Julia’s Case study – Setting up UK branch of a foreign parent company
European based parent company set up in the UK following their huge success in mainland Europe. The business model is now moving towards a franchise. Stock is imported from Europe and held in UK. In the early set up stages the UK director initially was still in employment. He has recently started working fulltime and has relocated the business premises. This is giving him and his family a better work/life balance.
The following points cover the main things I did to support the new business.
1) Set up accounting records on Cloud based software a.Data is accessible from anywhere in the worldb.Online submissions are possible for quarterly reporting to HMRC (for example payroll/RTI or Making Tax Digital).c.Expenses can be submitted online, authorised and paid more quickly.d.Accurate stock records are in line with purchases and sales. Popular lines are easily identified and reordered.
2)Streamline and automate the bank reconciliations a.This highlights any payments or receipts not supported by approved documentation.b.All VAT activity is recorded which supports the quarterly VAT Return.c.Unauthorised activity can quickly be spotted and investigated.
3)Develop budgets and forecasts based on accurate actual data a.A benchmark is quickly established for the businessb.Comparisons to industry trends or standards are possible.c.KPI Variances can be monitored monthly/quarterly, understood and actioned.
4)Marketing costs are shared with the new franchisees.a.Googlewords and Facebook attract new business across the UK and Ireland.b.Business vehicles are primarily large 4x4s and wrapped with company graphics.c.Corporate image is encouraged by company clothing displaying the company logo having to be worn.
5)Management Reports are produceda.Regular reporting to the parent company and bank is possible with narratives to explain any variances or trends.b.P&L, Balance Sheet, Cashflow, Debtors and Creditors are commented on so that the relevant actions can be taken.
6)Produce “what If’ scenarios for possible new products or expansion schemesa.This highlights the effect on the finances of different options. b.Easily accessible information aids timely decision making.
7)Produce data to Get Ready for Investmenta.Confidence in how the local management team run the business is established.b.Profit and Loss, Balance Sheet and Cashflow forecasts to illustrate to lenders how and when repayments will be made.