This month Andrew has been thinking about systems and how a successful business will have a wide range of systems in place to help all the team work more efficiently and effectively. When K&H began the process of systemising their business nearly 4 years ago now, one of the first systems to be written was a "how to" guide to using the coffee machine. Perhaps not one that would immediately spring to mind, but nonetheless a system that benefitted all the team!

Also, the coffee making system is the one given by the E-Myth website as the place to start.

Read and comment on Andrew's Blog at www.changingthenumbers.blogspot.com

Wednesday 12th December

How efficiently do you use your time in a working day? If you were to rate yourself, where do you feel you would come - excellent, average or absolutely abysmal? Are you spending your time working on your business or in it?

Join us at the BBF to find out how much of your current working day is wasted and for strategies to help you get the best out of your day and finish on time!

Time Management for Business Owners

Wednesday 30th January, K&H Offices, Theale.

Another chance to attend our very successful Business Development Workshop aimed at small business owners who want to learn how to work ON, rather than IN their business. We'll be showing you how to take a strategic rather than operational view of your business, how to analyse your business performance and understand your accounts and make sure you are not paying too much tax.

Business Development Workshop

Frances Allum - Assistant Accountant
Frances joined K&H in November 2007 having previously worked within an accounts team specialising in hedge funds. Frances' spare time is taken up with looking after her cocker spaniel puppy, going out with friends and family and watching films.

Andrew Neale - Assistant Accountant
Andrew feels that as there are too many Andrews at K&H, so he spends much of his free time trying to decide on a new name but has not yet found one to suit! In his spare time Andrew is teaching himself to play the guitar. He also enjoys watching films, socialising with friends and planning for holiday destinations that he'd love to visit.

Fiona Conroy - Assistant Accountant
Fiona joined K&H in November 2007 as Assistant Accountant, having previously worked in both practice and industry. When not working Fiona enjoys looking after her husband David and baby daughter who both keep her on her toes! In her spare time Fiona enjoys food, wine and socialising.

According to Transparency International's latest Corruption Perceptions Index, compiled from 14 surveys undertaken by business people, academics and risk analysts, the UK is the 12th least corrupt country with a score of 8.4 out of 10 (with 10 indicating low levels of perceived corruption and 0 indicating the opposite).

The table was topped by European and Commonwealth countries with high levels of development while at the bottom of the table could be found more unstable countries with high levels of poverty, unemployment and civil unrest such as Haiti, Myanmar and Somalia.

Entrepreneurs find the concept of boards of directors a turn-off, according to a study from the Association of Chartered Certified Accountants (ACCA), published in  www.growthbusiness.co.uk. Owner-managers of small and medium-sized enterprises (SMEs) interviewed by ACCA believed that boards would simply constrain them in running their businesses.

Visit http://www.kandh.co.uk/news_articles/211107.htm to read the rest of this article and discover the value a Board of Directors can bring to your business.

If assembling a board of directors is difficult, the task of defining a unique vision for the business can appear insurmountable. This article discusses the reasons for having a vision statement and what makes a good one - thought provoking reading. Go to  www.fastcompany.com then look for Leadership Columns in The Leading Edge Resource Centre (there are many interesting articles here).

It is nearly upon us again. It is time to organise that annual event, the team Christmas party.

You can be generous, an annual staff function (or functions) of up to £150 a head in total is fully allowable as a tax deduction in your annual accounts. There is no taxable benefit for the employee provided the total cost is not more than £150 a head.

This concession even applies to one or two person companies. So if you are the only director of the company you can treat yourself and your company secretary to a nice meal or similar function.

If you are exceptionally generous and want to spend more than £150 a head it may be worth asking the team to pay the difference.

If the costs are £160 a head the full amount is taxable not just the amount over the concession. This would give the team member who is a 40% tax bill an unexpected tax bill of £64 whereas if he paid the £10 back to you the tax bill would be eliminated.

It does cover entertaining people who are not on your payroll. These costs are entertaining and are not tax deductible.

This was a question received by a client in November.

The problem is that cash is taxable (unless you agree to pay the tax and national insurance for the employee) and giving gift vouchers gives a tax and national insurance bill.

The two suggestions we came up with were as follows:

A car-parking permit. If the team member has to pay to park his car each day, you could give him a season ticket. The employer must pay for this and the employer must contract with the car park provider.

You cannot just reimburse the employee, as this will again give a PAYE bill, as will offering to pay for the season ticket for him that he has already agreed to pay for.

You must get the paperwork right.

A work's mobile phone. Again, the business contracts with the mobile phone provider and gives the phone to the team member to use.

This again would be a fully tax-deductible cost for the business and no taxable benefit would arise on the employee provided they only have one "firm's" phone.

They can make as many "tax free" private calls as they want but maybe from a business point of view it would be sensible to put a limit on the amount of usage you will pay for!

Thank you for taking the time to read our E-Proactivity newsletter. For more information on any of the articles / events above please contact Bernadette Brownlie on 0118 923 5829 or bernadetteb@kandh.co.uk