After speaking with the client, we came up with a three-step plan:
- Reduce tax bills for the business and owners to help increase cash
- Identify ways to improve profitability and cash-flow due to a downturn in the industry
- Review the VAT computation as there was no VAT claimed on the start-up costs
The first six months
In the first six months, we were able to perform monthly reviews that would save the client an annual tax saving of £16,500. Thanks to our financial forecasts, the client was then able to identify their savings and better plan for profit and cash flow for the year ahead. We also discussed the director’s key performance indicators and made note of potential areas where they could save.
During our review of management information, we could identify significant improvements to the accounting and reporting policies. Under the previous accountant, this has adversely distorted the trading position to the point where poor results were putting a strain on their relationship with the bank. From here, we could recommend and help implement a change in policy that would improve their financial accuracy, as well as help improve their relationship with the bank.
“We are glad to have you by our side, we are really thankful for your support and work done for us which helped us to revive our business. Your professional advice has helped us to set the targets, manage the costs and meet the compliance requirements set by HMRC. “