Andrew Harman

Got cash reserves in your business? Learn how to extract them #tax efficiently! Join Chris James from Workwell and Vicks Rodwell from IPSE in our webinar as they explore smart strategies for managing your company reserves👇 https://bit.ly/3XumZHD

3

We asked over 100 North East entrepreneurs about their business confidence and thoughts on the recent budget. The findings are concerning. 👎 57% said they are more pessimistic for their own business, following the Budget (only 13% said they were now more optimistic) 👎 77% said they disagree/ strongly disagree that the Budget will help entrepreneurs to grow the economy (only 6% agreed that the Budget would help growth) Our region's entrepreneurs are projecting lower growth in both turnover and headcount in their businesses than previously reported. 🛑 41% are forecasting either no growth/ decreases in turnover in the next 12 months (up from 18% reported in the last quarter). This does, of course, mean that 59% are still expecting top line growth, although the number forecasting growth over 20% has decreased from 32% to 16%, indicating growth will may be lower. ⚠️ Although 40% of businesses still expect to increase headcount in 2025, this is down from 65% of businesses that reported expansion plans last quarter. As with the reduced sales forecasts, there was a drop in the number of businesses expecting to grow headcount by more than 20%. This fell from 23% down to just 7%. This survey also found 14% expect to decrease headcount, compared to just 3% planning decreases when asked last quarter. Is there any good news? 💡 Yes, our members know the parameters and direction of travel of the new government and will work to overcome challenges. Whilst those feeling optimistic/ very optimistic has fallen from 86% to 66%, an overwhelming two thirds of entrepreneurs are still positive. Most see opportunities within their existing markets and nearly half expect to launch new products of services next year. We will be releasing the full survey findings in the coming days. Thank you goes to Explain Market Research for helping understand our research. #NEentrepreneurs #Optimism #Budget

34

7 Comments

As promised yesterday! Please see a really simple Chart of Accounts example and how subtle differences to how you account for transactions can make a big impact on your ability to analyse your numbers and make informed decisions. A Chart of Accounts (CoA) is a list of all the accounts you use to record transactions in your general ledger and form the underlying numbers of your financial statements. As you can see in the example with Hexagonal Company, both ways of recording the transactions in the CoA result in the same overall profit of £30,000 (GP% of 30%). In Example A, that is about as much as it can tell you but in Example B, we can see that the makeup of that £30,000 gives us some key insights: We know that Service Line A is our biggest revenue driver, but also our most profitable Service Line by both total £GBP and also by GP% (47%). We know that Service Line B is losing us money (£2,000). We know that Service Line C is equal in total revenue to Service Line B, but that it doesn’t have the same direct costs to deliver as Service Line B and is therefore profitable, albeit not as profitable, or as big as Service Line A. From there, key decisions can be made around whether or not costs for Service Line B can be stripped and the margin improved, and if not, should Service Line B be discontinued? We know that Service Line A is our biggest contributor to Revenue and Profit, by both overall size, but also by profit margin. This is a service line we want to look after and grow, knowing that for every £100 of revenue earned here, we generate a gross profit contribution of £47. Service Line C is still worth keeping and is profitable, but unless there are clear ways of driving up the revenue, or finding improvements in the gross profit margin, it still would not be the priority focus, from a purely financial perspective. The CoA can be as granular as your business needs it to be and can include further analysis of volume/ pricing mixes, headcounts involved in each service line and so much more. There really is almost no limit to how granular you can be with your data and how much analysis you can do. The key is to build your CoA with the right level of granularity for the needs of your business, to enable you to thoroughly analyse data and make informed decisions. PS. I’m Ramzi, Founder of Hexagonal CFO - Offering a full suite of Fractional, outsourced finance functions and leadership, on an ongoing or interim basis, allowing founders/ owners to focus on what they do best!

10

1 Comment

I look forward to attend VIP Connector with Michael Bristow, Founder of CrowdProperty Welcome to the 2nd edition of VIP Connector, the exclusive event that connects HNWIs and professionals offering wealth management solutions tailored to their needs. In previous editions, London Connector has attracted a prestigious audience, including: Property Developers HNWIs Luxury Property Agents Solicitors Accountants FSAs Luxury Goods Sellers and Buyers Venture Capitalists Investment Managers Private Equity Professionals Real Estate Advisors Family Office Representatives What to Expect:This event offers attendees the opportunity to engage with influential professionals across a range of industries, particularly in property, wealth management, and finance. Expect high-value conversations, insightful exchanges, and the chance to expand your network with decision-makers and thought leaders. How Attendees Will Benefit: Exclusive Insights: Gain unique market perspectives from Michael Bristow, founder of CrowdProperty, who has facilitated over £1bn in property projects. Mike will share expert analysis of current market trends, emerging opportunities in property development, and practical advice for capitalizing on the evolving economic landscape. High-Level Networking: Meet and interact with HNWIs, property experts, and financial professionals. This is your chance to form meaningful business relationships and discover potential partnerships. Tailored Knowledge: Learn about wealth management solutions, investment strategies, and market opportunities specifically targeted at HNWIs. In-Depth Discussion: Michael Bristow’s presentation will delve into the macro environment and explore the challenges and opportunities in the property sector, including the 1.5m housebuilding challenge, offering practical insights to apply to your own ventures.

2

1 Comment

🏭 **Thinking about selling your manufacturing business? The 2025 UK budget could shape your next move.** For business owners in the manufacturing sector, especially those aged 55+, the journey to selling your business can feel both exciting and daunting. With new UK budget reforms on the horizon, understanding how changes like corporation tax increases, capital allowances, and energy reliefs will impact your business valuation is crucial to maximising your returns. Our latest blog breaks down the key insights and actionable steps to help you position your business for a strong sale. From optimising profit margins to embracing sustainability and R&D incentives, we’ve covered everything you need to know to prepare for 2025. 💡 It’s not just about selling—it’s about creating the legacy you’ve worked so hard to build. 👉 **Click here to read the full blog:** https://lnkd.in/er2kee3n Let’s plan for your future with confidence. #ManufacturingBusiness #BusinessValuation #UKBudget2025 #SMEAdvice #BusinessOwners

3

Do you need the support of a finance professional at the fraction of the cost?

1

ICAEW Business Confidence Monitor (BCM): East Midlands Q1: Business confidence positive but the weakest in the UK Sentiment in the East Midlands was the weakest in the UK in Q1 2024, despite a slight rise from the previous quarter. Domestic sales growth was unchanged from Q4 2023, slightly outpacing the national growth rate. The pace of expansion is expected to improve somewhat in the next 12 months. Export sales will follow a similar trend, but growth is expected to lag the national average over the next year. Employment growth in the East Midlands slowed slightly but still outpaced other parts of the UK. Companies anticipate slower growth in the year ahead. Input price inflation eased but remains high and labour costs are still rising sharply. Only modest slowdowns are expected for each in the year ahead. Selling price inflation was one of the fastest rates in the UK and this is expected to be true for the next 12 months as well. East Midlands - https://lnkd.in/euAE-G3H National - https://lnkd.in/eBA_wrve #EastMidlands #Nottingham #Leicester #Derby #Northampton #Lincoln

8

1 Comment

📈🌍 Confidence among South East businesses is at its highest in two years, according to the ICAEW Q2 Business Confidence survey. Read more below to discover our thoughts on the complexities and opportunities of global expansion ⬇️

2

1 Comment

🚀 Is it time for your business to evolve?  During my recent webinar, a common question popped up: Whether to transition from a sole trader to a limited company?  This change can open up numerous opportunities, but it also comes with its own set of challenges and considerations. Watch this highlight to find out if going limited could be the right choice for you! 👀

8

2 Comments

Cashflow is always so important for any business, so how do you manage it when costs are also still increasing? #businesscashflow #cashflowfinance #fundingcashflow

2

Are you looking for a short, easy to understand article with all of the most important changes to impact owner managed businesses announced in the recent budget? Well look no further... Link below along with our video answering all your questions about: ☑️ Pensions ☑️ Inheritance Tax (IHT) ☑️ Agricultural Property Relief (APR) ☑️ Business Property Relief (BPR) ☑️ Business Asset Disposal Relief (BADR) ☑️ Employers National Insurance Contributions (ER NICs) ☑️ Capital Gains Tax (CGT And more And for those of you asking, there is an depth article on BPR to follow shortly - you're welcome 😌 https://lnkd.in/ecVRDbga

4

2 Comments

A business cash flow forecast will give you vital business intelligence to help you scenario-plan, search for cost-savings and look for strategies that will preserve your cashflow position. Get in touch and read our blog... https://lnkd.in/efKmYXXU #accountants247 #accountants #cashflow #CashFlowForecasting #accountantscheshire #accountantsuk

1

Capital Gains Tax (CGT) is normally charged at a simple flat rate of 20% (but see comments below) when you sell shares unless they are in a CGT free investment such as an ISA or qualifying pension. Your gain is usually the difference between what you paid for your shares and the amount received when you sold them. #SellingShares #TaxOnShareSales

3