FIRST IMPRESSIONS COUNT

Posted on October 20, 2011 by Kevin Barry

First impressions are paramount in business. They will make or break you. At Kevin Barry & Co. we always aim to stay on our toes on this one and keep clients in the same frame of mind.

A potential customer must be impressed by what they see and experience at the start as they will base their business opinion on this from the off.

What people sense

It is vital that you ensure your business appears at its best, as people will presume this reflects what goes on behind the scenes. People generally trust their instincts.

Simple checklists are:

  • Is the external and internal buildings clean and tidy?
  • Are your vehicles clean?
  • Are the staff dressed neatly?
  • Is the phone answered promptly and in an upbeat manner?
  • Are staff smiling?
  • Does the owner and staff remember regular client names
  • Is correspondence that is posted sent to the proper address and not one the customer left years ago?
  • Are calls returned on schedule.
  • Did you meet them at the hotel or airport when they arrived.
  • Did you add them to your mailing list like you said you would
  • Did someone acknowledge them when they initially walked into the yard,shop, bar….
  • Does your website attract people to email or call your business?
  • Do you have a marketing recipe for staying in touch with current and past customers
  • Do your team turn up on time?

Business

All of the above should naturally lead to the first impression from a business point of view.  However, it is also important to be constant in business.  It is important to adopt a set of rules for conducting particular tasks and then sticking to them.  They should also be applied across the board to all clients.  This will suggest stability and co-ordination which are both very important indicators for a new client.

What to Do Now?

  • Ask a close friend to be a mystery shopper of your business. Have them critique the business from a customers viewpoint.
  • Ring 3 customers who left you and ask why they left? Note down the answers
  • Ring 3 current customers and ask them for 1 item they like about your business and 1 item they dislike
  • Visit your competitors and get a feel for how you compare
  • Then write down the 15 tasks to work on in the next 90 days to address these areas that seem lacking.
You will be amazed at the progress you will make in a short time.  Let your team know what’s going on and why. This will reflect well on your leadership and will allay any fears they have about long term job security.

Make a start! (If you need to?)

 

 

 

 

 

Posted in Driving Your Business into the Black | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

ITEMS THAT SHOULD NEVER BE SHREDDED

Posted on October 13, 2011 by Kevin Barry

At Kevin Barry & Co. although we are merely accountants, based in Ireland, we are often asked legal questions. Such as “what documents should I be keeping”.

There are certain documents and certificates that should never be disposed of.  “Never” here can be taken to mean until the life of the object under which the document is governed has ceased or the document itself expires.  The following are examples of common documents that should never be shredded: -

 

Original Birth Certificates

The importance of a birth certificate is often over looked.  It is the first official record of each person’s identity.  It also proves parental identity, nationality and date of birth.  Although it does not as such provide photo-identification of the individual, it itself is required to obtain such identification.  The original of this document should be stored in a safe and reliable place – such as a filing cabinet in the home.  Should the original be required by another for any particular reason, it should be delivered to them by hand or registered post.  Alternatively, if a certified copy of your birth certificate will suffice, your local Garda or Police Station will gladly certify the same.

Wills

A Will is peculiar in that the document fails to get any attention until after death.  It is only then that its contents become relevant.  While a Will in itself does not constitute a deed of title or official transfer, it is the first indication of such and it is this that renders the document important.  It is the norm for a Will, following its execution, to be stored at your solicitor’s office.  If this is not the case, it is recommendable that you take a copy of your Will for your reference and bring the original document to your solicitor for their safe keeping.

Leases & Other Deeds of Title

Title deeds are extremely important documents.  Whether they denote a fee simple or leasehold title, they constitute the primary evidence of ownership.  It is also very important that you, your bank (where mortgaged) or your solicitor are in possession of any title deeds.  It is not advisable, as in the case of Wills, for such documents to be left at home.  Realistically, they should be left with a solicitor for safe-keeping as they serve no real purpose in every life, save for proof of ownership – which possession should infer.

Insurance Policies

In short insurance policy documents are evidence of a contract and should then be regarded as important.  The documents should stipulate the terms of the contract and will be signed by the parties to it.  Policies that involve a pay-out after the death of the insured are particularly important.  The deceased will obviously be unable to make oral submissions in relation to the contract when the issue of its existence comes to the fore.  Therefore, the document should be kept in a safe place until the insurance expires – but that on death or annually etc. Click here for an example  of typical policies

Our website www.kevinbarry.ie gives more information

Posted in Company Secretarial, Driving Your Business into the Black | Tagged , , , , , , , , , | Leave a comment

Protecting Your Cash & Stock Within The Business

Posted on September 29, 2011 by Kevin Barry

One of the more common stories that we have received at KB & Company over the years is that of: -

  • Stock going missing and nobody noticing for a long time
  • Cash being systematically pilfered which again goes on for a long period without being detected

“Familiarity can breed Contempt” and essentially when either of these two items happen, even if the person or persons is / are caught, the fault really lies with those who run the business.  They have either not implemented the required rules in the business, or they have let their control systems fall into disrepair.  (e.g. Checking the Till)

The following is a list of the essential items that businesses must put in place where stock and / or cash is involved.

Cash Register

This should be programmed  for you.

IE Every button is programmed to be selling a particular stock item, such as a pint of Guinness/Sweets/Nails.

There is no need to worry about programming the register yourself, the people selling this will:

  1. program it for you
  2. train you on it
  3. and leave with you an easy to follow guide on updating the programming of the cash register.
If you make it a condition of the purchase. BE STRONG

Times are hard and any maintenance contract should include that the Cash Register People review the cash register every six months to ensure that it is perfectly in line with the products you are selling, including the prices and descriptions. Do Not Feel Silly for asking.

What are X & Z Readings?

The X Reading is a subtotal of where the cash register is for the day.  The Z Reading is the total reading for the day and brings the starting total for the next day back to Zero.

Any busy business will perform a number of X Readings everyday and particularly at times that employees don’t expect.

Some Danger Signs to Watch Out For

If there is substantially more money in the till in the till on a regular basis, this is because the money has been put into the till but not rung up.  With this usually done with a view to taking the money out at a later stage.  If there is less money in the till than what the X or Z Readings denote, then there has been money removed from the till and you need to question where it is.

Danger

Mistakes Can Happen

This is an obvious point.  However, mistakes should not happen on a regular basis, if people are properly trained..  If it does, it’s carelessness or deliberate.

Cash or stock shortages need to be isolated to discover what is causing the mistake to happen.  A solution must then be focused on.

Training

All staff members should be trained on properly on entering receipts of cash into the till.  It is not rocket science and 15 to 30 minutes at the start of any employee’s day will get this done.  They just need to be monitored in the early stages.  Such early controls will focus on any issues after that.

Stock takes

No matter what the business is, 80% of the value of your stock is usually wrapped up in 20% of the physical quantities there.  Regular stock takes of the valuable items should take place on a very frequent basis – weekly or daily depending on the amount of money tied up in stock.

The business owner has many duties. Delegate this one.

Various staff members should be delegated and rotated to deal with these stock takes.  After they hand in the stock takes, sheets. Check samples of high value items to see that they are actually there immediately.  Any differences must be followed up on and investigated straight away. No Excuses

This is also related to the till, as if this is properly programmed, it will tell you the amount of stock items you are selling.  If you sell three washing machines, then there should be three less washing machines in stock at the end of the day/week than what you started off with.  If there are five washing machines missing, then obviously the earlier you find out about it, the quicker you can sort out the problem.

Security

Other items that add further comfort and must be regarded as being an investment, not a cost, are CCTV Cameras. Believe me, they pay for themselves.

Some pointers to follow:

  1. Have them visible, whereby everyone can see where they are.
  2. They should also work and not be dummies.
  3. Make them dome shaped (see picture) so no-one knows which way they are looking
  4. The monitor that records activity should be in a place where the business owner has easy access to it, but not other people.
  5. Have them serviced every 6 months.  This goes without saying.

Different Depots

If stock is moving between different points.  A track should be kept by the people sending the stock out and those receiving it at the far end.  Essentially, it is human nature that if standards are sloppy, people may get tempted.  Avoiding temptation is what the above safe-guards are designed to promote.

Understanding your Business Accounts

If you buy an item for €1 and sell it for €2, then you should know what you are making compared to what you are buying.

  • know your margins,
  • know your break even point

By having a quick look at key items on the accounts, you will see immediately if you have a problem with cash or stock control.A very simple point is that if you sell €10,000 worth of goods or services in the week, there should be €10,000 in your cash register or owed to you.  Make sure your accounting people are giving you the information you need. 1 page is enough

If customers receive a routine statement saying they paid your representative, it is vital to find this out as soon as possible, and see where the payment funds actually are.

In conclusion, we have all heard the phrase “once bitten, twice shy”.  However, I have yet to see this in business.  More mature business owners will always tell you that they should have learned from their first mistake.  However, often such experiences come back to bite them again and again.  If you are the type of business owner who fails to put the above safeguards into place, it should be made the business of a carefully selected employee to be in charge of cash and stock security.  They should report to you every week on how they are getting on and this alone would allow you to fulfill you job in being the business owner.

This problem never goes away

Posted in Driving Your Business into the Black, Start Up | Tagged , , , , , , | 2 Comments

Do You Want To increase Your Business Value?

Posted on September 23, 2011 by Kevin Barry

At Kevin Barry & Co. it is in our interest to develop clients to their fullest potential.

We routinely perform a Free Business Review  .  What is that? Click above for a 2 minute video on what’s involved.

Contact us today at 00 353 95 30053

 

Posted in Driving Your Business into the Black | Tagged , , | Leave a comment

Voluntary Write Off. A Trap!!

Posted on September 23, 2011 by Kevin Barry

Have you a company you want to get rid of?

A cheap way to get rid of a company that you no longer want that you require is to get voluntarily struck off.  This can cost up to €1,000 but is generally much cheaper than a liquidation (€5,000) and lot less hassle.
However, if the company that has to be struck off  has more than €150 of a share capital, it has to be liquidated whether you like it or not.
From May 1st, 2011 a new form H15 will need to be completed to require the applicant to state that the share capital does not exceed €150 for the pervious three years.  For further details please click here 
Posted in Company Secretarial | Tagged , , | Leave a comment

Beware Rogue Auditors

Posted on September 23, 2011 by Kevin Barry
Whatever about rogue bankers or rogue builders, there is now a new form of criminal called a “rogue auditor”.
Essentially, this is where an individual, not qualified to be an auditor, signs off on a limited company’s accounts and has filed the accounts with the companies office.  The downside to this being caught is horrendous.
The directors will:
  1. be in line for prosecution,
  2.  late filing fees will be payable by the company
  3.  and the audit has to be re-done by a qualified auditor.  

It is a duty of the directors of ensure that their auditor is listed with the Companies Office.  To be sure of this the auditor should have an ARN – Auditor Registration Number.  If he does not, then he is not qualified to lodge your accounts.

Ask about this!
Posted in Company Secretarial | Tagged , , , | Leave a comment

How To Avoid Over-Paying Your Taxes!

Posted on September 22, 2011 by Kevin Barry
Essentially, the most common form of mistake we see by business-owners is in the area of  not keeping proper books and records.  This often leads to:
  1. profits being declared higher than they should be,
  2. income tax will be paid higher than it should be and
  3. business cash-flow will be lower than it should be.
 
How does this happen?
Essentially, when you are in business the important thing is to keep track of where your money is going and where it is coming from.  Depending on the type of business you run, the cash register and the type of systems you use to get the money from the customer should keep track of where your money is coming from.
In relation to where it goes, the important thing is to have a system in place that is easy to manage and that you can look back on.
Simplest System?
The simplest system is that every bit of money that comes into your business should be lodged to the bank and every penny that is being paid out should be paid from the bank.  Using this method, you can then go to your bank statements and pencil in beside each cheque who it was to and for what, and pencil in beside every lodgement where it came from and what it is for.  This will effectively be your accounts for the year.  If there is money in the bank then you are making money.  If there isn’t, then you are not.
Simple Ways to Keep Receipts
Business Credit Card
Set up a business credit card and any business expenses should be paid for by using this credit card and not your personal cards.  The most common form of expense, and one that people don’t keep receipts for is paid parking, and parking in city areas.  There is VAT on parking and it is a business expense if you are there for business reasons.  Such receipts can easily get lost in your pocket, car or wallet. Therefore, by running them through a credit card they will come up are legitimate expenditure, proving you were there.
Holidays That Are Not Holidays
Most business owners that I know who go away on holidays are for semi-business reasons.  It could be to:
  • attend a conference,
  • to look at how a competitor runs their business, or
  • to research a product for implementation in their own business
  • This does not mean that the entire holiday is claimable, however if part of it is a business expense and, thus, part of the holiday should be included as a business trip in your accounts.  It is an expense which will reduce profit and reduce income tax.
Be Organised
In paying out money for business reasons. keep a receipt or at the very least pay it by credit transfer, cheque or credit card whereby the explanation of where the money went to will be easily followed up on.
Paying suppliers should be done on a once-a-month basis and not wily-nilly when the supplier calls you.  This way you can organise your schedule around paying suppliers once a month, pay them on your time and check out that they are owed what they say they are owed.
For further details on this, please log on to our webinar in www.kevinbarry.ie 
Computer System
Purchase an easy-to-use computer system.  Don’t buy it quickly, ask your accountant or research what other successful business-owners use.  Get organised today.
The more organised you are the further ahead of your customers you will be.
Posted in Driving Your Business into the Black, Taxation | Tagged , , , , | Leave a comment

Seafarers Allowance

Posted on September 12, 2011 by Kevin Barry

We regularly get asked about the Sea farers allowance. Basically it is a tax break for being outside of Ireland working on a ship/oil rig etc.  An individual can deduct from his/her “seafaring” earnings a certain amount, if they fall into this Category. (Seafarer)

How?

If you are employed on board a ship and spend at least 161 days in a calendar year:

  • At sea
  • Travelling to or from foreign ports

Then you may qualify for Seafarers Allowance.

Conditions to qualify for Seafarer’s Allowance:

  1. You must be at sea for at least 161 days in the Tax Year.
  2. The employment must be performed wholly on board a sea going ship in the course of an international voyage.
  3. The voyage must begin or end in a port outside the state
  4. You must not be a Public Sector employee
  5. You must not have claimed Foreign Earnings Deduction.

What Relief is Due?

An Income Deduction of €6,350 is available at the highest rate of Tax. That means you don’t pay any tax on this income.

(Please note: The allowance cannot be set against any other income of the individual or against the income of his/her spouse)

The Seafarer allowance claim should include a statement from the employer giving details of the voyage(s) and the number of days, with dates, of absence from the State.

Tip:

Just be aware that if you are outside Ireland for 183+ days, then you may not have any Income tax to pay on your earnings, by virtue of claiming non-residency.

Just log onto www.kevinbarry.ie if you require further information

Posted in Taxation | Tagged , , | Leave a comment

5 Year Business Plans and other Fairytales

Posted on September 6, 2011 by Kevin Barry

If asked for a 3- 5 year business plan, don’t waste the time preparing it. Save your energy.

Why?
The people that you prepare a business plan for never read them, unless you put a one-page executive summary at the front.

THIS IS WHAT I ADVISE:
Prepare a 1-page summary.
Then create a forecast of what you believe sales will be over the next 100 days, and the next 12 months. Nothing more. Beyond that it’s at best a wild guess.

The reason to make a 100-day plan is to ensure that in the short-term everything is much more intense, and your blue-sky effort has a deadline.

If your banker insists on a business plan try this…

1. Go online,
2. Download a business plan template,
3. Insert your name and logo,

and in five minutes you will have a business plan that your banker will never read anyway.

It’s all about the immediate future!

Here is the much more worthwhile suggestion:

Rent a van and driver, invite your banker(s), any potential customers, some of your key employees, and your best salespeople to come with you for the morning.

Set up a morning out  that touches five of your biggest customers in four hours. Start at 8AM at the first customer’s business, bring coffee, and talk to the people who actually buy from you. Find out why they love you, talk to the owner, tell them what your game plan is for the next 12 months – maybe have it prearranged so that they give you an order right on the spot – thank them for their business, their support, and their loyalty, and then go to the next customer.

Bring a video camera, or even record some of it on your Iphone, so that throughout the morning you’re video taping.

Each time you visit a customer, go through the same process. Talking to the people that use your product or service, talking to the owner/manager picking up an order, telling them your 12-month plan, and filming the entire process.(BE CERTAIN YOU DO THIS)

Get testimonials from each one of the five customers you visit. Ask why they buy from you. Get their history of doing business with you. Ask why they would refer you. And get a call to action from them.

After you have visited the last customer, take everyone to lunch. Nothing fancy, but not fast food. A local restaurant will work best. Make certain that they’re prepared for you. Have a card or little memento sitting by each person’s plate. And have a general discussion about what just happened.

Film the luncheon. Film peoples comments. Keep in mind that your video camera has a limited battery life only has about two hours worth of storage, and you will be on a five hour trip, so bring two cameras and make certain that you have someplace to download the video to during the morning if necessary.
Edit the entire thing down to 30 minutes or less. Put it on www.youtube.com and link it to your website.What you will have as a result of the morning will be a business plan, a marketing plan, loyal customers, excited bankers and investors, and a real-world look at your business and the relationships you have with your customers.

REALITY NEWS: In spite of banker’s delight, they have one prime agenda with respect to lending you money: making certain that you can repay. Period. Just keep that in mind as you listen to his or her glowing comments of the day.

Or, you can write a fairy tale. (Er, I mean a business plan.)

Posted in Driving Your Business into the Black, Start Up | Tagged , , , | Leave a comment

Ask Mr Video!

Posted on September 2, 2011 by Kevin Barry
It is now proven that people who browse the internet are 70% more likely to watch a 60 second video than they are to read an article for 60 seconds.
When it comes to promoting your business these days, video is the best media to use.
Everyone has access to it.  It doesn’t cost you anything apart from time to set it up.  A huge amount of people already know how to operate it.
The most useful site at the moment, that we all use, is www.youtube.com.
A very good website to look at is www.askmrvideo.com.  He talks a lot about the power of video advertising but it is also useful if you are:
  • promoting your business,
  • promoting your product,
  • training your staff or
  • recording your seminar. 
In fact, no matter what you are doing, don’t worry if you are having a bad hair day, set up your pocket sized digital camera, set it to video, rehearse what you are going to say, record it, up load it and link it to your website.
You have just got to get started using videos.
Also, Google is more alert on a search for videos than articles, so tag your videos appropriately.  We currently use YouTube.com for recording video walk-throughs in our properties for rent, recording inspections of properties, informing clients of staff training and testimonials from customers.
Get going!
Posted in Driving Your Business into the Black | Tagged , , , , , | Leave a comment