Case Study 1 - A Different Approach

A partnership with an annual turnover of £400k paid over £2,000 for accounts preparation and three tax returns but didn’t really understand the tax process and why it took so long. She was charged for every single phone call made to the accountant, even when simply providing information for the tax return.

How have we helped?

on the spot's service model has made the annual process simpler freeing up time to discuss business and tax issues, plus at the same time reduced the annual fee to a fixed £1,200.

The owner prepares her own weekly income and expenditure figures which agree to her business bank account. As she uses these figures to closely monitor her business on a daily basis and made her own comparisons to last year, she doesn't need the quarterly management accounts currently being prepared by her accountant. She did need timely reaction and comment to her business and tax concerns as they arose. She prepares the VAT and PAYE returns.

For the tax returns, some months after the accounts were signed off, the accountant's practice tax professional called the owner asking her questions about the figures distracting her from running her daily business. It was clear there was no need to bother her about all the questions, as the answers had previously been provided, showing a lack of dialogue between the accountant and tax person. When the tax returns were eventually received they contained errors and the explanation of the tax due wasn’t easy to understand. There were no further reminders of the tax due, so the owner had to refer back to the letter several times.

on the spot now visits the owner at least once a year and has other regular contact, even if it’s just emailing a question or passing on some relevant tax information.

As soon as the year’s figures are ready, the owner calls on the spot who visits the owner a few days later. During the day, the owner’s figures are discussed, reviewed and understood by on the spot. The year end accounts and tax return are prepared either on the client's premises or at on the spot's office. on the spot asks more questions as necessary, points out any ideas or comments, discusses and explains the tax position and, if the owner is happy, the accounts and all tax returns are submitted at the same time.

on the spot sets up the owner’s preferred reminder system of a text message. She is happy she understands her accounts, her tax affairs are up to date, her tax return won’t get lost in the post and she won’t forget to pay her tax on time or how much it is.

Not only is the owner receiving an excellent, relevant, modern, more focussed service, the owner’s professional fees have reduced from being over £2,000 to £1,200 per year. And there are no irritating extra invoices for every conversation. It’s included!