The last year has been financially tough for most organisations, and those operating in the Not For Profit (NFP) sector are certainly no exception.
- Topic:
- Finance
How tightly does your business monitor every cost, every expenditure, every charge, every business expense? With the right tools in place, it’s easy to keep a close eye on everything and to spot problems quickly – you can also get a much clearer view on the bigger picture too. That’s the ideal – but for many businesses, it’s not so clear cut. In this article we explore the areas where money is potentially being lost.
- Topic:
- Finance
For many companies, staff expenses aren’t a material cost and don’t cause a problem at end-of-year but for others, especially where they have a large number of field service engineers or sales reps, out of pocket expenses are definitely material.
The problem is that in these cases getting things right is really important and, without a good expenses system, this can actually take a lot of time and effort.
In this article, we’re looking at five issues that staff expenses can cause for financial accounting and some solutions that will help.
- Topic:
- Finance
Thank goodness the days when business finance was conducted using handwritten ledgers and impressive mental arithmetic have long since passed. Now, having the skills to use technology effectively is an integral part of the modern Chief Financial Officer (CFO) role. But with so many options available, which solutions provide the most practical benefits? In this article, we summarise the software tools which are of most use to the modern CFO, as well as the latest technology trends to look out for.
Whilst it’s clear that technology can make Finance more efficient, streamlined, accurate and strategic – it is important to ensure that solutions are chosen for the right reasons, rather than simply opting for tech for its own sake. Modern software tools can (and do) make life easier for CFOs and their finance team in a variety of ways, and it makes sense to periodically review what is in place and check that it is delivering the expected benefits.
- Topic:
- Finance
HMRC’s new VAT domestic reverse charge for the building and construction sector came into effect on 1 March 2021. It’s one of many changes in legislation that construction firms are faced with in the first two quarters of this year alone (IR35 and MTD to name two others).
In simple terms, the new process means VAT registered subcontractors who provide a service and any related goods to a VAT-registered contractor who is CIS (Construction Industry Scheme) registered, no longer need to account for VAT.
Instead, the contractor accounts for the VAT as an input tax - as if they’ve made the supply to themselves. In practice, this means in a chain of contractors and subcontractors working on a project, the only business to include VAT to their invoicing is the main contractor - ultimately who invoices the end-user. The reverse charge doesn’t apply however to the buying and selling of construction services that are zero-rated.
- Topic:
- Finance
Economic growth is not a phrase that has been bandied around much over the past year. In fact, the stark reality is that the pandemic resulted in the UK economy shrinking by an unprecedented 9.9 per cent in 2020.
However, future forecasts are looking more favourable, with the Office for Budget Responsibility saying that economic growth will accelerate in 2022 at the fastest rate since records began, rebounding by 7.3 per cent. With growth on the horizon, now is the time for finance leaders to get ahead of the game to ensure their businesses are in the best possible position to capitalise on the predicted upturn.
While growth plans will differ depending on industry and individual circumstances, there are certainly three key elements that finance leaders should be factoring into their thinking as they look ahead.
- Topic:
- Finance
Bring up the subject of intercompany accounting and you’re unlikely to be met with an enthusiastic response. This is one area of finance that has a long-standing reputation for being a burden and regularly causes group finance department headaches. What is interesting is that much of the negativity is unwarranted when a large proportion of intercompany accounting problems can be easily resolved with software. Read on to find out how the latest software can reduce the stress of intercompany accounting and much of the hard work that goes with it.
- Topic:
- Finance
The pandemic has, in many ways, acted as a digital catalyst – from giving businesses the confidence to work remotely, to investing in cutting edge automated software to streamline workflows. The last 12-months have proved just how agile businesses must be, and technology has enabled us to adapt quickly to the changing landscape.
- Topic:
- Finance
The past 12 months have thrown a lot at finance professionals, from the unpredictability of the ongoing pandemic to preparations for Brexit, with a handful of legislation changes in the mix too. With so much going on, you can’t be blamed if the next step of Making Tax Digital (MTD) for VAT has slipped under your radar.
For many, MTD may feel like old news, but there is a subtle yet important change being introduced on 1 April 2021 that every finance team needs to be aware of.
- Topic:
- Finance
After the UK left the single market on New Year’s Eve last year - some accounting practices and systems changed for VAT registered businesses in the UK. One of these is the new postponed VAT system.
What is the postponed VAT system?
For businesses in the UK that import goods from anywhere in the world, they can use this new system. In the most simple terms, it essentially allows businesses to account for VAT on their VAT return, rather than having to pay the tax on goods on their point of entry into the UK and then having to claim it back. This removes the need to make payment, freeing up cash.
- Topic:
- Finance
