Case Study 4: Small Manufacturing Company - SME Monthly Fee: £320

The Client: Manufacturer, Ringwood

Status:	Company
Turnover:	£400,000 per annum
Directors:	2
Staff:	10

Service provided by MAAP

MAAP Fee:	£320 per month
Weekly:	Onsite visit (2-4 hrs)
Quarterly:	VAT & trading reports
Annually	Company accounts & CT600 tax

Summary

This is where knowledge and efficiency can really make a difference in delivering a very much needed service at a cost clients can easily justify and afford.

This client is typical of many the many manufacturing ventures you will find on any industrial estate at the moment. They have a sound business model and continue to increase sales and profitability in spite of the adverse trading conditions. To make sure they don´t over-trade and run into financial difficulties, they recognise they need a more sophisticated in-house accounting service. Unfortunately they also recognise they cannot yet justify the cost of hiring even a part-time in-house accountant to deliver what they need.

One option is to hire a Sage competent book-keeper at around £15-20 and hour and then work with an separate firm of accountants to produce the year-end accounts and tax returns. Nothing wrong with that, but we suspect MAAP accountants can achieve the same result for a lot less than you are currently paying.

This is where MAAP Accountants has a slight edge, which we use to good effect. We visit the client each week and post up all the transactions to Sage using our extensive corporate experience to make sure the job is carried out efficiently and accurately. We have reconfigured their copy of Sage so that come the year end, it only takes us 4 hours of extra work to produce statutory financial statements for filing and corporation tax purposes. Most of the accounting compliance work has been done as we go along because we only use very competent, accounts trained staff to post transactions correctly in the first place.

In this case the efficiency we have introduced into the equation allows us to charge just £240 a month to provide a full book-keeping and year end accounting service. Some accounting firms will charge the same for just doing the year end accounts. We make a healthy return from the work we undertake, and the client has what amounts to a part-time Financial Director on call once a week for a fraction of the cost it would take to employee that person real-time. A win, win situation for everyone.

If you are interested in finding out how MAAP Accountants could deliver the same high level of in-house accounting for your business, call Ralph Elliott-King on 01202 482121.

More Detail/Less detail

The client prepares their own sales invoices.
We attend the client´s offices and post all sales, purchases, bank transactions to Sage each week, reconciling as we go.
We produce detailed weekly management accounts and liaise with the client over cash-flow forecasting and customer credit control.
We operate a weekly and monthly payroll.
The client enjoys what amounts to an outsourced Financial Director service on all accounting matters.

We deal with the online filing of monthly payroll returns as well preparing the year end P35 returns in April each year.
We prepare and submit the quarterly VAT returns.
All periodical journals are posted and documented as necessary so that Sage is effectively producing full statutory accounts and results to date every week.
At the end of the year we collate the information we have already processed to produce the statutory financial statements to be filed with Companies House, as well as the CT600 Corporation Tax return for filing with the HMRC. We also prepare and submit the director´s personal Self Assessment tax returns.

Read less