Sage Blog

It’s that time of year again for one of the largest events for small businesses in the UK –  The Business Startup Show and The Great British Business Show.  So, we’re busy packing our bags and heading down to Excel, London to exhibit at the show on 17 and 18 May.

Come and say "hi" to us on stand 322

Having attended the show for the past few years, I can tell you that we love coming down to London from Newcastle to meet all those inspiring people who are striving to make their business dream a reality and we love to think that we can play a part in making that happen, no matter how small.

We’ve been keen supporters of The Business Startup show for the past couple of years for a few reasons. Firstly, it’s events like this that give businesses the chance to share ideas and learn new things that’ll help them achieve their goals. But also, it gives us the chance to meet our customers (and hopefully future customers) and learn more about the challenges they face so we can continue to support them from planning, through to trading and growing their business.

What have we got planned over the two days?

Demonstrations of our software are ever popular, and we’re taking even more of our software experts to showcase our range of small business software, everything from Sage Instant Accounts, to  Sage 50 Accounts and of course the new kid on the block, our online accounts software, Sage One. We’ll also have our Sage Store on the stand so you can buy there and then if you like what you see!

We’ll be running a business planning workshop every hour over the two days. We’ll also be covering Real Time Information (RTI) – this is a huge change to the way you run your payroll, so check out the information on Are you ready for RTI if it’s passed you by.

So, if you fancy coming along to network with like minded individuals, have a drink at our network bar or take part in a software  demonstration them come along to see us on stand 322.

Looking forward to seeing you!

Sarah Woods, Small Business Team

Last week’s news that lender Wonga (a provider of high cost short term personal loans) has launched a business loans service, promising to make funds of £3,000 to £10,000 available within 15 minutes of an application is a signal to banks and the Government that they are simply not doing enough to support responsible lending to Britain’s small business community.

Sage and many other champions of small businesses have been raising concerns about firms struggling to access finance for years now. Changes to bank lending have to come.

Our recent UK omnibus of more than 1,000 Sage customers showed that a quarter of UK businesses are optimistic about their business prospects in 2012, but 84% of them do not believe the Government has done enough to support the business community in the past 12 months.

We are a nation of entrepreneurs, whose drive and self belief are an inspiration for economic recovery, but businesses cannot succeed on their own.

Last week’s revelation from the Bank of England that banks have slashed their lending to small business by £100bn since 2008 only adds further evidence to the growing problems of access to finance.

These concerns have fallen on deaf ears by the Government and banks, so will this new arrival to business loans be the wake-up call that they need?

More must be done to provide our backbone of Britain’s economy with access to affordable and viable long-term finance at a time when they are struggling with cashflow and fighting for their survival in today’s tough economic conditions. Putting pressure on financial institutions to lend money to small businesses is one of the top 3 changes SMEs want to see the Government implement to improve UK business conditions.

It’s never been more important for the Government to show it’s listening and taking action. I believe firmly that the Government needs to promote a culture of lending to businesses at favourable rates and open up alternative routes of non-bank finance, such as the coalition’s £1.2billion Business Finance Partnership.

Brendan Flattery, CEO Sage UK and Ireland

For the first of our Sage Career blogs Louise Piggott from our Recruitment Team looks at a typical day for a Telesales Executive within our Small Business Division. If this sounds like the career for you then check out our Telesales Executive opportunities or our general recruitment pages for other opportunities.

Getting organised

The day begins at 9am with a team start-up. The team all get together so our manager can go through how the previous day ended, let us know the focus for the current day and, more often than not, have a bit of a laugh and share successes from the previous day. There may also be messages cascaded from our senior management team, things like, monthly discount codes and new sales promotions.

When you get back to your desk the first thing to do is to check your stats to see how you’re doing against them and what you need to do to improve them. Next it’s dealing with any call backs or comms you might have from previous days to make sure our customers get the right information when they need it. Then it’s dial, dial, dial working your way through your call list, being organised, adapting your style to different customers, making sure you’ve understood each customer’s needs so you can match them up with the software that’s going to make their working day easier.

Targets and incentives

Ultimately you’re in control and accountable for how you spend your day. Monthly targets are given and this gets broken down to a daily target. It can be tough if you fall behind for a few days however the camaraderie is great and there is always someone about to pick you up and keep you going, as well as lots of support from managers, trainers and the quality team.

There’s usually some form of incentive happening, whether these are hourly, daily or monthly. The incentives always give everybody the opportunity to be included. It’s not exclusively for the top or best performers and they always help to keep the spirits up.

Gym v shops!

At our Newcastle office we’ve got a fantastic working environment and there’s a wide range of things to do onsite at lunchtime. Many meet other colleagues for lunch with a wide range of foods available to buy. Some choose to go to our onsite gym to do a workout or to take part in a fitness class. Perhaps a Spinning class where you could be taking a cycle tour of Harlem! For others it can be a chance for Sage groups and societies to meet like the Sage cycle club or Sage choir. For those with errands to run, the MetroCentre is a 10min drive down the A1 so there’s time to get there and back within the hour.

After lunch has digested it’s time to review the day so far, checking your stats and paying close attention to the targets that need the most focus. 5pm comes, you log off, hopefully after another successful day and had some fun along the way!

Every day can be as different as you want it to be. Every business has different needs and goals and therefore every conversation should be different. There’s challenges and successes, but that’s part and parcel of any outbound telesales role, you do need to be resilient to work here but the rewards are well worth it.

Louise Piggott, Sage Recruitment Advisor

If you run your payroll then you need to know that there is a big change heading your way and that change is called RTI. Real time Information or RTI is a new system that’s being introduced by HMRC to improve the operation of Pay as You Earn (PAYE). PAYE information will be collected more regularly and more efficiently when employers submit their regular payroll submissions.

But don’t worry; we’ve got it all in hand to see our customers through this change. Here, Neilson Watts, one of our payroll experts talks us through his first ever Sage RTI submission as a taster of what’s to come.

Arriving around 45 minutes early to meet Andrew at Lindapter International, I prepared for the meeting with a hearty meal of chips, battered sausage with curry sauce…..what better preparation?

After a lot of hard work, sweat and deodorant over the last 6 to 12 months (particularly from our R&D and Customer Services teams) I had the somewhat easier task and pleasure of visiting Andrew Anstice, Financial Controller at Lindapter International who was about to make our first RTI submission in HMRC’s pilot.

To be totally honest, when Andrew came to submit his one-off Employers’ Alignment Submission (put simply, this enables HMRC to match the record you hold about your company and employees) I was sitting there outwardly projecting confidence, while inside I had everything crossed, and I mean everything!

But after a couple of clicks of Andrew’s mouse and what felt like an age, but was in fact only a couple of seconds, we achieved success.

So, how straightforward is it?

I sat there thinking to myself, is that it?

Somewhat of an anti-climax, but what else could I expect?  I turned to Andrew and asked him what he thought, and I think if you’ve got concerns about RTI you’ll find his feedback reassuring:

• “I’m really pleased.  Not only was it straightforward, it was no different really to how I submit my payroll year end returns.  It was only literally just a few extra clicks of my mouse to the normal weekly and monthly payroll process.  Great experience”

Whilst giving HMRC some breathing space before we submitted his first Full Payment Submission I asked Andrew whether he believed RTI is a good thing.

• “Yes I think so, although it might take a little bit getting used to initially I can see that it’s going to help HMRC and employers like Lindapter International ensure our employees are paid accurately with less problems for the business to resolve”.
• “I really see that the way Sage has implemented RTI as making little difference to the way that I do my payroll today it really is that straight forward.”

Is RTI a good thing?

Quite naturally we then went on to talk about why Lindapter choose to adopt RTI early and what is the best bit of advice that he could suggest to employers who are thinking about moving to RTI early.

• “Fundamentally we wanted to get our business ready for RTI early, with the right help and support from Sage to do this, whilst also the opportunity to provide feedback to HMRC that helps minimise the impact on small and medium sized businesses like Lindapter.
• “Following Sage’s advice we worked very closely with our employees to ensure the data we held on them such as Full Name, Address, National Insurance Number and Date of Birth were accurate and up-to-date which has helped ensure our first submission was a success”.

After around 30 minutes we went on to submit the Full Payment Submission that employers will be required to make every time you pay your employees.  Andrew clicked Submit……again like an Instant Replay success, followed by a HMRC email receipt confirming the submission…..and that was it….history for Sage….our first successful submissions under RTI.

Success!

I quickly phoned our contact at the HMRC to give them the good news and they confirmed successful receipt of both the Employer Alignment Submission and Full Payment Submission, they were extremely pleased……and so were we.

Over the coming months we will be continuing to work closely with and support our customers participating in HMRC RTI pilot stages, but our customers will help shape the success of RTI at HMRC but also the experience within Sage’s Payroll solutions.

Neilson Watts, Sage Payroll Expert

Huge thanks to Lindapter International. For more than 75 years Lindapter International based in Bradford has been providing innovative steelwork clamping systems to its customers around the UK, Europe and the World.  Andrew has worked for Lindapter for nearly 40 years and as Financial Controller is responsible for ensuring its mixture of weekly and monthly staff is paid on time and accurately.

Our guest blogger is Nicola Connop, from Business Debtline, who recently contributed to our Solutions Magazine, the exclusive magazine for our SageCover members. It’s full of  business advice as well as technical tips for Sage software. SageCover customers can log in to see your Solutions magazine now. If you’re not a member why not find out more about about our software support and business advice service SageCover?

The economy is in yet another challenging year, testing the strength of even the most robust of businesses. But what should you do if your business is struggling with debt? Nicola Connop, team manager at Business Debtline, offers her advice…

Budgeting

The first step to take is to complete a thorough budget sheet to identify any surplus income that can be used to ease how much money is owed.

Business debts should also be split into two categories: priority and non-priority. Priority debts are where non-payment can lead to the loss of services, assets and essential goods. For example, non-payment of fuel supply can lead to disconnection, which could make it very difficult to continue trading.

Non-priority debts are those that may initially affect a credit reference file, such as credit cards and unsecured loans, and can lead to debt collection agencies and possible court action.

Early action

The earlier action is taken, the more options there are for dealing with debt and getting things back on the right track. It can seriously harm a business and an individual to knowingly take on any liabilities that cannot be satisfied. That said, it’s never too late to make a difference, and no matter how bad the situation is, there will be options available.

Options

When it comes to managing debt, the options available depend on the particular circumstances and whether the business operates as a sole trader, a limited company or a partnership.

The routes firms can take include informal negotiation, where they deal directly with creditors to agree a way of paying debts off on an instalment basis, with priority creditors dealt with first. A sole trader may be personally liable for debt if it is all their own, and as an individual they may wish to negotiate directly with creditors or consider a debt management plan, where a third party negotiates with creditors to agree a repayment plan.

A form of insolvency that may be used is a Company Voluntary Agreement (CVA), which offers creditors a percentage of the debt owed, while administration is a process that appoints an insolvency practitioner to try and rescue the company as a going concern.

Advice and support

Dealing with debt can be a highly technical process, and that’s why people should always get some free advice before making any big decisions. Business Debtline is an independent charity providing free telephone-based advice. Its advisers can help callers complete budget sheets, provide advice on rights and responsibilities and talk through how to get a business back into financial health. Just visit www.bdl.org.uk or call 0800 197 6026 (opening hours Monday to Friday 9am to 5.30pm).

Nicola Connop, Business Debtline

If you’re fed up with rummaging through piles of receipts to get a full picture of your business then this is the app for you.

If you are a sole trader, self employed or a sub-contractor you might find it difficult to manage your tax return and keep up with your cash records on the go.

So, we’ve developed Sage Record Keeper, a free iPhone mobile app designed to help you keep convenient and simple cash records in one place

It’s a free and easy way to enter and track income and expenditure on the move and if you’re a subcontractor it automatically works out Construction Industry Scheme (CIS) deductions.

And, you don’t need to use any of our other software to use it.

This is what The Guardian had to say about it, but give it a go and let us know what you think.

Cath Sheldon, Social Media Team

Every April a number of new regulations come into force. While they can sometimes be quite small changes, as part of our  Sage People Advice team I think it important that every business is aware of them and act upon them where appropriate.

This year is no different, therefore on 6 April 2012 some legislation updates were brought into effect. Hopefully they will have very little impact on your day-to-day business activities, however you need to familiarize yourself with the changes and pass the information onto your employees.

Unfair dismissal

For employees who start their employment on or after 6 April 2012, the qualification period for the right to claim unfair dismissal has increased from one to two years’ continuous service.

For employees who started their employment before 6 April 2012, the qualification period remains at one year’s continuous service.

However, any dismissals are automatically unfair if they are discriminatory in nature, regardless of how long the employee has worked with you.

In practice, this change shouldn’t affect the way that you manage your employees. It’s important that you continue to manage in a fair, reasonable and consistent manner, in line with your normal policies and procedures.

Written reasons for dismissal

The qualification period for the right to request a written statement of the reasons for dismissal has also been increased.

For employees who start their employment on or after 6 April 2012, the qualification period has increased from one to two years’ continuous service.

For employees who started their employment before 6 April 2012, the qualification period remains at one year’s continuous service.

Employment tribunal costs

The maximum deposit that an employment tribunal can order a party to pay, as a condition of continuing with a claim, has now been increased from £500 to £1000.

The maximum amount of costs that can be awarded in an employment tribunal has also increased from £10,000 to £20,000.

Changes to Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR)

You’re now required to report to the relevant enforcing authority (either the Health and Safety Executive or the Local Authority), when a worker is injured at work and this results in them being incapacitated for more than seven days (previously three).

You’ll have to submit your report within fifteen days (previously ten) of the accident.

We recommend you amend your policies to reflect these changes straight away to make sure you’re following the new laws.

Our Sage People Advice team can help keep your business up to date with relevant legislation such as HR, Employment Law and Health and Safety. Give our Sage People Advice team a call on 0845 111 2450 to find out more. Or, why not try our free HR health check tool?

Jenny Graham, Sage People Advice Team

Our guest blog is from Simon Griffiths from Mercer. We’ve recently started working with Mercer to launch Sage Employee Benefits, a new service designed to make it easier and more affordable for small businesses to introduce staff benefits packages from medical insurance and life assurance to pensions. Here Simon keeps us up to speed with the significant pensions change – auto-enrolment. This new law will make it compulsory for all employers to auto-enrol qualifying employees into a company pension scheme and make employee contributions.

When we first discussed auto-enrolment on the Sage blog back in November, we promised to keep you updated on what you need to do and by when.  Just as Sage knows that you probably didn’t go into business with a burning desire to process payroll, here at Mercer we understand that pensions may not be at the top of your to-do list either.  By keeping you up-to-date, we hope to give you one less thing to worry about.

What is auto-enrolment?

By way of a recap, wide-ranging pension reform is on its way including auto-enrolment which involves employers being obliged to auto-enrol their qualifying employees into a company pension scheme and to make contributions towards that scheme.

When will this come into effect?

The changes will be phased in and a company’s Staging Date (the date on which it will need to comply with the new law) will depend primarily on the number of employees it has. Acknowledging the difficult trading conditions faced by many businesses, the government recently announced that the Staging Dates for smaller employers would be delayed.  Take a look below to see when the changes will affect you:

• If your company employs more than 250 people, there is no change to the original staging dates set out by the government.  With staging dates ranging from 1 August 2013 to 1 February 2014, you should start making plans now to make sure that you are in a position to comply.
• If you employ between 50 and 250 employees, you have longer to prepare with original staging dates of 1 April 2014 to 1 April 2015 likely to be subject to a 9 month delay.  The Department of Work and Pensions will shortly confirm individual dates.
• The changes will affect companies of less than 50 employees last.  These companies will not need to comply with the new duties until June 2015 at the earliest.
• Finally, your PAYE size as at 1 April will determine your classification so that, for example, if your PAYE size is 49 as at 1 April you will be classed as employing less than 50 people for the purposes of auto-enrolment.

We have already spoken to many employers who are looking to make sure they have their plans in place sooner rather than later.  If you haven’t yet started to put your plans in place then give our mercer-elect team a call on 0800 121 6850 or download our free Guide to Sage Pensions.

Simon Griffiths, Mercer

Our latest Sage Business Index revealed that competition around customer service is set to intensify with over half firms stating that it has become more important to their company over the past 12 months.

The survey of 10,000 business owners from across Europe, North America, Africa and Asia underlined the link between customer service and success. Sixty per cent of owners and managers who have increased revenues in the past six months stated that going the extra mile in customer service was more important than ever.

The research shows that customer service has become an increasingly important point of differentiation for more than half of firms in the US (55%), UK (53%) and Germany (53%). However, in France less than one in three firms (32%) believe customer service will be more important to their business’ success this year which explains why only 24% of French owners are committing additional spend to enhancing service compared with 43% in Germany, 41% in the UK and 39% in the US.

Last year we commission some research into customer purchasing behaviours amongst 2000 UK residents which revealed that the squeeze on personal finances had made people more selective with their purchases, and that customers placed a higher premium on the customer experience companies offer. Furthermore the research highlighted that one in three consumers (30%) would never interact with a company again after one poor experience.

This is what our Head of Customer Operations, Gary Young, had to say about it:

“Any company that takes a laissez faire attitude to customer service is seriously hampering its ability to compete in today’s environment. Consumers know it’s a buyer’s market and they, quite rightly, want more than just a product when they make a purchase. The want the company to recognise and treat them as an individual and for the business to prove that they value their custom by going the extra mile on their behalf. Delivering an extraordinary customer experience used to be the exclusive preserve of small businesses, but over the coming months we’re going to see more and bigger businesses encroach in this space as firms seek to win the hearts and minds of consumers.”

Last week our Newcastle office received visits from Top Gear’s Original Stig, a F1 car and a premiership manager. Who says business software is dull?

Our Sage ERP X3 team have been working with the F1 team Marussia, to get every aspect of their business integrated from finance and purchasing; inspection control to stock, works orders and batch and serial numbers.

As a thank you for getting their business up and running with our Sage ERP X3 software before the start of the season, they dropped off one of their cars at our office for the day.

One of our Business Partners, Pinnacle, came along and you can find out more about Entering the world of Formula 1 with Team Sage ERP over at their blog.