Choosing a specialist Licensed Trade accountant, can make a huge difference to your pub, bar or restaurant – Here is a list of things you should expect to ensure you maximise your return on investment:
Smooth transition – The process of changing accountant should be seamless, not time consuming. Once you have given notice to your current accountant (if applicable), your newly appointed accountant should manage this process in its entirety, processing relevant documentation and keeping you regularly informed without taking up your valuable time.
Efficient data collection – This should be prompt and efficient – You should expect clear guidelines on information required of you – Your accountant should help you to create a system to ensure records are complete and be pro-active in gathering this data (in person, by post or online), saving you time and hassle.
Regular management information – You should receive prompt and accurate management accounts, in a clearly presented, understandable format. Your accountant should be available on the phone to talk things through if required.
Benchmarking and commentary on results – Your accountant should offer valuable commentary, allowing you to understand how your business is performing in comparison to similar sized businesses. They should deliver margin analysis on different areas of your business (i.e wet and dry) and and share proactive ideas to help you improve profitability.
Hassle free payroll – With the introduction of Real Time Information from PAYE, it is crucial that your accountant manages this key task, giving clear directions on what is required. Ideally, you should only have to provide details of your employee’s working hours, tips and holiday by a specified date and they should handle the rest.
Industry Information – The pub trade is fast changing with many challenges for owners. A pub specialist should be up to date with developments in the Licensed Trade enabling you access to industry information and an understanding of how developments might effect you or your business.
Links with stocktakers – Stocktaking is a vital part of the accounting process – It is often not included as part of an accountants standard service, but they should be able to recommend a reputable firm who can help you in this often overlooked area.
Supplier contacts – A pub specialist accountant should have links with relevant recommended suppliers and be proactive in sharing these – Giving you access to competitive deals, enhancing profitability.
Advice on cost savings – Using an accountant should always be considered as an investment resulting in you saving money and increasing profitability. Your accountant should be able to identify specific areas for improvement. Ideally, they will also have links with cost reduction specialists who can offer a full audit of your business.
Business planning and support – Whether you need help in producing an initial business plan for your brewery, or making adjustments to an existing business plan, your accountant should be able to offer strategic advice and support you through this process.
These are just some of the things to consider to ensure you get the best out of your accountant and effectively grow your pub business…
For further tips on choosing the right accountant, download our free guide now!
The key to getting the best deal from your accountant – Consider the service as an investment, not a cost. You need to ensure the value provided is accurately reflected in their fees.
1. Selecting the right accountant – Ensure your accountant is the right match for your business. For a small company, choosing a large accountancy firm isn’t necessarily the wisest move – Why pay ‘corporate’ fees when you could benefit from a smaller practice? Research several firms to find the best match avoiding unnecessary costs.
2. Industry sector expertise. Identify an accountant that has specific experience within your industry sector. This will enable them to offer informed, specialist advice and add value helping you maximise profit.
3. Understand and maximise the value they can add. Be clear on your priorities when you select an accountant – Ensure that they can offer sound advice in additional areas that are important to you – For example, strategic business planning to help achieve your goals. Other than benefitting from sound financial advice, be sure to utilise your accountants’ connections – Accountants specialising in your industry sector should be able to recommend trade contacts offering favourable rates or perhaps they work in partnership with other relevant businesses that can also assist you in saving costs.
4. Negotiate the right fee structure. Time based billing is the traditional, but out-dated method of charging – Accountants advocate this, as it rewards inefficiency. It also leaves the customer with a sense of uncertainty. Fees should be simple and transparent: Insist on a fixed fee, for a specific period of time. Eliminate uncertainty and avoid nasty surprises for emails, letters, phone calls or visits. Ensure you can spread the cost monthly allowing you to manage cash flow more effectively.
5. Brief your accountant. Invest time in briefing your accountant so they really understand your businesses current requirements and future plans, enabling them to give well informed, proactive advice and prevent them from working ‘in the dark’ only delivering a generic service.
6. Set Expectations. Your accountant will summarise Business Terms in a Letter of Engagement. Make your expectations clear from the outset too: Describe the level of service you require – For example, how quickly you require queries to be resolved and accounts to be processed, formalise this in writing and don’t be afraid to set the bar high, superior customer service should be a priority.
7. Build a relationship with your accountant. Communicate regularly to get the best possible value from the relationship. Schedule telephone meetings to review your business’s performance, so you can better plan for the future. Become comfortable interrogating the information that is delivered and ask questions if things are unclear, utilising the information to boost your profitability. Inform them if your plans or direction change: Your accountant needs to be an extension of your business enabling you to prosper.
8. Provide information in a timely and organised manner. If your financial affairs are well organised before you start working together, you will undoubtedly save money in fees and help your accountant deliver a more pro-active, focused service. If you work in a methodical way, it will allow more time for your accountant to think strategically about your business, hence adding further value.
For further tips on choosing the right accountant, download our free guide now!
Managing your pubs finances is one of the most critical tasks you face on a daily basis. Get it wrong and the impact to you, your business, your staff and your suppliers could be devastating.
Most pubs utilise the monthly services of a book keeper and the annual service of an accountant. This combination usually results in an incongruous, generic service with very little specialist industry insight. This is both inefficient and expensive and results in a purely one way relationship.
A preferable option would be the selection of an accountant that can offer combined services for a fixed monthly fee. The ultimate would be a licensed trade specialist who understands all industry nuances and can advise across the areas of finance and business relevant to you, such as margin analysis. They will also be able to draw on their experiences of similar businesses, thus adding meaningful value and insight that could directly impact your profitability.
With a great accountant in place, you will have the peace of mind you need to be able to focus on what you do best – Running a successful pub
So, consider the following:
1. Is your accountant qualified? Take the time to check this out with the relevant accounting bodies.
2. Does your accountant have an in depth understanding of your industry sector? Do they really appreciate the nuances of the pub trade and are they aware of your specific needs?
3. Do you regard your accountancy fees as good value for money? Do they offer an all-inclusive fixed monthly fee (with no hidden extras) so you always know where you stand?
4. Do your accountants make your life easy in the way that they request information from you, making things simple and giving you clear guidance?
5. Does your accountant feel like a part of your business, adding measurable value, directly helping you make more money?
6. Are your accountants pro-active? Are they always looking for ways to enhance your profitability? Suggesting creative solutions to solve your problems and pain points?
7. Do your accountants provide you with a “bespoke service” that suits your individual pub rather than their business model?
8. Does your accountant communicate with you in a way you understand (no jargon) regularly meeting you to ‘translate’ the detail and meaning of your accounts?
9. Does your accountant minimise your bill tax rather than just “counting beans”? Do they use their expertise to save you money in this fundamental area?
10. Is your accountant customer service focused, timely and approachable?
While this is by no means an exhaustive list, these ten questions should help you consider the key benefits an accountant should be able to offer to ensure that your pub prospers.