Exploring the relationship between businesses and Accountants in Practice, Pulse aims to identify how both can work together more effectively. Providing insights into how the skill-sets of accountants are evolving and the accountancy needs of businesses are changing, the study looks at opportunities for practice growth and explores the impact of technology in changing behaviours.

It’s also used as a starting point for discussion and debate with customers and partners, and clearly in this instance it has struck a chord.

The key take away from this year’s research is that the role of the accountant is changing, and at a pace that we’ve not seen before.

And, it was equally clear that there will always be an opportunity for quality accountants to really add value to their clients. Whether that’s through business advice or additional services the fact remains that for business owners, accountants remain the first port of call for guidance and the most trusted of advisors. And from that perspective experience is priceless.

The research highlighted the importance of technology in shaping the profession according to 60% of the AiP surveyed. The move towards more connected accounting through greater use of mobile devices and online technologies is leading to clients expecting more support outside of the traditional 9-5 working hours and accountants needing to be more flexible as a result.

The Pulse research also revealed that clients now expect a prompt response to their enquiries and access to information whenever they need it, with online (50%) being the most popular method for business owners wanting to share data with their accountant for the first time.

The story isn’t about age – it’s about the increasing prevalence of the social media savvy, connected accountant. While clearly there are some fantastic examples of accountants today who are leading the way in this area, it’s equally clear that the generation that grew up with Facebook and gmail and is used to saving their valuable music collection on iTunes or Spotify will know no different. As a result, just as the forward thinkers today are breaking new ground, we expect them to do the same.

BUT

We certainly don’t think that leading this tech revolution is the place for ‘Gen Y’ only – there are many well established professionals in this industry who have worked this way for some time now and led the way in terms of changing the industry and the way it operates. 80% of you already believe that you will use more services online over the next 3-5 years, and 17% of you already communicate with your clients via social media.

When we carry out research like this, we always give our opinion on it. However, it’s vital that we debate and listen, something we’ve been doing this afternoon as it’s certainly caused some discussion on Twitter.

Please carry on the discussion, we’re really interested to hear your thoughts and make sure we take them into account to help further our thinking on the direction of the industry.

Startling stories of big claims by aggrieved employees can shake your confidence when you’re considering employing people, especially when such claims are brought against experienced business owners such as ‘enterprise tsar’ and celebrity recruiter Lord Sugar. The tips below will help you reduce the risks to which you and your business may be exposed. The government also provides some good guides on the Gov.Uk portal.

Reaching out

The recruitment process should be transparent and fair. Claims of discrimination can be brought by disappointed candidates who are not selected for interview or appointment, and an open process which treats each candidate on their own merits will go some way to avoid and, if necessary, disprove allegations of discrimination.

The Equality Act 2010 details which characteristics are protected from discrimination. These extend to: gender, race, disability, religion and belief, marital and civil partnership status, sexual orientation, pregnancy/maternity, age and gender reassignment. There are some guides to the act available here.

Key risk areas are the content of any job advertisement and the application form. You should avoid using such words and phrases as ‘keen young graduate’, ‘strong man’ and ‘fit and healthy’ in any advertisements which will be considered discriminatory. You can only actively discriminate if the ‘protected characteristic’ which you require is truly relevant to the job, for example if you need a female security officer to conduct searches on women.

So long as a fair process is in place and the best candidate for any role is selected, there should be little to worry about.

The right people with the right questions

You are under a statutory duty to ensure that any new recruit has a legal right to work in theUK. Certain jobs will require additional checks. If working with children or in a position of trust a Disclosure and Barring Service (DBS) check will be required.

In an interview, you should not ask questions in an interview which may be considered discriminatory, the same as with the advertising process. You should not, for example, ask about a woman’s plans for a family or if a candidate has particular health complaints (unless it is a requirement of the job).

You should also seek references – personal, professional or both, depending on the role being recruited. It is your own responsibility to check the references and to check on a candidate’s suitability for a job. Once employed, you may be held responsible for the acts (and omissions) of that employee.

On the right terms

There are certain minimum conditions for employment, such as a minimum wage, minimum number of holidays, maximum hours in a week and time without a break. These are enforceable under the law and any unlawful breach can be strictly and heavily enforced.

Written contracts

It is essential that all employees are given written contracts of employment. Not only is it a legal requirement to provide an employee with certain written terms and conditions, it is good practice for your business. A well prepared contract sets out the agreement between the employer and the employee; the obligations owed by the employee to the business and the obligations of the business.

There are minimum requirements as to what is required in a contract. You should also consider adding more detail to cover the precise circumstances of the employment relationship. You should include minimum notice periods and references to policies such as a disciplinary and grievance procedure, confidentiality terms and potentially restrictions on the employee after their employment has terminated. Although each contract is individual to each employee, there are likely to be terms which are generally applicable.

Settling down

It is not unusual to include a probationary period as a term of employment. This is typically 3 to 6 months and should give you sufficient time to assess the suitability of an employee for the role. During this time, the notice period might be significantly reduced. Details of any probation period should be included in the contract of employment. If you are still not satisfied with performance, the probation period can be extended. An employee can be dismissed without reason (on non-discriminatory grounds) for up to 2 years after employment commenced.

Checks and balances

Insurance: you will need employers’ liability insurance as soon as you become an employer. It must cover you for at least £5 million and come from an authorised insurer.

HMRC: Register as an employer with Her Majesty’s Revenue and Customs up to 4 weeks before you pay your new staff.

Pay statements: you must provide staff with pay statements showing deductions you have made for things like tax, National Insurance contributions and student loan repayments.

This blog post is not meant as a substitute for advice on particular issues and is written in general terms. You should seek specific advice before taking any action based on information that this post contains.

Kevin Poulter

Kevin is an experienced employment lawyer at Bircham Dyson Bell LLP where he represents a broad range of companies, charities and individuals on a full range of employment law issues.  He is a well known commentator in the national press on legal and business issues and has a particular interest in social media and its impact on the workplace.  Kevin maintains a popular and informative website and can be followed on twitter.

Too often, employment credentials and experience are the sole influence over employer’s decision-making, and whilst these are obviously important, there are other factors that need to be considered if you want to get it right. So to ensure you make the right hire, any recruitment drive should focus on finding a capable candidate that is also a great company fit.

If this sounds like an even bigger challenge, here are three important questions to answer when deciding on the right candidate for the job:

1.      Can they do the job?

Are they capable of meeting all the requirements of the role, and would they do it well?

2.      Will they love the job?

Are they passionate about the role and about your company, and do they demonstrate this?

3.      Can you work with them?

Whoever you choose will be working alongside you and your team every day, and although the workplace isn’t necessarily about making friendships, the right candidate will need to be someone you can all enjoy working with.

Know what you want

The first step to finding the right person for the job is to define the role. Think about the exact actions the candidate will need to carry out, the level of experience that is relevant to these actions, and the personal qualities that would go hand-in-hand with the success of the role.

A clear and thorough definition of the role you are recruiting for will not only help you determine exactly what the right candidate needs to be able to deliver, but it will also help to attract the right applications once you begin advertising the vacancy. If you find that you aren’t being contacted by candidates of a suitable calibre, assess whether the job description you are working from accurately reflects the requirements of the role and the overall needs of your business.

Is the price right?

Once you have confirmed the requirements of the role, it’s time to determine your price. When setting your budget it is important to be realistic. Take the time to do your research and find out the current market value of the role you are hiring for. Don’t be tempted to set a lower budget in the hope of securing a cheaper contract. Salary can be a deal-breaker from the get-go, so if you are advertising for a challenging role then be respectful and fair in your price. Ultimately, you will get what you pay for and good candidates will know their worth. If your company can decide on the exact limits of your budget from the start then you should avoid any difficult negotiations later down the line.

Advertising the job: what and where?

So now you know what you are after and how much you have to spend all you have to do is advertise the role and wait for the applications to arrive, right? Wrong. The advertising process needs careful consideration if you want to find the right candidate. You need to understand the type of audience each recruitment site attracts, and then pick the relevant ones to help fill your role. It’s like looking for a shark in a jungle. Advertising in the right circles will dramatically improve the relevance of the applications you receive, and you are more likely to find the perfect candidate if you target the right section of the market from the beginning.

When creating your job advertisement remember that you need to sell your company to the candidate as much as they need to sell themselves to you. With certain job sectors becoming increasingly competitive, it is vital your ad includes strong company messaging that offers a true representation of your business if you want prospective employees to choose you over another. As an ecommerce agency, we are currently looking for highly skilled Web Developers and really understand the difficulties of getting your role noticed in a competitive job-market.

But there are a few simple things you can do to improve the appeal of your role. The first thing most candidates do once they have identified a potential job is to check out the company website, so this becomes a really useful tool to help candidates get a feel for your business and to make your company stand out. Make sure the content on your site emphasises how desirable you are as an employer. It is also worthwhile setting up a specific careers section that contains all the great employee benefits your business offers. These could be company bonus schemes or a company car, but many applicants are just as enticed by companies who promote a healthy work/life balance, offer flexible working contracts and training opportunities to aid career progression, so don’t forget to include these as well.

Finally, make sure it is easy to apply for your job. No matter how brilliant a role seems, if the application process appears too complicated and time-consuming, such as signing up to an agency or applying through a specific application page, even the best candidate could be put off.

Darren Bull

Darren is Founder of Metakinetic, a full service, award winning ecommerce agency. With a team of 20 specialists, Metakinetic provides creative, technical and marketing services to a wide range of online retailers such as Fairway Furniture, Andertons Music Group, Laverstoke Park Farm, Daily Mail Shop and award-winning sports bra site, LessBounce.

Progressive and forward-thinking businesses are increasingly offering their workforce the opportunity to work from home for some or part of their working hours.

For your employees, the advantages include:

• Cost savings on commuting to work
• More flexible hours to accommodate family responsibilities
• More comfortable and peaceful environment

For you and your business, the benefits include:

• Higher productivity, as employees can work longer, with fewer interruptions
• More loyal, motivated employees
• Wider pool of potential employees to recruit
• Improves reputation as a family-friendly and socially responsible organisation
• Reduced office space and resource needs
• Less stressed employees

Don’t rush in

Before you let your employees pack their things and start working from home, there are some important considerations that you need to take into account.

Firstly, home working clearly suits some roles more than others. Traditional desk-based office jobs are among the most suitable roles to be performed from home, along with:

• Customer service
• Administration
• Telesales
• Marketing

If some of your employees are allowed to work from home while others aren’t, then you need to consider what kind of a message that sends out. Where possible, it’s best to keep your whole workforce happy, rather than just some.

Next, it’s important to ask each employee how they feel about working from home. It may be perfect for some employees, but others may thrive in a busy office environment and feel disillusioned and lonely at home.

Think about how working from home could affect team spirit and the culture of the workplace: do you want to risk changing it?

Finding the right balance

If you do opt for a home working approach, then the next thing to consider is the amount of time that your employees spend at home and in the office.

If you allow your employees to work from home entirely, it’s important not to lose touch with them. You should still manage and support them as you did before. They should still attend any important meetings, 1-2-1 sessions and development plan meetings.  Sickness, holiday, discipline and grievance procures should also be followed in exactly the same way.

Make sure that you include any adjustments to policies, procedures and methods of management in your home-workers’ contract of employment. You may need specialist help with this to ensure that you have covered all legal requirements

Some businesses opt for a mixture of working locations, spread between the home and office environment throughout the week.

Keeping track

It may be a bit more difficult to monitor your employees’ performance and productivity levels. Make sure that you have a robust tracking system in place, so that you can accurately determine how much work your employees are getting through, and whether this is better, worse, or the same as before.

Setting up for success

For most businesses, sending employees to work from home means providing, installing and setting up equipment, including things like:

• A workstation: usually a desk and a chair
• A laptop or PC, with the necessary software licences and internet connection
• A dedicated phone line
• A printer
• Some stationery

Additionally, you may need to upgrade your business insurance to cover this equipment and employer’s liability.

Safety first

It’s also worth remembering that even though they work in their own houses, home workers are still your responsibility in terms of health and safety.

This means carrying out a relevant risk assessment, taking into account:

• The testing of any electrical equipment
• A workstation assessment
• Lighting levels
• Trailing cables and other trip hazards
• Employee training to ensure they work safely
• Recording accidents or near misses.

Safe and secure

Another consideration for you is how to keep your data secure. Any sensitive client, employee or business information must be treated in exactly the same way, wherever it’s stored.

You need to make sure that secure passwords and encryption software should be used for all PCs, as well as internet security and firewall protection.

Trial period

In many cases, it’s best to consider a trial home working period, with a small group. Monitor how it affects productivity, motivation and your business in general before making a decision on extending the programme.

For more support on any aspect of flexible working, Sage HR Advice service provides a wealth of guidance on employee issues.

Helen Shone, Adviser Plus

Some of the UK’s biggest employers have been in the media recently for taking action against their employees’ social media activities. The Department of Work and Pensions (DWP)  has disciplined and sacked their employees for misusing social media, while the DVLA have suspended staff for the same reason.

For these companies, a basic policy of banning all social networking, using sites like Facebook and Twitter doesn’t seem to be working. Recent research has found that nearly half of UK businesses have the same blanket approach to banning social networking.

Trust comes from trust

Meanwhile, other businesses have a more trusting approach to social media, embracing it as part of the future of business and encouraging their employees to tweet and post at work, within reason.

Many of these companies find that this trust encourages their employees to post responsibly and appropriately. It’s worth remembering that Facebook and Twitter are great tools for attracting business, and your employees may be using social media to find new customers, among other things.

Make your policy count

What’s clear is that whatever method works best for your company, a clear and concise social media policy is essential.

Even if you have an outright ban on social media at work, your business reputation could be at risk from your employees.

Firstly, anyone with a smart phone can send a tweet within seconds, so it’s almost impossible to prevent that from happening on your premises.

Next, even if you can stop tweeting at work, you can’t stop an employee from posting an update from the privacy of their own home.

But by including a social media policy within your existing company rules, you can state what your employees may and may not post about your business, regardless of when and where it’s done.

What to include

For instance, you could ban employees from posting:

• Anything sensitive or confidential about your business, its clients and partners
• Offensive, bullying or discriminatory posts about fellow employees
• Anything that could harm your company’s reputation

Make sure it’s clear that this policy applies both in and out of work, and that your disciplinary measures can and will be used for breaching this policy.

A happy medium

Of course, if you put a policy like this in place, then it may be worth allowing your employees to use Facebook and Twitter at work, at least during designated hours, such as their breaks and lunchtimes.

You may find that by relaxing your rules on social media, you gain more trust from your employees, and they repay that trust with a boost in motivation and productivity.

It may also help to use your employees to help you build your brand and encourage positive messages about the business and its activities.

Like all good management, the key here is communication. Engage your employees in a meaningful conversation about your social media rules, what you expect to happen, and the benefits you can provide.

Find out more about how to develop your social media strategy to increase your business profile and engage with new audiences online in our guide to social media for small businesses.

Helen Shone, Adviser Plus

What are the benefits and the downfalls of registering for VAT?  Accountant and Sage Business Expert Georgi Rollings looks over some of the implications.

1.  Do you have to charge your customers VAT?

One of the obvious downfalls of registering for VAT is that your prices will increase by the amount of VAT that you have to charge.  So if you manufacture and sell women’s clothing, your prices all go up by 20%.  That may not be a problem if you sell wholesale as your customers are most likely VAT registered and can reclaim the input VAT – so they will not have a real increase in their cost – but if you sell retail to individuals then that is a real cost to them which they may not be prepared to pay.

If on the other hand you manufacture and sell children’s clothing then the applicable rate of VAT is 0%, so will be no increase in your price and as a result no negative implications on your sales.

2.  Do you pay a lot of VAT on your purchases?

Continuing my example of manufacturing and selling women’s clothing, you are likely to be paying VAT on the majority of your purchases from material to manufacturing costs (depending on where your manufacturing is done) to machinery.  If you register for VAT then you can reclaim all of that input VAT, which drops your costs by 1/6.  That may therefore give you some flexibility in your pricing for retail customers if you base your prices on a margin percentage as your underlying costs have gone down.  If you don’t have to increase your sales price by as much as 20% then you won’t lose as many customers.

If on the other hand you are a service provider, and the majority of your costs are people related, then you won’t be paying much VAT anyway and so you may not see much tangible benefit from registering for VAT.

3.  What about the flat rate scheme?

If your VAT taxable turnover is less than £150,000, then you can make your VAT accounting easier by joining the flat rate scheme in which you calculate your VAT payments as a % of your total VAT inclusive turnover. It’s unlikely to make you much profit, as the percentages differ by industry and are intended to leave you just enough to cover any VAT that you pay on your purchases. It is however easier to calculate than having to track all of your expenses to see which have VAT included.

4.  Do you want the extra admin?

One of the biggest downfalls of registering for VAT is the extra admin that goes with it.  Although HM Revenue & Customs have a couple of schemes that can reduce this admin (for example there is the Annual Accounting Scheme, if your yearly VAT taxable turnover is less than £1.35 million), you will suddenly find yourself having to keep track of the VAT on your income and expenses.  Some of the VAT rules are very complex, particularly if you have any non UK transactions; and if you make a mistake there can be penalties.

The costs of VAT administration can be pretty steep – for example you may have to upgrade your website to cope with charging different prices depending on the customer location. A further administrative burden is that in order to reclaim input VAT you have to have VAT receipts or invoices; a credit card receipt isn’t enough.

And don’t forget that you need your invoices to be compliant with VAT rules – so for example you need to include your VAT registration number on all invoices (although the rules for retail are different).

5.  It effects perception of your business

Rightly or wrongly you will find that a lot of companies are happier to work with a VAT registered business.  It can make your business look more stable, bigger, and more reliable.  Every now and again I sometimes hear of companies that refuse to work with a non VAT registered business.

6.  Going back in time

A big potential benefit of registering for VAT is the ability to reclaim input VAT for transactions from before your VAT registration date.  If you still own items that you purchased before VAT registration then you can reclaim the input VAT in your first VAT return. You can generally reclaim VAT on goods you bought up to four years before you registered for VAT, and services up to six months before.

7.  Manage the VAT registration process

You should also plan when you want to register for VAT – ideally you want to have your VAT registration number before your effective registration date.  Otherwise in order to show the VAT separately you may have to go back and re-issue any invoices that were raised between the effective registration date and the date when you received your VAT registration number.

8. Of course, you may not have any choice…

Once your VAT taxable turnover goes over £79,000 (either looking back 12 months from any point in time, or forward 1 month) you will have to register for VAT.  As such it is often better to plan to register for VAT shortly before you expect to get to that level of turnover, as it allows you to do so in a controlled way at a time of your choosing.

VAT can be a complicated task many small businesses, take a look at our dedicated VAT advice section to find out more. You can also save time processing VAT  with accounts software designed to help you manage and submit VAT quickly and easily, giving you more time to focus on your business.

Georgi Rollings

Georgi is the owner of Starfish Accounting Ltd, which provides accounting, tax and bookkeeping services to women in business and microbusiness.  Visit http://www.starfishaccounting.co.uk for more straight forward advice

Having enough cash in the business is critical for both your sanity and your success. Here are ten tips to help your business cash flow:

1. Stay on top of invoicing and send out bills as quickly as you can, so you get your income as soon as possible. Make sure that you have a system for invoicing, whether you set up a database of client details in excel or use an accounts programme like Sage. Think about the terms for payment that you offer each client: do you need your bills paid on receipt of invoice, within 14 days, or within 30 days? If you have completed work it can be reasonable to ask for payment on receipt, for example. If you will incur up-front costs on a project you may want to ask for a deposit
2. Pay staff and freelancers promptly. Staff will rely on income from you, so be a great boss and pay on time at the end of each week or month. If you commission work out to freelancers and want to develop a good working relationship so you can go back to them time after time, pay them promptly too!
3. Pay other bills only when they are due. Check each invoice for payment terms and pay on the last day possible for the money to get to the payee in time. This ensures that the money stays in your bank account for as long as possible, helping you to cover your costs while waiting for clients to pay you
4. Deposit cheques promptly. This all helps ensure that there is as much money as possible IN your business account, rather than sitting on your desk!
5. If you don’t have one already, look for an interest-paying business deposit account for your business reserve, and sweep money into this account regularly. Even though interest rates are low, a few per cent interest is better than nothing. By doing this you will get even more benefit from invoicing promptly and paying in cheques as soon as you get them.
6. Check your bank charges, and shop around for a better deal. You could save every month if you switch, or you may find your existing bank improves their offer when you explain to them you want to move to cut costs.
7. Change the way you bill clients. If you have regular clients who want the same sort of work every month, set up subscription programmes. If clients to pay by direct debit your business then has a reliable income that you don’t have to chase each month. Incentivise clients by offering a small discount or bonus service. You’ll save time on invoicing too
8. Look for additional income sources. If you always recommend a particular product or programme to your clients, see if there is an affiliate scheme. If you review business books on your blog, embed an Amazon affiliate link within the title or image. If you have a popular website, allow a few relevant adverts. All these income streams can add up and improve your cash flow
9. At times you may need to invest to grow your business. If you are expanding you may need an overdraft to allow you to pay bills. It can be hard to get credit if your business is in difficulties, so ask your bank manager about credit terms well before you need it. Check around for competitive rates
10. Chase debts firmly. Ensure that one person is responsible for this, and that they allocate time every week. Have a clear set of actions to follow from a first reminder to sending in debt collectors if necessary. By setting up the steps in advance it is easier to put them in to practice when you need

Antonia Chitty

Antonia helps business owners succeed. She provides practical training and helpful tips at www.antoniachitty.co.uk and www.familyfriendlyworking.co.uk. Her latest books include Blogging: The Essential Guide (Need2Know) and Making Money Online (Hale Books).

Donate now

You can donate here at or follow on Twitter using the hashtag #sagecycle

Cancer Research UK is our charity of choice because it affects so many lives.  Over the past six years we’ve donated over £265,000 to the charity through both corporate donations and charity fundraising.  Now our cyclists are hoping to be able to raise even more with this unique bike ride and have already raised over £14,700.

Plans for the ride were hatched last year after a charity ride from Newcastle to Paris, which raised £25,000. This was such as a success that the team wanted to do something even bigger and more challenging this year.

So, 29 riders will take to the saddle, all riding to Paris and 16 of them heading on to Alpe d’Huez finishing next Wednesday at our office in Grenoble.

Preparing for the ride

Sorting logistics for such a mammoth ride is also a big job and the riders will be accompanied by a support vehicle which will carry their kit.  They’ll be taking everything from waterproofs to sun cream and spare tyres to bottled water to make sure they’re ready for all weathers and every eventuality.

They’ve also drawn on the expertise of the Cycle Centre in Newcastle who serviced all the bikes for the riders before they set off.

The riders will spend a grueling 10 to 15 hours in the saddle every day and the route will take them via Dover, Calais and Amiens.  They’ll stop off in Paris where some of the riders will end their 300 mile ride.  After getting back in the saddle at Paris they’ll be going via Auxerre and Chalon-sur-Saone before arriving in Grenoble ready to start the mammoth climb up Alpe d’Huez.

Cancer Research Flame of Hope Awards

Joanne Evans from Cancer Research UK says: “We’re bowled over by the commitment and support we get from Sage and over the past six years they’ve donated over £265,000 to us which is absolutely brilliant.  They are constantly raising money and this fundraising ride is a clear example of how Sage and its people really are prepared to go that extra mile to support us here at Cancer Research UK.

“That’s why they deserve a ‘Special Commendation’ as Corporate Community Supporter of the Year 2013 in our ‘Flame of Hope Awards’.”

Donate now

The bike ride is part of our annual Sage Day fundraising extravaganza and has already raised over £14,700 for Cancer Research UK – with an overall target of £20,000.  If you’d like to make a donation, visit our JustGiving page to make your donation and you can follow the teams’ progress on Twitter using the hashtag #sagecycle

Leigh Thompson, CSR Team

When you are starting-up in business, it makes perfect sense to keep a tight rein on your expenses and do as much as you can yourself. However you will at some point need to start outsourcing tasks to suppliers. Sadly, all too often we hear stories of projects started but not completed, or of cash paid upfront for products which have never been delivered. In both cases, it’s the clients who are left in the lurch.  While there are means of redress when these incidents happen, it is far better to be forewarned so that you can protect yourself beforehand.

Don’t just go for the cheapest

Understandably, as a start-up, you have a tight budget which you need to stretch.  Don’t, however, be tempted to go for the cheapest option – it is rarely worth it. A badly designed website will only require more money later down the line, when your business starts to grow and you realise your website can’t grow with it.  If you are bootstrapping your way through start-up, why not be creative with how you obtain support for your business, and join a micro-business community such as Enterprise Rockers, a social enterprise launched to make life better for micro-businesses. It is free to join and has a well-established Barterplace where you can barter and exchange services.  

Research your supplier

In such a crowded marketplace, it can be difficult to find a supplier whom you can rely upon, so take your time and carry out some research – even if the supplier has been recommended to you.

For larger projects/suppliers, it is sensible to carry out a credit check first. For a small fee, you can carry out one yourself fairly quickly.  Company Check enables you to type the company name in the search box and you will get a snapshot for free.  Alternatively, you can pay for a full credit check, CCJs, and current directorship. It costs £4.99 for a company report and £8.99 for a full director report.  Before you buy the director report, however, click on the director’s name and you will be taken to Company Check’s sister company, Director Check which will give you a useful snapshot of the director for free.  If there is a long list of “DISSOLVED” in the Company Status, this should ring warning bells!

Experian also has an online business checker, which costs £13.99 for a non-Limited company or £17.99 for a Limited Company.

Don’t just go for your first good option

If you were making a large purchase for your home, you would probably compare two or three quotes.  Yet in business, our enthusiasm can often get the better of us – we want to steam ahead so that we can get on with our big idea.  Take your time, gather in a few quotations/proposals and compare what each one has to offer you.

Ask for recommendations

Make good use of your professional network – or even Linkedin and Twitter – and ask for recommendations.  Perhaps join relevant forums and ask for advice. You will find that other business owners are only too pleased to share their advice to help you avoid potential pitfalls.

Protect yourself with a contract

Do make sure your contract is as specific as possible.  When will you pay your supplier – in stages throughout the course of the project, or on completion?  What happens if the project overruns or does not turn out as planned?  Often contracts are standard and are drawn up to suit the supplier, so do read through it carefully to ensure that it is suitable for your particular project.  Having a formal, written contract avoids confusion and misunderstanding, and is ultimately there to protect both of you, should things turn sour and need to be addressed legally.

Mary Cummings

Mary is an author, businesswoman and mother of three with over ten years’ experience of running businesses. She founded Work Your Way as a micro-biz resource for freelance, self-employed and micro-biz parents, and Work Your Way Jobs which advertises home-based jobs.