Category Archives: Bicknell Business Adviser

Buy to Let – Facts, Tax and Ways to increase your return Reply

Accounting, Bicknell Business Adviser • Tags: , , , ,

Mosaïque de logements

House prices are rising as confirmed by the Land Registry in their report 29 April 2013, the annual change is 0.9%, rent is increasing again after a drop in 2009 according to the English Housing Survey, in 2011 it went up 3% to a mean rent after housing benefit of £132 per week. So let’s see who the tenants are (English Housing Survey 2011):

 

social and private renting households receiving Housing Benefit
all
social
renters		 all
private
renters		 all
 renters
percentages
age of household reference person
16 to 24 6.3 11.9 7.8
25 to 34 12.6 26.9 16.5
35 to 44 18.1 24.0 19.7
45 to 54 16.3 15.8 16.2
55 to 64 14.1 9.0 12.7
65 to 74 15.8 7.8 13.6
75 and over 16.7 4.4 13.4
marital status of household reference person
married1 16.9 18.4 17.3
cohabiting2 5.5 9.7 6.7
single 33.2 37.6 34.4
widowed3 17.1 7.5 14.5
divorced4  20.9 17.0 19.8
separated5 6.4 9.9 7.3
household size
one 50.5 31.7 45.4
two 23.2 28.7 24.7
three 11.5 18.0 13.3
four 8.2 12.3 9.3
five 3.6 5.8 4.2
six or more 3.0 3.4 3.1
household type
couple, no dependent child(ren) 11.5 8.0 10.5
couple with dependent child(ren) 10.1 19.2 12.5
lone parent with dependent child(ren) 20.9 35.1 24.7
other multi-person household 7.1 6.0 6.8
one person 50.5 31.7 45.4
length of residence
less than 1 year 8.4 27.7 13.6
1 year, under 3 years 15.4 32.5 20.0
3 years, under 5 years 13.2 15.5 13.8
5 years, under 10 years 20.7 12.3 18.4
10 years, under 20 years 22.2 8.0 18.4
20 years or more 20.1 * 15.7
economic activity of
household reference person
full time work 2.7 13.1 5.5
part time work 9.5 18.1 11.9
retired 36.4 16.0 30.8
unemployed 13.8 17.4 14.8
full time education * * 1.5
other 36.4 32.9 35.5
total 2,395 890 3,285
£ per week
mean gross weekly income
of household reference person  206 237 215
(and partner)
sample 1,945 690 2,635

Yields are looking good, its possible to achieve 8% to 10%, take a look at the examples on http://investors.assetz.co.uk/property-listing.htm

Lending rates are low with Bank of England base rate stuck at 0.5%.

So we should see Buy to Let coming back into fashion with investors, with that in mind here are my top tips to minimise your tax:

1. Claim allowable expenses

  • Mortgage or Loan Interest (but not capital)
  • Repairs and maintenance (but not improvements)
  • Decorating
  • Gardening
  • Cleaning
  • Travel costs to and from your properties for lettings or meetings
  • Advertising costs
  • Agents fees
  • Buildings and contents insurance
  • Ground Rent
  • Accountants Fees
  • Rent insurance (if you claim the income will need to be declared)
  • Legal fees relating to eviction

 

2. If the property is furnished claim for Wear & Tear, you can claim 10% of the rent each year

3. Claim for repair and advertising expenses incurred in getting the property ready for renting

4. Consider how the property is owned for example your partner may pay less tax or if you own it 50/50 you could use their capital gains tax exemption on sale of the property

5. Consider whether owning the property within a limited company might be better, Corporation Tax is 20% for small companies in the UK which can make dividends more tax efficient than personal income.

6. Make sure any borrowings you have are on the Buy to Let so that you can claim tax relief on the interest

7. Claim the Energy Saving allowance  for energy saving work and save £1,500

steve@bicknells.net

 

 

Are you missing out on money you’re entitled to? 1

Bicknell Business Adviser, Free Things • Tags: , , , , , ,

Pot of gold coins isolated on white

You could be missing out on money that is owed to you:

UK Benefits https://www.gov.uk/benefits-adviser

The benefits adviser checks if you’re eligible to claim:

  • Attendance Allowance
  • Bereavement Allowance
  • Bereavement Payment
  • Carer’s Allowance *
  • Carer’s Credit
  • Child Benefit *
  • Child Tax Credit *
  • Constant Attendance Allowance
  • Disability Living Allowance
  • Employment and Support Allowance *
  • Guardian’s Allowance
  • Housing Benefit *
  • Incapacity Benefit
  • Income Support *
  • Industrial Injuries Disablement Benefit
  • Jobseeker’s Allowance *
  • Maternity Allowance
  • Pension Credit *
  • State Pension
  • Statutory Adoption Pay
  • Statutory Maternity Pay
  • Statutory Paternity Pay
  • Statutory Sick Pay
  • War Widow’s or Widower’s Pension
  • Widowed Parents Allowance
  • Working Tax Credit *

(*) – For these benefits, you’ll also get an estimate of how much you might get.

Lost Pensions https://www.gov.uk/find-lost-pension

The Pension Service will help you track down any lost pensions, if you’re not retired you might be able to consolidate all your pensions to get a better return.

Unclaimed Assets and Forgotten Funds http://www.unclaimedassets.co.uk/

Assets are considered dormant when contact with the owner is lost – typically due to a name change after marriage or divorce, an unreported change of address or expired postal forwarding order, and incomplete or illegible records.

It’s important to note millions of family members remain unaware they’re entitled to collect unclaimed assets owed deceased relatives, who passed on without leaving updated financial records for their heirs.

The majority of this lost money comes from dormant bank accounts, orphan pensions, unknown windfalls, missing shares and abandoned dividends, forgotten life insurance policies, National Savings Certificates and Premium Bonds which have not been redeemed; but also included is £300 million in unclaimed National Lottery winnings!

Lost Savings and Bank Accounts http://www.mylostaccount.org.uk/

If you think you may have lost touch with your account or savings, this website will guide you through some simple steps to help reunite you with your money. This is a FREE service and is brought to you by the British Bankers’ Association, the Building Societies Association and National Savings and Investments.

steve@bicknells.net

 

Pension Liberation – Don’t do it Reply

Accounting, Bicknell Business Adviser • Tags: , , ,

Taking money

If you have a pension fund you could be targeted by companies offering you ways to access your pension fund before you are 55, this is known as ‘Pension Liberation’.

How pension liberation arrangements work

Typically, pension liberation arrangements involve transferring your pension savings from your existing pension scheme to another pension scheme to allow you to access funds early. The schemes are offered through companies, who make money by charging you a fee to do this or by taking money direct from your savings. Company representatives or advisers may be pushy and may say they can offer you a loan or advance or cashback from your pension. They may even offer to share their commission for doing this.

Sometimes representatives suggest that because of the excellent returns their new scheme supposedly offers, you’ll get an upfront reward or dividend. Whatever way it’s presented, if you end up getting cash you’re likely to be involved in pension liberation.

Converting a pension pot into cash can sound very attractive to people who urgently need money. However, don’t be tempted, as there are big tax consequences of accessing your pension early. If something sounds too good to be true, it usually is.

Very often the advisers say there is a legal loophole to get round the rules to give you money by transferring your pension pot to a different scheme. There is no legal loophole. Very few people can take money out of their pensions before they’re 55. If you can, it’s usually because you’re retiring on ill-health grounds such as a terminal illness and you must meet strict rules to do this.

If you liberate your Pension you personally will have to pay tax at a special fixed rate of 55% on the funds liberated. The 55% rate isn’t reduced if you are a lower rate tax payer or pay no tax at all.

In addition to the tax the Pension Advisory Service say that on average you will be asked to pay a fee of at least 20% by the company liberating your pension.

steve@bicknells.net

New case clarifies the meaning of insolvency 3

Accounting, Bicknell Business Adviser • Tags: , , , ,

Insolvent

When a company becomes insolvent there can be serious consequences:

  1. An increased risk of personal claims and Directors disqualification
  2. Winding up petitions
  3. Disposal of assets will be void once a winding up petition has been made
  4. Banks and Lenders will enforce their security
  5. Termination of contracts with customers and suppliers
  6. Transactions entered into within the previous 2 years can be reviewed and reversed

There are two tests for corporate insolvency:

  • the cash-flow test: is the company currently, or will it in the future, be unable to pay its debts as and when they fall due for payment?
  • the balance sheet test: is the value of the company’s assets less than the amount of its liabilities, taking into account as-yet uncertain and future liabilities?

If the evidence proves that the answer to either of these questions is yes on balance of probabilities, then the company is deemed insolvent under English law.http://www.out-law.com/en/topics/financial-services/restructuring/corporate-insolvency-the-basics/

On the 9th May 2013 the Supreme Court ruled in the case of:

BNY Corporate Trustee Services Ltd & Ors v Eurosail-UK 2007- 3BL plc & 2 other cases [2013] UKSC 28

Lord Walker acknowledged the uncertainty that is inherent in the (Balance Sheet) test, commenting that: “it is still very far from an exact test, and the burden of proof must be on the party which asserts balance-sheet insolvency.” It will, therefore, not simply be a matter of looking at a company’s statutory balance sheet at a given moment in time as there may be relevant assets and liabilities not contained in that document. However, nor will it involve a rather more complex assessment of whether the debtor has reached the point of no return.

Further comments on the case:

It is of course true that a snapshot of a company’s balance sheet is not conclusive as to its commercial and economic viability, and to make every company in this position vulnerable to a winding-up or administration order would be unfair and uncommercial.

The Supreme Court’s decision should therefore be welcomed for clarifying that the two tests are mutually exclusive and both represent different ways of analysing whether a company is insolvent. The judgment does leave some issues unresolved, for example the correct methodology for discounting future liabilities and the timing of the accrual of future and contingent liabilities.

steve@bicknells.net

What if I give my shares away? Reply

Accounting, Bicknell Business Adviser • Tags: , , , , , ,

Successful Businessman With A Contract In Hand

There is a common mis-conception that if you give something away it doesn’t have any tax implications, unfortunately, that isn’t the case.

When you give away shares you usually work out your gain or loss as if you’ve sold the shares at market value. The market value is the price you would expect to receive if you sold them on the open market. This also applies if you sell them for less than their full value.

There are some exceptions:

  • if you can claim Gift Hold-Over Relief
  • if you give the shares to your husband, wife or civil partner
  • if you give shares to a registered charity

To qualify for Gift Hold-Over Relief, the shares must be in a trading company, or the holding company of a trading group, and one of the following must apply:

  • the shares aren’t listed on a recognised stock exchange
  • you’ve at least 5 per cent of the voting rights in the company

You don’t pay Capital Gains Tax when you give (or otherwise dispose of) shares, to your husband, wife or civil partner, providing both of the following apply:

  • you’ve lived together for any part of the tax year in which you made the gift
  • the gift isn’t ‘trading stock’ (trading goods bought for resale)

You won’t have to pay Capital Gains Tax on a gift of shares to a registered UK charity.

HMRC have further details and a Help Sheet 295 containing further details.

You can ask HMRC to check your market valuation by submitting Form CG34 it will take at least 2 months.

Settlements Legislation S624/S660

If you think moving shares in your company between yourself and your spouse sounds like a great way to save tax, think again!

Since the 1930′s we have had Settlements Legislation which prevents you from giving income or assets to someone else in your family in order to pay less tax.

Where the anti-avoidance Settlements legislation applies, all income transferred by a settlement is treated as that of the settlor.

 

 

steve@bicknells.net

 

 

 

The Extreme Coupon frenzy, is it good for business? Reply

Accounting, Bicknell Business Adviser, Free Things • Tags: , , ,

Collection vintage free ticket

I was watching BBC news this morning and saw Jordon Cox, 16, from Brentwood in Essex, he scours newspapers and magazines for coupons and vouchers that offer special deals on food and household products.He bought £105 of groceries for £1.62, follow this link to see his interview http://www.bbc.co.uk/news/uk-22418225

So lets start by learning the lingo

  • Bogo: Buy One Get One
  • Peelie: A coupon stuck to a product
  • Blinkie: A coupon station in a store
  • Stacking: Using a store coupon with a manufacturers coupon – not all stores allow this
  • Catalinas:Coupons printed at the cash register when you pay for your items
  • Rebate: Mailing a receipt to a company to get a refund
  • Overage: When the value of a coupon exceeds the purchase price of the item

Everyone loves a freebie or money off, but there seem to be so many sites offering vouchers its hard to keep track of what is on offer, for example I get e mailed deals from:

  • Groupon
  • KGB
  • Wowcher

I have apps for:

  • Voucher Cloud
  • O2 Moments
  • Vouchercodes
  • Quidco
  • Top Cash Back

Then there are websites like http://www.freebiesiteuk.co.uk/

That’s before you start cutting coupons out of magazines.

Pitney Bowes have produced a white paper on Coupons – April 2013:

The whitepaper, entitled ‘The Coupon Renaissance’, revealed that 76% of consumers would buy more from local businesses if they offered coupon incentives. With many small local businesses struggling in today’s economic climate, the figures offer a positive outlook that SMEs should capitalise on.

The surge in coupon redemptions is a relatively new phenomenon; with the current economic climate increasing popularity, the UK has witnessed a sharp 14.7% spike in usage since 2008**. The research also showed that an impressive 80% of consumers have redeemed a coupon in the last year, and half (49%) of customers redeem them as frequently as one per month.

The trend by consumers to use coupons to cut costs are likely to increase based on a report from Which:

More than half of Britons cannot cope on their current salaries with one in five forced to borrow money to buy groceries and other household essentials because of the soaring cost of living, a new survey revealed today.

One in four people revealed they’ve had to use their savings to buy food or other daily essentials while one in five have gone into debt to do this.

Another 10 per cent said they could envisage needing to borrow buy food in the future.
Read more: http://www.thisismoney.co.uk/money/news/article-2110009/Which-report-reveals-millions-Britons-forced-borrow-buy-groceries.html#ixzz2SS0GEVyd

steve@bicknells.net

 

How to avoid the Pitfalls of Dividend Waivers Reply

Accounting, Bicknell Business Adviser • Tags: , , , , ,

business man in a crisis

Dividends always need to be handled with care and its a topic I commented on in my blog “Things you need to know about Dividends…..” but you should also be aware:

  1. Dividends are paid at the same rate for each category of share in accordance with the number of shareholdings held
  2. CTA10/S1168(1) specifies that dividends are treated as paid for the purposes of the Corporation Tax Acts ‘on the date when they become due and payable’
  3. Never be tempted to backdate board minutes and dividend vouchers, as the documents will be legally void and can constitute a criminal offence.

There are times when, for good reasons, a Shareholder may wish to waive their right to a dividend, but HMRC are well aware that often waiving a dividend can have tax implications (bounty and settlement) and they have the following advice in TSEM4225

Not all dividend waivers are vulnerable to challenge. Where a company with few shareholders declares a dividend when one or more of the shareholders has waived their right to a dividend in circumstances where other shareholders may benefit, it is possible the Settlements legislation could apply. You should look out for the following factors, which would indicate that the Settlements legislation is likely to apply.

  • The level of retained profits, including the retained profits of subsidiary companies, is insufficient to allow the same rate of dividend to be paid on all issued share capital.
  • Although there are sufficient retained profits to pay the same rate of dividend per share for the year in question, there has been a succession of waivers over several years where the total dividends payable in the absence of the waivers exceed accumulated realised profits.
  • There is any other evidence, which suggests that the same rate would not have been paid on all the issued shares in the absence of the waiver.
  • The non-waiving shareholders are persons whom the waiving shareholder can reasonably be regarded as wishing to benefit by the waiver.
  • The non-waiving shareholder would pay less tax on the dividend than the waiving shareholder.

So if you are thinking of waiving dividends, bare the following in mind:

  1. A formal Deed of Waiver is required, the Deed will say that the Dividend is Irrevocably Waived, it must be dated before the right to dividend arises, it must be signed and witnessed and filed with the company statutory records
  2. You should have a good commercial reason for the Waiver which could be to retain funds for a specific purpose and this could be stated in the Deed
  3. Don’t make a habit of waiving dividends as it will increase the risk of questions from HMRC
  4. Don’t give inducements to encourage Dividend Waivers
  5. Make sure your dividends are legal – see my Blog “Things you need to know about Dividends…..”

steve@bicknells.net

 

What can you include in a PAYE Settlement Agreement (PSA P626)? Reply

Accounting, Bicknell Business Adviser • Tags: , , , , , ,

Businessman looking at a small present with a magnifying glass

 

 

PAYE Settlement Agreements (PSA’s) are requested by Employers and subject to agreement with HMRC. Under this agreement the employer will be responsible for accounting for any tax and national insurance liabilities arising. Any items covered by a PSA will not need to be shown on forms P35 and P11D at the end of the tax year.

 

 

Applications for PSA’s should be made before 6th July 2013 if you want to use them for the tax year ended 5th April 2013, once approved by HMRC payment of the Tax and NI is due by the 19th October (payments by cheque) or 22nd October (payments online).

The tax due is grossed-up at the employee’s marginal rate. For example, £5,000 of benefits provided to higher rate taxpayers (40 per cent) would be grossed-up as follows:

Benefits of £5,000 x 40 per cent = £2,000 tax

Grossed-up tax = £2,000 x 100/100-40 = £3,333.33

Benefits plus grossed-up tax = £8,333.33 x 13.8 per cent Class 1B = £1,149.99

Total due to be paid £3,333.33 tax plus £1,149.99 Class 1B = £4,483.32

.
PAYE Settlement Agreements can only be created for:

 

Minor Benefits

HMRC (PSA1060) examples (not exhaustive) of what may constitute a minor item.

  • incentive awards
  • reimbursement of late night taxi fares outside s248 ITEPA 2003
  • personal incidental expenses in excess of the statutory daily limit
  • present for an employee in hospital
  • staff entertainment, for example a ticket for Wimbledon
  • use of a pool car where the conditions for tax exemption are not satisfied
  • subscriptions to gyms, sports clubs etc
  • telephone bills
  • gift vouchers and small gifts

Irregular Expenses

HMRC (PSA 1070) examples (not exhaustive) of what may constitute an irregular item.

  • relocation expenses where the amounts concerned exceed the £8000 tax exempt threshold (Section 287 ITEPA 2003)
  • occasional attendance at an overseas conference where not all the expenses qualify for relief
  • expenses of a spouse occasionally accompanying an employee abroad
  • occasional use of a company holiday flat
  • one off gifts which are not minor.

Impracticable Items

HMRC (PSA 1080) examples (not exhaustive) of what may constitute an impracticable item

  • free chiropody care
  • hairdressing services
  • Christmas parties and similar entertainment provided by the employer which do not already qualify for relief
  • cost of shared taxis home which do not satisfy s248 ITEPA 2003
  • shared cars.

Gov.uk has guidance on How to get a PSA

steve@bicknells.net

 

Private Medical Insurance – Tax Facts 2

Accounting, Bicknell Business Adviser • Tags: , , , , , , , , , ,

3d rendered illustration - runner anatomy

 

Private Medical Insurance accounts for 21% of the value of all benefits in kind and 60% of employees with benefits have Private Medical Insurance, based on HMRC statistics.

HMRC have an A to Z list of benefits and expenses which gives guidance on most benefits and Helpsheet 207 which provides details of non-taxable benefits.

 

 

But did you know some medical benefits are tax free:

  1. Periodic medical check-ups or health screenings (maximum of one per tax year)
  2. Eye tests required under health and safety legislation and the cost of corrective glasses or contact lenses
  3. Medical treatment provided outside the UK when the employee is working overeseas
  4. Medical treatment or insurance solely related to injuries or diseases arising from the employee’s work
  5. Welfare Counselling

If you do have Private Medical Insurance provided by your employer it will be reported on the P11D in Section I (if you are not a Director or earn below £8,500 (P9D employees) Private Medical Insurance is not taxable).

Simply Health have produced a Fact Sheet which sets out the tax implications of:

  • Private Medical Insurance (PMI)
  • Health Cash Plan
  • Cost Plus Insurance Plan
  • Healthcare Trust
  • Scheme Agreement

The Fact Sheet shows the tax for both basic and higher rate taxpayers and the Employers NI.

The Money Advice Service sets out some of the Pros and Cons of PMI:

Pros

  • Specialist referrals. You can ask your GP to refer you to an expert or specialist working privately to get a second opinion or specialist treatment.
  • Get the scans you want. If the NHS delays a scan, or won’t let you have one, you can use your cover to pay for it.
  • Reduce the waiting time. You can use your insurance to reduce the time you spend waiting for NHS treatment, if your wait time is more than six weeks.
  • Choose your surgeon and hospital. You can (in theory) choose a surgeon and hospital to suit your time and place – which isn’t possible on the NHS.
  • Get a private room. You can use it to get a private room, rather than staying in an open ward which might be mixed-sex.
  • Specialist drugs and treatments may be available. Some specialist drugs and treatments aren’t available on the NHS because they’re too expensive or not approved by the National Institute for Health and Clinical Excellence in England and Wales (NICE) or the Scottish Medicines Consortium (SMC).
  • Physiotherapy. You get quicker access to physiotherapy sessions if you have insurance than you would through NHS treatment.

Cons

  • You might get better care on the NHS. If you have a serious illness such as cancer, heart disease or stroke, you’ll get priority NHS treatment. NHS hospitals can be as good as or better than private hospitals.
  • It’s expensive – and the price will go up. A typical family premium (two adults in their 40s and two children under 10) can vary from £700 to £1,650 per year. Premiums will rise every year, and with age – so by the time you’re older, and more likely to need hospital treatment, you may not be able to afford it.
  • Chronic illnesses aren’t usually covered. Most policies don’t cover chronic illnesses which are incurable, such as diabetes and some cancers.
  • There may not be any local treatment options. If you choose a policy with an approved list of consultants and hospitals this may not include the expert consultant you want to see or a convenient location for treatment.

As an alternative to PMI, I think it might be worth looking at Insurance Policies that are tax free such as Income Protection, the following is an example from Willis Insurance:

Group Income Protection pays a proportion of employee’s salary if they are off work due to accident or illness for a prolonged period.

Group Income Protection can be set up with a deferred period of 13, 26, 28, 41, 52 and 104 weeks. The longer the deferred period the lower the premium will be.   Typically the cost of providing Group Income Protection is usually between 0.5% -1.5% of payroll but largely depends on the type of business.

The premiums for the policy enjoy tax relief on contributions and no Benefit In Kind Tax

Employers could then support employees by paying for specific health care as necessary, the employees would then only be taxed on the care that they required.

steve@bicknells.net

The missed opportunity of Self Billing in e commerce Reply

Accounting, Bicknell Business Adviser • Tags: , , , ,

e commerce

I think e commerce and EDI has focused too much on billing clients and consumers (mainly B2C rather that B2B) and not enough on improving the efficiency of processing supplier invoices.

According to research and analysis group, Gartner, typically the cost of processing an invoice in the UK averages between £4 and £25, and in some cases even up to £50, per individual invoice.

You can check the costs for yourself using pay streams calculator.

A typical purchase invoice goes though these stages:

  1. Its checked against the purchase order
  2. Its entered as unauthorised to the accounting system
  3. Its copied and sent to the manager to check the goods were received and were in good order
  4. The manager signs the invoice off
  5. Its status is changed to approved or in query
  6. Queries are sent to the supplier
  7. Authorised invoices are scheduled for payment
  8. Payment is made with a remittance advice
  9. Supplier statements are reconciled to the accounts system

The more suppliers you have and the bigger the volume of either invoices or transactions on invoices, the more complicated and long winded the process becomes.

Although all invoices contain the same basic information they are all formatted and laid out differently.

In some systems invoices are scanned and given a bar code to help index them to accounting system entries.

But it seems to me that many businesses have overlooked what should be a simple solution, Self Billing.

With Self Billing you generate the tax invoice for your supplier and send it to them with the payment.

The following is an extract from HMRC Self-billing:

Putting in place a self-billing arrangement with your suppliers can bring certain advantages for your business:

  • it can save time and money – you can send self-billed invoices electronically so long as you can set up suitable systems
  • purchase invoices are produced to a standard format, making life easier for your accounts department
  • you retain control of how much you’re invoiced for – this can be helpful if your business is responsible for determining the value of the goods or services it receives
  • flexibility – you can outsource the production of the self-billing invoices to a third party if you want to

Your suppliers don’t have to be based just in the UK. You can self-bill businesses in other EU countries or in countries outside the EU.

Advantages for suppliers

If you’re a supplier, entering into a self-billing agreement with your customers can be helpful for your business because:

  • your customer is responsible for making sure that the VAT details on the invoices are correct
  • as part of the agreement with your customer you may be able to specify when you’ll receive payment – this can help with your cash flow

Self billing has been used by the Construction Industry for many years, in fact I created a Self billing system when I worked at Rollalong in 1994, the key issues are:

  • Getting suppliers to agree to join the self billing scheme
  • Getting approval from HMRC
  • Keeping your VAT registration records up to date

But the cost and time savings are significant, the whole process changes and could become:

  1. Purchase Order Sent
  2. Goods received and matched my the manager
  3. Value of Goods received entered to accounting system – this could be automated on matching
  4. Payment made and remittance changed to Self billing invoice

The number of queries are reduced because you aren’t invoiced for things you haven’t had, there is no need to copy and distribute invoices for sign off as this is replaced with stronger goods inward systems.

Why aren’t more businesses adopting self billing?

steve@bicknells.net