If you are in the need of accounting software for your small to medium enterprise (SME) you have many choices. Long gone are the days when Quickbooks was your only option – today’s cloud based accounting programs are innovative, adaptive and designed to help you keep track of your books in ways that are well suited to your start up business.

The old giants of accounting software are being challenged and overthrown by a new wave of web based programs that will help you to keep track of your profits and losses, your VAT, your cash flow, invoices, employee wages and more.

If you are overwhelmed with all of the options on the market and wondering what you should consider when making your decision, read ahead.

Remember – large corporations often employ a ‘finance manager’ or lead accountant who is one of the most important people in the company. Your accounting software will play this role until the time when you too need a dedicated accountant – don’t treat this decision lightly. Take your time and do your research – What functions do you need your accounting software to be able to handle? What are the daily tasks that you need it to do? These are all things to consider.

What country was it designed for?

While Australian or American accounting software will certainly work for many aspects of your business needs, it will not be able to meet all of your specifically British needs. If you choose to go with a foreign product, ensure that it has a setting for UK businesses.

Does it include VAT options that will suit your business?

If you are already VAT registered or plan to become VAT registered in the future, you will need to assess some of the functions on any accounting software you are researching. Can it accommodate Flat-Rate VAT? Will it automatically produce a VAT return, and can this be submitted to HMRC from within the software program. If your business has any complicated VAT rules to follow, you may need software that implements Reverse Charge calculations automatically – be sure to check this.

Does it offer multiple currencies?

Many software programs offer multiple currencies, but some do not. If you regularly do business in Euros, dollars or other currencies, this could be an important consideration when you make your decision.

Will it automatically link to your personal annual tax return?

Some software options will take all of the input information about your salary, profits and dividend payments and will link this directly to your personal tax return. Programs, such as FreeAgent, even have the capacity to submit your annual return directly through the software, saving you heaps of time and energy.

Can it link to your bank accounts?

Can this software easily link its information to your bank account? While certain programs need you to physically upload your bank statements, others can set up an automatic feed that communicates to your bank account and credit cards. The automatic option is preferable to many small business owners, as this means that they are always up-to-date.

Do you like the interface?

Before you sign on for a contract with any accounting software, you should ask for a free trial (if it is not automatically offered). This is important when assessing if the interface will work for you, and if you find it easy to use. If you find the system intuitive to browse, you will have a better time finding features that you use on a daily basis.

What kind of Reports does it offer?

This is a key measure of usability when it comes to selecting the right software for your business. First, you must determine what it is that you require – do you need comprehensive reports on a daily or monthly basis? Some other common reports to consider include (but are not limited to):

• A monthly balance sheet that includes details about all of your company’s assets, liabilities and your capital balance over the past year
• Your monthly Profit & Loss reports
• Debtors and creditors over 30, 60 and 90 day periods
• Information about your open ledgers
• A forecast of your upcoming year

Does it include payroll capabilities?

The ability to keep your payroll information neat and tidy within your accounting software will be a real time saver, and could prevent costly mistakes. Some programs include this option as a default, and others offer it as an add on.

Do you like the invoices it generates?

When trialling out your new accounting software, it is a good idea to generate a test invoice, so that you can see the layout, design, features and the overall ease of creation. This is a document you will be sending to your valued clients, so it is imperative that you like the way it looks.

Do they offer high quality customer service?

In the event that you do need help with your accounting software package, it is important that they offer reliable and affective customer service. If you are often working late at night or on weekends, it pays to check their hours and find out if help will be on hand on holidays.

Choosing from options on the market

Now that you have thought about what features are important to you and your business, here are some well rated accounting software programs for SMEs that you should have a look at as you begin your search.

• Xero – Xero is the UK’s leading cloud based accounting software, and boasts fantastic reviews from its users.
• Wave – Touting itself as a free alternative to QuickBooks, Wave is a simple accounting product that will be attractive to many SMEs based on its no cost model.
• FreeAgent – Specifically for small start ups and freelancers, FreeAgent has a UK focus and a host of features that self employed individuals will find valuable.
• Kashflow – Easy to use and ultra simplified, Kashflow is a good option for you if this is your first attempt at doing your own books.

Some people are of the opinion that social entrepreneurship has something to do with how you market your business over social media, but this is far from the truth. True social entrepreneurship has to do with the underlying objectives and human elements behind the running of a company. It stems from the personal philosophies and ideals of those in charge and filters through to the main workings of the establishment. In this lies the continuous challenge to balance the goal of any business – which is turning a profit, and making the business serve a higher purpose.

Shout It Loud and Proud – Share Your Good Works

Many companies do actively support charity drives and worthy initiatives, and they are not shy to make this known to the public. The benefit to be gained by this approach is that the company will invariably always draw unto itself like-minded individuals who would be proud to serve under their employ. At the same time, the company has no trouble keeping existing staff members happy who view their participation in the business as something noble and fulfilling. More companies are realising the tremendous benefits attached to the social enterprise business model.

Employees are a social enterprise’s biggest resource

There is no denying that companies who operate for a higher goal are still sometimes faced with a scenario where the ‘chase for profits’ remains the number one priority. It’s important to note how employees react in this situation, particularly those who were initially attracted to the company on the basis of its so-called mission. Some may feel disenchanted with the firm once they realise that the company was merely projecting a façade, and others may even feel betrayed now that they have seen the ‘higher mission’ fall through the cracks.

Being a true social entrepreneur means going above and beyond appearances, and herein lies the biggest challenge. When you look at a firm that claims to contribute to preserving the environment, you want to hear about the actual endeavours they have undertaken to make a difference. You are not so easily convinced even if the company takes a can of spray paint and decorates its brand image up and down in appropriate green. People relate to real life stories and the truth always comes out in the end.

Finding the right quality people to share in your vision is another task altogether. Sometimes it’s not easy trying to determine people’s motives and having to separate the wheat from the chaff is not a straightforward affair. From upper management teams to office staff, to labourers on the workshop floor, you wished everyone was possessed by the same level of dedication to the ”cause” as you are. Finding investors though who may well share your specific dream shouldn’t be as difficult as the Huffington Post would suggest.

Assess every aspect of your business model

When your business is in motion, you have yet to arrest yourself from the balancing act that lies between achieving profits and promoting social initiatives. You have to drill down to the most minute of elements in your business and see if they are inline with the larger objective. For example, if you’re an environmentalist this could mean making sure all writing material comes from recycled sources, and when disposed is recycled again.

But it doesn’t stop there – there are bigger fish to fry. The daunting question is whether the company is prepared to take a slight knock to its profits in order to better serve the bigger goal. If it means that a few pennies lost here and there will somehow translate to a profound impact on the company’s contribution to its cause then by all means. But it is never as simple as that. There are a lot of grey areas but certainly objectivity helps a great deal to complete this balancing act.

Believe in the ideal – and remind yourself regularly

You need to truly believe in and stand for the bigger mission you serve. This goes without saying, and is the foundation of a true social enterprise. As the business owner, you have to demonstrate this purpose driven philosophy in both word and action. This not only cements the company’s deeper goal in the minds of your staff but also plays a huge role in fostering powerful relationships with your customers.

Remember – you are in control, and it is only you who can decide when you will happily reap the profits, and when you should relax your business mind so that the social initiative can take precedence. The constant back and forth guidance between profit and cause is completely at the behest of the entrepreneur, but the rewards of playing to this balance go to the company as a whole.

Another core responsibility of the social entrepreneur involves learning how to use creativity and open-mindedness in this balancing act. This is critical for any business so that it never has to feel like the social project is a lead weight around your waist. Instead, the company’s mission should be a source of inspiration and strength to all parties concerned.

The secret to success

Those social enterprises that have made the biggest impacts haven’t learnt any mysterious secret. In fact, they have succeeded in part because of their intelligent use of data gathered from the process of balancing the mission and the money. They have learnt how investing more revenue into the mission meant the wider success of the social initiative; how in turn, the greater success of the mission resulted in more money coming to the company. If you need help deciding the structure of your socially oriented business here is a wonderful resource detailing the models of social enterprises.

Greater than profits is when you realise that your customers and clients have a definitive role to play in the bigger scheme of things.  For the social enterprise, this means figuring out how you can create a direct bonding between your company’s social mission to the values of every customer. The first step will be to look at ways in which your business can join forces with customers in order to further the social goal. And secondly, since you wouldn’t be in business otherwise, is to see how this process can be made profitable.

The last stage to linking your customers to your mission happens when you learn to take active involvement with your customers. This happens through the very support your customer gives to your company when they buy your products and services. It actually plays a role by serving or enhancing the mission and is contributive in some way. Remember though that this does not take place directly, this can only be achieved over a period of learning to bring customers closer to the higher goals of your business.

You have probably heard the phrase “psychology of colour” numerous times in the past, but do you know what this term actually means? This article will explain the psychology of colour and tell you how you can leverage it for success in your career, business or personal life.

What does the term “the psychology of colour” mean?

Colour psychology refers to the study of how and why certain hues and shades seem to affect each individual’s emotions and change their moods. It has been proven that certain colours can change the way that people taste food, experience pain or spend their money.

As you can well imagine, this concept has intrigued many people in the branding and marketing industries. Some experts who specialise in the ability of colours to affect emotions believe that you can use colours to change behaviour, and many people in the advertising and marketing fields attempt to utilise this technique in order to increase sales.

Colour psychology in marketing and advertising

When it comes to selecting the different aspects of your branding, choosing the perfect colour is very important. After all, one of the first things that your prospective clients are going to notice about your product, website or logo is the colours that you have used.

Do you want to appear young, energetic and fresh? A pop of neon might do the trick. Is your brand image more classic and staid? Then dark and somber colours might be better for your business.

By using different colours and trends to target specific demographics, you can change the way that people feel about your product and your brand. If you are interested in what different colours can do for your business, read ahead to the next section.

The individual characteristics of colours

Here are just a few of the emotional characteristics associated with different colours.

Blue

Blue is thought to have a calming, soothing affect on people, and so it is often used in situations when people might otherwise be stressed or aggravated. There is evidence that installing blue street lights in troubled areas can reduce crime, and even suicide attempts. In 2002, city planners in Glasgow installed blue lights along Buchanan Street and the results have been favourable. Blue can also signal innovation. Famous brands that use blue as their main colour include Facebook, Twitter, LinkedIn and Skype.

Red

Perhaps it is due to its association with traffic lights and stop signs, but red is a colour that signifies alarm and caution. On the other hand, red can also be very positive, evoking a feeling of strength, passion and courage. Think of Coca Cola, Target and Vodafone.

Yellow

On the positive side of things, yellow can have very favourable aspects, and can encourage people to feel optimistic and creative, but it has also been long associated with mental illness and depression. Some people even believe that yellow (along with red) make us want to overeat, and many point to the interior decorations of Subway and McDonalds as support for this claim.

Green

Natural and woodsy, green makes us feel connected to the great outdoors and can ground people when they are feeling anxious. It is a balanced and calm colour that can reassure us – some experts believe that this is a holdover from our ancestors, as green may have signified that food and water were close at hand. Brands who use this colour include BP, Starbucks and Whole Foods.

Orange

Orange is a fun and playful colour that can evoke the carefree feelings of childhood, and it is often used to signal affordability and getting a good deal. You can see this used very clearly with companies such as Home Depot, EasyJet and Orange Mobile.

Pink

New, fresh and young, pink may be associated as feminine, but it is also a colour that evokes youth and an energetic sense of fun. Aside from products aimed at women, pink is used in the branding of T Mobile, Taco Bell and LG.

Brown

This colour is earthy, honest and stable, conveying a feeling of trust and reliability. While some choose to avoid this colour because of its occasionally unfortunate associations with dirt and waste, those who do are often trying to communicate an organic, natural feel. Companies using brown include UPS, Gloria Jean’s Coffee and many chocolate products.

Purple

Historically, purple has been associated with royalty, but colour psychologists also claim that it can evoke spirituality, luxury and a higher level of consciousness. Cadbury’s uses purple for their logo, as does Hallmark Greeting Cards and the BBC.

Black

While you may assume that black is all about darkness and depression, black does not always signal something negative. Because it is a blend of all colours, black can be very comforting and grounding, and can also evoke sophistication. Marks & Spencer uses black, along with Chanel, Lamborghini and Dolce & Gabbana.

Psychology of colour – subjective and controversial

As you can probably imagine, there are many different ways that individual people can interpret and absorb colours. While most psychologists agree that colours definitely affect the way that we feel, everyone experiences these affects differently.

While you might feel comforted and stable when you see the colour red, someone else might feel stifled, halted and even hungry! It is because of this subjectivity that some people believe that colour psychology is fraudulent and dishonest; although very little data seems to back this concept up with fact, the lack of concrete evidence is likely due to personal preferences, cultural differences and the context in which tests are conducted.

As you can see from above, the psychology of colour can truly help you convey your unique brand story to your potential clients. Carefully consider what colours you use – they will say a lot about you and your products.

We are getting nearer to the halfway point of the year – that means that this is the perfect time to assess the state of start-ups in 2016. Here are highlights of just a few of the most important news stories affecting small and medium sized enterprises (SMEs) in the UK over the past four months in our midway 2016 start-up review.

Changes to PSC Regulation

In a move to increase UK corporate transparency, as of 30 June 2016 the Government will begin requiring all businesses (no matter how small) to create a register of “people with significant control” (PSC).

This will mean that all business owners need to compile information about the people who hold more than 25% of the shares or voting rights in a company. This register will need to include a vast array of information about the people who own and/or control companies, including name, birthdate, nationality and extensive details about their interest in the company.

All UK companies (other than listed companies), as well as all LLPs (Limited Liability Partnerships) will be responsible for submitting this information annually, along with their annual statement to Companies House. All of this information will then be available and open to inspection by members of the publics. Do take note that it will be a criminal offense for a business to not comply.

A recent BCC Report finds that “Growth is Softening”

A new BCC (British Chambers of Commerce) report shows that UK economic growth seems to have continued to soften over the first quarter of 2016, and most of the key indicators used to analyse this information are either static or on the decline.

This survey is based on data submitted by over 8,500 firms in the first quarter of 2016, and shows that the services sector (the main driver of growth) fell this quarter, as did manufacturing. Domestic sales and orders have fallen to their lowest level in three years.

While many of the drivers are static, experts worry that this is part of an overall trend of decline, and that economic growth will continue to soften across the UK in 2016.

BCC chief economist David Kern is disappointed. “These results are disappointing but not surprising. This is the inevitable consequence of mounting global and domestic uncertainties, but it is nevertheless concerning that the vibrant and dominant services sector is likely to face mounting challenges in the next few years. The mediocre employment balances are a warning that we cannot afford to be complacent about the continued dynamism of our labour market.”

What will this mean for start-ups? Well, common wisdom seems to dictate that this will be bad news for small businesses, but on the contrary – start-ups can actually benefit from a declining economy, as they offer innovative solutions and bespoke problem solving.

The number of self-employed people in UK reaches new heights

A recent study has shown that self-employment and freelancing has reached new heights in the UK this year. More and more people are calling themselves “boss.”

The Not Alone report has tracked the numbers of self-employed people in the UK, and attempts to find ways in which co-ops and shared working spaces can better help freelancers achieve their goals. This report, published in conjunction with Co-operatives UK, shows that a full 15% of the UK workforce is now self-employed, totaling a massive 4.6 million people. They point out that this is the highest number in this country since this has been measured.

Many individuals who start out as freelancers or self-employed go on to become a start-up and SME owner, as they need to expand to meet demands.

The New Enterprise Allowance Has Helped Launch 80K SMEs

According to recent Department for Work and Pensions (DWP) data, more than 80,000 new businesses have been founded as a direct result of the New Enterprise Allowance since April of 2011. That averages out to approximately 1,400 a month, a result that has exceeded the project’s goals.

The New Enterprise Allowance empowers people to try something new and start their own companies. These small start-ups are often related to electrical installation, jewelry making and graphic design, and have given former jobseekers the tools and funds to create their own success stories.

According to the DWP report, the top five areas for these start-ups to occur are Liverpool, Sheffield, County Durham, Birmingham and Glasgow, and 20% were started by a person with a disability. This program has brought hope and self sufficiency to over 80, 000 people, and is set to continue indefinitely.

A new report shows that mobile shopping is on the way up 

If you are a SME owner, now is the time to be thinking about your website’s usability on smartphones and tablets. A recent report has shown that shopping for goods and services on one’s mobile has continued to increase in popularity across the UK.

According to studies produced by the Centre for Retail Research for RetailMeNot, online spending is predicted to exceed 60 billion pounds in the UK alone this year, accounting for 36% of all UK retail sales. You cannot afford to miss out on this lucrative opportunity – is your site properly optimised for mobile online shopping?

The study found that the average Brit will spend more than £60 per transaction and will spend around £1,300 this year, and that we are much more likely than our European counterparts to purchase our items while using our mobile phone (rather than a laptop or desktop computer).

If you are unsure about your site’s user friendliness when someone is browsing on a smartphone, type your webpage address into Safari (or whatever browser you use) on your phone. Does it look well proportioned? Does it re-size automatically to fit the page? Can you easily navigate between pages, and make a purchase? Try this online test to make sure.

If you answered no to any of these, you are probably losing sales. Contact your web developer as soon as possible for a solution.

 

That is a halfway start-up review of 2016 for new businesses. Although the economic climate is starting to stagnate, there are increasingly more opportunities for start-ups to take the steering wheel and drive the UK economy forward.