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Date of Issue: 19th December 2007
Business
in Practice
A regular column of general business advice brought to you
by Bates Weston, business advisors and chartered accountants.
As a director at Bates Weston, Wayne advises on all aspects of successfully growing an owner-managed business.
The exact format of your annual review will depend on your advisor and be tailored to suit you and your business – but in general terms you should expect your advisor to begin withyour long term plans. |
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Although much of this may be familiar ground as you see your advisor regularly, it is worth spending time at your review ensuring that there have been no major changes in your market place or your personal circumstances that require a change of direction.
Long Term Planning – strategic overview
- Considering your market place and your aspirations, how do you expect your business to look in 3 to 5 years time?
- What will your level of involvement be in that business?
- On a personal level, what are your plans for your family? Consider the bigger picture and include areas such as education, travel, dependent relatives, long-term care, and retirement.
Commercial Review
- How has your business performed over the past 12 months?
- How has it performed in comparison with your competitors and
your industry?
- Highlight areas for improvement such as profitability, cash
management and financing arrangements.
Tax Review
- Are you making the most of all available tax reliefs?
- Can your taxable profits be reduced tax efficiently, by payment of
bonuses, dividends or pension contributions?
- Is there any planned expenditure that can be brought forward?
- Are there any capital losses to be crystallised or utilised?
- The rate at which you pay corporation tax is dependent upon
the number of associated companies within your group. Is this
optimised?
- On a personal level, are you making the most of all available
reliefs, particularly in relation to capital gains tax?
At the end of your review, you and your advisors should be clear on your long term plans, on a commercial and a personal level, and you should have agreed on a way to realise those goals. On route, you should also be maximising profits and minimising taxes.
If you would like to talk to Bates Weston about your annual business review contact Wayne Thomas at waynet@batesweston.co.uk or call 01332 365855.
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