virtualsource.co.uk

With an election only weeks away the 2010 Budget may have a very short shelf life. The pundits will no doubt debate the finer points for a while but you have a business to continue running both now and after May.

We can be sure that there are still tough times ahead for both individuals and businesses as Governments seek to claw back the huge deficit that has been made far worse than usual by the recession. A degree a inflation seems inevitable, taxes will rise and interest rates will not stay low forever. Therefore, getting value for money from business expenditure is imperative.

One cost that should bring tangible benefits to a business is the renewal of accounting software. Recent years have seen accounting software develop in terms of how it can be run (e.g. the possibilities of online hosting and access) and the areas it can cover and roles it can play. Integration of things like Customer Relationship Management (CRM) and E-commerce functionality mean that software can quickly be put to work on not only measuring and reporting the figures but also increasing sales and profits.

In order to achieve those benefits implementing a new accounting software solution needs planning and preparation. This will include evaluating current processes, determining requirements, assessing the project goals and researching the software options. 

10 steps to making the right software choice:

1. Be clear on your goals

It is vital that you list your requirements from a new accounting software solution so that you know what you are looking for. With developments in current software this may be a “chicken and egg” scenario as you may not know what the possibilities are. Consider getting help from someone who knows the market and can explain what software can now do for your business.

2. Prioritise your needs

Rate your software needs so that when assessing options you can decide on one package over another, given that finding the perfect solution is unlikely. You could rate things as 1 to 4 on the following basis:

1. A must have item.
2. You want it if at all possible.
3. Something you could have if other factors make sense.
4. You know you won’t use it now but might be nice for the future.

3. Do your homework

Allow time to look at the range of options and keep an eye out for software vendors that specialise in software for your industry.

4. Consider support and upgrade options

Ongoing support is vital as is the ability of software vendors to keep pace with legislative and technological changes. Research the background and track record of the vendor as well as looking at the software that they provide.

5. References

Ask for and follow up on references given by vendors. If possible visit a site running software that you have shortlisted and speak to users.

6. Training

Understand what training is available, what is built into the project cost and anticipate that more time is likely to be needed than you might expect or hope for at the outset. Ensure that training covers all users.

7. Flexibility

Going forward your business needs are bound to change. Try to ensure that software you are looking at will provide for growth and diversification of your business.

8. IT infrastructure

New software may make new demands on your existing IT infrastructure. Make sure you factor into your deliberations changes that may be needed and ensure they are costed into the overall project.

9. Consider costs (and savings)

Does the cost you are being quoted fit your budget? Are there hidden costs? What are the ongoing costs? But also consider the savings. You are entering the project to improve aspects of your business so compare what you are expecting to achieve to the costs to be incurred.

10. Vendor stability

Find out how long the vendor has been in business, how it is funded, what headcount it has. Determine if there is a sufficient team to deal with ongoing support.

Ultimately implementing a new accounting software solution can be highly beneficial for a business but it should not be undertaken lightly. The right planning and preparation will increase the chances of success.

For help and assistance with choosing and implementing accounting software solutions contact Virtual Business Source (www.virtualsource.co.uk) by telephone (01462 687339) or email (info@virtualsource.co.uk).

Successful small businesses know that outsourcing various aspects is part of their key to success. They know how to get the best from outsourcers and know how to cut through the jargon and agree sensible commercial relationships to increase profits.

Here are 10 reasons why a business should look to outsource:

1. Do what you do best – spend the maximum time doing the things that add the most value. Outsourcing something like your finance function will free up time for you to focus on whatever is most important.
2. Cost savings – outsourcing should cost less than the in-house equivalent.
3. Quality of service – outsourcers should be experts in their field and so do a better job.
4. Faster delivery – in the case of financial information you will find it much easier to keep banks, investors, partners and suppliers on-side.
5. Keep your options open – outsourcing gives flexibility to adapt to the future.
6. Accuracy – correct and on time.
7. Business partnership – a good outsourcer should provide a range of skills that can be callled on when needed.
8. Space saving – less people in-house means less office space needed or space can be put to other uses.
9. Access to specialists – in-house someone has to be a jack-of-all-trades, with outsourcing specialist knowledge is available.
10. Dealing with red tape – outsourcing financial matters can mean others can deal with the meeting of time consuming regulations.

Evernote for Windows has been updated to v3.5. Full details can be found on the Evernote blog.

The idea behind Evernote is that it is a digital filing cabinet. It allows you to create “notebooks” containing items called notes. You can locate, group and review them quickly, without having to dig through your PC folders.

Evernote provides the means to collect, in an organised, searchable, private digital store all the notes you create, clips from Web pages and emails you want to recall, dictated audio memos, photos, key documents, etc. It is constantly synchronised and accessible through a Web browser and through apps on your various computers and smart phones.

Best of all Evernote is free.

Evernote has got a fairly unique set of features and fills a gap previously existing in my workflow. Here are some ways to use Evernote to make life easier:

1. A store for those day-to-day snippets of information so achieving more organisation and less clutter. Let Evernote clean your office.

2. A destination for emails that don’t fit into the office filing system. Just forward them to your Evernote account.

3. When you do research online, compile the relevant information from each page into a research file in Evernote.

4. Take notes during meetings.

5. An always-accessible idea file

6. Plan big projects in Evernote – start a new notebook for a particular project and sort different tasks and research topics using the tags feature. Now, everything you could possibly want to recall or act on regarding a project will be in one spot.

How can you tell if you need a virtual office?

Have you ever handed out a business card and worried about losing business because it just doesn’t look slick enough? Do you want to meet with clients at your business address in real meeting rooms rather than hotel lobbies? Do you need to send out quotes and invoices that benefit from the confidence inspired by a prestige address? Do you need a corporate image that is just a little bit bigger than your business is right now?

If your answers are ” yes” then a virtual office might just be the solution for you.

A TVOC virtual office will cost your business less than £4.00 per day and you can look forward to:

◦a prestige office address

◦mail forwarding to a destination of your choice

◦live receptionist service during business hours (08:30 to 18:00)

◦call routing to company voicemail outside business hours

◦a prestige main number (local code)

◦direct dial numbers (contiguous from main line)

◦configurable call forwarding

◦a secure management portal

For more details visit www.thevirtualofficecompany.co.uk/vbs

An amusing and informative view on Google Buzz from Dennis Howlett.

http://www.accmanpro.com/2010/02/11/google-buzz-off/

And further guidance on turning Buzz off fully.

http://www.accmanpro.com/2010/02/12/dumping-buzz-it-aint-that-simple/

The Information Commissioner (ICO) has formed the view that in future, where data losses occurs and where encryption software has not been used to protect the data, enforcement action will be pursued. As from 6 April this could result in penalties of up to £500,000.

Laptops are of course not the only items at risk, your emails, mobile phone or PDA all contain sensitive information about you and your business that you would probably prefer to keep confidential.

The ICO recommends that portable and mobile devices including magnetic media, used to store and transmit personal information, the loss of which could cause damage or distress to individuals, should be protected using approved encryption software which is designed to guard against the compromise of information.

Personal information, which is stored, transmitted or processed in information, communication and technical infrastructures, should also be managed and protected in accordance with the organisation’s security policy and using best practice methodologies.

That means for example that if you use an external accountant to process your payroll information that you have to ensure that you get the information to them in a secure manner. It also means as they are only processing the data on your behalf that it is your responsibility to ensure that they keep it secure.

The Data Protection Act (DPA) is of course concerned about personal information. For all businesses that employ people that principally means your staff. However, if you use Customer Relationship Management (CRM) software the chances are that you are holding information on your clients, prospects, and suppliers that is covered by the Act.

Many people think that the Act is just about IT systems but it also covers manual filing systems.

For most businesses there is probably also a lot of information that you would prefer not to fall into the public domain. Information on your clients, suppliers, pricing, marketing plans, product development plans etc.

Registration under the DPA requires that you have an Information Security Policy, and sensibly that should include all of your data not just personal sensitive data specifically covered by the DPA.

If you are not sure where to start then we have a range of free useful Best Practice Fact Sheets and regularly hold workshops on this topic.

For further information on how we can help you stay the right side of the law and protect your sensitive business data please contact Sharon Mordecai on 01462 687339 or email her at smordecai@virtualsource.co.uk

How do you know if you’ve got the right software for your business? You probably didn’t ask yourself this question too often before the recession and you might be thinking that now is not the right time to ask it either, especially given that it might cost you money! However, even though there may be a cost it might save you significantly more money in the long term and increase your profits.

Businesses generally invest in software for two reasons – to help them to sell more and/or to become more efficient, which saves them money. These 2 reasons apply whether you are in a growing economy or whether you are in a recession.

When you look at the cost of software compared to staff costs there are significant savings to be made. If you can save the salary of an employee every year by investing in software which costs far less than the annual salary of the employee then you’ve got your return and many businesses are doing this.

So now is a good time to look at your processes and ask yourself the question – “What changes do I need to make in my business to make it leaner and fitter?” Of course part of the problem you might have in doing this is that you may not know where the savings can be made but if you follow a process from end to end you’ll get a very good feel for any inefficiencies.

Although we are now past the 1 January deadline for the VAT rate reverting to 17.5% from the 15% temporary rate there is still a degree of confusion as to how this affects invoicing around that date.

The government is keen to ensure that transactions should be charged at 17.5% where this is appropriate and have sought to block attempts to charge VAT at 15% on significant post 31 December 2009 transactions. The basic rules are:

• If you’ve sold goods, or completed services before 1 January 2010, then even if you invoice in January, you can bill at the 15% rate.
• Subject to some anti-avoidance legislation for larger transactions and those between connected parties, if you get paid before 1 January 2010, or issue a proper tax invoice prior to that date, even if you have not supplied the goods or services, then you can legitimately charge VAT at 15%.
• If your January invoice covers supplies of goods or services which cross over the New Year, then you can apportion your invoice between the two rates.

HM Revenue & Customs (HMRC) have produced a detailed guide on the VAT rate change that is available on the HMRC website.

Another consequence of the rate change is that rates for those traders on the flat rate scheme are also changing and not in all cases back to the rates that were in place before the standard rate dropped in December 2008. For the new rates, the HMRC website should be checked.

If you are still in any doubt as to how these rules affect you then contact your normal advisor or email info@virtualsource.co.uk

Banks have got plenty of adverse publicity during 2009 but they remain essential to us all, particularly for the businesses we run.

Whether needing a bank due to starting up in business or you are an established business looking at your banking arrangements for the new year there are certain questions to consider when assessing banks and what they have to offer:

• What services does the bank provide? Do they fit with your specific business needs?
• Is a local branch important to your business needs? Is there one?
• Is there a dedicated and accessible management team?
• Depending on the nature of your business is there any specialist knowledge at the bank that will be useful?
• What charges will there be and when will they be applied?
• Are there any introductory offers worth considering?

A bank is only another business service and should be looked at as such in terms of acheiving value for money. If that is not happening then look at the alternatives.

Mamut has announced an upgrade option for Mac users who use MYOB in the UK.  Their upgrade path when MYOB pulled the plug on their accounting software and it was taken over by Mamut has until now been unclear.

Acclivity, a company founded by MYOB’s former US management team, reached agreement with MYOB in 2008 to continue developing and supporting the MYOB Mac product range. Last month Acclivity and Mamut reached agreement to localise the Acclivity applications for the UK market under the brand names Mamut AccountEdge and Mamut AccountEdge Plus. The new products will be launched in April 2010.

MYOB Mac users will be able to continue with the same product they have always had but with the backing of Acclivity and Mamut can look forward to a product that will continue to be developed.