The Leaky Bucket

A recruitment business in Leeds. £940,000 turnover. £189,000 net profit. 20% margin. Her accountant said the margins looked about right for recruitment.

They did look fine. But fine isn't the same as optimised.

In this episode I go through four sessions with Meridian Recruitment — costs, fee structure, client retention, and average order value — and find £74,106 in additional net profit sitting untouched in a business that was already doing well.

What we covered: — Session 1: Costs audit — job boards at old rates, a LinkedIn licence for someone who left 14 months ago, dual CRM systems, mobile contracts for ex-staff — Session 2: Fee structure — 17 contingency placements where 5 could have been retained, plus a price review not done in 4 years — Session 3: Churn — 9 clients gone dark, 3 recoverable, and the one feedback email nobody replied to — Session 4: Average order value — 11 once-only clients never formally approached again

Try the free Profit Gap Tool at tool.mbsaccountants.co.uk — takes about four minutes and shows what's sitting in your business.

If what you find makes you want to go deeper, book a free Profit Discovery Call with Jason, our Head of Growth: mbsaccountants.as.me/general

The Chaos to Clarity Intensive is £1,500 + VAT with a full money-back guarantee — if we don't find at least £1,500 in profit improvements by Session 2, you get a full refund.

This is based on real client scenarios. Names and details have been changed.

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A commercial HVAC contractor had been in business for 12 years. £1.4 million turnover. £128,000 net profit — about 9p in every pound. Their accountant said the accounts looked fine.

In this episode, Ian works through the full Chaos to Clarity process live — four sessions covering costs, margins and pricing, client retention, and average order value.

What they found across those four sessions: £119,805 in profit improvement. Nearly matching the entire net profit the business made last year. Without adding a single new client.

Some of the highlights: a software subscription last logged into in November 2023 still billing every month; a restaurant ordering tool running silently on an HVAC firm's bank account; the same drill purchased four times in twelve months; and a sales director with an 81% win rate who had been discounting almost every quote for years — with no data showing the discounts were doing anything.

If you've ever wondered what a fresh set of eyes on your numbers might find, this episode shows exactly how that process works.

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Try the free Profit Gap Tool — 4 minutes, personalised to your business:
https://tool.mbsaccountants.co.uk

Book a free Profit Discovery Call with Jason:
https://api.leadconnectorhq.com/widget/booking/OewmVBzuokPTISNYtRau

MBS Accountants · Gloucester · mbsaccountants.co.uk

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Apex Creative Agency turns over £1.1 million and made £118,000 profit last year. Their accountant told them that was fine.

In this episode Ian works through their numbers live across four sessions — a costs audit, margins and pricing review, churn and retention analysis, and average order value mapping — and identifies £138,632 of additional profit available to the business. No new clients required. No redundancies. Just a proper look at what the numbers were already saying.

What gets found: an office lease for 30 people when there are 5 in the team. Software being paid for that nobody uses. A broadband contract sitting on 2020 rates. A pricing discount that's been given on every single pitch without ever being questioned. Eight years of retainer clients with no price increase. Four clients who left quietly — and nobody ever picked up the phone.

This is based on real client scenarios from our work with service businesses.

If this sounds like your business, try the free Profit Gap Tool at tool.mbsaccountants.co.uk. 

It takes around five minutes and shows you where your profit is leaking. If what you find makes you want to go deeper, book a free call with Jason, our Head of Growth — and if it makes sense, we'll do a full Chaos to Clarity session together with a complete money-back guarantee.

The numbers always reveal the leak.

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In this episode of The Leaky Bucket Podcast, host Ian Morgan dives into why strategic planning is essential for business growth and sustainability. Learn how a Virtual CFO goes beyond traditional accounting to help craft a long-term financial roadmap that aligns with your business goals. From budget monitoring to cash flow forecasting, discover how forward-thinking financial strategies can turn your business from reactive to proactive. Don’t miss this foundational episode on setting your business up for success!

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In this timely episode of The Leaky Bucket Podcast, Ian Morgan breaks down the key announcements from the recent Labour Party budget and their implications for business owners. With changes like the employer’s NI increase, lower threshold, and a hike in the National Minimum Wage, Ian explains why strategic plans and budgets need to adapt. Learn why this budget might lead to price increases and job losses, and how you can prepare your business for these shifts. This is essential listening for staying ahead of the curve.

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In this first episode of The Leaky Bucket Podcast we dive into the power of a Virtual CFO and why it’s a game-changer for growing businesses. Whether you’re a business owner with a turnover between £1m and £10m or just looking to understand the benefits of strategic financial leadership, this episode is for you. I, Ian Morgan, founder of MBS Accountants, break down exactly what a Virtual CFO does, the key areas they help manage—like cash flow forecasting, budgeting, and strategic planning—and how they can drive your business towards sustained growth and profitability. Tune in to find out how a Virtual CFO can free you up to focus on what you do best while ensuring your finances are handled by an expert.

Ready to learn more? Listen now, and don’t forget to subscribe for upcoming episodes where we’ll explore more insights on how a Virtual CFO can transform your business

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In this episode, we explore the critical importance of investing in your finance function and how it can make or break your business. 

We discuss why allocating 1.5-2.5% of your turnover to financial management—including bookkeeping, reporting, cash flow, and tax compliance—can significantly impact growth and profitability. 

Through real-world examples from businesses that faced major financial challenges due to underfunding their finance departments, we illustrate the tangible benefits of proper financial oversight. From resolving VAT issues and correcting bookkeeping errors to saving thousands in tax liabilities, this episode shows why your finance function is essential to success. 

Don’t wait until it’s too late—learn how to invest wisely and secure the future of your business.

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In this episode, we dive into the top 10 things every business owner should know when it comes to making sense of their management accounts. These reports are key to understanding the financial health and performance of your business, but often they can feel overwhelming or unclear.

We’ll break down:

•The importance of accuracy and timely reporting

•Why cash flow statements and profit and loss overviews are crucial tools for decision-making

•How to leverage KPIs, trend analysis, and variance reporting to steer your business in the right direction

•Why clear balance sheets, segmental reporting, and user-friendly formats can make all the difference

Whether you’re running a growing company or just want to understand your numbers better, this episode will help you simplify your financial reporting and make better, data-driven decisions for your business.

Tune in for actionable tips and insights that will transform how you view your accounts and help you drive your business forward with confidence!

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In this episode, we explore the pros and cons of putting a company car through your business. We focus on two main types of vehicles: commercial vehicles and electric vehicles (EVs).

Key Points:

•Commercial Vehicles:

•Offer significant tax benefits, including full tax deductions and VAT recovery (if VAT-registered).

•Typically exempt from Benefit-in-Kind (BIK) tax if used exclusively for business.

•Electric Vehicles:

•Benefit from lower BIK tax rates due to their low emissions.

•Eligible for government grants and 100% first-year capital allowances.

•Lower running and maintenance costs compared to traditional fuel vehicles.

•Enhance your business’s green credentials.

Considerations:

•Personal use of company cars can lead to additional taxes (BIK).

•Weigh the cost vs. benefit of owning the car through your business versus personal purchase.

•Choose the right vehicle based on your business needs.

This episode helps business owners make informed decisions about whether putting a vehicle through the company is the right move, especially with the rise of commercial and electric vehicles.

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In this episode, we delve into the crucial topic of choosing the optimal business structure for tax efficiency. We’ll compare and contrast four main types of business structures: sole trader, partnership, Limited Liability Partnership (LLP), and limited company. Here’s what you’ll learn:

1.Sole Trader:

•Pros: Simplicity and full control.

•Cons: Unlimited liability and higher personal income tax rates.

2.Partnership:

•Pros: Shared responsibility and relatively easy setup.

•Cons: Unlimited liability for partners and personal income tax on profits.

3.Limited Liability Partnership (LLP):

•Pros: Limited liability and tax flexibility.

•Cons: More complex to set up and partners still pay personal income tax on profits.

4.Limited Company:

•Pros: Limited liability, lower corporation tax rates, and tax-efficient profit extraction through dividends.

•Cons: More regulatory requirements and administrative costs.

We’ll guide you through the pros and cons of each structure, focusing on their tax implications and helping you make an informed decision based on your business’s profit levels, liability concerns, and administrative capacity. Tune in to learn which business structure could save you money and protect your assets while aligning with your long-term business goals.

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