In Focus Issue 13 by Randall & Payne

ISSUE 13 | SUMMER 2017 RANDALL-PAYNE.CO.UK

Thinking to capitalise on CLOUD ACCOUNTING

The latest insight from UK200Group GET SOCIAL

Who’s at the top of their social media game?

What makes for a successful acquisition?

WHC Hire Services acquire new digs in the heart of the Cotswolds

BOOST SUCCESS

Achieve EPIC growth with our programmes - BUSINESS ADVISORY PAGE 8 & 9

BUSINESS NEWS

FUTURE OF TAX – THE WAITING GAME

STATE OF THE NATION

TIM LOOKS AT POLITICS & LEADERSHIP

OUR NEWS

RUSS JOINS AUDIT COMMITTEE

IN THE COMMUNITY PIED PIPER APPEAL #ITSFORTHEKIDS

WELCOME

Ollie Newbold | Partner

MEET OUR PARTNERS Tim Watkins Managing Partner

Will Abbott Partner Specialism: Business Advisory

Welcome to our summer issue of In Focus. Over the last couple of months, Randall & Payne have been working with Alias to deliver our rebrand and new website. We are very pleased and welcome you to take a look. Our summer issue arrives against a backdrop of change, both within the wider world and also at Randall & Payne. With the advent of cloud computing, real time reporting and the imminent arrival of Making Tax Digital legislation, the accountancy world is evolving at a fast pace. Over the last couple of months we have been working with Alias, our marketing partner, to refresh the Randall & Payne brand and develop a new website that will equip us for whatever tomorrow brings. While the focus has been on the future, we haven’t forgotten what has been at the heart of Randall & Payne for over 130 years – our people and their thinking. So visit our website (randall-payne.co.uk) and browse our team pages, information about our services and our case studies to see how our thinking helps our clients.

We haven’t forgotten what has been at the heart of Randall & Payne for over 130 years 2

– Summer 2017

Russ Byrd Partner Specialism: Audit Vicky Link Partner Specialism: Accountancy

On a different note, as Head of Corporate Finance I am pleased to report that my department has been fantastically busy advising on a number of interesting business acquisitions and sales.

Rob Case Partner Specialism: Tax

On page 10, we have a case study outlining the acquisition of Cotswold Tool and Plant Hire Limited by WHC Hire Services Limited – a transaction that is representative of some of the work we do with our clients.

Rob Stokes Partner Specialism: Outsourcing

It has certainly been an interesting few months politically, and I think the whole world waits with bated breath to see what the next turn of events will be. We ran a free Succession Planning event only a week after the general election and, at that point, the political environment could be politely described as a mess! Interestingly, however, we carried out a straw poll of business confidence levels within the room on the day and 5% said they were very confident, 90% said they were confident and only 5% said they were not confident. This statistic, though only a small sample, gives me confidence that real businesses, the SMEs, the backbone of the UK economy are simply getting on with it and creating their own opportunities and futures. I hope that some of the advice and case studies that we have laid out in this refreshed issue of In Focus will give businesses large and small the opportunity to consider where they are at the moment, where they’re looking to go next, and the confidence to get on with it!

Ollie Newbold Partner Specialism: Corporate Finance

For further information about any of the topics covered in this magazine, please contact Fiona Hughes, Marketing Manager: T: 01242 776000 E: fiona.hughes@randall-payne.co.uk @RandallPayne Randall & Payne LLP

In Focus is designed by Alias. T: 01242 235000 W: wearealias.com

CONTENTS

IN THIS ISSUE NEWS FOCUS | 04 — 05 Get social media savvy and start thinking about your tax future

P5 The future of tax

TIM’S VIEW | 06 Six weeks is a long time in politics and in finance, too TAX | 07 Kick-start your business growth with R&D tax credits BUSINESS ADVISORY | 08 — 09 It’s time to make your business growth truly EPIC CORPORATE FINANCE | 10 — 11 What makes a successful acquisition? ACCOUNTANCY | 12 — 13 Have you joined the cloud yet? AUDIT | 14

P8 EPIC business growth programmes

Maintaining assurance without an audit IN THE COMMUNITY | 15 Our fundraising journey for the Pied Piper Appeal RANDALL & PAYNE NEWS | 16 — 17 The importance of cyber security, a Rising Star in the office, and more GUEST ARTICLE | 18 It’s not for me – Alias consider the realistic approach to marketing EVENTS | 19 Key accounting deadlines and an invitation to our upcoming events

P10 What makes a successful acquisition?

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NEWS FOCUS

Social media Making a difference for businesses Gloucestershire’s top 100 businesses have upped their social media game – are you using social media effectively? David Jordan Managing Director Skylight9 Using social media for business can often lead to colourful conversations and differing opinions. Regardless of which side of the fence you sit, the eye-watering numbers and growing usage cannot, and perhaps should not, be ignored. With the recent publication of the Top 100 Businesses in Gloucestershire supplement in the Echo, Skylight9 have done research and found that the county’s big guns have upped their game with regards to social media. In 2015, 68% of the top 100 were using at least one social platform, compared to 89% in 2017.

89% are using at least one social platform Facebook usage has grown from 62% to 69%, and Twitter (confirming its place as the social “B2B King”) has grown from 63% to 76%. Indeed, in 2017, 46% of the top 100 businesses in Gloucestershire are using Facebook, Twitter AND LinkedIn. So, to help demystify “why?”, here are five reasons to be using social media for your business.

– Summer 2017

FIVE REASONS TO USE SOCIAL MEDIA FOR BUSINESS

1. Build relationships Social media channels allow you to engage with current and prospective customer bases in a way like no other, gaining valuable insights in to how they work, who they work with and even where they network. Connecting with leaders in your industry will build reputation and even boost media coverage. Becoming an influencer to your band of loyal followers is the best way to become a go-to for your product or services.

2. Drive web traffic A brilliant and functional website is your shop window. You want everyone to see it, so well placed and timed social media posts will encourage traffic in to your arena. A mix of social content – business, personality and reputation – will keep your page interesting and interactive. Nobody will see your posts if you beg for clicks with messages about your products day-in, day-out!

3. Brand image Embracing social media isn’t just about writing posts and making videos. This is a culture of harvesting content that is in keeping with how the business works, portraying a unified business voice

and vision, and ensuring staff conduct themselves appropriately. Research has found that companies with active social media platforms have more loyal customers.

4. SEO implications Search engine optimisation strategy includes what you should and shouldn’t do to your website to feature highest in a relevant Google search. Nowadays, social media and blog posts can feature in Google search results because of being often viewed or shared. Plus, social platforms are operated by humans with real email addresses and log-ins, which is an advantage for Google as they continue to fight spam.

5. Be competitive Through experience, and based on the stats above, chances are your competitors are using social media in some way, shape or form. Don’t let them get a head-start building potential customer loyalties. Yes, larger organisations will have bigger advertising budgets, but all companies start on social media on an equal footing as it’s free to set up, other than your time.

NEWS FOCUS

Future of tax Playing the waiting game Thanks to the unexpected general election, many of the proposed tax plans from the Spring Budget are being put on hold.

Trish Clements Private Client Tax Manager

Philip Hammond stood up and presented his final Spring Budget in March 2017 with many tax changes proposed. However, following Theresa May’s decision to call a general election, it became clear that the government were not able to ensure that all the proposed changes were included in the Finance Bill 2017. We saw more than half of the Finance Bill put on hold until after the general election.

place, but there is no reason to suspect they will not be reintroduced again shortly: ›› The reduction in the tax free allowance for dividends from £5,000 to £2,000 ›› Reduction in the Money Purchase Annual Allowance from £10,000 to £4,000 for people already drawing their pensions ›› Introduction of an Inheritance Tax charge on UK property held in offshore trusts ›› Changes in capital allowances on electric vehicle charging points

We saw more than half of the Finance Bill put on hold

›› Amendments to the Substantial Shareholdings Exemption for companies disposing of shareholdings in trading companies. The proposed changes were to make significant relaxations to the rules around situations for nontrading holding companies and liquidations

With the new government, it will be interesting to see which of the proposed and subsequently scrapped tax changes will be reintroduced in the next Budget to be presented under Theresa May and Philip Hammond.

›› Changes to the rules around personal service companies (IR35), where the ultimate contractor was a public sector body, remained in the shortened Finance Act, but amendments were made to exclude pharmacies and ophthalmic practices from the changes due to the need for further consideration of those business types

As a reminder, the following proposals have been put on hold until the new government comes into

›› Removal of the Property and Trading allowances to be introduced from April 2017 to give a

£1,000 allowance against sundry income and property income One of the biggest shake ups in the tax system in recent years relates to Making Tax Digital, and this has been put on hold. Based on the amount of investment HMRC have made into this new regime, they will not be scrapping this change, just delaying its introduction. Therefore, it is important for individuals and businesses to continue with the review of their affairs and start to consider introducing new systems to enable themselves to be compliant in the coming years. Please refer to our later article on cloud accounting or speak to a member of our Tax or Outsourcing team to discuss your requirements and see how we can help.

Bite-Sized Thinking ›› Keep up to date on all HMRC Making Tax Digital announcements as you may be affected sooner than you realise, or read any updates from your accountant. ›› Dividends – consider shareholdings for individuals for tax effectiveness. To find out more about any of the topics discussed in this article, visit randall-payne.co.uk

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TIM’S VIEW

Tim Watkins | Managing Partner

Six weeks is a long time in politics Plenty has been said about the outcome of the election. I have no intention of talking politics, but I thought it worth reflecting on the approaches of the main parties and leadership. It struck me after the event, and no doubt prompted by what has been written, that we saw very little of anyone on the Conservative side other than Theresa May. Boris Johnson was kept out of the spotlight and I don’t recall much sight of Philip Hammond. Amber Rudd made an appearance at the television debate because someone had to, and Michael Fallon had a brief flurry, but otherwise it was very much about the leader. In contrast to that, with the Labour party’s approach, we saw plenty of Jeremy Corbyn, as well as John McDonnell, Diane Abbott, and others. I then thought about the so-called “blunders”– Fallon talking about tax policy out of line, Corbyn with child care and Abbott with police numbers and the party approaches. Labour were supportive of their people, whereas the Conservatives came across as finger pointing for speaking out of turn. Does this tell us something about leadership? It appears students turned out in great numbers but does this alone account for the closing of what appeared to be a huge gap in support at the start of the campaign? I suspect another part of the reason that gap was closed was leadership style. Theresa May’s style of ‘do as I say’ rankled, whereas the more collegiate and supportive style of Jeremy Corbyn won people over.

– Summer 2017

Perhaps, it was more than being supportive, perhaps visibility came into it too. May’s avoidance of the television debate suggested someone concerned to lead from the front. At a time of need for a figurehead, May seemed to step back – a leader in name only?

Does an engaged team perform better than a “controlled” team? Perhaps not at the beginning, but over time, engagement will win out, becoming empowerment and innovation Does this translate to the workplace? Does an engaged team perform better that a “controlled” team? Perhaps not at the beginning, but over time,

engagement will win out, becoming empowerment and innovation. Control will start as direction but will become stale and stifling. And visibility? Surely, any leader in any environment should be seen and be accessible. Control or support? At the rear, or out front and visible? One is harder than the other, one is more vulnerable than the other but one is more rewarding than the other for all. For me, engagement and visibility are vital at Randall & Payne. As part of our recent rebrand, the senior leadership team and marketing staff made the key decisions, but we engaged the rest of our staff in the process when we had a final shortlist of logos to choose from. I was both surprised and encouraged by the passionate response of our people, which helped to shape our final choice. This was a crucial stage in our ‘journey’ and helped to get everyone on board with the rebrand. I encourage staff to come and talk to me about anything they wish – and they do! My team and I would be interested to hear what you think – what’s your preferred leadership style? To join in the conversation on LinkedIn, search for Randall & Payne LLP and follow us.

TAX

Kick-start your business growth with R&D tax credits Funding an innovative new idea is always challenging. A newly formed business will not have a credit history, so banks and finance institutions will always find it a challenge to lend.

James Geary Corporate Tax Manager This is where R&D tax credits can really help a new limited company. Where some money has been spent on initial work on a new idea (be it a physical product or software/IT related coding), perhaps on one or two employees, or more likely in paying an external developer in the case of software, a claim to HMRC for R&D tax credits can result in a healthy cash injection in the company’s early days. This cash can then be reinvested into the business, perhaps by funding the recruitment of a full-time software or product developer or designer, to help bring the development process in-house, help speed up the process, and of course to pave the way for higher claims for R&D tax credits the next time around. Forward-thinking businesses will already have engaged with our Business Advisory team to seek advice around growth strategy, and planning for R&D tax credits should become a part of that strategic process. As the business grows and gains more credibility, it is able to access other sources of funding, typically only available for more established businesses. To benefit from R&D tax credits, the business only needs to be a limited company and be expending

money on solving technical challenges in the business’ field of expertise. You may be surprised at the breadth of activities that will fall within this definition and may be missing out on not just thousands of pounds of valuable cash for your company, but also the resultant opportunity to really accelerate your business growth plans.

To benefit from R&D tax credits, the business only needs to be a limited company and be expending money on solving technical challenges in the business’ field of expertise We have completed claims across a surprising array of business sectors including manufacturing, telecommunications, software and web

development, marketing and lead generation, financial services, food and drink, electronics, LED lighting, construction, and facilities management. At Randall & Payne, we have a 100% success record with HMRC, and have adapted our R&D claims process to a collaborative model that has been commended both by our clients and by their existing accountants in terms of working together to maximise the value to the business. Contact James for more information by emailing james.geary@randall-payne.co.uk, or call 01242 776000.

Bite-Sized Thinking ›› R&D relief is likely to apply if you are trying to find new ways to differentiate your business from your competitors. ›› Planning for R&D tax credits at the outset could make an idea financially viable. ›› With an initial no win, no fee approach, you have nothing to lose by discussing with us. To find out more about any of the topics discussed in this article, visit randall-payne.co.uk

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BUSINESS ADVISORY

Will Abbott | Partner

EPIC business growth programmes are here You know your business like nobody else, but you might need some direction to help your business grow. Our new EPIC business growth programmes give you the boost you need. The purpose of our EPIC programmes is simple – to boost your probability of success. The concept of the programme was developed out of the work we have been doing with SMEs, not-for-profit organisations, owner-managed and family businesses over many years. By evolving the programme in the real world, from real work done with real clients, we know we have a model that delivers for these organisations, their leaders, managers and owners. During our work, we identified the core outcomes that most organisations are striving to achieve: improving profit, driving growth, managing people and planning succession. These four outcomes are often interlinked and a change in one area will inevitably impact the others. The key to achieving the outcomes is understanding the inputs that drive them. Our experience led us to conclude that the probability of success is boosted by three core factors: ›› Clarity of purpose and vision ›› Commitment to chosen strategies ›› Capability to deliver plan This is where the EPIC programme was born. We then refined it into a powerful, outcome driven but flexible model, which is built around four key steps.

– Summer 2017

THE FOUR KEY STEPS OF THE EPIC PROGRAMME

1. Explore Taking time to explore possibilities is fundamental both to bringing clarity and gaining commitment. Standing back and looking more widely, defining where we are trying to go and eliminating options is the place to start, with an independent perspective on hand.

committed to working on the business and a regular meeting with us ensures that happens.

4. Confirm

2. Prioritise

As we all know, no plan survives contact with the enemy! So we need to confirm regularly that we are moving towards our goals, respond to new challenges and opportunities, adapt to stay on track, and remain committed to the vision.

This step is about understanding where the initial focus needs to be. It may be a combination of quick wins, key challenges and top opportunities and will clarify the three to four strategies where resources will be concentrated, and capabilities built and applied. Sharing with your team ensures everyone is pulling in the same direction.

All EPIC programmes include a period of more intense activity over the initial three months in the Exploration phase (steps one and two) and regular meetings in the follow on Execution phase (steps three and four), supplemented by peer workshops and online project monitoring, coaching and training.

3. Implement

To find out how the EPIC programme could help transform your business, call Will Abbott or Richard Gray on 01242 776000

Putting the rubber on the road is about holding people accountable for specific actions and ensuring everyone is developing the capability to carry out the two to three tasks that will deliver the desired outcomes. This is about being

BUSINESS ADVISORY

EPIC PROGRAMMES Our services have been accessed by a wide range of companies, working in a number of sectors, who have turned to us to help transform their businesses. From this, four levels of EPIC programmes were developed to assist companies at all levels of experience and growth.

START For smaller, early stage organisations looking to embed strategy from the start

ENGAGE For existing organisations looking to engage in a robust strategic process

ACCELERATE For established organisations looking to accelerate change and growth

TRANSFORM For larger organisations looking to drive high performance in multiple teams

Aspire Trust Our work with Aspire initially involved a series of workshops with the senior management team, followed by strategy away days with the trustees and managers to get everyone on the same page. It has resulted in a clear three-year vision for the Trust and it

now has strategies that are easily actionable by the management team. “Will has now facilitated two strategic sessions with our trustees and executive team. On both occasions he has managed the sessions brilliantly which has enabled us to focus on strategy rather than the day to day responsibilities of the management.

Will has an ability to ensure everyone is involved and engaged and had taken the time to fully understand our brief

closely with James and the management team at WHC over a three-month period to develop the strategies, which also included reducing the reliance on key customers and developing the leadership capabilities of the team. Will then supported the team with monthly meetings, training workshops and ad hoc advice to ensure the plans were delivered. “Will brings an independent view to our business, keeps us focused on the key actions we need to take, and is always available to help with any issues that arise. Having a fixed fee means we know we can get the help we need when we need it, and the results speak for themselves.” – James Clutterbuck

Bite-Sized Thinking ›› Understand the inputs that impact your key outcomes;

Will has an ability to ensure everyone is involved and engaged and had taken the time to fully understand our brief and ensure that we achieved some great outcomes on both occasions. He is a superb facilitator and leader who makes the sessions enjoyable whilst all the time remaining focused on the task in hand. If you want a facilitator or leader to get you results, then Will is your man!” – Bernie Jones

WHC Hire Services Ltd The acquisition of a new depot by WHC was a key part of a three year strategic plan (see next article “What makes a successful acquisition”). Will worked

›› Explore the possibilities for your business. ›› Prioritise three or four strategies where resources can be concentrated. ›› Work on the business by focusing on two or three tasks every 30 days. ›› Respond to the new challenges and opportunities that arise and adopt and adapt to stay on track. To find out more about any of the topics discussed in this article, visit randall-payne.co.uk

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CORPORATE FINANCE

Ollie Newbold | Partner

What makes a successful acquisition? During the acquisition process, there are crucial ‘pinch points’ that, if managed poorly, can be detrimental to the deal’s success. We look at how to make sure it all goes to plan. We pride ourselves on our cohesive deal management, which involves working collaboratively and effectively with all parties. Following a full acquisition process and subsequent deal supervision, Cotswold Tool and Plant Hire Limited was successfully sold to WHC Hire Services Limited (WHC) on 28 February 2017. WHC is a highly successful, innovative and forwardthinking plant and tool hire company with depots in Gloucestershire and Worcestershire. Customers range from blue-chip companies to small family businesses and individual DIYers. The business thrives on its enviable reputation for the outstanding quality of their equipment. After having set out a clear strategic plan, WHC have recently invested £1.5 million in acquiring Cotswold Tool and Plant Hire in Chipping Norton, Oxfordshire. This complementary addition to their existing premises in Worcester and Tewkesbury has enabled Managing Director James Clutterbuck to increase the customer base and commit to securing the future growth and geographical presence of the company. WHC had worked with Will Abbott (Head of Business Advisory at Randall & Payne) in July 2014 to develop its strategic plan. Reflecting on the delivery of the plan, James said “This acquisition demonstrates

– Summer 2017

James Clutterbuck Managing Director, WHC

Having the knowledge and professionalism of Randall & Payne at the very beginning of the negotiations was imperative the importance of setting out a clear strategic plan. To achieve our goals ahead of time is fantastic! We’re now looking forward to setting our next three-year plan.” Having already identified Cotswold Tool and Plant Hire as an acquisition opportunity, James and Laura, WHC’s Accounts Manager, approached Ollie Newbold (Head of Corporate Finance) in October 2016. Randall & Payne were engaged to deliver the acquisition from start to finish, including

initial negotiations, due diligence, financing and deal management. With access to a multitude of finance providers owing to long-standing relationships, including major banks as well as independent finance houses, Randall & Payne secured the finance that put James in a position to move forward confidently with the transaction. Of the acquisition process, James said “Having the knowledge and professionalism of Randall & Payne at the very beginning of the negotiations was imperative to WHC. Ollie took control engaging with all of the legal, financial and accountancy aspects on our behalf. We had 110% commitment from him and his team and all questions were dealt with immediately and efficiently, even outside of working hours. Randall & Payne have a brilliant, forward-thinking approach that suits the WHC ethos. Once the new depot is fully transformed into the WHC brand, I’m sure we will be calling upon their expertise once again for depot number four.” Having visited the new site post acquisition, we were thrilled to see that, as a result of WHC’s careful planning, the integration had performed better than expected and compatibility with WHC’s existing trade was second to none.

CORPORATE FINANCE

OUR TYPICAL ACQUISITION TRANSACTION PROCESS Our typical acquisition transaction process has been developed to give you complete peace of mind at every step, with your best interests represented throughout. We like to think it’s a blueprint for success, and over the years, we’ve achieved an outstanding completion record.

Valuation It’s unlikely that the guide price will represent the true market value of the business you’re planning on acquiring, but we want you want to be confident that you’re making the best possible offer. We’ll review the financial and non-financial information available and provide you with a report highlighting the fair value, key points and any value drivers associated with the business, giving you total confidence to put in an offer.

Negotiations and agreeing Heads of Terms We’ll lead a meeting process with all parties, clearly setting out what you’re prepared to compromise on and what areas are dealbreakers to achieve a position that’s acceptable for both buyer and seller. Once an agreement’s been reached, we’ll prepare a Heads of Terms document so that all parties have a clear frame of reference moving forwards.

Due diligence Following completion of the Heads of Terms, we’ll meet with you to understand the areas in the

target business that are of greatest importance or concern to you before completing a full due diligence assessment. Our due diligence work may reveal that the conditions of the acquisition aren’t right for you – in this instance, we will be honest, straightforward and offer the advice you need for the next step.

Arranging finance We work with an extensive base of finance providers and lenders, both conventional and non-conventional, and can put together a comprehensive and effective proposal to get you the finance you need. We are often prepared to work on a success fee basis, so you don’t need to worry about any fees if we can’t find the right lender for you.

Managing the deal Once we have completed the due diligence process, we’ll handle the deal for you, from agreeing the final terms of the transaction and reviewing warranties in the legal agreement, to liaising with bankers and reviewing tax covenants. That way, you have the peace of mind that every last detail is being considered to make your new acquisition a success. Once the deal is complete, we can provide as much support as you need to help integrate the new business into your operation.

WHC had a clear plan in place to proceed with their acquisition but, as we found with another recent project, an opportunity sometimes finds you whether you were expecting it or not. Our long-established client Officeworx recently completed an acquisition and is an example of how having a good relationship with us helped them complete their unexpected acquisition – whatever stage of the process you’re at, we can be here to guide you clearly through the process. Officeworx Director Paul Berry said “Without the assistance of Ollie and Aimee at Randall & Payne, we would not have been in a position to make an offer or complete the acquisition and expansion of our business. The whole team are friendly and are never out of reach, working beside us the whole time, from responding to the initial offer letter to exchanging contracts and completing the deal. We would highly recommend Randall & Payne to anyone looking to sell or acquire a business and you can be sure they will do what is right for you as the client.”

Bite-Sized Thinking ›› Have a clear acquisition strategy laid out. ›› Set management time aside to deal with transaction and integration issues, and consider all integration issues well ahead of completion. To find out more about any of the topics discussed in this article, visit randall-payne.co.uk

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ACCOUNTANCY

Vicky Link | Partner

Have you joined the cloud yet? Everything in life is moving online – even your accountancy records. Keeping your accounting in the cloud helps give you clarity and allows you to make smarter decisions. A recent survey by the UK200Group, the UK’s leading membership association of independent chartered accountancy and law firms, showed that 39% of its members’ SME business clients do not currently use spreadsheets, let alone software, to manage their accounts. The UK200Group is in a unique position to collect this data, with a nationwide membership of over 150 accountancy and law firm offices, who service a total of around 150,000 SME clients.

Real-time access

The findings of the survey are as follows, with the bookkeeping method expressed as a percentage of firms surveyed: shoebox (15%), manual records (23%), computer and spreadsheets (27%), and software (35%).

You can automatically generate invoices, and can be linked to HR and payroll apps to generate payslips.

What is cloud accounting? Cloud accounting is when you use web-based software to manage your accounting online. Put simply, it allows you to work securely whenever and wherever you want. The cloud is a collective term used to describe any remote server, or computer, which stores your data when you use cloud-based software hosted on it. The software lets you access, interact with, and change your data online.

Work anywhere You can access your financial data from any device connected to the internet.

– Summer 2017

Both you and your accountant can access in separate locations and at the same time.

Improved communication It’s easier to get closer to your business and financial data, and gives a clearer picture of your finances as a whole.

Save time

happy with it, we can help you decide if one of the other providers better suits your needs, and can help you with the transfer, too. Keeping your records up to date has never been easier. Whether you want to automatically pull your bank statements into the software, or automate reconciling regular payments, cloud accounting can take care of it all for you. And, with most providers offering a monthly subscription, the benefits far outweigh the cost of the software.

Secure Your data is stored on a secure cloud server and is constantly backed up so you don’t need to worry about your data being compromised.

How we can help you? Cloud accounting software is built with nonaccountants in mind and helpful guides are available. However, choosing the right package may be confusing and occasionally, some support may be required. Our Accountancy team have trained experts in four main cloud accounting software packages:

Xero | Sage One | KashFlow | QuickBooks If you are not currently using a cloud package, we can help you to choose the one that best suits your business. If you are already using one but are not

Bite-Sized Thinking ›› Take time choosing the right software to work with your systems, and liaise with your accountant to help make the decision. ›› Time is precious – don’t struggle alone. Everyone will have a snagging problem of some kind, so don’t think that it’s just you. Feel free to give us a call as we will have an expert who can help. To find out more about any of the topics discussed in this article, visit randall-payne.co.uk

ACCOUNTANCY

Rob Stokes | Partner

Developing your cloud accounting Even if you’re already using cloud accountancy software, you might not be getting the most out of it. Follow our top tips to save time and gain valuable insights. Most cloud accounting packages are written to be intuitive for the user and to make accounting easier for the non-accountant. To this end, the software may not be recording and producing information quite as it is required to manage your business or may not meet your business’ needs. The cloud software will only be as useful as the information being entered and automation is key to making this happen. Data should be as up to date as possible, enabling quick decisions to be made on reliable, accurate and timely information.

The cloud software will only be as useful as the information being entered Accounting software on its own will not provide the forecasting and cashflow prediction that business managers will require for planning, so software providers, such as Xero, Sage One, KashFlow and QuickBooks, have established the ability for external

developers to provide apps that directly link with their cloud accounting software to add the extras required. These can be put into several key categories: ›› CRM

›› Payroll and HR

›› Stock control

›› Invoicing and jobs

›› Payments

›› Forecasting and cashflow

›› E-commerce

Once you have made your cloud software choice, our Outsourcing team can work with you to establish where additional value can be added through the use of apps. Data entry can be automated through Receipt Bank for purchase invoice processing, and Expensify allows staff to capture their receipts on the go. Prompt payments can be made through integration with Go Cardless. If you require your cloud software to link directly with a CRM, powerful apps like Salesforce and SugarCRM can help. Projections and forecasts can be completed through options like Spotlight Reporting or Futrli. These add-ons can be built up over a period of time to provide you with a suite of software on monthly subscription that is easily controllable, time saving and, most importantly, adding value to the way you manage your business.

Once you have compiled your software package and add-ons to effectively manage your business, the priority should be on evaluating and using this information to develop your business. This is where Will Abbott and our Business Advisory team come into their own. The opportunity of having this precise information should not be wasted by failure to identify what it means for your business and acting upon it. Disclaimer: software packages mentioned in this article are examples of providers available and not recommendations. Other providers are available. If you need to discuss your requirements, please call us.

Bite-Sized Thinking ›› A variety of add-ons can be used to save time, improve accuracy and meet business needs. ›› Proactively use the reports generated to manage your business’ successful growth. To find out more about any of the topics discussed in this article, visit randall-payne.co.uk

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AUDIT

Maintaining assurance without an audit More than 90% of UK registered companies can now choose whether or not to have an audit on their financial statements. Chris Baldwin Audit and Assurance Manager For those that are now able to claim exemption, company shareholders and charity trustees are caught in a dilemma as to whether to continue with an audit in order to ensure external detailed scrutiny of the financial affairs are dealt with in a manner that directors, or other stakeholders, might wish for. Audits are typically associated with thoughts of dread and perceived to be both a financial and time pressure that an organisation could do without.

While this is not a regulated service, it can provide comfort to related entities if there are particular concerns, and also can focus on areas that may be beneficial should a statutory audit be required in the future.

Unlike the agreed upon procedures, a report is included in the accounts noting that a review has been undertaken and reporting whether anything has been identified of concern. Having these options gives businesses and charities more choice without the need of a full audit.

Not all business matters are appropriate subjects for an audit

Contact Chris for more information by emailing chris.baldwin@randall-payne.co.uk, or call 01242 776000.

Assurance review

To help with this decision, there are two further options available between the statutory accounts preparation requirement and a full statutory audit that can be used to provide varying levels of assurance to those requiring it.

This review is very similar to an independent examination required of some charities. If a charity falls below the statutory audit threshold but above another set of predefined thresholds, they are still required to have an external, independent review of their figures.

Agreed upon procedures

This type of review involves an overall review of the financial statements and an investigation into any areas of concern. This includes analysing changes from one year to the next, and may include further testing of the underlying information if something from the review appears unusual or unexpected.

Not all business matters are appropriate subjects for an audit. In these circumstances, we would discuss the areas of concern with the client and, from this, agree a set of procedures for the business to perform. These procedures will specify particular financial aspects of the organisation, rather than the whole set of financial statements. The objective is to carry out procedures of an audit nature and report the factual finding.

– Summer 2017

During this review, we consider whether anything has been seen during the review that may suggest a problem in the financial statements that needs further checking to resolve.

Bite-Sized Thinking ›› More than 90% of companies can now choose whether or not to have an audit. ›› Two options are available: agreed upon procedures and assurance review. ›› Agreed upon procedures are specific to the entity and its requirements. ›› Assurance reviews are wider in scope but provide comfort on the reasonableness of the financial statements. ›› Feedback is provided to an organisation in a constructive and timely manner to decide on any actions to take going forward. To find out more about any of the topics discussed in this article, visit randall-payne.co.uk

IN THE COMMUNITY

Fundraising for Pied Piper Appeal The Randall & Payne team have been busy doing everything they can to raise money for a brand new playground. We’re over halfway there!

Fiona Hughes Marketing Manager

Halfway through our two-year commitment to the Pied Piper Appeal as our corporate charity, we are proud to report that we have raised over £4,000, as well as supporting the charity in some of its innovative fundraising events, bringing this total to nearly £7,000.

We are absolutely thrilled that Randall & Payne have chosen us as their charity Julie Kent

Founded in 1992, Pied Piper is the leading children’s charity in Gloucestershire with a mission to make a difference to the lives of sick and disabled children in the county. This is done by funding medical and practical equipment that enhances care and treatment for children in hospital and in the special schools in Gloucestershire. The work of the charity doesn’t just provide tangible equipment, but also

provides an environment where families and children, who could be experiencing some of the most trying times in their young lives, can have a more positive, welcoming place in which to be treated. Julie Kent, Vice Chair of the Appeal, said “We are absolutely thrilled that Randall & Payne have chosen us as their charity and are really enjoying working with them to make a difference to the sick and disabled children in Gloucestershire.”

Gloucestershire gets together for a fantastic quiz night in Stroud

raffle during our Budget Day event in March; and a number of other things throughout the year, ranging from the sales of branded teddy bears, dress down days, cake sales, charity book shop and more.

Pied Piper’s Vice Chair Julie Kent and Russ Byrd enjoy a night at the races

Our fundraising is going towards a brand new playground at Belmont School on Warden Hill Road, which is very close to the Randall & Payne office. It is going to be completely transformed into a fun area with a life skills elements thrown in. We’ve raised over half the money already, and hope to hit our target by mid-2018. The money raised to date is a result of a few key events: a race night at Hatherley & Reddings Cricket Club in April; the quiz night with WSP in June; a

Tim Watkins commented “We are delighted with our efforts and would like to thank all the staff, clients and friends who have contributed to date. A year in, we are confident that we can raise the same again over the coming year. We are looking forward to seeing the plans for the new playground.”

To find out more about the Pied Piper Appeal and the vital work that they do for children in Gloucestershire, visit piedpiperappeal.co.uk

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RANDALL & PAYNE NEWS

Cyber Security is essential At Randall & Payne, our IT department work tirelessly to put safeguards in place to protect all our data – whether our own, our clients or professional contacts – from cyber attacks. By rigorously testing our systems and putting in place the appropriate controls, Richard Szarszewski, IT Director, has secured Cyber Essential Plus certification for the firm. Cyber Essentials is a government-backed cyber security certification scheme that sets out a excellent baseline of cyber security suitable for all organisations in all sectors. The scheme addresses five key controls that, when implemented correctly, can prevent around 80% of cyber attacks. There are two levels of Cyber Essentials certification: ›› Cyber Essentials | Cyber Essentials Plus Randall & Payne chose Cyber Essentials Plus certification as this includes all of the assessments for the Cyber Essentials certification as well as an additional internal scan and an on-site assessment. We are continually committed to protecting our systems so that our clients and contacts can take comfort that their information is not at risk from cyber attack.

Birth of the new Skywalker On 4 May, our IT Director Richard welcomed a new arrival as his son Frankie was born. Congratulations from us all Richard. May the Fourth be with you and your family!

– Summer 2017

Cyber Cheltenham CyNam (Cyber Cheltenham) is a new non-profit organisation with a goal to bring together the best technology minds from local SMEs and start-ups, fully harnessing the rich cyber security ecosystem that flourishes around Cheltenham. We were proud to sponsor the second headline CyNam event of 2017, which took place on Thursday 15 June at Jury’s Inn in Cheltenham. The format of the event included key speaker presentations, Q&A and networking. The key speakers in June were Freddie Noble from Albright Patents; Simon Smith from Ripjar; Rich Porter from Trustnet; Dave Woodfine from Cyber Security Associates; and Kirsten Connell from CyLon. James Geary, Corporate Tax Manager, said “We are very pleased to be supporting this new innovative group and look forward to being a part of many more events in the future. The last event attracted 200 delegates and it was great to be able to talk to small businesses and understand exactly what level of support they need in their financial and strategic growth plans.”

RANDALL & PAYNE NEWS

The Workplace Wellbeing Charter

Russ joins the Audit Register Committee

Further to our intention to work towards the Workplace Wellbeing Charter, Randall & Payne are delighted to have now achieved accreditation. It is particularly pleasing that we have been awarded excellence in a number of the key areas assessed and have achieved this ahead of the six-month time period we originally planned to attain it within.

Following a vacancy on the Audit Registration Committee (ARC), within the Institute of Chartered Accountants in England and Wales (ICAEW), Russ Byrd, our Head of Audit and Assurance, applied to fill the position. Following a successful interview with the Chair and Vice Chair of the ARC, Russ was appointed as one of only six technical audit seats on the committee, the other six being made up of lay members.

The rigorous assessment process consisted of a thorough review of evidence in the areas of leadership, absence management, health and safety, alcohol and substance abuse, smoking, mental health, healthy eating and physical activity; interviews with members of staff; and a tour of our premises. The assessor commented on a number of strengths and areas of good practice, and concluded that all of our efforts demonstrated that “Randall & Payne values their employees and understands that they are the biggest asset of the organisation.” We are so pleased to have achieved this accreditation as this illustrates how we encourage a happy, healthy environment in which to work.

The ARC are accountable to the Professional Standards Board, who effectively then oversee the quality of audit work generally in the UK. As a committee they are responsible for considering and determining applications for audit registration and any regulatory action required as a result of monitoring visit reports affecting the area of audit. In addition, the Committee is responsible for providing guidance to firms in relation to any matters associated with audit regulation, where Russ’ experience and expert knowledge will prove extremely valuable.

Rising Star of the Year winner

Marketing Manager says “Hello!”

This is the first year for the AAT Professional Member Awards, and the winners of the eight categories were announced at a ceremony on 8 June 2017.

Fiona Hughes joined the team in January this year as Marketing Manager and her first project has been our rebrand and the development and launch of our new website this month. She comes from a direct marketing background with 11 years at Archant, local publisher of Cotswold Life, where she headed up the subscription team responsible for generating subscription sales for over 30 publications, then after giving birth to twin boys, focused on special projects.

We are very proud to announce that our Corporate Tax Trainee Gina Gardner was the well-deserved winner of the Rising Star Award. This award recognises emerging talent within the AAT membership, being awarded to an individual who has shown outstanding commitment and enthusiasm in their work and who has developed rapidly in their field in a short period of time. Randall & Payne’s graduate and apprenticeships training programme annually takes on trainees and we are delighted when it produces energetic and dynamic young professionals such as Gina. “I was delighted to be recognised at such a prestigious event while representing the firm, which is providing fantastic support towards my tax career,” Gina said.

“My first eight months have flown by! I’ve thoroughly enjoyed working with all the lovely people here at Randall & Payne as well as James and his team at Alias. I am proud to have led the rebrand and new website project, which better reflects what we do and who we are. Exciting times ahead.” In addition to working on the rebrand project, Fiona has increased Randall & Payne’s social media presence by sharing our staff news and technical updates daily on Facebook and Twitter.

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GUEST ARTICLE

James Ashe, Managing Partner | Alias

The last word It’s not for me: the realistic approach to marketing Here at Alias, we are big footie fans, and we play most Friday evenings. If you’re ever passing and fancy a game, then let us know – you will be most welcome. Every week, we send out a text to our pool of players to see who wants to step onto the hallowed turf of Bourton-on-the-Water’s leisure centre. Usually there is a healthy clamour for places, but there is one guy who more often than not replies with a short and to the point message: “It’s not for me.” When the same reply arrived last week, it got us thinking how if more businesses took this tact when they approached their marketing activity, they would be a lot better off. Allow us to explain. There are companies we come across that base their marketing activity on what their rivals or peers are doing. The mentality seems to be, “If X is doing it, so should we!” Other organisations get far too easily excited by the latest media platforms or tactics and instantly decide that they must incorporate them into their existing marketing programmes. At Alias, we call this the ‘magpie approach’ – the process of seeing something shiny and new and jumping on it. We especially see this in the world of digital marketing. Trends come and go and it’s not always worth jumping onto the latest ‘big thing’ after all! In most instances, little thought is actually given to whether such tactics or activities are the right thing to help their business reach its target audience.

– Summer 2017

It takes a strong marketer or single-minded MD to say that certain tactics aren’t right for their kind of business, especially while everyone around them is jumping on the bandwagon – just like the brave naysayer in The Emperor’s New Clothes, it’s courageous companies that stand up and refuse to fall in line. But imagine what could be achieved by having more focus on the activity that does work, supported by the budget saved by forgetting the tactics that don’t.

At Alias, we call this the ‘magpie approach’ – the process of seeing something shiny and new and jumping on it We have seen this in action recently. We look after one of the country’s biggest motorhome dealerships. Much like the car industry has seen in recent years, there has been an explosion in companies buying used caravans and motorhomes for cash. Open any of the

caravanning magazines and there are pages and pages containing brightly coloured adverts, all with the same look, offering to buy vehicles in an instant. So when our client asked us to create an advert in exactly the same mould, we knew that they would be just one of a number saying the same thing. Instead, we challenged them to change the message. For many people, after purchasing their home, their motorhome or caravan would be their next expensive purchase. So we targeted the audience with a more grown-up message around unlocking their value in their vehicle. It made the seller look at their vehicle as an investment. It also elevated our client as a more trusted dealer in the eyes of the seller. The result? In six weeks, the client went from having no used stock to having to turn sellers away. So, before you start the day, why not sit down and review your current marketing activities and have a good, honest think about what’s not for you? James Ashe is managing partner of Alias, a PR, marketing and design agency based in the heart of Cheltenham. He’s handled the marketing for some of the biggest brands in the world, including Gillette, Hewlett-Packard and Heinz. To find out more, visit wearealias.com

EVENTS

Key Events KEY DEADLINES

IIGE (Improve Invest Grow Exit) Seminar 26 September, 8am – 11am

AUGUST Advice Clinic

Join our experts Will Abbott, Richard Gray and Ollie Newbold as they lead you through the four key stages of the business life cycle – Improve, Invest, Grow and Exit. You will leave armed with the knowledge you need to tackle your growth issues head on and transform your business. Visit our website to book your place via Eventbrite.

hour slot with the relevant expert on 01242 776000.

SEPTEMBER Advice Clinic Every Monday, 1:30pm – 4:30pm Give us a call to book your free one-hour slot with the relevant expert on 01242 776000.

Quorum

Champagne Reception 14 September, 5:30pm Successful finalists are invited to our Chargrove House offices to enjoy Champagne and canapés at this exclusive celebration event ahead of the Gloucestershire Business Awards. The finalists’ celebration evening takes place from 5.30pm and is open, by invitation, to all finalists and sponsors of the Gloucestershire Business Awards.

C orporation Tax due period ended 31/10/16 D ue date for 2017/18 PAYE month 4

OCTOBER

P AYE & Class 1 NIC payments (electronic)

Advice Clinic

A ccounts deadline to Companies House – periods to 30/11/16 Corporation Tax Return deadline to HMRC – periods to 31/8/16

Every Monday, 1:30pm – 4:30pm Give us a call to book your free one-hour slot with the relevant expert on 01242 776000.

Awards Celebration Evening 5 October, 7pm We are proud to be the headline sponsors for the Gloucestershire Business Awards for the sixth year running, celebrating the fantastic success stories that could only come from Gloucestershire’s vibrant and unique business community. Held at the Cheltenham Racecourse, the evening begins with a Champagne reception, followed by a glamorous awards ceremony and a delicious three-course dinner. Good luck to all the finalists – we can’t wait to see who wins!

12 September, 9am – 1pm Our Quorum workshops are run by our business advisors and provide the opportunity to tackle your growth issues head on with the support, experience and guidance of other successful business leaders. To join this workshop, contact Will Abbott or Richard Gray on 01242 776000.

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Every Monday, 1:30pm – 4:30pm Got a tricky business question or need advice to move forward? Whether you want to raise finance, tackle your profit and growth issues or get some tips on saving tax or investing wealth, our expert team can provide the right professional guidance at our next Advice Clinic. Give us a call to book your free one-

AUGUST

IIGE (Improve Invest Grow Exit) Seminar

SEPTEMBER

C orporation Tax due – period ended 30/11/16

D ue date for 2017/18 PAYE month 5

P AYE & Class 1 NIC payments (electronic)

A ccounts deadline to Companies House – periods to 31/12/16 Corporation tax return deadline to HMRC – periods to 30/9/16

OCTOBER

24 October, 8am – 11am Ready to take your business to the next level? Our IIGE seminars offer the essential advice and guidance you need to make your next step. Join experts Will Abbott, Richard Gray and Ollie Newbold as they lead you through the four key stages of the business life cycle – Improve, Invest, Grow and Exit. To book your place, visit the Events section of our website.

To find out more about our latest events or book a place, visit randall-payne.co.uk

C orporation Tax due – period ended 31/12/16

Due date for 2017/18 PAYE month 6

P AYE & Class 1 NIC payments (electronic)

A ccounts deadline to Companies House – periods to 31/1/17

Tax & Class 1B NIC on PAYE Settlement Agreements

Corporation tax return deadline to HMRC – periods to 31/10/16 Deadline for filing paper 2016-17 tax returns

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Credit Where Credit’s Due.

You’d be mistaken if you thought R&D tax relief is all microscopes and top-secret laboratories. In fact, no matter the sector, or whether you’re developing processes or products, you could be entitled to substantial rebates that could help further your business. Isn’t it time you harnessed the value of your thinking today to fund the business you want tomorrow?

To find out how R&D tax credits could accelerate your business, call James Geary today on 01242 776000.