“One of the strongest statistical findings is that the higher the man’s income, the greater the chance of the couple staying together.”

Prof Andrew Oswald – Warwick University

In any relationship the money issue will eventually raise its ugly head.  It could be that your partner lost their job or you have a new addition to the family in the form of a new baby or an aging parent – either way, the old saying ‘When poverty strikes, love flies out the window.” is never more relevant and it can become really difficult to hold on to your relationship.

Most people would prefer to believe that the vows they took on their wedding day of ‘for richer or poorer’ were really that easy but the truth is that financial comfort oils the marriage.  Lack of money triggers arguments in any relationship and ranks higher than sex problems in leading to divorce, says money guru Alvin Hall from BB2’s ‘Your Money or your Life”.

Differences about money management are an age old debate between couples and stem from our very different way of handling money.

Some say that women are more conscious of their immediate debt and plan monthly due to their inbred carer instincts whereas men will take greater risks as they consider the larger picture when planning the finances.  Think about your own relationship.  Which one of you takes care of the money?  Who makes purchase decisions and to what level?  Who manages the bank accounts?  Do you have a joint account or separate ones?

All of these questions need to be answered before you undertake financial lovemaking or you can be assured that drama will follow.

Lack of money or money debates between couples are the cause of enormous tensions and arguments that can put an end to the loving, sexual side of the relationship impairing sexual activity and leading to further frustration that only serve to undermine the relationship further often ending in divorce.  It can be a vicious circle that couples should take care to avoid.  Here are some tips:

• Start by discussing your individual approach to finances
  • Find out how you both feel about joint or separate accounts
  • How you feel about debt, credit cards and savings
  • Agree budgets
  • Put aside the money to pay everyday expenses and set budgets
  • Include pensions and life insurances
  • Look ahead and set a long as well as a short term budget – you may have a child
  • Agree where to cut back if you have to
  • Share the load
  • Ensure you both know the amounts due each month for mortgages, cars, utilities etc
  • Go through all the bank accounts together
  • Discuss your retirement future
  • Explore your fears together
  • Have a status meeting at least once a month
  • Bring all your paperwork and put it on the table
  • Air problems eg:  maxed out credit cards
  • Talk about upcoming debts/wage increases and how you’ll cope
  • Prioritise expenditure and agree on it
  • Be open minded about what your spouse views as unnecessary expense
  • Agree on setting money aside for essential expense
  • Go back to the budget
  • Face the future
  • Ensure the money issue isn’t an excuse for more serious problems
  • Plan ahead
  • Budget in treats that you both enjoy
  • Talk it out!

It’s easier to blame than to defend financial losses in a relationship so if you are the one in charge of the finances ensure that you constantly share the financial situation with your partner at all times and remember to take time out to enjoy life regardless of the lack of money.  Besides, sex is free as well as being a good stress reliever!

Everyone knows that the media can make or break public attitude and no more so than here in the United Kingdom.  The latest spin doctors are predicting this quarter to produce evidence of an economic upswing but my advice is, keep that belt on the same notch for a while.

Take a few pointers on frugality and see how you can apply them to your own lifestyle to ensure you get safely through the recession.

Put the credit card on ice

Literally pop the offending item into a Tupperware, fill with water and freeze it.  You’ll forget about it in a few days and learn to live on what you have instead of what you’d like to have.

Say yes to veggies

Grow your own.  The soil’s great around the United Kingdom.  Put your name down for an allotment and get your wellies on!  Besides, home grown tastes best and you might even enjoy it.

Get closer and even more personal

Little expenses like hair cuts and pedicures eat up household budgets as do cards and going to the gym.  Do it yourself.  Get the scissors out, wedge your knee firmly between your loved ones knees and give him the trim of his life and instead of the gym, chase him around the house.

Eat at home

Restaurants eat your money.  You can cook up a great spread for half the price at home.  Lay the table, light the candles and cosy up with your loved ones over the family’s favourite or arrange a round robin supper where you only produce the dessert!

Give up the luxuries

That little caffe Latte in the coffee shop, the g-string in the mall, the ice-cream cone and the phone calls to friends in crisis – give them up!  They may not seem important at the time but believe me, they soon add up!  Drop the money in a tin and watch it grow.

Focus on what’s important

No one has to be totally stringent.  Just learn to treat yourself in a different manner.  Give your man a foot rub and ask him to massage your shoulders instead of going out to dinner.  Get the kids baking with you in the kitchen instead of buying all those supermarket treats.  Trade pedis with a girlfriend and start a supper club!

Once you get the hang of it, saving is easy.  It’s just hard to start it off.  Sit your family down and ask them to come up with ways to save on costs like turning the lights off every time they leave a room, cutting a minute off their showers, wearing their jeans for another day, getting friends to call them back.  They’ll soon learn and you’ll soon save.

1.         HMRC (Her Majesty’s Revenue Services) through the use of their own Chartered Accountants. Ensure that you  ask them for identification!

2.         Independent auditors.  This will be because your business entity requires so by law eg: if you are a Pty (Ltd), or on behalf of banks and other official institutions. Remember that YOU appoint an auditor in these cases. Ask why you are being audited, because a closed corporation or sole proprietor does not need an audit by law.

An audit means that either HMRC or a registered auditor (a chartered accountant who is registered to do so) has a closer look at your administration and makes sure that it is in line with legislation (VAT, CGT and labour laws) and/or GAAP (General Accepted Accounting Principles). In short, just think of it as a tune up, and you can learn from it at the same time – if you manage your own books. To make the audit as smooth as possible there is one basic rule – be prepared!

The infamous “admin in a shoebox” will not impress and will be subject to a thorough investigation without exception. But, if you just file your ‘stuff’ neatly (it doesn’t have to be professional) it will help a lot. If you make use of a bookkeeper or accountant then she/he should attend the audit in your place. Do NOT do it yourself even though you are the person who is responsible in the end!! Your bookkeeper or accountant has to attend the audit without charging you. Make sure that this is part of your original contract with them, otherwise you could be in for a nasty surprise, especially when the auditor asks them to do more work on your behalf. More so if you are not aware of what is going on. Ask and, if necessary, speak to the auditing party and/or an independent expert.

In the end there are two (or three) scenarios:

a)      An independent auditor will ‘sign off’ your financials (Audited Annual Financial Statements) and they will normally submit it for you to whoever needs it (banks, shareholders, members etc.).

b)      HMRC will always assess the audit and make corrections, if any. Arrangements with HMRC should be explicitly stipulated in writing to you. Any payments due after the audit/assessment should be adhered to, but investigated. HMRC employees are also human and therefore able to make mistakes.

c)      The third scenario is where you do NOT want to be. Realize that HMRC can penalize you with imprisonment if so required, so stay on track!

As an accountant myself I can only advise you to use the means available to you. Use an accountant or registered book keeper, make use of E-filing as supplied online by HMRC and talk to the Labour department. I know it sounds, looks and feels like a painful process but use the people who are in the know. In the end it will pay for itself.

And, as always, if in doubt about anything:

Ask GreyMen on www.flirtingwithfinance.wordpress.com

Focus on what YOU are good at. Let somebody else make a living too and keep you out of trouble, and acknowledge the fact that you do not understand all of it. Believe it or not but legislation is hard on us and with the new rules of GAAP coming up the IFRS (International Financial Reporting Standards)  are not to be treated without respect and I’d have to say not without a good painkiller to hand either!

Remember the following:

‘Good’ books are a reflection of how good you and your company are.

‘Cooked’ books are a reflection of how good you want to be.

Happy auditing!

For further financial information or information about this article please see http://www.greymen.co.uk

On paper, there is little difference.  We do book keeping, VAT returns, payroll and all those other functions that qualify us as a good accountancy practise.  It’s only by working with us that you actually experience the difference between GreyMen and any other accountancy practise.  Ask yourself the following:

• Are you 100% happy with your current accountant/book keeper?
• Do you know exactly what they are charging you for?
• Does your current accountant offer you a free 6 month business review?
• Can you pay in easy monthly terms?
• Does your accountant offer you administrative back up services and recruitment at discounted rates?
• Is your accountant experienced and specialised in small business development?
• Can your accountant help you with business management including strategic marketing campaigns and search engine marketing to drive your business?

Now you have more of an idea of what GreyMen offers their clients.  Here at GreyMen we see ourselves as integrated business partners that will help you grow and sustain a healthy business for years to come.  We don’t time your visits when you need to call in to ask a question.  The monthly payment covers it all.

Basically we look after you in a way that doesn’t break the bank and ensures that you are in control of your company’s future – nothing fancy, just simple solutions for small businesses.  Nuff said.

Give us a call.  We’re here to help you.

On average women earn a lot less than men.  They take at least nine years of their working life to raise children lessening the amount they will earn in their lifetime versus the average male.  They earn less to begin with and then work fewer years so they also lose out on retirement portfolios having less to retire on and yet women live longer according to statistics.

The current high ratio of divorce and widowhood means that most women are going to be solely responsible for their financial well being for some part of their lives and need to plan for a longer retirement than their male counterparts.

Retirement saving requires regular investment to secure the best return but with the need to draw on retirement funds often being an issue of survival lately, even though first world countries offer safety nets for the unemployed, world wide women need to look at different savings plans.

Whilst it’s important to know that housewives and self-employed women can invest in retirement funds what is more important is anticipating just how much you’ll need to sustain that retirement.  Begin with what you can afford.

Most employers offer retirement packages and whilst you may participate in employer plans it is wise to actively participate in a private plan too.  Don’t let the money sit in cash because you are too afraid to invest.  Get it to earn for you.  A single monthly pension scheme will seldom provide sufficient retirement security.

One way of achieving this is via the ever increasingly popular investment clubs.  Investments clubs are great if you are new to investing and help you feel more comfortable as you rely on collective knowledge and investment instead of going it alone.

Investment club surveys show that they produce sustained profits and allow you to own a wider range of shares than possible on your own.  It also provides you with safely in numbers spreading the risk and providing collective brain power and experience to guide you in your decisions.  More importantly the cash outlay is affordable allowing you to build up your portfolio carefully.

Increase what you are currently saving for retirement, even if it’s just by a few pounds or dollars a month – you’ll be surprised at the difference it makes.

Dig out any old policies you may have taken out in earlier years and find out if they have lapsed.  If so ask if you can re-kindle them.  Policies you had in younger years are often worth adding to and many women have forgotten about the ones they had before they left work to have children.  Ask the question, you may be pleasantly surprised.

To retire successfully you need to begin to invest in that retirement now.

“One of the greatest misconceptions about investing is that is takes a lot of money to make a lot of money.  That’s simply not true.  What it takes is some money and a lot of time.  Time is the crucial component of investing..”

Suze Orman:  Women & Money

So, my advice?   Start today, even if it’s just a few pennies in a jam jar.

Many of our readers have their own businesses or are thinking about starting one up or else just wondering how to save costs and expand the one they have.  If you’re one of them, Grey Men may have the simple solutions you’re looking for.

Offering full accountancy and administrative services Grey Men can help you get on your feet and stay there by offering you support when you need it most i.e. in the beginning.

GreyMen are offering companies the opportunity to get a year’s FREE accountancy services simply by calling them and registering your details as a prospect to be entered into their prize draw from now up to the 30^th October 2009.

Grey Men believes that their services, like business, should be simple, comprehensive and accountable.

Services offered include:

All accountancy needs from start ups to established businesses

Marketing assistance from research to business development

Administration and support services eg: recruitment and HR

Whilst this may appear as yet another accountancy firm Grey Men are unique in that they are specialists in small and medium business practice and offer clients an experienced, fully qualified Chartered Accountant to take care of their business – no ‘part quals’ on their watch!

After an initial FREE assessment Grey Men tailor make a package that suits your budget and you can pay monthly allowing you to keep tabs on your investment.  You can add to your package at any time in terms of administration, marketing, advertising, recruitment and other services offered and you’ll receive a FREE six month review of your business with suggestions on how to increase your bottom line.

“Basically, we try to look after you in a way that doesn’t break the bank and is welcomed by you, the small business owner.”  Say the Directors   “So, if you need your dry cleaning collected, an office re-arranging, tax returns done, your staff paid regularly or simply some good professional people to talk to about your business needs, call us – we’re here to help”

Interested?  You can contact Grey Men at www.greymen.co.uk or call them now on 01993 771328 for your FREE assessment – no obligation.  You could be eligible to win your first years accountancy services absolutely FREE!

By Jane van Velsen

Whilst this is an older US clip we have to ask ourselves how this pertains to the UK today!  Enjoy.

We over paid the tax man by an estimated ₤10bn last year, according to IFA Promotion (IFAP) and this simply through tax payers not having the right tax codes, not maximising personal tax allowance, not claiming tax credits, not maximising their pension investment or savings allowances and by not understanding exactly what the individual tax payer can do to save themselves money.

If you are one of the estimated 30 million taxpayers in the country about to submit your tax return this October then there are a few things you should know before filing that could help you to be more tax efficient and save money.

1. Check your tax code and ensure you haven’t been paying too much tax.  If you’re over 65 ascertain if you have been awarded the higher personal allowance.  The threshold in this tax year is ₤6,035, but if you are over 65 this rises to ₤9,030.  Check your tax allowance has been upgraded.
2. Get your return in early!  The deadline is 31 October for paper returns and a penalty of ₤100 plus interest and surcharges awaits those who don’t.  Online returns can be submitted on the 31 January 2010 giving you more time, security and a written acknowledgement of receipt.  Be smart and register for online returns.
3. Married couples.  Remember that if your spouse is paying tax on a lower level the higher earner can make a gift up to the lower earners threshold reducing the rate at which that income will be taxed.  Nice saving!
4. Pensions are still the most tax efficient saving method especially if you are a high earner.  Whether a personal or company pension scheme, top it up when you can to maximise your tax savings.  You can qualify for immediate tax relief on contributions of up to 100% of your earnings with the maximum being ₤235 000.00 for 08/09
5. For those of you who love fast cars remember that you gain more in tax benefits by buying a vehicle with low CO2 emissions.  Check your tax tables on HMRC’s website to see if your vehicle qualifies.
6. Your Individual Savings Allowance is ₤3600.  If you don’t have that in savings this year squirrel it away for the next tax return and enjoy that tax free.  For stocks and shares the threshold rises to ₤7200.
7. Planning on giving your home to your children?  We’re in recession so house prices are reduced.  It’s a good time to give assets as the inherent value of the asset is low and whilst you’ll still have to pay inheritance tax it’ll be a lot less than in five years time.
8. If you are selling off assets and are subject to Capital Gains Tax maximise your exemption.  The current threshold is ₤9600 per individual.  If you are already over this amount then further disposals that result in losses could be set against this amount.

1. If you work from home remember to claim your business expenses deducting your dedicated office space proportionate to the rent/mortgage paid along with your utilities.
2. Business start ups should remember that they can claim their business expenses prior to start up for up to 7 years prior!  (Purchase dates must be indicated though.)

Whilst taxes may be on the increase you can avoid overpaying the taxman and save yourself money by being careful and prompt with your returns.  It pays to consult an accountant if you’re unsure of what you can claim and a good one should save you money.

How many times have you asked yourself if you’re overspending on book keeping and accountancy services?  Do you really know what your accountancy practice is doing for their fee?

In today’s financial climate every penny counts toward your bottom line – especially if you’re a new business.

Accountant or Bookkeeper?

Business Benefits

Fusion Accounts is a cost effective way of keeping your books and accurate accounts within your business. It will save you time and allow you to keep track of creditors, debtors, invoices and VAT with instant access to many reports. With Fusion Accounts being hosted online you will be able to access your accounts from any location via the internet. You can also grant your employees and accountant access to Fusion so that you can all be working on the tasks required.

Why use Fusion Accounts?

• Collaborative Accounting software
• Visibility of your financial position
• Save time and reduce costs
• Collaborate
• More Accurate accounts
• Easy to use
• No I.T. overhead
• Realtime support

Visibility of your financial position

Correctly managing cash flow is crucial for a business – Fusion accounts provide you with an instant view of your current position.

• How much money have I got?
• Who owes you money, and when its due
• Who you owe money to, and when its due
• How much money am I making?
• How much money am I spending?

Fusion Accounts presents you with this data instantly

Save time reduce costs

• Frees up your time by managing your accounts
• allows you to focus on your important business issues as opposed to the urgent issues of updating manual books/ excel spreadsheets
• Automatic generation of invoices
• Automatic reminder letters
• No installation required
• free uodates and backups

Collaborative Accounting software

• Unlimited simultaneous users

More Accurate accounts

• Easy and simple migration from paper and excel based accounts
• Reports
• User sales report
• Aged Debtors report – list of who owes you money and how long outstanding

Easy to use

• Each user only has access to functions they need
• Uses a familiar Internet Browser interface
• Easy to navigate
• Extensive online help is provided

No I.T. overhead

• No installation – since Fusion Accounts is hosted off-site
• Automatic upgrades – you’ll always be on the latest version
• Automatic backups
• Same security processes as online banking

Realtime Support

• Realtime technical support from Stiona Software
• Realtime Accountancy support from your Accountant
• Additional support and training available from our business partners

Poor cash flow is the main reason businesses fail within their first year of trading and there is no real “quick fix” remedy. The trick is to recognise the factors that are responsible for this and try to avoid them through good business practice.

Firstly, don’t panic. Making a stress based decision on cutting costs by axing your sales representative or chopping your advertising budget in half isn’t going to save you. Neither is a sudden loan injection to boost your marketing activity in the hope that leads may convert in time to yield cash.

Cash flow is the movement of money within your business, meaning both the money going out as well as that coming in. Sometimes we’re just too busy watching what’s coming in.

Some of the most obvious things to watch out for:

Over financing
Over Trading
Too many debtors
Too many creditors
Over Investing
Holding too much stock
Market demand changes

Over financing from start up means trouble for the near future as the perception is that you had more than enough money but, being excited about your new venture, you’ll have spent that quite quickly on set up costs, offices, stationery, mobile phone, stock, website and other services you felt you needed and, over a very short space of time, that cash will have dwindled rapidly and it wasn’t yours to begin with. You have to pay it back.

Feeling the pinch, you increase sales activity and end up over trading by selling more than you are capable of with your current cash levels and what’s worse you’ve enticed customers by offering credit facilities which means you don’t see your money for 30 – 90 days and some of those will default costing you legal and recovery fees on top of the interest you owe already, having a major impact on your cash flow.

Meanwhile your loan and higher interest rates kick in along with tighter repayment schedules which in turn lead to you having less control of your business and, if you used your home as security puts your family at risk too. All this combined with a sudden change in demand – as happens during recession – is lethal for a small business.

If you recognise one or more of these danger signals take time out to implement a clear management strategy giving you direction in terms of sales, cost and stock control and market demand changes.

o Analyse your costs historically and draw up a forecast budget to guide you.
o Cut excess spending carefully and decisively
o Luxury items such as cars, mobiles, offices, furnishings, expenses are all areas where changes can be implemented immediately
o Review your credit agreements with customers and tighten up on payment terms and collection.
o Manage your suppliers smarter i.e. pay on time to reduce costs and maintain a good credit history
o Relook your stock control systems. Overstocking costs you capital and storage.
o Marketing activity can be re-aligned and more cost effective marketing strategies implemented such as ‘seeding’ online or networking.
o Talk to your website manager about optimising your site to attract more prospects
o Remember the basics.

Don’t be afraid to involve an expert such as your accountant or marketing consultant. If they’re any good they’ll offer strong advice and help you implement the changes in a cost effective manner, ensuring you stay in business. Although this is an additional cost it will save you money and perhaps, even your home in the long run.

This article is sponsored by GreyMen Accountancy and Administrative services, Witney.

If not, then you do need one.  Some people say that they save lots of money due to the fact that they do their own bookkeeping and prefer it that way, but if you’re not able to bring it to balance sheet level and you’re trying to do your own taxes, there is a fair chance that you will end up making an error.  Good accountants see people paying huge fines because their ‘books’ were not order even though the client believed they were.

It’s too easy for me to say you need an accountant, let’s rather say you’d benefit from having a good one.  Firstly, you’d be able to stick to your own field of expertise while your accountant takes the entire “books’ and ‘tax’ burden away from you.

Secondly, and most importantly, a good accountant will save you money in the end and make sure that all your financial affairs are being taken care of.

Don’t underestimate the knowledge they have on general business issues either.  A strong accountant can be a good ally to have in a very competitive market and could just make that little bit of a difference to land that big contract.

On the money saving side of things an accountant could help make your administrative affairs run more smoothly and efficiently by assisting and advising on the implementation of internal systems and cost cutting as well as reviewing your business plan with you and suggesting relevant changes that suit the current market.

It’s true that accountants require payment for their services but, considering what you gain in return, it’s a service worth paying for and technically, a good accountant should you save you enough money to pay for their own service!  Think of your accountant as you very own piggy bank with the benefits being long terms savings and you’ll end up getting a lot more out of the relationship.

Fancy a year’s FREE accountancy services for your SME?