JS supports manufacturing client to streamline their business and personal finances
JS helped a manufacturing client streamline their business and personal finances.
A family-run manufacturing business was referred to JS as they were dissatisfied with the service they were receiving from their current accountant.
The company, a North West manufacturer of metal stillages, pallets, and cages were open to hearing how JS could help them from the outset and it was clear from the initial meeting that they needed support with their internal processes.
- The company was still using Excel spreadsheets to keep records which were inefficient and prone to error.
- They were unable to obtain key financial figures throughout the year, purely relying on the year-end accounts which were not up to date.
- Pre JS being engaged, the client hadn’t received any proactive tax planning advice; in particular for the director’s remuneration policy.
- JS was able to complete a digital health check for the client and migrate them onto Xero accounting software which helped make their internal processes much more efficient.
- The director was pleased that he could see up-to-date figures at the touch of a button which helped them make more informed decisions. This software also ensured that the client was MTD-ready.
- Since JS was appointed, our R&D team has made a number of successful claims for R&D Tax Relief. Our R&D specialist took the time to get to know the client so they could better understand the business and identify the potential R&D tax relief they could be entitled to claim.
- We provide regular proactive tax planning advice to the client to ensure that they are not paying more tax than they have to. We have helped structure their business affairs in a tax-efficient way to make use of all available reliefs.
- We have also provided further advice to the company director who was considering investing in property but did not want to extract the funds out of the business, due to the impact on his personal income.
- Since appointing JS, the client’s internal processes and efficiencies have improved by introducing bank feeds, sales and purchase invoice integration, and stock management software.
- The improved processes have allowed the directors to concentrate on more important parts of their business. The results can be seen in their turnover, which has doubled to c£2.5m since JS became their accountant and business advisor just two years ago.
- JS has reviewed the share structure of the company, which now includes other key individuals. The dividend policy has also been reconsidered to ensure that this is tax efficient for all the shareholders involved.
- JS has also set up a cash box company, allowing the director to invest in property and other investments without needing to extract the cash personally. This structure has additional benefits, as it ring-fenced their excess cash from trading risk and protected reliefs such as business property relief and business asset disposal relief.