Author: Pamela Swift

Search Engine Marketing: Can this drive more business for you?

Post author By Pamela Swift
Post date November 3, 2008
2 Comments on Search Engine Marketing: Can this drive more business for you?

Article Contributed by Mark S.
Economic recession has forced most of the small to mid-sized businesses to cut their costs and re-work in a lean and mean way to survive. This involves slashing down those balloon sized marketing budgets and switch over to cost-effective and accountable marketing – SEO is definitely one of them.
Although traditional marketing has its benefits but Internet marketing is gaining an edge due to its attractive measurable deliverables at much lower costs.
One of the toughest things that business owner’s face with web marketing is lack of awareness and knowledge, since it’s just a decade old in terms of popularity. There are conflicts in their expectations on what search engine optimization (SEO) constitutes and what it can do for their business. This confusion is further aggravated when pushy SEO experts spew overblown sales pitch just to lure clients and close deals. Be sure to study and understand what SEO can deliver in form of results to your overall marketing plan.
Broadly speaking one can make SEO accountable by checking up on the following 4 deliverables.
1. Search Engine Rankings:
This is the basic requirement which every SEO campaign should deliver. But the intensity varies as per specific individual circumstances and requirements. As one shirt size cannot fit all, similarly importance of rankings cannot be same for every business.
Search engine ranking optimization focuses on bringing your keyword search on top rankings in various search engine sites like Google, Yahoo, MSN, Ask, AOL etc. These results cannot be guaranteed or controlled.
Points to remember while demanding a high search ranking from your SEO expert:
· Check the competition for your chosen keywords. If it is highly competitive then it gets very difficult to climb over the top. It can be done, but requires consistent labor, time and resources spent on regular basis and following various SEO rules and guidelines to get on top rankings with search engines.
· Your demand should coincide with the current state of your site. Is your site brand new? If yes, it will take more time and efforts to bring you top rankings as one of the important factors influencing the search rankings is the domain age. Always remember rankings take time and constant efforts to build up. It is not a one day, one week or one month job.
· Do NOT expect your rankings to be on top all the time. Rankings fluctuate on a real time basis and your site rankings might suddenly drop to no-man’s island. Trust your SEO expert to find the reason for unexpected poor performance and take immediate damage control actions.
· Last but not the least, if you are obsessed with rankings, remember, rankings can only do so much. If visitors come to your site and immediately leave, it’s waste having high rankings. What is the use of having top rankings but no measurable increase in your sales or marketing results?
2. Traffic:
Another area to focus during an SEO campaign for your site is site traffic. This means the number of unique visitors to your site everyday and the amount of time they spent there. When your SEO campaign kick starts you should expect to see a gradual increase in the number of visitors to your site.
Important points to know about traffic before you focus on this area:
· Try and focus on quality instead of quantity. Even if you have 1000 visitors every day, if none of them convert into leads, your SEO campaign is not working. Be sure to take time and explain to your SEO expert what type of visitors you want them to target.
· Role of traffic is downplayed if you are in niche industry segment. This is because very few people will be actually searching for your product and services. Focus instead on conversion rates.
· Traffic loses its significance if you already have large number of visitors to your site. In such a situation ask your SEO expert to analyze the type of traffic and what action you want the traffic to take on your site. The emphasis should be on finding what’s working and not working to increase sales.
3. Conversions:
Conversion is the heart of any SEO campaign. You can check yourself the conversion rate by the following equation:
Conversion Rate = [(Total Web Sales / Unique Web Traffic) / Average Sales Price] x 100
To put simply you need to calculate how many visitors are actually converting into your customers. How do you do this?
· You need to tell your SEO expert what you consider as conversion for you. You need to define whether a visitor filling up an inquiry form is conversion or when they click on your ‘buy now tab’ on your e-commerce site or is it filling your contact us form or filling your subscription form/newsletter etc.
· You cannot hold your SEO expert responsible for low conversion rate if you have not clearly defined what you would consider as conversion.
· Remember the final sale depends totally on you and not the SEO expert. They can only bring the visitor to your site and guide them to take the action you want online; rest is totally dependent on you. Try and be reasonable in your expectations and see that you demand for an achievable goal from your online SEO campaign.
4. ROI:
The ultimate goal in every business strategy is to increase your bottom line. You need to ensure that the amount invested in any activity gives profitable return to make business sense. The same scenario is expected when you invest in search engine optimization.
The crux here is to remember it’s an investment. Every investment takes time to fructify. Give your SEO expert the minimum time required for the program to start delivering result. Generally it takes 90 days to start seeing some positive activity through SEO. This can vary as per the keywords, competition and industry. Sometimes it might take 6 months, sometimes 1 year. It is an on-going process and the sooner you begin, the soon you can see some good benefits out of it.
Conclusion
When hiring an SEO expert it’s important to have expectations since you are not indulging in charity. You need to be clear on what those expectations are and make sure to define it clearly in a formal written contract. This ensures a detailed road map or guideline is prepared which can be referred to check progress continuously. Any breach thereby can be clearly found out and dealt accordingly.
One of the major reasons why SEO campaigns fail is, when changes are requested for rankings, conversions, ROI or any help is required off site, it is not followed or provided by clients. They feel once they have dumped the job to the SEO expert, they will perform miracles. You need to help them to help you. Be co-operative, supportive and provide them all the information and help they need to carry out their job in the best possible manner. If still they cannot deliver as per your expectations and contractual agreement you have every right to penalize them and search for a better option.
About Author:
Mark S. is a qualified SEO expert working with Analtyix Solutions (www.analytixsolutions.com) which is a fast growing back-office service company for Finance and Accounting, IT, Marketing and Operational services. Analytix has been doing SEO for various industry websites from business brokerage, outsourcing, IT, dentists to e-commerce industry. To receive a free SEO analysis of your site contact Mark at mark@analytixsolutions.net

Finance & Capital

Top Self-Employed Tax Questions Preparing UK Tax

Post author By Pamela Swift
Post date November 2, 2008

HMRC enquire into approximately 75,000 self assessment tax return each year which often results in extra tax being payable because business turnover has been understated or non allowable business expenses have been claimed, resulting in interest and penalties on the extra tax for that year and sometimes previous years. Avoid extra taxes, interest and penalties with these top tax questions.
What is Business Turnover?
Sales turnover is the amount the business earns before deducting business expenses including receipts of any kind for goods sold or work done such as commission, tips, payments in kind, fees and insurance proceeds. The turnover to be included in your financial accounts is the date it was invoiced or earned and not the date it was received.
What is excluded from Business Turnover?
Sales turnover excludes sales of fixed assets such as premises, vehicles and plant and equipment. Also exclude business start up allowances which are entered separately on the self assessment tax return. Money introduced to the business is excluded being capital introduced and not sales turnover.
What business expenses are allowable?
All running costs incurred solely for the purpose of the business may be deducted as allowable business expenses for Tax purposes including goods bought for resale, employee wages, premises rent and overheads, administration costs, vehicle running costs. Interest on loans and overdrafts can be claimed as business expenses excluding the capital element of repayments. Higher business expense levels accurately recorded can keep taxable profit below the higher tax rate.
Can the cost of buying and repairing plant and machinery be claimed?
Repairs and maintenance costs are allowable business expenses. The purchase cost including improvements and replacement costs are not allowable business expenses, these costs being subject instead to capital allowances. Depreciation is not allowed and replaced by Capital Allowances for the purposes of calculating the tax payable.
What are Capital Allowances?
Capital allowances are designed to write off the cost of purchasing a fixed asset over the life of the asset rather than in the financial year in which it was purchased. Capital allowances on the majority of assets are based upon a higher rate of allowance in the year of purchase, First Year Allowance with the balance of the cost being written off at a lower rate, Writing Down Allowance. The full cost of any asset may be claimed as an expense in the year it is sold or scrapped less the total of accumulated capital allowances that have been claimed against taxable profits. Any sales proceeds over and above the written down value after Capital Allowances is added back to net profits and becomes taxable. Cars are subject to writing down allowances but not First Year Allowances unless they are classed as commercial vehicles. DIY Accounting has small business software templates that automate the calculation of capital tax allowances.
Can expenses incurred for both business and personal purposes be claimed?
No. HMRC only allow such expenses if the business expenses element of the cost can be separated from the personal element. If you claim the travelling expenses to buy business goods they can be claimed for tax purposes but would be disallowed if you also showed evidence of personal items being purchased on the same journey. Using your home phone is an allowable business expense if you claim specific identified business calls in which case you would also be able to claim a similar proportion of the rental cost.
Can vehicle costs be claimed when that vehicle is also used for personal use?
Vehicle running costs and expenses such as fuel, excise duty, insurance, repairs and breakdown membership may be claimed as business expenses if the vehicle is used solely for business purposes. Travel from home to work is not business use and disallowed. Vehicle running costs, and capital allowances on vehicles, are split between claimable costs and a disallowed cost depending on the proportion the vehicle is used for business and personal use. Parking fees for business purposes may be claimed, parking fines and penalties for motoring expenses are not claimable as business expenses for tax purposes. An alternative to claiming vehicle running costs and vehicle capital allowances would be to claim mileage allowances which at the time of writing are 40p for the first 10,000 miles and 25p per mile thereafter a feature of which the DIY Accounting small business software automates
Can Business trips be claimed?
Travelling expenses and modest lunch expenses may be claimed. Hotel and reasonable costs of subsistence may also be claimed. A subsistence allowance can be claimed if staying with friends or family as an alternative to an hotel. The cost of lunch may not be allowed when staying away overnight. Lunch with clients is regarded as entertainment and is not allowed. If you are accompanied on a business trip by family only your cost is allowable and specifically only if the trip was purely for business purposes. Expenses on combined business and personal trips are not allowed to be deducted as business expenses on tax returns.
Can home costs be claimed?
If part of your home is identifiable as solely for business purposes then running costs can be claimed. The cost allowed is the proportion of the total area of the home the business area occupies. For example, excluding shared facilities of kitchen and toilet if the home has three bedrooms, living and dining room and one bedroom is used solely as an office then 1/5 of home costs could be claimed. The costs to claim would be heat and light, insurance, general and water rates and mortgage interest excluding repayment amounts. Where mortgage interest is claimed the revenue might also claim as a capital gain the increase in value of that proportion of the home, such Capital Gains Tax being subject to tapering relief over time.
How do I treat business goods taken for my own use?
Any business goods taken for personal use should be added to sales at normal selling prices including items supplied to family and friends at less than normal prices. He cost of providing services for family and friends is not allowable as a business expense.
Can I deduct my salary or drawings as a business expense?
You cannot deduct your own wages, personal national insurance or drawings from the business as a business expense as these are distributions of the business income after net taxable profit has been calculated and not allowable expenses before tax..
Can I deduct my partners wages?
Yes partners wages can be deducted as a business expense although there are rules which would be applied in such circumstances to ensure the amount paid is both real and reasonable. The business would need to operate a PAYE scheme for that employee, deducting income tax and national insurance, the work carried out must be real not invented and the rate paid reasonable for the nature of the work and the time spent. Evidence may also be required that the amounts were actually physically paid to that partner, for example in the form of a cheque.
Should Tax Credits be included?
No these are excluded from business profits although the level of credit received may subsequently be changed in the light of the actual business profit earned compared with the amount declared when the Tax Credit was applied for. HMRC do check that the net taxable profit shown on the tax return is the same as that declared when the Tax Credit was claimed.
Can I claim expenditure incurred prior to trading commencing?
Yes business expenses incurred up to seven years prior to trading commencing can be claimed. The actual date of the expenditure should be recorded although all pre-trading expenditure is treated as having been incurred on the first day of trading.
Are pool cars taxable?
Company cars are taxable as a taxable benefit while pool cars are not taxable. To qualify as a pool car, private use should be incidental to business use, the vehicle should not normally be kept at the employee home and the vehicle must be available and used by more than one employee.

Terry Cartwright qualified as a Chartered Management Accountant and Chartered Company Secretary in 1971. A successful business career followed as Head of Finance for major companies in the UK and several consultancy appointments. In 2006 he created DIY Accounting producing Accounting Software for self employed and small companies that use simple accounts spreadsheets to automate tax returns.

Tags business, business expenses, self employed tax, self-employed, small business software, tax, tax questions, tax rate, tax returns, tax tips, top tax questions

Operations

Product Review DIY Accounting Small Business Accounting Software UK

Post author By Pamela Swift
Post date October 24, 2008
1 Comment on Product Review DIY Accounting Small Business Accounting Software UK

Accounting Software Strengths
Easy to use by non accountants requiring no previous Accounting knowledge and is basically a list of sales and a list of purchases on preset excel spreadsheets. Each workbook is arranged as 12 monthly spreadsheets with preset columns and uses an entry code letter to analyse both sales and expenditure.
Cash and bank spreadsheets are included as optional extras for those businesses that require them with a built in automated bank reconciliation. The sheet is designed to be completed by copying the figures from the bank statement into the bank spreadsheet and the bank reconciliation is achieved by also entering the statement total which is automatically checked against the entries made.
Monthly profit and loss account also includes a financial health check based upon an automated tax forecast to enable businesses to monitor their financial performance. By entering drawings the package then compares the net profit made with the likely tax liability plus the drawings.
Quarterly vat returns are generated for vat registered business and is also suitable for non vat registered business. To produce a vat return clients simply go to the vat file and select the quarter end date from a drop down menu and the figures for the vat return are automatically generated.
The vat calculations can be disabled by non vat registered small businesses by simply changing the standard vat rate from 17.5 to zero making the accounting software suitable for both vat registered and non vat registered businesses.
The accounting package includes a stand alone sales invoice generator which requires invoices generated to be manually input into the sales sheet.
The fixed asset schedule is preset with the capital allowance tax rates to automatically calculate capital allowances when fixed assets are entered. Depreciation is also automatically calculated with preset percentages that can be changed as required.
A major benefit of using this small business bookkeeping software is the templates are arranged in such a way to automatically generate an excel copy of the self assessment tax return. The excel self assessment tax return is arranged in the same layout as the official inland revenue form with the same box numbers making it easy to copy the figures from one to the other for submission.
Accounting Software Weaknesses
The Self-employed Accounting Software UK is based upon single entry of transactions and does not produce a balance sheet which is an optional requirement for self employed and therefore not a problem for the vast majority of businesses. DIY Accounting actually recommend clients who are self employed and wish to produce a balance sheet to use their Limited Company accounts package which does produce a balance sheet being based not on single entry but on double entry principles. The small business accounting software is suitable for a single tax year, the latest being 2007-08 and does not cater for accounting periods other than April to April. There are benefits in anyone self employed adopting the standard April to April financial year as this avoids tax allowances from two separate years being a feature of the accounts. When used by small businesses using the cash accounting system the bookkeeping entries to the sales and purchase sheets must be entered according to the dates money is paid or received rather than the dates invoices were issued. At the end of the financial year any invoices not yet entered require to be listed to adjust the final profit and loss account figures. This a major disadvantage if using the vat cash accounting scheme rather than the Accounting Software being reviewed.
Very Low Priced
At £12.99 the accounting software is basically available for loose change and will save many businesses the need to employ an accountant potentially saving hundreds of pounds in professional fees. For the financial year 2008-09 the basic package for non vat registered business is available at just £11.99 and the standard accounting software for vat registered small business is £12.99.
Other Features
The product has a stock control feature to monitor any stock losses. The small business accounting software contains a wages interface that fully integrates the DIY Accounting Payroll Software when those files are saved into the same folder as the accounting software files. Being written on excel spreadsheets all transactions are visible and capable of being changed by for example overwriting any errors as opposed to a database system that requires new transactions to be entered to reverse previous entries. The sales and purchase spreadsheets include columns for entering CIS tax deductions and payments and the certificate numbers. The CIS tax being then automatically entered on the self assessment tax return. As the small business accounting software is written on excel spreadsheets then it is essential that users have a version of excel from 1998 onwards installed to use the program. The accounting software also works fine with an Open Source spreadsheet package.
Conclusion: to Buy or not to Buy
Exceptionally good value, very easy to use and produces exactly what every small business requires, automated accounts requiring no bookkeeping skills and no previous accounting experience with the valuable end product of a fully automated self assessment tax return.

Tags accounting software, accounting software UK, bookkeeping, excel spreadsheets, payroll software, self assessment tax return, small business, small business accounting, small business accounting software, vat

Sales & Marketing

Tips to Finding a Right Buyer!

Post author By Pamela Swift
Post date October 23, 2008
1 Comment on Tips to Finding a Right Buyer!

Article Contributed by Satish Patel
Entrepreneurs are largely driven by the idea of being one’s own boss and are passionate to create wealth rather than money. To start out on one’s own is challenging and most of them would love it, but it can turn out to be a bumpy ride and face an abrupt end. The current downturn has left many such examples where the best of ideas backed by highly skilled entrepreneurs and a concrete business plan too face questions on survival.
As an entrepreneur, you may have kicked-off with a small to mid-sized set-up and that might have not turned out to something that you have wished for. Funds would have become a constraint to grow further, capital market crisis would have lead to little financial access and there seems lesser possibility of help from friends or families. How would you tackle this?
One might agree that continuing with the dream venture till you are forcefully pushed is not a good idea. You might be forced to sell at throwaway prices. In the need of hour, you should instead plan for an exit strategy that can help you realize a deserving value for your business before you’re backed against the wall.
Once the decision to sell has been made, the business owner should be aware of the variety of possible business buyers. Just as small business itself has become more sophisticated, the people interested in buying them are becoming more divergent and complex. With a little bit of preparation, the value of any business can be multiplied several times and, in some cases, many times.
The following are some of today’s most active categories of business buyers.
Business Competitors
This is a category often overlooked as a source of prospective purchasers. The obvious concern is that competitors will take advantage of the knowledge that the business is for sale by attempting to lure away customers or clients.
However, if the business is compatible, a competitor may be willing to “pay the price” to acquire a ready-made means to expand. A business brokerage professional can be of tremendous assistance in dealing with the competitor. They will use confidentiality agreements and will reveal the name of the business only after contacting the seller and qualifying the competitor.
The Foreign Buyer
Many foreigners arrive in the United States with ample funds and a great desire to share in the American Dream. Many also have difficulty obtaining jobs in their previous professions, because of language barriers, licensing, and specific experience. As owners of their own businesses, at least some of these problems can be short-circuited.
These buyers work hard and long and usually are very successful small business owners. However, their business acumen does not necessarily coincide with that of the seller (as would be the case with any inexperienced owner). Again, a business broker professional knows best how to approach these potential problems.
Important to note is that many small business owners think that foreign companies and independent buyers are willing to pay top dollar for the business. In fact, foreign companies are usually interested only in businesses or companies with sales in the millions.
Synergistic Buyers
These are buyers who feel that a particular business would compliment theirs and that combining the two would result in lower costs, new customers, and other advantages. Synergistic buyers are more likely to pay more than other types of buyers, because they can see thhttp://getentrepreneurial.com/mt-static/images/formatting-icons/bold.gife results of the purchase.
Again, as with the foreign buyer, synergistic buyers seldom look at the small business, but they may find many mid-sized companies that meet their requirements.
This category of buyer comes with perhaps the longest list of criteria–and demands. These buyers want maximum leverage, but they also are the right category for the seller who wants to continue to manage his company after it is sold. Most financial buyers offer a lower purchase price than other types, but they do often make provision for what is important to the seller other than the money–such as selection of key employees, location, and other issues.
For a business to be of interest to a financial buyer, the profits must be sufficient not only to support existing management, but also to provide a return to the owner.
Individual Buyer
When it comes time to sell, most owners of the small to mid-sized business gravitate toward this buyer. Many of these buyers are mature (aged 40 to 60) and have been well-seasoned in the corporate marketplace.
Owning a business is a dream, and one many of them can well afford. The key to approaching this kind of buyer is to find out what it is they are really looking for.
The buyer who needs to replace a job can be an excellent prospect. Although owning a business is more than a job, and the risks involved can frighten this kind of buyer, they do have the “hunger”–and the need. A further advantage is that this category of buyer comes with fewer “strings” and complications than many of the other types.
A Final Note
Sorting out the “right” buyer is best left to the professionals who have the experience necessary to decide who the best prospects are. Ask for help of experienced business brokers who can devise a sound strategy that gets your business the right buyer and a deserving price.
About Author:
Satish Patel is the founder CEO and President of Sunbelt Business Sales and Acquisitions, New England (www.sunbeltne.com). SunbeltNE is amongst the top franchise of Sunbelt Network, which is the world’s largest network of business brokers with presence in over 30 countries through 300 offices. Patel owns the franchise rights for the states of MA, NH, RI, VT and ME. SunbeltNE has expertise in steering buy and sell deals for Main Street, Franchises and Middle Market companies. Besides business brokerage, SunbeltNE offers services for strategic Mergers and Acquisitions, Cross Border Business selling and buying, Business Financing, Business Valuations and Transition Consulting.