose to do so, but they haven’t for a variety of reasons and not solely based upon environmental considerations. They have decided instead to adopt a 50:50 policy and encourage their team back into the office.

For a company pushing to become carbon neutral, this change may be considered negative on the surface due to the emissions produced by employees commuting to work but as I said above there is no clear-cut answer.

In making their decision they took into account the carbon footprint of their offices reduced by the many alterations made by their landlord to their office building:

All existing lights in their offices, communal spaces and outdoor areas have been switched to LED.
Within the office, 50mm of insulation was added over ceiling tiles and 200mm of additional loft insulation was installed.
The day clocks for immersion heaters were updated to 7-day models to reduce energy consumption over weekends.
Their complex 3-pipe heat pump system was switched from gas heating to much more efficient air sourced heating. This was accompanied by the inclusion of an intelligent building controller to control the operation of heat pumps.
They installed EV charging points to encourage the use of electric cars.
They have Solar panels installed on the main office roof of Lodge House, with an additional 80 kW array of solar generation planned over the next 2 years.
Lodge House is being re-roofed and reclad to reduce their carbon footprint through heat savings.
Finally, over 100 trees and 500m of hedges have been planted, with another 30 and 200m planned, respectively.

In terms of heat and light carbon footprint, the office environment for Wood and Disney offers significant carbon savings compared to the home environment of their staff. Another factor in favour of office working is that the majority of their team actually live within 7 miles of the office so their travel impact is probably a lot lower than many other employers will find with their teams.

So, from an environmental viewpoint there is a strong argument to adopt 100% office based working. But that does not take into account the social, mental health and efficiency benefits of staff working from home that the company has observed. A policy of blended, 50:50 working, strikes a good balance between the social and environmental impacts of home/office working for Wood and Disney .

Moving forward, the directors of Wood and Disney will continue to look for ways to reduce their carbon footprint further over the coming years and include sustainability and environmental considerations in all of their decisions.

Discover more about Wood and Disney's environmental commitments

On our dedicated web page:

Wood and Disney's environmental impact

Or you could take a look at our blogs on the environment and your business:

Why are we advisors to Ambitious Entrepreneurs?

peterd@wood-disney.co.uk (Peter Disney) — Tue, 02 Nov 2021 17:08:53 GMT

Why are Wood and Disney the number 1 choice for ambitious entrepreneurs?

What is the difference between a successful business owner and an entrepreneur?

Surely anyone who runs a business is an entrepreneur? The terms "business owner" and "entrepreneur" are often used interchangeably, but there is a subtle distinction between the two. According to INC. Magazine, the World’s number 1 small business guru is Michael Gerber, who dispelled the myth that most people who start small businesses are entrepreneurs over 30 years ago. Most small business owners are technicians who in Gerber’s opinion “ have an entrepreneurial seizure ” which lasts a fleeting moment of time. They have a technical expertise in something and that’s the business they start . Bakers start a bakery and painters start a decorating business. They remain technicians who have replaced a single employer with potentially hundreds of much more demanding “employers” being their new customers. This is perhaps one of the reasons why 80% of small businesses cease in under five years when the technician realises that they don’t want to be in business and would much prefer to let someone else deal with the stress.

Are those business people who are still trading 5 years later real entrepreneurs? Not necessarily because the “type” of business makes a difference too. If your business is a “lifestyle” business which basically means you sell just enough to cover your needs and then are happy to stop, then you are not really an entrepreneur because an entrepreneur has a much bigger vision of where he or she wants to be.

Is an entrepreneur an inventor or innovator? Again, not necessarily although James Dyson is often mentioned as an example of an entrepreneur but many of the inventors we have met over the years haven’t made the jump from inventor to successful business owner.

But if an entrepreneur is not an inventor or innovator, what are they? Sometimes it is the person who sees the potential of another’s idea who are the real entrepreneurs. Take for example the story of Ray Kroc who was just a travelling salesman who bought McDonalds and turned it into the world powerhouse it is today.

So, we definitely need to add that an entrepreneur is “The Seer of Potential” because that statement would include both Dyson and Kroc. But there has to be more to it because the seer of potential could just be a dreamer. Is the potential real or just imagined? Does the idea solve a real and significant enough pain? We have met people who have created a solution to a problem that is simply not big enough or painful enough to cause a large enough volume of customers to pay for a solution.

We could, I suspect, find dozens of definitions of entrepreneurship but let us stop at:

“A seer of potential in a solution to a significant pain felt by a large enough volume of people to be able to visualise a sizeable business”.

Are all entrepreneurs automatically ambitious?

So, we have a basic definition of an entrepreneur but is there a reason for us to refer to Ambitious Entrepreneurs.

AMBITIOUS versus CONTENTED

Ambitious people are not satisfied with what they have achieved to date. They continue to have higher aspirations which they are driven to achieve or acquire. Their aspirations can be money, profit, sales, size of their business, number of employees, or perhaps an end goal to sell, but they are motivated as they can visualize it.

We mentioned the lifestyle business early on because such businesses only grow to a level when the owners make sufficient money to satisfy their current needs as they have already reached their level of contentment. Ambitious people are never satisfied and continue to take risks to grow their businesses further or faster.

We believe that you can be an entrepreneur but reach a level of contentment with your business and decide to enjoy the proceeds of the risks you have taken so far rather than continue to strive further.

So, our Ambitious Entrepreneurs have unfulfilled goals , and they recognise that they need help to realise those goals.

Why do ambitious entrepreneurs need professional advice?

Higher aspirations do not necessarily lead to continued success. Entrepreneurs will have a multitude of skills, knowledge and experience but none of us are expert in every facet or running a successful business that can grow sustainably to realise the goals of the entrepreneur.

Professional advice can help entrepreneurs:

Identify and assess potential opportunities: Professional advisors can help entrepreneurs understand the market landscape, identify potential opportunities, and assess the viability of their business ideas.
Develop a sound business plan: A well-crafted business plan is essential for attracting investors, securing funding, and guiding the growth of the business. Professional advisors can help entrepreneurs develop a comprehensive business plan that outlines their business goals, strategies, and financial projections.
Structure their business: Entrepreneurs need to make important decisions about the legal structure of their business, such as whether to form a sole proprietorship, partnership, LLC, or corporation. Professional advisors can help entrepreneurs choose the most appropriate structure for their business and ensure that they are compliant with all applicable laws and regulations.
Secure funding: Startups often require funding to launch and grow their businesses. Professional advisors can help entrepreneurs identify potential funding sources, prepare pitches and proposals, and negotiate financing agreements.
Manage finances : Financial management is critical for the success of any business. Professional advisors can help entrepreneurs develop and implement sound financial management practices, including budgeting, forecasting, and cash flow management.
Protect their intellectual propert y: Intellectual property is a valuable asset for many businesses. Professional advisors can help entrepreneurs protect their intellectual property rights through patents, trademarks, and copyrights.
Comply with laws and regulations: Businesses are subject to a complex web of laws and regulations. Professional advisors can help entrepreneurs understand and comply with all applicable laws and regulations, avoiding costly fines and penalties.
Plan for the future: Entrepreneurs need to think about the long-term success of their businesses. Professional advisors can help entrepreneurs develop strategic plans for growth, succession planning, and exit strategies.

Businesses have different life cycles. The start up phase and first few years of strong growth is when the business is expanding rapidly and starting to generate profits, if the business has got the mix of market, finances and operations right. But then the business will run into its mid-life, mature phase, when it is no longer growing as rapidly. The market may become more crowded, technology moves on, managing a growing employment base becomes more onerous ... and the business starts to lose its way, stagnate and will inevitably start to decline into the final phase.

Why do ambitious entrepreneurs turn to Wood and Disney for business advice?

Entrepreneurs often feel confident and driven during the start up and early growth phases but then realise the depth and breadth of experience, specialised knowledge and skills needed to continue to grow sustainably through the mature phase and refresh their businesses returning them to the growth phase with new markets and innovations.

Wood and Disney live and breathe all things to do with business, using real world experience gained over many decades. Yes, we are also professionally qualified business advisors and members of the ICAEW Business Advice Service . But, the quality of our advice is based on more than just letters after our names. Fundamentally we are business owners who happen to run the business of an accountancy practice. It’s not a sideline, or an after-thought, or pretty words to put on our website. It’s what we do day in and day out and that means practical advice that is proven to work. In 2023, Peter was named Top 10 Business Advisor of the Year in the Helm global awards. So it's not just hot air - we can prove that we have the experience and skills so ambitious entrepreneurs can rely upon the advice we give to be sound, practical and tried and tested.

Proactive advice - This is the core, raison d'être, the heart of the Wood and Disney mission. The home page of this website states:

“Our mission is to provide our clients with proactive financial support and business advice to ensure their long term success and give them the time, confidence and freedom to enjoy their business and family life.”

At Wood and Disney ...

We meet our clients at least quarterly, often monthly to track progress, to make decisions and set new goals. So we are up to date on what’s going on in their business and their lives.

We are experts . We are professional Chartered Accountants. We have been in business, helping our clients for many years – Peter and Brendon alone have between them 70 years of business experience.

We give structured business advice . Using our Journey to Freedom toolkit which ensures practical advice and help in delivering and implementing proven, workable solutions for your business. We don’t just give you one-off, stand alone solutions then walk away and just let you muddle through.

We build your business foundations. Help you achieve sustainable growth. Support you in adapting to change. Ensure you realise your aspirations. We Build, Better, Futures.

What should you do next?

If you have either:

Reached a plateau in that your business has stopped growing and you need help to identify why, and kick start it, or
Suddenly exploded with growth and you are scared that you can no longer control it, or
Just feel that you're not getting the advice and support from your existing accountant

Then perhaps you need to contact us.

You can start by finding out more about how Wood and Disney support and help ambitious entrepreneurs build a sustainable business. On our dedicated page "12 signs you need to change your accountant" , we talk in more detail about the minimum levels of service you should expect from a good accountant. We tell you about the Wood and Disney difference. H ow we not just deliver each service point but exceed your expectations!

If you're ready to talk through how Wood and Disney can help you Build a Better Business then why not give us a call on 01206 233170 or fill in the contact form below and we'll get back to you.

What do we mean by "BUILDING BETTER FUTURES"?

Wed, 28 Jul 2021 14:05:14 GMT

How can Wood and Disney help you Build a Better Future for you and your business.

What do we mean by "Build Better Futures"?

Wood and Disney are a tech savvy firm of chartered accountants who focus on building a better future for our clients, their families, their teams and their communities by giving jargon-free, pragmatic, best practice business advice.

Our purpose of Building Better Futures is not just directed at businesses. It has a personal focus too. Once your business is generating the profit and reserves it needs to survive into the long term, we can then help you achieve your personal goals. Whether that is simply greater wealth or earlier retirement, to give your children the best education, to support elderly relatives in care, to give back to your community or allow you to leave a lasting legacy.

We use our skills with numbers and experience in business to make a real difference to our clients’ lives knowing that as business owners you cannot rely on the government to look after you and therefore you are driven to achieve financial freedom in whatever form it represents for you.

Building Assets

Building Better Futures by its very nature requires the creation of assets. The most successful people focus first on creating an asset within their businesses. They know that their business needs to be successful before they can reap the benefits of that success personally. That business success is dependent on building their business assets whether that is intellectual property, tangible assets, the best team, the best systems or perhaps the most important for long term survival, CASH.

Building Resilience

Recessions occur regularly every decade or so, but the survival rate of small businesses is staggering with 20% failing in the first year, 60% failing within five years and less than 30% still being in business after ten years. This is backed up by Companies House data which tells us that the average age of UK companies is just 8.5 years and over 72% of the register are under ten years old.

So, when we talk about Building Better Futures our vision is:

To defy the norm of business failure statistics and help 100% of our clients not only survive more than 10 years but also create a genuine asset to pass on to another generation.

An analysis of our own company client base shows that at the time of writing the average age is 12.89 years and that 71.43% are over 10 years old.

Practical Proactive Business Advice that works!

Wood and Disney have achieved an excellent success rate because we have a structured system, a framework of inter-related processes created over the last 30 years, to STRENGTHEN the foundations of a business so it is more resilient and less likely to fail, to OPTIMISE its current resources enabling it to grow with certainty and to TRANSFORM it into an asset which can support aspirations. This unique system is called Your Journey to Freedom®.

Your Journey to Freedom® is a pragmatic, best practice process where the owner has either:

1. reached a plateau and is struggling to grow further, or

2. has exploded with growth and is fearful of losing control.

Your Future

In essence Building Better Futures is focused on achieving your vision of the future? For most of our clients this revolves around a desire for independence. Financial independence such that you no longer have to worry about money? Time independence in so far as being able to work the hours that you wish to work and perhaps spend the rest of your time with family or friends or working on charitable projects? Greater profitability and more positive cash flow will enable you to achieve this.

Whatever your vision of the future is. Whatever that vision wants to achieve, we help you focus on that vision and achieve it.

And if you are struggling with articulating your vision then we can help you with that too.

Are you ready to start building a better future?

Where do you begin? You can start by finding out more about how Wood and Disney approach the 12 signs that we've listed above. On our dedicated page "12 signs you need to change your accountant" , we talk in more detail about the minimum levels of service you should expect from a good accountant. We tell you about the Wood and Disney difference. H ow we not just deliver each service point but exceed your expectations!

If you're ready to talk through how Wood and Disney can help you Build a Better Future then why not give us a call on 01206 233170 or fill in the contact form below and we'll get back to you.

Reaping the benefits of strategic cash retention

peterd@wood-disney.co.uk (Peter Disney) — Mon, 14 Jun 2021 09:37:14 GMT

Cash flow management contd ...

The benefits of building a strategic cash reserve

At the moment I am being bombarded by software companies wanting to sell their cash flow forecasting software to our clients and they cannot understand that very, very few of our clients actually need a cash flow forecast. They believe that everyone should prepare a cash flow forecast. I keep thinking back to a classic quote from Warren Buffett along the lines of “Never ask a barber if you need a haircut”.

Perhaps we are lucky with our clients or perhaps we have been nagging them for so long about building their balance sheets and in particular their cash reserves that they have gradually absorbed that mindset of saving for the future and being careful with cash. Having saved cash in anticipation of the regular downturns or recessions which occur prepared them better than most for the 2020 lockdowns. Many have said to us that they are so glad they haven’t been forced to borrow just to survive and can now focus on renewed growth without the drain of loan repayments.

The big problem with many small businesses is that their owners just want to pay themselves a day to day wage and as a result take short term decisions based upon a short term need. They seldom look to the future and adopt the mindset of creating an asset which they can either sell or use to support them in later life. In fact, I read recently that almost 90% of small businesses are unsaleable because the business is totally dependent on the owner who has extracted every penny to support a more and more demanding personal lifestyle with the inevitable result that little has been spent on reinvestment and innovation.

The idea of building an asset over the long term rather than just the instant gratification of a higher income starts with ring fencing small amounts each week or each month and ideally putting them into separate bank accounts so when you look at your current account it doesn’t make you feel too comfortable. I watched my mum do this when I was a child as she took my father’s weekly wage packet and split it into different pots to ensure that she didn’t overspend on any particular area to the detriment of another. She made sure we lived within our budget and even managed to build up a rainy day fund.

Think of your business as a long term asset not just a short term cash generator and perhaps you won’t need to worry about a cash flow forecast in the future.

Relevant Life Insurance - why is it so important?

peterd@wood-disney.co.uk (Peter Disney) — Fri, 30 Apr 2021 08:33:44 GMT

Relevant Life Insurance; Protect you and your business for stability and resilience

When you look at the home page of the wood and disney website you will see that we describe ourselves as “Advisors to Ambitious Entrepreneurs” . You will also see that our purpose is to “Build Better Futures” whether that is in support of your families, communities or charities. Of course, we want to see our clients be successful and achieve their goals but we realised that every successful business needs a firm foundation upon which to build. Our flagship program, which is called Your Journey To Freedom , is therefore not just about sales and profit growth but starts with a module called PROTECT. This module looks at what you have accumulated so far both personally and in business and so looks to protect that wealth. It then considers how you can protect the future increase in your wealth. So, personally this may include protection from death, critical illness, long term care and for business this could be protecting assets by restructuring your company, refinancing, debt reduction and business continuity.

Life Insurance

One small element of protecting wealth both business and personal is Life Insurance. Life insurance is important for most people, and essential for anyone with a partner or dependants. A high level of cover can provide a cash lump sum to pay off a mortgage and an income for our loved ones if we could no longer be there to provide it ourselves. But if you are a company director, a key employee or an employer, the advantages need not stop there.

What is Relevant Life Cover?

Many businesses provide some form of life cover for valued employees. It is an important benefit, helping retain staff and demonstrating a commitment to their welfare. The usual form is a Death in Service policy which can be easily arranged as a group scheme. However, the premiums on a Death in Service policy may be taxable, meaning that the employee faces a deduction from their salary.

A relevant life policy can offer the same kind of vital cover, without the tax penalties.

How Relevant Life Cover works

Like Death in Service cover, a Relevant Life policy is set up by a business to provide cover for employees ensuring that their family and dependents will receive a lump sum in the event of their death.
Premiums are paid and the policy owned by the employer.
Terminal Illness cover is included, which could pay out if the employee, is diagnosed with a terminal illness, with life expectancy of less than 12 months.
The policy is placed into a Relevant Life Plan Trust, making them tax efficient for both employee and employer. They are considered a business expense and therefore reduce taxable profits. They do not require any contribution from the employee, nor do they count as a taxable benefit in kind. Employers save nearly 50% in tax compared to an ordinary life policy while employees can receive their cover without any kind of additional cost.
Because premiums can be deducted before profits are calculated, Relevant Life cover can reduce corporation tax liabilities. They are also not liable for National Insurance. Both employer and employee can be better off with a Relevant Life policy.

Better cover for employees

The benefits for employees don’t stop there.

Death in Service insurance policies are often provided through the company’s pension scheme. This means they count towards the pension lifetime allowance, currently £1,073,100 With schemes regularly offering up to four times annual salary, many highly paid key employees would exceed the threshold if a claim is made. The payout would be reduced by a lifetime allowance excess tax charge, leaving less money to support surviving dependents.
A Relevant Life policy sits outside of an individual’s pension provision. It is written into trust and so not subject to a lifetime allowance test. The bereaved would be able to receive all the money.
Relevant Life policies can also be portable. Death in Service benefits cease if an employee leaves or the firm is wound up and replacing the cover may prove expensive especially for older workers and those with medical conditions. A Relevant Life policy can be transferred to the person covered, allowing them to take over premium payments and maintain the cover even after they have left the original employer.

Who should have cover?

Relevant Life policies require full medical underwriting. This tends to make them only suitable for key people who will stay with the business. They are therefore ideal for:

Company directors. A Relevant Life Policy provides a valuable tax benefit if directors life insurance premiums are paid by their company.
High earners. Relevant Life Polices don’t count towards the Lifetime Allowance, above which tax is currently charged at 55%.
Key employees. A Relevant Life Policy can provide tailored levels of cover, allowing you to reward or incentivise – and retain – your most vital human assets.

Arranging cover

Arranging Relevant Life cover can save money for business owners and their staff – but you may want to arrange additional insurance, such as critical illness cover.
To arrange the cover at the right price and comply with all the requirements of HMRC, you need the help of an adviser with expertise in company and personal taxation as a well as insurance.

Talk to us if this is of interest to you or you wish to discuss any other aspect of Strengthening and Protecting your business.

Summarising all I do into solving a single problem for a client

peterd@wood-disney.co.uk (Peter Disney) — Mon, 15 Mar 2021 11:32:25 GMT

One big problem faced by all business owners one day

I received a message from a marketing consultancy last week to say that the main mistake business owners make is to try to “be all things to all men” and instead we should focus on the ONE BIG PROBLEM we solve for our ideal clients. That is a really difficult question for us because we solve lots of problems everyday so I rather dismissed it as nonsense. However, just a few hours later something happened to make me realise that I did have an answer.

Just a few hours later ...

I was carrying out a review on a new client. While looking at the company’s filing history at Companies House I noticed an anomaly. The founder formed the company with a single £1 share. He then got married and gave shares to his wife. He had told me that he owned 75 A Ordinary shares and his wife owned 25 B Ordinary shares but these had not been correctly set up. When I told the client this he asked whether it mattered and my response was for him to imagine he is selling in 20 years time and the purchaser’s solicitors discovered that the shares had been incorrectly set up. This could affect the purchasers assessment of the risks of buying the company and reduce the price they were willing to pay and certainly would increase the legal costs significantly.

Then I thought about many of the other problems we solve and it occurred to me that most of these are during “the business journey” but all are targeted to achieve the one end goal.

So, the ONE BIG PROBLEM we solve is….drum roll…..

Making sure that when you decide to either retire or sell your business in the future you will have everything you need in place to get the best possible income stream or sales price with the minimum amount of stress (and taxes).

Potential problems along the way

This list is not exhaustive as it would take too long to list all of the problems clients have mentioned that we’ve faced and helped people with over the years.

Accountancy Problems:

I seem to spend my evenings or weekends working on my books. I need to get my work/life balance back as my family life is suffering.
My accounts are in a mess. I'm scared of falling foul of HMRC and the VAT man if I don't get my accounts and filings in order.
My employees are really important to my business success, but my payroll service keep failing to pay them accurately and on time. I'm worried about losing the people I rely on.
The new pension regulations have come in and I wasn't ready. I need to ensure that the correct pensions are calculated and filed with my pension provider.
My credit rating is not good and its affecting my ability to get the best deals from my suppliers. How can i maintain or improve it?
The thought of Making Tax Digital gives me a cold sweat. I don't understand digital accounts and on-line filing. I just need someone to deal with it so it does not cause me sleepless nights.
VAT is horrible, time consuming and in the past I've got it wrong getting me into trouble with the VAT man. I don’t need this stress especially now it's all done on-line.
CIS is a nightmare for my business. We employ subcontractors and the compliance gives me a headache every month.
I have tried filing changes to shares and directors at Companies House and am really worried I have done these wrong and this may cause a problem when I come to sell my business in the future.
I have claimed every expense I could find against my profits and now I can’t get a mortgage as my profits are too low.
My tax bills are huge and I never have the cash ready to pay them when they are due.

Business problems:

I've worked hard and built up a successful business but am worried it's at risk if my business hits a downturn.
My sales are good but I'm often short of cash.
I'm working all hours but still not generating enough profits from my business.
I want to grow my business but have plateaued and can't seem to grow it any further?
Business has exploded but I am scared that I am losing control.
I know how I want to grow my business but don't have the funds to kick start that growth.
Business is great but I need a life too - how can I unshackle myself from the business without it going down the pan?
What's next, I don't know whether to retire, sell the business, start a new business doing something I love or just keep going?

Some of the problems I've highlighted above may be familiar to you, others may not apply to you or you may just not have encountered them yet!

Either way, we are just a phone call away 01206 233170 or message us below .

So if you have a problem or worry that you haven't talked to us about yet, get in touch.

Our job is to help you build a better future for both you and your business.

A cash flow forecast can hamper business resilience

peterd@wood-disney.co.uk (Peter Disney) — Fri, 12 Feb 2021 13:04:05 GMT

A cash flow forecast is NOT a magic tonic - a resilient business must budget and build assets

I confess to have written in the past about the importance of a cash flow forecast but for many businesses it genuinely is a complete waste of time. Why? B ecause many business owners see a positive cash flow as cash available for them to spend or draw out of the business. A cash flow is only one of many tools that a resilient business should have in their tool kit along with budgets and a strategic cash management plan, to build assets and cash to get them through economic downturns and difficult trading conditions.

Let's look at an example of a start-up business

It buys its products from a supplier and initially will not get a credit line so has to pay up front. It puts those products up for sale or uses them in its service. There will be a time delay between paying for the product and eventually selling it. But then as a new business it may need to offer credit to its customers so there is a further delay. In the meantime, more product needs to be purchased. In order to assess the cash flow gap between paying for its products and selling them an understanding of the potential cash required can be established with a cash flow forecast. As the business grows this “gap” is sucking in more and more cash which is either filled by borrowing from your bank or by retaining profit. The more profitable the business the more likely it can finance this gap from its own resources. Eventually an equilibrium is reached when the cash coming in from previous sales is more than enough to pay for the products being purchased today.

An established business ...

So, a business which has been establish for let’s say more than three years is likely to have reached that equilibrium and is probably paying off previous debt and is achieving positive cash flow. The problem is that this positive cash flow is seen as being available for the business owner to spend and that’s what tends to happen. A cash flow forecast at this point merely reinforces the belief that it can afford the business owner’s other needs for cash whether that is more employees, more equipment, bigger premises or more dividends. And generally, as long as the business continues on a steady trajectory, it manages cash flow fine. Obviously, if a recession (or a pandemic) hits the economy then this upsets everything but does a cash flow forecast help if the business has little or no reserves to fall back on? It may help obtain a loan but that is just storing up problems for the future. If that cash flow forecast says you can’t actually repay that loan when the repayments start is that really helpful?

A cash forecast is not enough to ensure business survival

Most business owners are not financial people which I suppose is why accountants love cash flow forecasts but business owners only see what they want to see. Therefore, business owners need something more than a cash forecast to build resilience into their business into the future. They need guidance today about what they should be putting aside in savings for the regular downturns that will happen in the future. As a business owner you have a responsibility towards the future success of your business and the safeguarding of your teams’ jobs in the future too. You can only do that if you strictly control your cash and target to grow your reserves. A cash flow forecast does not do this. Benchmarking with a target percentage of profits going into specific savings accounts is far more useful.

Are you putting aside a proportion of your profits each month to guarantee your long term survival?

The Wood and Disney Strategic Cash Retention Program™ provides these targets in a simple monthly review and helps your business become more resilient in the future. 2020 was an exception year of generosity from our Government but in the real world you need to build up your own reserves to survive. You can find out more on our dedicated web page >> Cash Flow Solutions for the longer term - Building a Cash Reserve

You can talk through how Wood and Disney's Strategic Cash Retention Programme can build resilience into your business by calling us on 01206 233170 or fill in the form below and we'll get back to you and arrange a meeting.

Why is it no longer bad practice for a business to hold cash in reserve?

Fri, 05 Feb 2021 10:03:54 GMT

Historical views on cash retention need to be revised

Historically investors, financiers and of course accountants have viewed the holding of too much cash as inefficient, lowering the returns on assets (ROA) and increasing the cost of capital. Their attitude is that cash is just another asset which needs to be managed for maximum profitability, so cash represents money not being put to work . It has also been encouraged that when there is a booming economy borrowing helps a business to grow faster at the same time as interest rates are likely to be lower. However, when boom turns to recession this increased debt can spell big trouble.

To understand efficient use of cash let us consider this idea that it can lower the return on assets by looking at a simple example.

A business has £1m of net assets on its balance sheet of which £200,000 is in the bank. It makes a net profit after tax of £100,00 which includes £2,000 of interest.

Overall, it is making a 10% return on its assets of which the interest received represents just 1% return on the cash. In theory by eliminating the cash the Return on Assets would be greater so let’s try it.

The company distributes all the cash as a dividend to its shareholders reducing the net assets from £1m to £800,000. Its interest income would disappear leaving £98,000 of net profit after tax. £98,000 as a percentage of £800,000 is 12.25% so an improvement on its previous return of 22.5%.

How does this fit in with the idea that it is increasing the cost of capital?

Well taking the same numbers as our ROA example we know that the business can generate 12.25% return on its net assets but its return on cash is only 1% so in effect the company is losing 11.25% on any cash it holds. This is known as the opportunity cost of cash .

Obviously, no company wants zero cash because it needs money to pay its debts and trade successfully so what is the optimum amount of cash to hold?

Again, finance people look to other ratios the most common being the liquidity and solvency ratios .

Liquidity ratios monitor a company’s ability to pay its short-term liabilities whereas
Solvency ratios look at a company’s ability to manage all of its debts including long term finance.

The two main liquidity ratios used include the current ratio and the quick ratio .

The current ratio is calculated from the following: Current ratio = current assets / current liabilities

It is used to evaluate a company’s ability to pay its short term (current) debts from its short-term assets. Ideally it needs to be at least 1.0 but lenders often prefer to see 2.0 which means that the business could pay its creditors from realising only 50% of its current assets. Obviously, a score of less than 1.0 indicates that the business doesn’t have enough liquid assets to settle its liabilities.

The quick ratio is calculated from the following: Quick ratio = current assets minus stock / current liabilities

The q uick ratio is similar to the current ratio, but excludes needing to sell its stock to pay its liabilities. So again, a ratio of at least 1.0 is important.

Two of the most popular solvency ratios include: debt to equity and debt to assets ratios .

Debt to equity compares total liabilities to its total share capital and reserves. If the total liabilities are significantly higher than the equity (more than 2.0) it means the company is “highly leveraged” and therefore is at greater risk.
Debt to assets compares total liabilities to its total assets. It shows the percentage of total assets being financed by creditors as opposed to being financed by its own equity.

None of these in isolation conforms whether a company is holding enough cash, but it generates a conversation amongst the directors and its advisers and that is the important factor.

So what are the benefits of retaining cash in your business?

Let us assume the directors have agreed to increase their reserves and retain more cash to protect the future of their business (and their employees) despite doing so may make it look less efficient in the eyes of external financiers or investors, however there is still another potential problem.

The impact of tax on retaining cash.

I am not talking about a simple increase in tax because the money is not being spent because to be honest if you look at it logically it is like holding a 20 pence piece in one hand and a pound coin in the other. You need to spend the pound to save the 20 pence so unless spending that pound seriously benefits the business it is cheaper to pay the tax. No, it’s more serious than that. It is possible that holding too much cash can redefine a trading company into an investment company with the potential tax consequences for Capital Gains Tax and Inheritance Tax. There are even rumours that our Chancellor is considering taxing the shareholders of close companies (those with five or fewer shareholders) on their undistributed reserves (i.e., your cash) as if they had been voted out as dividends. This will not encourage businesses to be careful with their cash and save for the next rainy day. Please take note Mr Chancellor.

Retaining cash to build financial resilience and stability.

Despite all of society’s pressure to spend rather than save, to avoid taxes and borrow rather than use our own money I think businesses will be looking to build their resilience and think more about safeguarding their futures. I foresee that in the future employees will be checking to see how financially stable their potential employer is, and customers will be looking at their suppliers' balance sheets more closely too especially when they may have been let down or lost money in the past by going for the cheapest option. Foregoing the greatest return on assets by deliberately holding multiple months of wages and directly strengthening reserves will actually be better for the long-term future of a business.

Growth without considering Strategic Cash Retention will become foolhardy.

Are your products and services CREDIBLE?

Fri, 15 Jan 2021 14:01:31 GMT

Building a credible business

Most people who watch a film are prepared to suspend belief and just enjoy the movie even if the premise is incredulous. However, when parting with their hard-earned cash to buy your product they need to believe in you, your business, your product and your service. And, the larger the purchase price the greater the need for trust that you can provide them with what they want. Can they gain that trust just from your marketing efforts? Your telesales? Your direct mail? Your brochures? Your social media content? Your website? It is unlikely and you know the old saying “Talk is cheap. Actions speak”.

So, in order to gain someone’s trust you need “Credibility”. But what does this mean for you, your industry, your service or product?

According to Tom Wanek in his book “Currencies that buy Credibility” there are six sources of credibility:

Sources of credibility

Financial Risk
Effort
Niche
Control
Reputation
Safety

1. Financial Risk

If a customer needs to invest in your product or service are you also prepared to take a financial risk? This is where money back guarantees comes from. For example: “If you’re disappointed in our product, return the product at any time for a full refund.” Think about the guarantees you can offer but don’t just copy your competitors really explore what you can offer to reduce your customers’ financial risks.

2. Effort

How much time and energy have you put into your product or service? And have you explained this to your customers and prospects? It may be obvious to you about the time and energy that goes into producing your product or service, but it will definitely not be obvious to them. Have you had to spend many years to gain qualifications, skills and experience? Have you gone to extraordinary lengths or travelled the furthest corners of the world to source the best products?

What goes into crafting your product from raw materials to the beautiful product that your customer sees? What is that journey? This is a story people want to hear. So, tell them.

3. Niche

Remember the old saying “Jack of all trades, master of none”? It is tempting to sell your products or services to anyone with a pulse but you will be competing with other suppliers who perhaps only deal with very specific customers and therefore have very specialist skills and knowledge in that customer’s needs. Those niche suppliers have much greater credibility in that market to those customers. Customers who want to feel special and deal with a supplier who is “the expert” are prepared to pay more for that privilege. Have you lost business to a competitor who is more expensive than you? Having a niche is a massive subject all by itself but it is certainly worth considering how you can present your expertise in a fewer number of products or services.

4. Control

In the pursuit of efficiency and productivity companies have tried to control every aspect of their businesses including how they interact with their customers, whether that is the sales process, delivery times, minimum order values etc. You could argue that Amazon’s success is due to their focus on the customer experience and making the customer feel that they have total control.

5. Reputation

If a brand becomes well known, it gathers momentum faster and faster because its repetition in the marketplace creates recognition and the assumption of credibility. So, repetition of your brand into your marketplace helps gain credibility and the theory is that you need to be “seen” at least 7 times before your name becomes familiar. If your brand is seen in lots of different places and at lots of different times it has a multiplying effect. However, don’t forget reputations can be ruined very quickly, take for example Ratner whose value dropped off a £500m cliff when in 1991 Gerald Ratner stated in public that he sold “total crap” and in particular “sold a pair of earrings for under a pound, which is cheaper than a shrimp sandwich from Marks and Spencer but probably wouldn’t last as long”. This is now known as “the Ratner effect” and “doing a Ratner” now means really messing up.

6. Safety

How credible would you see a company if the Managing Director was prepared to be shot to prove that his bullet proof vest worked. In 1971 a guy called Richard Davis shot himself at point blank range wearing a new vest made of Kevlar. His business Second Chance went on to make him a multi-millionaire. Or Elisha Otis who in 1853 put his own life on the line to prove that his elevator brake worked at a time when elevator ropes were made from hemp and often broke. Otis elevator sales in 2017 were £9 billion.

How Wood and Disney have built credibility into the core of their business

We have looked seriously at our own business and created the following Credibility Triangle :

1. Qualifications and Professionalism

Wood and Disney believe that a firm foundation of qualifications is essential for accountants. Sadly, the term accountant is not regulated so you have no guarantee that your accountant has any formal qualifications at all unless (s)he shows you evidence. Unqualified accountants just hope you never ask. Wood and Disney are Chartered Accountants and strictly regulated by the Institute of Chartered Accountants in England and Wales (ICAEW). Not only have we had to study for many years to achieve our qualifications we have to maintain regular ongoing professional education to ensure we continue to be up to date. It costs tens of thousands of pounds to train a chartered accountant so there is a significant financial cost for us to continue to train our team.

2. Experience & Innovation

The second stage is the experience gained which adds to the qualifications. Over the years we learn more from courses, workshops, seminars and of course from those more experienced that we work with. Over time this experience adds to our value as long as we are open to learning new things as each year passes. Ask any member of the Wood and Disney team about the changes they have witnessed while working for Wood and Disney and they will tell you that we never stand still and are always looking for ways to improve and add value to our clients. Our efforts over the years have included:

bringing in in an American Management consulting tool and rewriting it for the UK market in 1993
creating a database of financial calculators and ratios based upon the 1990s Trouble-shooter series lead by Sir John Harvey Jones.
working with three other accountancy firms to create the Association of Profit Advisors in 1989.
launching the first cloud-based business advisory website in 2002 called Plus4Business .
becoming a paperless office in 2003.
being the first in Essex to use cloud accounting in 2008.
using multiple Apps to help our clients become more efficient and profitable.
launching Your Journey to Freedom in 2019 our updated and improved business growth process.

3. Personalism

People want to deal with people. If you don’t understand someone because they speak another language, then how can you take their advice. Accountants are notorious for speaking in accountancy jargon which to many is a foreign language. We have a no jargon policy at Wood and Disney . We have also gone through the stage of having a future vision of being a virtual nationwide firm of accountants and have come back to the importance of being both local and personal. Being available. Being approachable. Being easy to talk to. Clients need to be willing to divulge intimate financial knowledge about both their business and their personal wealth. No one wants to give this information to a robot or an accountant who acts like a robot.

4. Respect

Every client is unique, and we will not treat you like a number. Wood and Disney will always treat you with respect and trust that you will treat us in the same way. We will be polite and responsive to your needs. If you don’t understand something, we will try different ways to explain it, so you do understand. By communicating with you more often we will be more aware of your challenges and be more thoughtful in spotting opportunities to help you. Finally, we believe it is important to be kind and we reflect that in our regular charity giving via B1G1 to impact on the lives of those less fortunate.

5. Trust

To be your trusted business advisor is our ultimate goal. Wood and Disney get to know your intimate financial knowledge and you need to be sure that we keep that knowledge secure. Our commitment to achieving and maintaining the international standard for information security (ISO27001) is tangible evidence of our dedication. This standard is no lightweight commitment in that it has cost us tens of thousands of pounds to achieve and continues to represent a high cost in maintaining it. More subjective trust elements are that we would not advise you to do something if we would not do it ourselves. We would not advise you to do something unless we felt strongly that it was beneficial to you. Wood and Disney are committed to helping you achieve both security and success.

Why not create something similar for your business?

Why Knowledge (and Experience) is Power

peterd@wood-disney.co.uk (Peter Disney) — Fri, 11 Dec 2020 17:00:17 GMT

Knowledge and experience are key to a successful business

Everyone seems to assume that success comes at an early age with people such as Mark Zuckerberg of Facebook becoming a billionaire at the age of 23 having only started his business 3 years before. Or Evan Spiegel who-co founded Snapchat achieving billionaire status at 25, again having only been in business for 3 years. Does that mean it’s too late for you if you are already over 30 or have been in business for more than 3 years?

The answer is of course not. Bill Gates was 31 having taken 11 years to become a billionaire. Elon Musk was 41 and took 17 years. Sir Richard Branson was 41 and took 19 years. Steve Jobs was 40 and took 19 years. Sir Alan Sugar was 68 and took 47 years.

These are just some of the best-known entrepreneurs but there are many other examples where great success has come at a later age and after a longer period of time.

With age comes experience

In a Harvard Business Review in 2018 it was found that the average age of the owners of tech startups was between 29 and 31. However in many other industries the average age is much higher often being over 45. In fact, one comment was particularly interesting. “If you were faced with two entrepreneurs and knew nothing about them besides their age, you would do better, on average, betting on the older one.”

The conclusion as to why this happens was that experience played a critical role and gave the entrepreneur an 85% better chance of success. However, there didn’t appear to be much information on the type of experience, so I am going to give you just my unsubstantiated opinion on this.

Firstly , when we are young, we think we know all that we need to know. We can do it alone, without any one else’s help. We need to be in control and be at the center of everything. It takes time to realise that it is better to have a smaller part of something bigger than 100% of something small or potentially non-existent. Bringing others into your business could have major benefits but there are also risks so make sure you take expert financial and legal advice before signing any share transfers or agreements. Older entrepreneurs appreciate the expertise of others and are more willing to pay for specialist advice.

Secondly , to succeed, you need a wide variety of skills, talents and knowledge. Your particular gifts may be lacking in some fundamental areas and so you may need to take the time to learn those skills perhaps delaying your potential success or even losing an opportunity when a competitor appears first and takes your market share. Alternatively, you can bring in advisers early to fast track you but there is a cost to do this and the best advisers will command significant investment. Again, older entrepreneurs understand the benefits of face to face support and are more willing to invest in that advice.

Employing experience and knowledge

Although you are likely to have a limited budget in the early years of your business, the only way to achieve the success you desire may mean employing others with those skills that you lack . Again, don’t just employ family or people you happen to know. This is a common error and has often caused the demise of an otherwise potentially successful business. Perhaps older entrepreneurs have seen and appreciated the benefit of advice from an experienced HR Consultant in a previous career so are much more willing to involve a specialist to identify and contract with the best people.

Collaborating to gain experience and knowledge

Finally, we have the idea of collaboration. By this I mean partnerships with similar or complementary businesses. Again, I think this is less likely to happen with younger entrepreneurs who perhaps have a greater fear of losing their perceived competitive advantage whereas older entrepreneurs have a greater understanding of not only the benefits of collaborating but the legal protections available too.

Buying in specialist skills and experience

Over the years you will have gained experience and knowledge to run a successful business. You've hopefully employed people with the skills to fill any gaps in your skills and may have forged collaborative partnerships with complementary businesses or organisations. But there will still be specialised areas where you will need to buy in expertise.

Wood and Disney have been Chartered Accountants and Professional Accredited Business Advisors for a long time with many, many, many years of experience behind us. However even we admit that we are not experts in every aspect of business. We recognise our strengths and also the areas where we need to either bring in specialist financial advice or recommend experts to clients. For example, in a few cases we have used specialists in international tax regulations when advising overseas clients. Wood and Disney do not advise on investments, but recommend investment specialists whom we have worked with over many years and trust to give our clients expert advice. We work collaboratively with human resources consultants for our own and recommend to clients specialists regarding HR legislation and questions.

It is impossible to be an expert in all areas of business, no matter how experienced or qualified you are. The important thing is to recognise gaps in your knowledge and make sure you plug any holes by buying in the expertise from specialists or by employing the right people with the right knowledge and skill set.

Look to mum when it comes to resilience planning for your business

peterd@wood-disney.co.uk (Peter Disney) — Tue, 03 Nov 2020 10:18:52 GMT

Lessons learnt in building resilience

I recently read a Harvard Business Review about resilience. It was a global study involving 25,000 adults in 25 countries so this was a significant and in depth study. It was looking at personal resilience and what makes us as individuals more resilient.

Two of the findings were:

Exposure to suffering increased resilience . Facing a stark reality and responding to it.
The more tangible the threat the more resilient we become . Facing a real threat rather than an unknown one shows us what we are capable of and strengthens us.

It occurred to me that its findings applied equally to small businesses.

Exposing a business to stress will increase its resilience

According to Companies House the average age of UK Companies in 2019 was just 8.5 years. Over 72% of the total register were under 10 years old. There are 5.94 million small businesses (with 0 to 49 employees) representing 99.3% of the total business population. So, 72% of 5.94 million small businesses (almost 4.3 million businesses) have potentially never experienced a recession.

They had not experienced that desperation, that shock, when their sales slump and they have to make team members, who are often friends and family, redundant. When they struggle to pay their bills because they have not built up cash reserves. The red demands, the threats of court action, the embarrassment when a bailiff arrives on the doorstep. I hope they all had “old hands” to turn to and receive mentoring support.

In considering Wood and Disney's clients, I immediately noticed that those who had been established for a long time and therefore had experienced recessions in the past coped with the Covid lockdown much better than younger businesses. I have personally been through 4 recessions whilst running Wood and Disney and felt that we reacted quickly and decisively to the changes being imposed on us working from home but still maintaining full service levels for our clients. This meant that our younger clients benefited from having experienced “old hands” to advise them about how to cope. Brendon Howlett and myself spent almost all of our time in those early months phoning and Zooming our clients to support them.

Facing a crisis like the Covid pandemic or more recently the high interest rates and soaring costs of doing business, really brings home the need for experienced , professional advice. Wood and Disney's clients know that the advice we give them is based upon 45 years of running our own business. We are not just fresh faced out of uni, going straight into an established accountancy firm; we have real life practical experience of starting, building and running our own businesses. We know how difficult it is establishing and growing a business from first hand experience. Struggles with cash flow and growth, raising finance, getting our marketing mix right, finding and developing staff, we’ve faced all of these difficulties and many more. Nobody, family, friends or government, has ever given us a golden ticket to success – everything we have, we’ve built ourselves through hard work and creating opportunities ourselves.

Wood and Disney understand what it’s like to face the pressures of running a business, the worry, the sleepless nights, the feeling of being alone and not sure of the best course of action, working all hours. Working to provide a better future for yourself and those that are important to you. We’ve been there and done it. We’ve made mistakes and learnt from them. We’ve survived through the early 1990’s recession (inflation peaked at 9.5% in 1990, with interest rates hitting a high of 14.8% on Black Wednesday), the 2008 recession (the deepest UK recession since WWII) and the Covid-19 pandemic. We use our experience of running our own businesses and helping our clients through the good times and bad, to make sure that the advice we give our clients is practical and works so that their businesses are resilient and thrive.

Facing a real threat strengthens a business

One thing we noticed at the start of the Covid pandemic was that so many clients over reacted and shut their doors immediately before the end of March. Basically, very little business was done in April. None of us really knew what we were facing or how long it was going to last. Panic set in because of the unknown. However, like so many entrepreneurs our clients were watching and assessing what was going on. Many reopened in May albeit perhaps on a reduced basis but they could see that perhaps they didn’t need to be fully shut down. In reality it wasn’t as bad as they had first feared. Coping with the changes and making some sales gave them confidence and we saw increasing sales from many clients over the next couple of months as they adapted to the new way of working. It wasn’t long before many of them were back to their original sales targets.

For some time we have been keen for our clients to create more resilient businesses because we knew that inevitably another recession would happen. Usually they appear pretty regularly every ten years or so. Since the last one was in 2008 we have been expecting another one for the last couple of years.

As accountants we see resilience in a company as building balance sheet reserves and net worth. However, for many of our clients this has not been a priority until we explain it in non accountancy terms. Increasing the net worth of your company means very little but saying that we can improve your company’s credit score so your suppliers will send you more stock and allow you longer terms before you have to pay for it makes perfect sense. Having greater balance sheet reserves means your bank will not only be happier to lend to you but will lend you more.

And now there is another reason to build reserves. A reason we have all experienced at close hand. Many clients are now focused on building cash reserves and we have been helping them by identifying appropriate KPIs (Key Preventative Indicators) and ring fencing various sums in different savings accounts. None of this is new but perhaps has been forgotten in recent times of prosperity.

How did my Mum get through the hard times?

My mum used a similar solution of planning and control soon after she married my dad 65 years ago and discovered he couldn’t budget. She took his weekly wages (in cash) and had separate envelopes for all of the various costs she knew she would have. The rent envelope, the food envelope, the clothing envelope etc. Everything was calculated to ensure she didn’t overspend in one area to the detriment of another. They lived within their budget and even managed to build up a rainy day fund.

Perhaps following my Mum's example is a model of how small businesses should be run in the future rather than a borrow and spend model.

Budget for all costs in your business - budgeting
Make sure the cash comes in and is allocated to cover each of your costs - cash flow planning and control
Put away cash in a "rainy day" fund to build a cash reserve for when times get tough - Strategic cash reserve management

You can discover more about building resilience into your business by reading our more recent follow up blog ...

Feeling too comfortable with cash in the bank?

Wed, 23 Sep 2020 13:51:10 GMT

Cash in the bank is there for a purpose

Last week one of my clients made a comment which worried me. It was simply:

“ I’m feeling too cosy about cash”.

The background was simple. The company was run by an ambitious entrepreneur who usually ran a tight ship dipping in and out of his overdraft. When Covid started he deferred his Vat amounting to £40,000 and took a £50,000 bounce back loan. So his bank account varied around £90,000 in credit give or take £10,000. So he was comfortable. Sales were growing and so was profit but cash remained the same .

Where were the profits?

When looking at the numbers more closely we could see that his debtors had increased but because he was “cosy” he continued to focus on his sales and failed to chase his customers to pay. He had also been tempted to take bit more for himself because the profits were there to do so.

How did we help him build cash reserves to meet his future commitments?

We went back to basics. Opened some additional savings accounts and started to ring fence some of this cash.

First the vat deferred went into a separate VAT account.
Then his current vat liability went into that VAT account as well.
Then we looked at his potential tax on the profits and decided that this should be put away every month again into a separate account but
Right now he needed to move £10,000 for the tax due in January plus some further tax for the current year.

That was the challenge he needed to jolt him into action. Soon his day to day bank account was looking pretty poor but his future was looking much more secure. A very simple solution of tucking away cash to cover the known costs due in the future but also one that he can maintain every month when he and I review his management accounts and create provisions and pots of money for any eventuality.

The important thing is that the money is NOT in his current account so he feels less comfortable about cash on a day-to-day basis, ensuring that his focus is not diverted from maintaining strong cash flows through good credit control. As a result his business is stronger with cash reserves to meet known future financial commitments, and reserves for unforeseen eventualities to ensure that he continues to run a successful company long into the future.

Having a nice healthy bank balance with a pile of cash in your business current account sounds like a dream come true! But be careful; complacency today can lead many business owners into a misplaced feeling of security especially if you haven't put the money away to cover future financial commitments such as VAT and tax.

One final suggestion

If you have taken out a CBILS or Bounce Back loan why not start “repaying” it now by putting that money aside in a separate account so that when the actual repayments start next year you are already used to that cash going out.

Embracing the cloud to survive and thrive.

Wed, 06 May 2020 13:49:04 GMT

Cloud accounting - real time data that gives you a real chance of survival

There have been many threats to business posed by Covid-19. We have found that one of the most striking features of resilient businesses has been the availability of accurate, up-to-date, easily accessible financial information.

We have been working for the past 10 years to move our clients’ bookkeeping into the cloud. It has not always been easy to convince clients of the benefits, but most have followed our advice. These clients are now reaping the rewards of their foresight.

These clients know:

their profitability now, not 9 months after the year end.
they have the data and tools at their fingertips to accurately forecast both cash and profitability for at least the next three months
their information is real time , usually updated at least weekly if not daily.
they have the certainty of knowing their position now and having confidence in where they will be in 3 months time, helping them to make better decisions and improving their chances of “weathering the storm”
with the right information and planning tools at their fingertips they can plan to emerge on the other side of this crisis in a stronger position, ready to take advantage of the recovery .
if they do decide they need to borrow via one of the Government backed loan schemes they may need to pull together various reports for their bank. How will they do this without the technology and an accountant who is comfortable with this technology?
we can access their financials from a position of lock-down so we can give them the right advice for their business today.
they do not need to visit us to hand over records. Firstly, we are not at the office as we are all working from home and secondly, we are not putting them or ourselves at risk by breaking lock-down and touching potentially contaminated documents.

Why have some companies fallen behind and now finding life so much harder than progressive firms?

Many accountants are old-school and find the rapid advance of technology daunting and threatening. They prefer to stick with the manual records, excel spreadsheets or old fashioned desktop systems they have used all their working life and are comfortable with. Many have convinced their clients, who are quite often equally uncomfortable with technology and need very little persuasion, that they don’t need to change.

Of our own clients a small handful have chosen not to heed our advice. These are very long-standing clients for whom we have acted for many, many years. So, although we disagree with their decision, we continue to support them out of loyalty and friendship. Today we will not take on new clients unless they have or are going to move into the cloud.

Our clients have now joined the cloud club, but why did it take them so long?

Firstly, they were concerned about security ~ We gradually were able to allay most clients’ fears by showing them that in reality their own IT systems were probably far less secure than multi billion pound companies who could invest in the best.

Then it was the discomfort in changing from a system they knew well and had used for many years either manual records or in most cases a desktop software ~ Again, by showing them the greater flexibility and simplicity of cloud based bookkeeping systems we gradually won a few more over.

Then we had those who had bespoke systems which communicated with their existing desktop software ~ As the years passed we have been able to demonstrate the massive availability of choice when it came to Apps which were faster, better and significantly cheaper compared to their old fashioned desktop alternatives.

Then Making Tax Digital arrived ~ This final piece in the puzzle convinced many of our clients to join the cloud bookkeeping club

Then Covid-19 arrived!

The value of the investment clients have made in moving their bookkeeping to the cloud in terms of cost and time is bearing fruit! They have better data, better control and can make better decisions. We have access to their data, so we can give personal, bespoke advice, because we can see what’s going on today in their business.

The wood and disney team continue to work as usual but from home. This is possible because we moved all our systems across to the cloud as well as moving all of our clients into cloud bookkeeping. We are also embracing virtual technology, keeping in touch with clients by holding regular zoom meetings and catch up calls – something we intend to continue once the current crisis is over.

Is it too late to move into the cloud?

If you are still relying on desktop software or manual records, you are seriously disadvantaged right now. We can help you move your business forward and take advantage of the cloud based systems that enable businesses to adapt and survive economic crisis. We will help and support you through the whole process and ensure that you have a system that is the right fit for your business.

Contact the Wood and Disney team on either 01206 233170 or info@wood-disney.co.uk

Nice to meet you - it's always good to talk

Tue, 28 Apr 2020 14:50:46 GMT

Meeting face to face is still key to a successful relationship

The coronavirus pandemic and the need for social distancing made it impossible to sit down for a chat with us in the usual way. Yet the financial fallout from covid and the current economic situation has made such meetings even more essential.

We have all had to find new ways of working and communicating. Wood and Disney were well placed for the move to home working as we had invested and moved all our systems in to the cloud long before the pandemic hit. So our productivity and our service to our clients was not interrupted or affected by remote working. Technology enabled us to stay in close touch with our team and clients during the coronavirus pandemic with virtual meetings and access to clients' data the through cloud accounting and our secure on-line document exchange. As we emerged from the restrictions of the pandemic, W ood and Disney embraced the benefits of hybrid working, with our team in the office 50% of the time. Virtual meetings with clients and colleagues have become a mainstream means of communication. They have not replaced in-person meetings but run alongside, often taking the place of telephone meetings as a means of communicating and keeping in touch. At Wood and Disney we believe that holding such virtual meetings with our clients and colleagues can be as effective as face to face meetings and have become an essential part of our communication toolkit.

Why is a meeting necessary?

Some accountants offer their clients a traditional standard package of services. This typically includes historical accounts preparation and tax compliance and these accountants might see their clients a maximum of once a year.

At Wood and Disney , we believe all our clients have their own specific needs , so we do not offer standard solutions. We understand that all our clients are individuals, with their own short-term and long-term financial goals, aspirations and problems for both themselves and for their businesses. We provide advice and support that is tailored to you and your needs.

Our service is all about you and we believe that by regularly meeting with you, virtually or otherwise, we can openly discuss, question and listen to you and find out exactly what your current financial objectives are and provide solutions to any problems.

Once we understand your goals , we work with you to develop a personalised roadmap to help you on your journey. We encourage you to meet us on a regular basis as your needs and goals will change as time passes. We want to help you over the long term to achieve your changing goals and solve the problems that will inevitably arise along the way.

With the financial fallout from the Covid pandemic and the ongoing challenging business climate, the need for continued support has never been greater and a virtual meeting with us could be invaluable.

Ready to talk?

If you would like to meet with us to discuss any problems or issues or need help with making plans for the future, please contact us.

You can call Wood and Disney on 01206 233170 or complete the form below and we'll get back to you and arrange a meeting.

Is your business growing fast but you're running out of cash?

Tue, 11 Feb 2020 15:54:45 GMT

Cash is King!

The following is an extract from an article on accountingweb.co.uk.:

“Typically, the small business facing a cash flow shortfall will only confront the problem within a week before it hits them, and spend just one hour researching finance providers. Four out of five of them approach only one lender”.

WHAT??? Actually I have two WHATs???

Firstly the typical business owner only knows he needs a cash injection a week before the cash crisis hits?

Secondly only approaching one lender and by the way that is likely to be their existing high street lender?

The following is an extract from an article on accountingweb.co.uk.:

WHAT??? Actually I have two WHATs???

Firstly the typical business owner only knows he needs a cash injection a week before the cash crisis hits?

Secondly only approaching one lender and by the way that is likely to be their existing high street lender?

"Only knowing a cash injection is needed a week before the crisis!"

That is a stunning admission. How would that business owner’s employees feel to discover that the reason they haven’t been paid is that their boss didn’t look far enough ahead to spot a problem and rectify it when with a bit of forethought it could have so easily been sorted. Given that in theory over 3 million employees in the UK are only one payslip away from homelessness (Shelter 2016) that boss by failing to plan ahead has potentially caused an employee to lose their home.

This lack of planning, or perhaps lack of understanding of the impact of trade today on the cash flow of tomorrow, may have been unavoidable when we used notched willow sticks or abacuses or even hand written ledgers but not when we use real time bookkeeping systems such as Xero and QuickBooks. No excuse for not issuing sales invoices as soon as the job is done. Automatic chasing of sales invoices, automatic collection of money by direct debit. Automatic posting of supplier invoices and expenses and the setting of payment dates. We know so much more today about what is happening in our businesses and more importantly when it’s going to happen. Given all of this why do business owners still “write up their books” monthly or even quarterly?

However having these systems does not take away the need to think and plan ahead. Cash flow forecasting is easy in theory but hard to get right in practice. A cash flow forecast looking 12 months ahead is probably a complete waste of time unless you have a consistent seasonal trend. A 28 day rolling cash flow forecast is infinitely more useful but difficult to get right because a single day’s delay in a receipt makes a massive difference to the results.

So where is this leading to?

There are two inevitable future events which will impact on you.

1. Recession – every ten years or so and regular as clockwork (almost). But in every downturn there are always winners as well as the losers. Cash flow forecasting and ongoing monitoring enables you to see when the issues are coming and cut your costs earlier.

2. Rapid growth – it’s difficult to say no when opportunities present themselves and you suddenly experience rapid growth. But more sales demands more working capital to support those sales and more businesses go bust through lack of cash than from lack of profit. You are much more likely to need more cash when you grow than when you stagnate. Cash flow forecasting allows you to see ahead to where the strain points will occur and allow you to plan accordingly.

There are two inevitable future events which will impact on you.

One hour of research and still go to a high street bank?

Have you asked a high street lender for a business loan recently? Do you realise just how much information they demand and how long they take to reach a decision? Certainly far longer than a week!

There are always alternative solutions to this issue BUT all lenders both traditional and new Fintechs will want to see up to date Management accounts both P&L and Balance Sheet. Last year’s accounts will no longer cut it. The fact that you maintain a cash flow forecast will also help you. Lenders are looking for you to prove that you have your finger on your business's pulse. As far as they are concerned out of date accounts shows dis-organisation and a lack of control. Admitting that you didn’t realise that you were about to enter a cash flow crisis doesn’t create a great impression either.

Have you asked a high street lender for a business loan recently? Do you realise just how much information they demand and how long they take to reach a decision? Certainly far longer than a week!

To summarise

If you want to still be in business in 10 years’ time you need to think of the following:

1. Your financial records need to be updated DAILY .

2. You need a 28 day rolling cash flow forecast .

3. Think ahead and ensure extra finance is both planned and budgeted for well ahead of the time when it is needed.

4. Shop around early to get the best deal.

If you want to still be in business in 10 years’ time you need to think of the following:

1. Your financial records need to be updated DAILY .

2. You need a 28 day rolling cash flow forecast .

3. Think ahead and ensure extra finance is both planned and budgeted for well ahead of the time when it is needed.

4. Shop around early to get the best deal.

Will advice in the future be from a robot or a human?

Tue, 14 Jan 2020 15:54:38 GMT

Back in 2015 the BBC wrote an article called “ Will a robot take your job? ”

Sadly, when I typed in Accountant it revealed that there was a 95% chance that my job was being replaced by automation. Bookkeepers and payroll clerks came out worse at 97%.

In reading further, the result assumed that as logical thinking ‘numbers’ people then obviously this type of work could be replaced by technology. However interestingly jobs requiring empathy or creativity were less prone to automation.

Are accountants perceived as having little or no empathy or creativity?

Looking back at my early career I have always been interested in technology in helping to grow my business even back in the days of using accounting software on floppy disks. Every time there was a jump in the use of technology I was there. Through the 1990s I was playing with databases to streamline workflows particularly for business advice. I even built an online business diagnostic tool in 2002 called Plus4Business . It flopped spectacularly which at the time I blamed on a lack of broadband but later I realized I had been kidding myself. Wood and Disney was also the first firm of accountants in East Anglia to go paperless in 2003. And we first started using cloud accounting in 2008 long before many of our competitors. From this you can see that as far as I was concerned technology was the holy grail never believing I was supporting a monster that would one day destroy my profession.

So we come to today

Am I still a geek who loves all things technology driven? Well yes and no. I do believe that bookkeepers and accountants focusing solely on compliance will disappear. Xero and QuickBooks are both moving rapidly towards “less human involvement” in bookkeeping using machine learning to recognize the corrections being made by bookkeepers and accountants and dealing with them before we even spot them. A simple case of using our expertise to copy and replicate what we do. QuickBooks has already said that it is changing its DIY model for a Do-It-With-You (DIWY) model. The increase in profits by moving from a £20 per month service to a £200 per month service is a massive incentive, don’t you think? So that’s bookkeepers disposed of so what about accountants? Well Xero has bought a tax compliance system which is not great yet but with accountants using it and suggesting improvements it can only get better to the extent that it will be offered direct to business owners. Accountants shooting themselves in the foot yet again.

Is this the end of the accountancy profession too?

Well of course not for a few reasons. Firstly, business owners are not trained bookkeepers so they will make mistakes which the software cannot correct. We will therefore still be required to carry out forensic assessments of records and make sure they are accurate. That old almost forgotten audit training will finally start to pay off. Secondly, many business owners will simply prefer to concentrate on what they do best and hand over the bookkeeping to someone who is trained and can do the job far better. Lastly, we are still required to act as translators because so many business owners have limited understanding of their numbers and need someone to paint a picture of their performance in a language they understand. Hang on a minute is that empathy showing up?

The future accountant will focus on advice, expertise and support

So, is that it then? Of course not. If you think this is just about an accountant preparing a set of accounts, you are completely missing the point. Of course, business owners need to comply with tax legislation, but they don’t just select someone to prepare a basic set of accounts. Most business owners accept that they do not have all the skills to run a successful business so select their accountants for their ability to advise them on all the other aspects of running a business. So, the real question is can AI offer this advice as well as the basic compliance stuff.

I used to believe the answer was yes hence why I developed Plus4Business 18 years ago. Today I look around and see yet more AI driven advisory systems appearing on the market. The holy grail of automatic success driven by technology. Fill in an online questionnaire and every issue can be resolved. Your business is no different to any other. One size fits all. You can take short cuts, quick fixes, dramatic growth in a matter of days and no hard work at all. Just follow a system.

My attempt to create an online business advisory system didn’t flop because of a lack of broadband but because it took effort. Effort to understand and effort to use. The same applies to today's systems. We all struggle with a lack of time so to use that valuable resource to research, learn and use is just too much effort. That’s why humans will always be required as advisers.

As advisers we provide expertise.
As mentors we provide experience and
As accountants we hold our clients to ‘account’.

The growth and advance of artificial intelligence in accountancy and business advisory services is accelerating with more and more businesses and accountants switching to on-line cloud accountancy services. This is an important step forward when it comes to bookkeeping, accounts and tax and VAT returns as these are processes that can be systemised and automated with human oversight to cover the "grey" areas. But, the human touch is still needed to understand and empathise with business owners and their problems. I think my mission is to stop business owners thinking about the word ‘count’ within accountant.

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Wood and Disney leading the way in Best Business Practice

Wood and Disney's professional best practice recognised with another award!

What is the Fair Payment Code?

Why is the Fair Payment code needed?

Why do Wood and Disney consider prompt payment so important?

Why?

Find out more about how Wood and Disney can help you lead the way in Best Business Practice .

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Bonus Tip:

Wood and Disney's Strategic Cash Retention Programme ®

Let us help you ride out the waves of recession and build a stronger business.

Appointing an accountant should be an investment in your business

Your accountant must have TIME to invest in your business.

Why is Wood and Disney's quote often more expensive than others?

TIME to get to know you and your business

TIME to deliver quality

TIME to deliver proactive advice

TIME to deliver success

Appointing Wood and Disney is investing in your future

Find out more about how Wood and Disney can help you Build a Better Future .

Buying, Selling or Merging your business

Wood and Disney, helping you make the right decisions

Content

Buying a business

Do the accounts and financials reflect accurately the financial position of the business?

Are you paying the right price for the business?

Is the purchase tax efficient?

Are the contracts are legally binding and protect your position?

After the purchase, the new business needs to be integrated into your current business financial systems

Selling your business

Preparing to sell

Valuing your business

Optimising your tax position

Standing by your side during the sales process

Merging your business

Pre-Merger Phase

Merger Phase:

Post-Merger Phase:

Solving small business pain

Wood and Disney - just what the doctor ordered to ease your Business headaches ﻿

1. Tax Complexities

You don't need to be a tax expert because Wood and Disney are!

2. Financial Management

Wood and Disney are professionally Qualified Chartered Accountants and Business Advisors - Experts in Financial Management

3. Cash Flow Issues

Wood and Disney's Cash Flow strategies and solutions get you back on track.

4. Bookkeeping Errors

With Wood and Disney Bookkeeping doesn't have to be a headache!

5. Payroll Management

Wood and Disney's Payroll Services frees up your time to focus on your business!

6. Business Planning and Forecasting

Planning is central to the success of any business

7. Raising Finance

Most entrepreneurs say that one of the most difficult parts of being in business is raising money

8. Mergers and Acquisitions

9. Exit Strategies

The Wood and Disney Difference

1. Financial clarity:

2. Stress reduction:

3. Confidence building:

4. Goal setting and tracking:

5. Emotional support:

The Numbers Game

The Numbers Game: Unleashing Business Potential

Income

Why Strategic Cash Retention Trumps Cash Flow in a Recession (A Deep Dive)

Wood and Disney - just what the doctor ordered to ease your Business headaches

Employee Engagement