What do you look for in chosing an accountant?

Back in September I was privileged to hear Hamish Taylor speak at the Annual UK MindShop conference which this year was held in London.  But this blog is to ask you something about a comment that was made at the end of his presentation.

Hamish has a CV that the Times said "takes some beating". He has been Head of Brand Management at British Airways, CEO of Eurostar and of Sainsbury's Bank and told an interesting story of how when working for Proctor and Gamble he went to peoples homes to see how they used their products.  Clearly as an Accountant we cannot go to see how people use their accounts but we can ask them what are they looking for from an Accountant. 

And it was this question, the final question of an excellent presentation that was asked of Hamish.  What do you look for from your accountant?

His answer was firm and unequivocal.  

1. He expects that all of the worries about filing deadlines and compliance with tax and accounting laws are taken away and dealt with. 
2. He expects to pay the minimum amount of tax legally and simply, no fancy schemes but make sure he has claimed all that he should.  
3. He expects the accountant should help him grow the business.

There was then a supplementary final question.  Does your accountant do all that.  The answer was that they were very good at items 1 and 2 but not at item 3.

I think that will not be an uncommon answer from people but at Crowther Beard along with other MindShop trained firms we assist our clients with all three. 

Do you agree with Hamish's view of what you should expect from an accountant and if so do you get it from your accountant?

Getting that Marketing Strategy Right

I had a very unusual experience on Thursday.  I had agreed to a meeting with a contact a  couple of weeks ago and they arrived at my office for coffee at 11 am.  What I hadn't realised was what they wanted to speak about.

When she sat down and we had got the usual pleasantries out of the way I was asked what their business could do to  break into the local market place as they didn't have any clients locally.

I asked whether they had defined their ideal client and their target market, and spoke about how Crowther Beard identified the property and construction, agricultural, transport and engineering industries, and the medical profession as target markets and had a definition of an ideal client too.

I then moved forward to discuss where we find those clients, joining clubs where they go and how we are setting about creating a following through the Crowther Beard Community on LinkedIn amongst other areas.  But the main things that I said that were needed was a plan, commitment and hard work.

We spoke for over an hour about how our marketing was beginning to reap its rewards as I have always believed in the Accounting Profession that it takes at least 12 months for marketing to be effective.  I spoke about attending only the networking events that we thought would be beneficial to us because our targets would be there and how we planned each year setting some big targets and then reviewed the plan on a regular basis to ensure that we kept on track towards our goals.

At the end of the meeting my contact was generous enough to thank me for my time and for the advice that I had given.

However I later thought that what I had done was also very important in a marketing plan.  Most of the greatest leaders in the business world will give things, their time to worthy causes or just to explain what they have done and how they achieved their goals. That is what I had just done.   It is the giving that is important, something of value to others.

That will raise your profile.

Some People Just Have Got It Right!

Being content with your life is not too difficult but some people manage to do it with ease and at a much slower pace than others accepting the cards that they have been dealt and making the most of their lives.

Over the last 2 or 3 weeks I have been running around like...I don't know what.  Meetings here, networking there, golf, rugby, football etc and visits to the Cheltenham Literary Festival and on Sunday last to Swindon for dinner with my elder daughter whose birthday it was on Tuesday.  I think that the expression is "burning the candle at both ends".   To crown it all I had designated Monday to take a 500 mile plus trip to Cornwall to see a client that I hadn't visited for a little over 4 years. 

I have acted for the client, a holiday park owned and run by a husband and wife team, since they bought the park around 16 years ago and until recently had visited them every year, and sometimes twice a year.  Over that time we have become good friends.   Rather than bring their children up in South London they chose to give up the day job and move to the quieter, prettier countryside of Cornwall and the business is very much a lifestyle business.  The husband is now 58 years old and his knees are the worst for sporting injuries in his younger days, his wife a little younger but now they are looking to sell the park together with their home. 

Once I had reached their part of Cornwall and driven the half mile or so down an unmade road to their home I was greeted as an old friend and as we chatted over a coffee they were eager to know news of my family (my elder daughter once called to deliver some records back to them when she was camping in Newquay) and of my own health.  They remembered about the back operation that I had had some 4 years ago a short while after they had last seen me and how it had left me.

So what is unusual about that I hear you ask?  Well when they bought the Holiday Park they had 2 sons, aged 4 and 1, and within a year of moving the younger son was diagnosed as autistic.  The lifestyle business was not necessarily always good for him as he needed more care, more supervision and more time devoted to him than sometimes the business would allow.  However the solitude of the location meant that there was plenty of space for him to run around in and let off steam and my clients have managed it magnificently.

Their elder son is now at University almost 200 miles away from home and has always had his parents time when needed or wanted.   He also has helped with his brother, who now clearly misses him.   I recall being there on one occasion a few years ago and he was off to football practice.  Someone was picking him up to drive to the practice from the top of the lane but he didn't ask his parents for a lift the half mile or so.  As I was just leaving I offered him a lift and for a teenager he was a very well balanced and articulate young man.

Given the circumstances you can imagine my surprise around 8 years ago when they told me they were going to adopt a young girl of 7 years of age.  She had a number of behavioural issues at the time and because of the family unit that has been created not only has she learnt to deal with these, she also has helped with the care of her adoptive brother.  Their daughter is looking to train as a teacher for children with special needs.

One reason that they are looking to sell their business is that it will allow them to spend more time with their younger son once he leaves school as he will most probably need to have permanent care. 

A friend of mine once told me that he would only work with people that he would invite into his home and these people are just those kind of people.    There is no resentment in the family simply love and love for their friends and extended family. 

I think that they deserve to have a happy retirement, don't you?

The Computer Says No

The idea behind this blog is to provide information that helps strategy - it is not a forum to have a general moan but I thought that I should highlight 2 things I came across today that enables me to get matters off my chest but at the same time teaches us lessons, even if they are only that these are things we shouldn't do.

The first involves my old friends (?), HM Revenue & Customs. For some months, I have been attempting to get a tax underpayment collected monthly, through a PAYE code, rather than being paid in one lump sum. I won't bore you with the technical details of why HMRC objected to this but today they have finally admitted that the procedures, that prevent coding, could be overwritten (and regularly were) until July 2009, when they had a new computer system. Since then they have to do what the computer says.

The moral of the story is to never design anything that removes the possibility of personal intervention and the insertion of good old common sense.

The second thing is that we were exhibiting at the Worcester Expo at WRFC today. As it was busy, I was directed to the normal car park rather than the "Event" parking spaces. There was a barrier at the entrance that was raised by an attendent, without asking the nature of my business. There was a second attendant who raised another barrier for those leaving.

The point here is why have the barriers down at all, for all the good they were? They weren't preventing anyone coming or going. Why weren't they left up just as they were when the Expo finished. It is amazing what can be achieved, particularly financially, by cutting out this kind of waste and "waste audits" are extremely valuable. Needless to say this is something Crowther Beard could help with.

More Saving

More tax saving tips.

1. Consider whether you are paying National Insurance Contributions needlessly. If you are a trader making low profits (below £5,315 currently) or even losses you can claim exemption from paying the weekly self employed contribution of £2.50.


2. Consider the tax benefits of converting business loans into personal loans or vice versa. As long as the circumstances are correct, many personal loans used for business purposes qualify for tax relief.


3. If you are a sole trader or partnership, consider making key employees partners to save National Insurance and tie them to the business.


4. Make sure you claim tax relief for losses on shares. In many cases, it is possible to clain income tax relief, not just capital gains tax relief.


5. Consider the timing of capital purchases to ensure that capital allowance claims are maximised.

Tax planning

In my day to day work I come across tax planning in all its forms. This ranges from, advising people on how to arrange their affairs to take advantage of the more familiar (well to me anyway) tax breaks open to them, right up to discussing the more complicated options that are open to them. The more complex options usually have a price tag on them but, as the tax saved under these is normally substantial, the price may well be considered well worthwhile.

A recent survey showed that one of the aspects most valued by clients is simple tax planning advice and this is very rewarding for me, as I earn my crust by giving such advice. I would however like to know how people view the more complicated solutions. I am sure it is my duty to inform people of what is available but I would be interested to know whether you feel that this is all that should be done or whether such solutions should take a more prominent position in the advice given.

It has been long held by the Law Courts that anyone is able to order their affairs in such a way as to minimise taxation and my question is how far you feel that we should go in this respect. Just keep to taking advantage of the tax breaks open or invest in something that was designed just for the tax benefits.

This week

For me there have been 2 major news stories this week. In fact listening to the radio, on my drive into work, at times, you would have thought that they were the only stories. The second is very obviously business related but the first is perhaps not so obvious.

Let me start by stating that I follow Manchester City Football Club and I was obviously very disappointed with Tuesday night’s performance and result against Bayern Munich (shouldn’t it be Bavarian Munich or Bayern Munchen?) but the story as everybody, who hasn’t been on the moon, knows is that Carlos Tevez refused to play.

Within minutes, people were “tweeting” about this and one of the best I came across asked what the difference was between Tevez and a tramp. The answer was £150K per week because they both won’t get off the bench. Very good but it got me thinking.

It illustrates the importance of getting all your team on board and everyone having a shared goal. It only takes one “bad apple” to disrupt any targets you have. Perhaps the target of winning the Champions League was a bit farfetched any way but in the words of Wayne Gretsky (the ice hockey player) “I have missed every penalty that I didn’t take “.

It also shows that people problems can overshadow the important matters very easily.

The second item was Ed Milliband’s speech at the Labour Conference. Putting aside the issue of rewarding good businesses, which sounds intriguing but fanciful? I was taken aback by the attitude that seemed to be saying that it was impossible to make money and be good.

Yes, the primary purpose of being in business is to make a profit but there is so much more to it. I can’t believe that most businessmen put this so much to the fore that they would be willing to sacrifice everything else. Business is not just about making money. There is so much more to it like developing good relations with customers and colleagues, always striving to do your best and building something that will stand the test of time. It is also about ensuring that the balance between home and work is right and having fun.

If you ever find me giving these up in the pursuit of just money you have my permission to shoot me.

Leaders need love and connection too.

A week after I have returned from a wonderful conference in London organised by MindShop I thought I would share what was not only the most revealing moment of the Conference for me, but a deeply personal experience.

One of the speakers was Dr Darryl Cross, a psychologist from Australia and like me an accredited MindShop Facilitator.  In his excellent presentation Darryl spoke about the 6 basic needs of Leaders: control and security; variety and difference; significance and importance; love and connection; growth and learning; and, legacy and contribution.

It was the fourth of these needs, love and connection, that enlightened me so much.

Three years ago on 19 September 2008 my sister, Ann, left us.  Ravaged by cancer she died with dignity and surrounded by her close friends, my daughters, Jessica and Jade, and me.   She was 58 years old, drank responsibly and never smoked.  Although she had been diagnosed with cancer just over a year earlier the deterioration in her health over the final six month period was rapid.  At that time and since my wife was unable to offer me comfort and support due to her own illness.  I was left with a gaping hole in my life and I thought no one to turn to.

I was lucky that I had my girls.  Jessica and Jade were both immense for their tender years and both had their own problems coming to terms with the loss of their devoted Aunt over the next few months.  I am immensly proud of Jessica and Jade who never let me know if they were struggling to cope but not only continued with their own lives they also enriched the lives of others. 

At the time I didn't want to think much about my businessess, it seemed unimportant and it was here that I benefited from the support of Sarah, my business partner and Wendy my Personal Assistant.   They both knew what the right words to say were and when to say them.  They worked hard to ensure that the business didn't suffer.  

Once I could see it there appeared to be connections and love everywhere, and my life came back together but without me understanding why.      Almost 3 years to the day Darryl gave me an explanation that I had been looking for.  Thank you Darryl.

You can find out more about the 6 basic needs of leaders at http://www.drdarryl.com/AnnouncementRetrieve.aspx?ID=24256     

Keep on Saving

As promised here are some simple tips to make sure you take all the tax breaks open to you.

1. Ensure that you are taking the money out of your business in as tax efficient a manner as possible. Taking money out of a limited company by a combination of salary and dividend can give a better tax result than salary alone. There are other strategies that give even better results.


2. If you don't operate as a limited company consider whether you would save money if you did. There is often still a fairly big advantage in operating as a company, in terms of what you get to keep in your bank.


3. Pay your spouse a tax efficient salary. As long as a salary can be justified, in terms of the work done, and it is actuallly paid, this is a good way to use tax allowances etc that would otherwise be wasted.


4. Alternatively consider taking your spouse into partnership. Again providing the spouse's share is justified and there is a "real" partnership it is a good way to maximise tax allowances and bands.


5. The tax savings that can be made by investing in pensions are still substantial. As long as the traps are avoided there are still large amounts to be saved. I appreciate that not everybody finds this type of investment attractive but we will all need a pension in retirement.

Thats probably enough to be going on with at the moment. More soon.

Moving things on

I am not being twee by using the screen name of Chobbers, instead of my real name of Chris Hobbs but I have been known as Chobbs, Chobber or Chobbers ever since I was at school (a few years ago) when I was "christened" this by our French Master, Twiggy Smith. It might sound like a private school but it wasn't.

My reason for choosing to use this name was to demonstrate that accountants don't have to live up to their reputation of being boring and stuffy. I am not saying, for one minute, that the use of a nickname prooves that we are different. It is all about doing different and better things.

As John says, there is always room for accountants who look after the compliance and this is a necessary evil but compliance is a cost generally imposed on taxpayers by others. At Crowther Beard we never lose sight of this but also realise the importance of looking after this well.

However, what really turns us on (if that is the right phrase) is to feel that our work has added value. The aim must always be for our advice to bring benefits greater than the cost of the advice, whether this be through tax savings, increasing profits or something else like helping to get the correct balance between work and home life.

But enough of the sermon, its time for proof. My expertise is in tax and proactive advice rather than reactive advice can result in very significant tax savings. I am not talking about complicated tax schemes, which have their place, but simple steps that can be taken to reduce tax bills. Starting from tomorrow, I will publish some ideas about what people should be doing.

Welcome to Strategic Thinking by Crowther Beard

It all begins with Steven Covey and his book The Seven Habits of Highly Effective People.  Steven sets outs his Seven Habits and the first is Begin with the End in Mind and as this is the first attempt to Blog (to my knowledge) by anyone at Crowther Beard I thought I would set out what End I have in Mind.

There are thousands of Accountants in the UK, there are over 1300 Chartered Accountants living or working in Worcestershire alone, and in their publicity many will say "Not all accountants are the same, we are different" and go on to show that they are exactly alike.  Their websites come from specialist designers of websites for accountants and the services that they offer are identical: preparation of accounts and tax returns and if they warrant it audit of the accounts.

I don't want this to be seen as critical of those accountants as they offer a service that many people out there are looking for and as a result have successful businesses, but that is not enough for me and it is not enough for my partners and team members too.

Through the Blog I am hoping that our postings will show that we think.  We think about our clients' needs; we think about what our clients' actually want; and we think about ways to improve their businesses and their lives.

Sometimes it is important to think "Outside the box".  For example if you are looking at improving the client or customer care of a business (say a Chartered Accountancy practice) where would you go to look for the best examples of customer care?  Another accountants?  A professional service firm in another sector perhaps?  No I didn't think so, you would turn to the hospitality industry or the retail industry, but more of that in a later Blog.

I hope that you enjoy reading our posts, I am looking to my partners to add to the posts as we go and that we will cover ways to lower your tax burden legally and simply, ways to improve the efficiency of your business and ways to improve your management and leadership.

So remember, what ever it is that you are doing, whether it is Blogging, marketing, running a business or setting up or buying a business "Begin with the End in Mind" that way you are more likely to get there.