The UK Tax and Accounting Podcast from I Hate Numbers:

Do you want to know the Six steps to managing your cashflow ?

Cash is the lifeblood of any company. It's what pays for salaries, inventory, and everything else that keeps a business running smoothly Do you know how to manage your cashflow?

This week on the I Hate Numbers podcast, we're going to talk about six steps to managing your cashflow. You'll learn what it means and why it's important for your business. I'll also give you some tips on how to do it without getting overwhelmed!

If you want a successful business, then this is one of the most important things that you need to be doing. It doesn't matter if you have a profit or not - if there isn't any money coming in, then there won't be any money going out either! Managing your cash flow will help keep everything running smoothly so that nothing falls through the cracks and puts stress on other aspects of your company. And don't worry - I've got lots of easy-to-follow advice for making sure that happens!

Click here now and listen to my latest episode!

Money is a big deal. It's the lifeblood of your business and it can make or break you. You need to understand what cash flow means, why it matters, and how to manage your finances in order for them not to get out of control. I'm here with six steps that will help you do just that!

There's an opportunity for you to win fifty pounds cash or amazon voucher by completing this quick two minute survey! All we need from you is two minutes of your time so we can better understand the problem and find solutions together. So click below now and complete the survey!

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You’re looking for a way to manage your cashflow? I hope you get some value from this podcast on six steps to manage your cashflow. You are not on your own! Contact us to see where we can help. Our news section, FREE online calculators are there for you. Just click here now to get started!

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You may be thinking, "I'm a business owner. I don't need to worry about How different is cash to profits? " But it is important to understand the difference because they are not always interchangeable. Cash is what pays your bills, while profit is how much money you have leftover after paying those bills. If you want to grow your company or just stay afloat, understanding this distinction can help make sure you have enough of both on hand.

This podcast episode will show you what is the difference between cash and profits.  Next time someone asks if your company has any money in the bank, you will be able to answer with more confidence.

Download our latest episode now by clicking here!

Do you want to know the two most important financial goals you must-have?

Cash and profit.  Your money mindset, your attitude to money must be tuned in to understanding and managing cash and profit.  I need your help. I love hearing what you think about money. Take part in this quick two-minute survey, share your thoughts AND also get a chance to win £50! Wow!

Share your thoughts on this quick 2-minute survey for a chance at winning £50!  You'll also find out how other people feel about their finances too so it's great for insight into the minds of others around the world.  Plus, we're always happy when we hear from others so please take part today :)

Click here now for a chance at winning £50 with this short 2-minute survey!

The ABC Method is the best way to take control of your business cashflow. It’s simple, easy and effective. You can use it in any industry or size of company. And now there are even more ways to make it work for you - like our free webinar on 27-May-21 at 6 pm where Ill go over everything in detail!

I want to show you how this method works so that you can start using it today. Register now and get access to our live webinar, slides, notes, and guide all provided for free when you register! This will not dilute the value but will give you an opportunity to see what this is all about before deciding if it's right for your needs.

Click here now and sign up for our Live Webinar on 27-May-21 at 6 pm with slides, notes and a guide provided by us!

I hope you get some value from this podcast on How different is cash to profits? Above all, you are not on your own! Contact us to see how we can help? Our news section, FREE online calculators is there for you.  Just click here now to get started!

Listen now and Subscribe to I Hate Numbers, so I can send it straight to your inbox every week with all the latest updates from I Hate Numbers podcast!

Click here for more business and finance, news, advice and tips

 Links

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There are plenty of reasons to file your tax return early. The biggest one is certainty.

Once you know what your Self Assessment bill looks like, you can plan for it. If you have enough money put aside, great. If there is a shortfall, you have time to deal with it rather than discovering the problem a few days before the payment deadline.

Filing early can also give you more time to find missing information, review your return, deal with payments on account and reduce the stress that comes with leaving everything until January.

Every year, many people know the Self Assessment deadline is coming but still leave the return until the last few weeks.

That may feel harmless when January is several months away.

However, waiting removes one of the most useful things we can have when dealing with tax: time.

Submitting the return earlier gives us time to understand the liability, organise the cash, check the information and deal with problems before they become urgent.

The return has to be dealt with anyway. So the real question is whether we want to deal with it calmly or under deadline pressure.

One of the strongest reasons for completing your return early is that uncertainty disappears.

Instead of wondering how much tax you might owe, you get a much clearer figure to plan around.

That matters because filing the return and paying the bill are not the same event.

HMRC allows you to submit your return before the payment deadline. Filing early does not normally mean you have to pay early.

So rather than delaying the return because you do not want to part with the money yet, use the return to find out what you actually need to prepare for.

Once you know the amount, you have a target.

If you have already been saving for tax, you can check whether the money you have reserved is enough.

If there is a gap, finding that out months before the deadline gives you far more options than discovering it in January.

You can increase the amount you save, make payments towards the bill or adjust other cash commitments.

Our guide to How to Budget for Your Tax Bill When You're Self-Employed explains how to estimate the liability, ring-fence money and build tax into your normal financial routine.

Finding out early that you may struggle to pay is much better than finding out at the deadline.

If you cannot pay your tax bill in full, HMRC may be able to agree a payment arrangement depending on your circumstances.

The important thing is not to ignore the problem.

Knowing the amount early gives you time to understand the shortfall and decide what to do next.

HMRC also offers a Budget Payment Plan for eligible taxpayers who are up to date with their previous Self Assessment payments and want to make regular weekly or monthly payments towards the next bill.

Another obstacle to completing a tax return is simply gathering everything you need.

You may need information about self-employment, employment, property income, savings, investments or other taxable income.

There may also be expenses, allowances or reliefs that need supporting information.

If you begin early, discovering a missing statement or receipt is inconvenient rather than disastrous.

You have time to retrieve information, check figures and ask questions.

If you leave the process until the final days, every missing item becomes a deadline problem.

Completing a tax return does not mean we have to press submit immediately.

Preparing it early gives us the opportunity to look at the numbers properly.

Check whether the income looks reasonable. Review the expenses and claims. Ask whether anything appears to be missing.

If an accountant prepares the return for you, earlier information also gives them more time to raise questions and resolve anything unusual.

That extra review time can help prevent avoidable mistakes.

Payments on account are another reason Self Assessment bills can surprise people.

Where they apply, HMRC normally asks for two advance payments towards the following year's bill.

These are usually due on 31 January and 31 July.

That means the amount due in January can include both a balancing amount for the tax year just completed and the first payment towards the next one.

Completing the return earlier lets you see how these amounts affect your cash planning.

If your expected tax bill for the following year will be lower, there are circumstances where you can ask HMRC to reduce your payments on account. Be careful not to reduce them too far because HMRC can charge interest if the eventual liability is higher than the reduced amount.

For the full explanation, see Payments on Account Explained: What They Are, When to Pay and How to Reduce Them.

Your tax return is not only useful for HMRC.

If you are self-employed, lenders may ask for evidence of your income when you apply for a mortgage or other finance.

Once you have submitted your Self Assessment return, you can obtain your tax calculation, often referred to as an SA302, and a tax year overview.

Getting the return completed earlier can therefore help if you know you will need up-to-date evidence of income.

Early filing does not always mean you owe money.

Sometimes you may have paid too much tax and be due a refund.

Submitting earlier means HMRC can process that refund sooner rather than waiting until the busy January filing period.

That is another reason not to assume there is an advantage in delaying the return.

If you use an accountant, sending your information early makes their job easier too.

January creates a natural bottleneck because large numbers of Self Assessment returns reach their deadline at the same time.

Late paperwork can mean less time for questions, less time for review and more pressure for everybody involved.

Depending on your accountant's terms, leaving information very late may also affect the fee you pay.

An earlier start gives both you and your accountant more room to do the job properly.

There is also a simple psychological benefit.

Knowing what the bill is removes uncertainty.

Submitting the return removes a task that has probably been sitting somewhere in the back of your mind.

Think of the messy room, overflowing drawer or piece of work you keep avoiding. The job itself may not be enjoyable, but there is a noticeable sense of relief once it is finished.

Tax returns can work in exactly the same way.

Getting the task out of the way gives you one less thing to worry about.

Exactly what you need depends on your circumstances.

Typical information may include:

• self-employment income and expenses
• employment income
• property income and related expenses
• savings and investment income
• pension information
• other taxable income
• information relating to relevant allowances and reliefs

Good records make the process much easier.

If you want a broader explanation of the return itself, see Self Assessment Tax Returns.

1. Start gathering information once the tax year has finished.
2. Bring your bookkeeping up to date.
3. Prepare the return or send the information to your accountant.
4. Review the calculation and understand what you owe.
5. Check whether payments on account apply.
6. Compare the bill with the money you have saved.
7. Deal with any shortfall before the deadline approaches.
8. Submit the return and keep the relevant records.

The objective is not to pay tax months before you need to.

The objective is to replace uncertainty with information and give yourself time to act.

Filing early lets you know what you owe sooner, gives you more time to budget, helps you correct mistakes and can reduce the stress of dealing with Self Assessment close to the deadline.

No. Filing the return early does not normally bring the Self Assessment payment deadline forward. You can know the bill in advance while keeping the normal payment deadline.

Potentially, yes. If HMRC owes you a refund, submitting the return earlier allows the repayment process to begin sooner.

Yes. Self-employed applicants may need evidence of income such as an SA302 tax calculation and tax year overview. These become available after the relevant return has been submitted and processed.

Knowing early gives you more time to prepare. You may be able to save more before the deadline, make payments towards the bill or speak to HMRC about available payment arrangements if you cannot pay on time.

Where payments on account apply, the standard dates are 31 January and 31 July.

• 00:00 - Why getting your tax return in early matters
• 00:54 - Starting with the Self Assessment deadline
• 01:49 - Why waiting until January is a poor approach
• 02:09 - Filing early does not mean paying early
• 02:30 - Knowing the liability and budgeting for it
• 02:49 - What to do if the money is not there
• 03:54 - Finding missing paperwork and reviewing claims
• 04:13 - Payments on account
• 05:20 - Giving your accountant more time
• 06:01 - Tax returns and mortgage applications
• 06:31 - Reducing stress and clearing the task
• 07:14 - Information you may need for the return
• 07:54 - Estimating your tax bill
• 09:37 - Final reasons for filing early

• How to Budget for Your Tax Bill When You're Self-Employed
• Payments on Account Explained: What They Are, When to Pay and How to Reduce Them
• Self Assessment Tax Returns
• Personal Tax Return Explained

Getting your tax return done early is really about buying yourself time.

You know the liability sooner. You can compare it with the money you have saved, deal with missing information and understand any payments on account before the deadline becomes urgent.

You may also receive a refund sooner, have useful income evidence available and remove a job that has been sitting in the back of your mind.

Most importantly, filing early does not mean paying early.

Do the return, understand the number and use the time between filing and payment to plan properly.

Plan it, Do it, Profit.

If you want an estimate of your tax or need help understanding your wider business numbers, use our free online business calculators.

If you need help preparing your Self Assessment, understanding your tax bill or planning how to pay it, you can contact us for an initial chat.

You can also watch more practical finance and tax support on the I Hate Numbers YouTube channel, or listen and follow on Apple Podcasts.

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Let me share Three ways to change your attitude to money. Moreover, in this podcast I will look at way you should change your attitude.

This week I Hate Numbers is not the just about how you make that change, in addition it’s about why you need to change.

Money is power, freedom, a cushion, the root of all evil, the sum of blessings.  All of us in business we think about money, we talk about money, we plan what we are going to do when we get more of it.

But truth is though, how often do you look at money in your business? And by looking at it, I do not mean just staring at a wad of banknotes, but how closely did you look at the numbers in your business?

In this podcast episode, I am going to share with you three tips of how you can change your attitude to money in your business. The KPR approach, more on that later

You may be thinking, why do I need to change my money attitude, my money mindset. Well, you need to change your attitude to money if you want to survive and thrive. If you are not happy with the way things are going in your business, it is time to re-look at how you do things.

It is time to develop and adopt a new attitude towards money. And what that means is, you are taking more control and getting closer to your numbers.

Whatever your business shape or size, type or form you need to move it forward.

In this podcast episode, I am going to share with you three tips of how you can change your attitude to money in your business. The KPR approach

• K is for Key, focus on two key numbers.
• P is for Plan, what that looks like in financial terms.
• Re, is for record keeping, as heads Digital Accounting is the way to go.

Listen to find out more

There are an incredible and fascinating range of views and reactions that people have to Money, what they are, and the reasons for them are many. I don't pretend to know all the answers and that’s why I need your help.

It's not just curiosity for curiosity’s sake, but I strongly believe that knowing what lies behind our attitudes helps us in business and in life.

I need a couple of minutes of your time to complete a quick survey. I have There is also the chance No spamming from me, or creepy sales calls. There is also a £50 incentive-prize-bribe up for grabs. To take part, and to find out more select the survey link.

What next

I hope you get some value from this podcast on Three ways to change your attitude to money You are not on your own! Contact us to see how we can help ? Our news section, FREE online calculators is there for you. Just click here now to get started!

Listen now and Subscribe to I Hate Numbers, so I can send it straight to your inbox every week with all the latest updates from I Hate Numbers podcast!

Click here for more business and finance, news, advice and tips

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Sales can feel exciting, but sales alone do not keep a business healthy. Profit is what remains after costs, time, effort and resources are taken into account. If we want a stronger business, we need to understand what makes profit and what quietly drains it away.

In this episode, we share seven tips to increase your profits. We look at profit mindset, why profit matters more than sales value, how to understand and manage costs, how to identify profitable products and customers, why digital accounting systems help, and why cash flow planning supports profit improvement.

• Why a positive relationship with profit matters.
• Why profit is more important than sales value alone.
• How to understand what your business costs.
• Why managing costs improves profit.
• How to identify which products, services and customers make profit.
• Why digital accounting systems give better financial insight.
• How planning cash flow supports better profit decisions.

The first step is to have a positive relationship with profit. For some business owners, profit can feel uncomfortable or even vulgar. However, profit is not something to apologise for. Profit helps the business survive, grow, reward people fairly, invest, and make a bigger impact.

Profit is not the same as sales. Sales show the value of what we sell. Profit shows what is left after the cost of delivering those sales has been taken into account.

That is why a high-value sale is not always the best sale. A smaller sale with lower cost, less time and better margin may generate more profit than a larger sale that absorbs too much energy. For a deeper foundation, our episode on What Is Profit? Gross Profit and Net Profit Explained is a useful starting point.

Profit should be one of the main goals in business. We may want control, independence, impact, flexibility, or the ability to help more people. However, without profit, those goals become harder to sustain.

A positive profit mindset means seeing profit as a business friend. It helps us keep the lights on, support our team, serve customers, improve systems, and build a business that lasts.

When profit becomes part of our focus, we stop treating numbers as an afterthought. We start using them as a guide.

It is easy to be impressed by the biggest sale. However, the biggest sale is not always the most profitable one.

We need to look at the time, cost, effort and resources needed to deliver each product or service. A £1,000 sale may look better than a £100 sale, but if the larger sale takes far more time and cost to deliver, the smaller sale may create better profit.

Profit should guide what we promote, price, sell, and improve. Sales matter, but profit tells us whether those sales are actually working for the business.

We cannot improve profit if we do not know what things cost. That includes direct product costs, staff time, freelancers, marketing, software, website costs, delivery costs, production costs, overheads, and everything else needed to run the business.

Knowing costs helps us understand whether prices are realistic, whether customers are profitable, and whether certain products or services are worth continuing.

A business that does not know its costs is guessing. A business that understands its costs can make better decisions.

Knowing costs is only the beginning. We also need to manage them.

Cost management means reviewing what we spend, checking whether we are getting value, comparing suppliers where sensible, and asking whether certain costs still support the business. It does not mean cutting everything. It means spending with purpose.

For example, marketing costs may be essential, but we still need to know whether they support profitable work. Staff and freelancer costs may be necessary, but we still need to understand how they affect margins.

Most businesses sell more than one product or service, and not all of them make the same level of profit. Some customers may also be more profitable than others.

We need to understand which products, services and customers contribute most to profit. A supermarket does not treat every product in the same way, because different products attract different customers, margins and buying behaviour. The same thinking applies to smaller businesses.

This is where a deeper profitability review helps. Our episode on Conducting a Profitability Analysis explains how to look more closely at where profit is really coming from.

Up-to-date numbers help us make better choices. If we rely on old information, paper records, or spreadsheets that are not connected to the business, we may miss what is happening now.

A digital accounting system can help capture sales, costs, receipts, invoices and bank information more quickly. It gives us a clearer view of what we are selling, what we are spending, and what profit may be available.

The point is not technology for its own sake. The point is better visibility, less wasted time, and more reliable information for decision-making.

Profit and cash are connected, but they are not the same. A business may make profit on paper but still run into cash pressure if money comes in too slowly or costs need paying too quickly.

That is why profit improvement should be supported by a cash flow plan. We need to know whether the business can afford growth, investment, marketing, stock, staff, systems, and future commitments.

A cash flow plan helps us see what may happen before it happens. It gives us time to adjust prices, costs, sales activity, payment terms and spending decisions.

• Review your relationship with profit and treat it as a business priority.
• Compare products and services by profit, not sales value alone.
• List the costs needed to deliver each product or service.
• Review overheads, subscriptions, suppliers and staff time.
• Identify which customers and products generate the best profit.
• Use a digital accounting system to keep numbers up to date.
• Prepare a cash flow plan before making major growth decisions.
• Use your numbers regularly, not only when tax or accounts are due.

• What Is Profit? Gross Profit and Net Profit Explained
• Increasing your profits - Four Effective Steps
• Conducting a Profitability Analysis

Profit does not improve by accident. We need to understand what profit means, where it comes from, what costs support it, and what decisions may reduce it.

The seven tips in this episode give us a practical starting point: build a better profit mindset, focus on profit over sales, know and manage costs, understand profitable products and customers, use digital systems, and support decisions with cash flow planning.

If profit, costs, or cash flow feel unclear, visit ihatenumbers.co.uk or listen to the related episodes above to build more confidence with your numbers.

Plan it, Do it, Profit.

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🎧 Enjoyed this episode? Subscribe and leave a review on Apple Podcasts — it helps more business owners understand profit, finance, and their numbers.

• 00:00 – Seven tips to increase profits in your business
• 00:59 – Why a positive relationship with profit matters
• 01:15 – Profit is not the same as sales value
• 01:58 – Why profit should be the focus
• 03:20 – Knowing your business costs
• 04:13 – Managing and reducing costs sensibly
• 04:41 – Understanding what makes profit
• 06:42 – Getting closer to your numbers
• 07:04 – Using digital accounting systems
• 08:52 – Building a cash flow plan

The I Hate Numbers podcast helps business owners understand accounting, tax, finance, profit, cash flow, and business planning in a practical way. We simplify financial topics so you can make better decisions and feel more confident with your numbers.

You can also watch more practical finance and tax support on the I Hate Numbers YouTube channel, or listen and follow on Apple Podcasts.

📘 Book

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🎧 Podcast

https://www.ihatenumbers.co.uk/i-hate-numbers-podcast/

🌐 Website

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When should your business borrow money? And yes, there will be times when it's good for your business to borrow. There will be times when it should be avoided.

Planning, attitude, risk, and cost. These are the four things you need to consider when borrowing money for your business.

This weeks episode of I Hate Numbers will cover these topics in detail so that you can make a sound decision about whether borrowing is right for your business. You will also learn how to avoid common pitfalls and mistakes that many businesses fall into when they borrow money for their company.

I want to help you succeed with your business by making sure it's financially stable from day one! So, let's get started on our first topic - planning! To start off, we will talk about what makes a good plan and why it's important to have one before taking out any loans.

Firstly, you should not undertake any borrowing decision, until you have looked at your business future. Planning is key, borrowing a British Army phrase, Proper Planning and Preparation Prevents Piss Poor Performance.

Above all you need a plan that has the three key ingredients your business purpose, end goal, and your route map to get there. Convert your story to your financial plan, your future cash flow story. Then decide whether you should borrow money, or not! As a heads up, I have got a FREE cashflow workshop webinar coming up in May, click to find out more.

Listen to find out more.

What is your attitude towards debt and your attitude to managing money? Debt has a bad press. Borrowing money, the right way, and with the right money mindset will boost your business growth.

Those memories of those early days when I started my own business over 26 years ago and I borrowed money are still fresh in my mind.

I was not the businessperson then that I am now and I was running my start up from my back bedroom. More money out than coming in. My head was still hurting making that transition from an employee to working for myself. Cash was needed to keep my dream and ambitions alive.

Borrowing money, on top of using my own savings, and working ‘part time’ fueled my business survival, and growth, but not without the financial and emotional costs.

Listen to find out more.

Thirdly, let’s talk about risk. More importantly, your risk appetite and managing your risk when you borrow money.  When you take on debt you take on a commitment, more fixed costs. This will affect your business risk, your operational gearing, what a wonderful term?

Thinking about your attitude to debt. Is it one that's the attitude of others? Have you had bad experiences before with debt? You are cautious about having that happening in your own business?

You need to look at the cost of the debt, the investment you will be making. The interest rate charged is the lenders profit. The type and length of the loan, your own credit history, the purpose of the loan, the lenders assessment of the risk they are taking feed into the interest rate. For larger and riskier loans, a lender will ask for your management accounts. Make sure your financial house is in order and your financial records are up to date, Digital Accounting is what you need.

Check out the loan terms, the interest rate, your monthly commitments. Use my FREE online loan calculator.

Listen to find out more.

The question, When should your business borrow money? It’s all about P.A.R.C

• Planning, make sure you have one.
• Attitude, what is yours? Is it one that should be addressed?
• Risk, understanding and managing it.
• Cost of the loan.

If you do not want your business to go backwards, then you must plan for growth. Borrowing money is a positive way to make your growth happen.

I would love it if you could share this podcast and Number love with your network and help me with my mission of getting your business closer to your numbers, make profit, save tax, and time and strengthen your money mindset.

Numbers are your best friend in business, they won’t lie to you, they provide focus and clarity, lessen your money anxiety.

You do not have to worry about making these decisions alone! Contact us to see how we can help you figure out the question “When should your business borrow money? Our news section, FREE online calculators is there for you. Just click here now to get started!

Listen now and Subscribe to I Hate Numbers, so I can send it straight to your inbox every week with all the latest updates from I Hate Numbers podcast!

Click here for more business and finance, news, advice and tips.

Links

https://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288

https://open.spotify.com/show/5lKjqgbYaxnIAoTeK0zins

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https://tunein.com/podcasts/Business–Economics-Podcasts/I-Hate-Numbers-p1298505/

You might be wondering, Should you pay off your business debt early. I have a few thoughts on when to pay off debt, but first let us talk about the four factors that come into play.

There are four factors I want to share with you in this weekly episode of I Hate Numbers.

The first factor is risk. If the interest rate on your loan is high, then paying it off early could save you money in the long run. But if the interest rate is low or even zero, there may not be much of an advantage to paying off your loan early. There is also the risk of having mor fixed costs to deal with and gearing levels go up.

List to find out more and check out your gearing with our calculator.

When you owe money, there are two types of risk involved – the risk of not being able to repay and the risk of interest rates going up. If you think either one could happen, then it might be better to wait until your loan matures before paying it off.

The second factor is personal attitude and mindset about money. Some people feel that they should always pay their loans back as soon as possible. Moreover, others believe that they should only repay when they can afford to do so. Sacrificing other important goals like saving for retirement or investing in a new home purchase is not on the agenda.a

The second factor is personal attitude or mindset about money in general. Do you feel like you need every penny you can get their hands on right now, and will do anything for more cash flow - even if that means taking on more debt! You may be the type of person that wants to pay down your loans as soon as possible. Maybe you do not want any extra monthly payments coming out of your account.

Perhaps you are very conservative with how much debt you take on and only borrow what you absolutely need. It may be that you choose to keep some loans outstanding longer than others just so you can make sure everything else stays afloat financially. Making those monthly payments without having too many other obligations piling up at once.

The third factor has more to do with how paying off debt will affect your profitability going forward. How much time and effort will go into managing those payments each month instead of focusing on growing the company.

Finally, we come down to action, Should you pay off your business debt ? must not hurting you financially?

Prepare a cash flow forecast and see what happens if you decide to pay off your debts You need to manage your cash.

Cash flow is the lifeblood of any business, and it's important that you stay on top of yours. If you don't know where your money is coming from or going to, how can you make sure if paying off debt is a good move and everything runs smoothly?

That's why we created this FREE guide for entrepreneurs and businesses like yourself. It will help you understand what a cash flow forecast is and how it works so that you can better plan for success in your business. Check out our upcoming webinar-session on taking control of your cash.

You do not have to worry about making these decisions alone! Contact us to see how we can help you take Control of your Cashflow. Arrange an initial chat to talk options Our news section, FREE online calculators is there for you. Just click here now to get started!

Listen now and Subscribe to I Hate Numbers, so I can send it straight to your inbox every week with all the latest updates from I Hate Numbers podcast!

Click here for more business and finance, news, advice and tips

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https://play.google.com/music/m/I3pvpztpjvjw6yrw2kctmtyckam?t=I_Hate_Numbers

https://open.spotify.com/show/5lKjqgbYaxnIAoTeK0zins

https://www.stitcher.com/podcast/proactiveresolutionss-podcast

https://tunein.com/podcasts/Business–Economics-Podcasts/I-Hate-Numbers-p1298505/

There are many different business structures available, but What saves you the most tax?. Sole traders, partnerships, limited companies and more. Which one is best for your situation?

In this episode of I Hate Numbers I'm going to look at What saves you the most tax? I will look at the difference between the different taxes for sole traders and companies, paying yourself, which structure makes you more money.

My FREE online tax calculator will show you the total tax to pay for both business types, give you options and help you plan. Subscribe now!

You'll learn about all your options in this podcast episode of I Hate Numbers. My FREE online tax calculator is ready and waiting for you.

You can't decide 'What saves you the most tax?' without looking at the numbers. Moreover, how it works and how much you pay, and which is better. When it comes to crunching the numbers, I have just the thing for you! FREE online calculator.

The best way to find out if a limited company or sole trader is right for your business is by using my free online calculator tool. It will help you work out what's best for your needs based on your circumstances.

Click here now to get started. My free online sole trader versus limited company tax calculator shows the tax you will pay, personally and business wise. You can see your take home pay from both options. Use the sliders to see the impact of changing profits, salaries, and dividends

You do not have to worry about making this decision alone! Contact us to see how we can help How to decide which type of stricture is best for you. Arrange an initial chat to talk options Our news section, FREE online calculators is there for you. Just click here now to get started!

Listen now and Subscribe to I Hate Numbers, so I can send it straight to your inbox every week with all the latest updates from I Hate Numbers podcast!

Click here for more business and finance, news, advice and tips

https://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288

https://play.google.com/music/m/I3pvpztpjvjw6yrw2kctmtyckam?t=I_Hate_Numbers

https://open.spotify.com/show/5lKjqgbYaxnIAoTeK0zins

https://www.stitcher.com/podcast/proactiveresolutionss-podcast

https://tunein.com/podcasts/Business–Economics-Podcasts/I-Hate-Numbers-p1298505/

Do you want to start your own business? Don’t know How to decide which type of company is right for you?

There are two types of companies that you can choose from when starting a business. Sole traders and limited companies. Both have their pros and cons. Understand your needs before making any decisions about which type of company is right for you.

This week’s weekly I Hate Numbers podcast makes the decision process easier. I outline the differences between sole traders and limited companies in an easy-to-understand way. I also includes some helpful tips on how to decide if one or both types of businesses would be best for your situation.

Listen to find out more!

Sole traders are just that - they trade on their own. They have no legal protection for themselves or their assets in case of bankruptcy. Limited companies offer this protection by giving owners limited liability, but it also comes with more admin and duties for directors.

It's important to understand what your needs are before making any decisions about which type of company is right for you.

This week’s podcast of I Hate Numbers will help make things clearer. Moreover you can find out if sole trading or becoming a limited company is best for your business. You will be able to see the pros and cons of each option, as well as seeing what’s what needs to be done when setting up either one.

Listen to find out more!

For many smaller businesses being a sole trader offers a few financial advantages, but it also brings an increased level of risk.

Becoming a limited company can protect owners from these risks by giving them limited liability, but more admin and duties for the directors.

The difference between these two structures has to do with how they see you as an individual and your business. With a limited company, you don’t have liability for any debts or losses but if you are a sole trader then the law sees you and your business as the same so in this case, if there's any debt or loss then it will be seen as your personal responsibility.

If this sounds like something that you are looking at then I highly recommend you subscribe to find out more. I also have some great resources on our site to help make sure everything goes smoothly when setting up either of these options. So, take some time today to explore all the information I've put together just for you!

Listen to find out more!

You do not have to worry about making this decision alone! Contact us to see how we can help How to decide which type of company is right for you? Our news section, FREE online calculators is there for you. Just click here now to get started!

Listen now and Subscribe to I Hate Numbers, so I can send it straight to your inbox every week with all the latest updates from I Hate Numbers podcast!

Click here for more business and finance, news, advice and tips

Links

https://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288

https://play.google.com/music/m/I3pvpztpjvjw6yrw2kctmtyckam?t=I_Hate_Numbers

https://open.spotify.com/show/5lKjqgbYaxnIAoTeK0zins

https://www.stitcher.com/podcast/proactiveresolutionss-podcast

https://tunein.com/podcasts/Business–Economics-Podcasts/I-Hate-Numbers-p1298505/

Choosing the right pricing strategy is not simply about deciding how much to charge. It is about choosing a pricing approach that supports your business goals, reflects the value you provide, covers your costs and helps you make sustainable profit.

The right strategy will depend on your customers, your market, your competitors and what you are trying to achieve. A premium business will usually price differently from a low-cost provider. A new business trying to build market share may price differently from an established business with a strong reputation.

In this episode, we look at six pricing strategies you can use for products and services, together with the numbers and business decisions that should sit behind them.

There is no single pricing strategy that works for every business.

Your pricing needs to support the proposition you put in front of your customers. If you position yourself as a high-quality business but charge bargain prices, the message can become confused. Likewise, if your business competes mainly on price, your costs and operating model need to support that position.

Pricing also needs to help the business make profit over the long term.

That is why we should not choose a pricing technique simply because another business uses it.

Before choosing a particular pricing method, there are several things we need to understand.

Start with purpose.

What are you trying to achieve?

You may want to build market share, increase profit, position the business as premium, reach a wider audience or make your product more accessible.

Different objectives can lead to different pricing choices.

Your price should reinforce your business and marketing goals rather than contradict them.

You need a good understanding of what it costs to produce and deliver what you sell.

That applies whether you manufacture products, sell digital products, run training, provide consultancy or deliver another service.

As a result, if you do not understand your cost base, it becomes very difficult to judge whether the price you choose is actually making money.

If you need to work out a service rate first, our guide to How to Calculate Pricing Rates for Your Services takes you through costs, profit and realistic capacity.

Think about how much profit you want the product, service or business to generate.

Adding a percentage to every item may sound sensible. However, the bigger question is whether the resulting profit is enough to support the business, pay you properly and make the effort worthwhile.

Profitability is ultimately what keeps the business sustainable.

For a wider foundation, see What Is Profit? Gross Profit and Net Profit Explained.

Competition gives us useful information.

That does not mean simply finding a similar business and copying its prices.

Your real competition may come from businesses solving the same customer problem in a different way.

A restaurant may compete with other experiences for the customer's money. A financial planning service may compete with coaches as well as accountants.

Research what alternatives customers have and what those alternatives cost.

We also need to understand what customers value and what they are willing to pay.

Think about the environment you are selling into. Is the market crowded? Are you operating in a specialist niche? Is your proposition genuinely different?

These questions help us decide which pricing strategies are realistic.

Premium pricing means setting your price above competing offers because the product or service is positioned as higher quality, more distinctive or more valuable.

Customers often use price as one signal of quality.

However, the price has to be supported by substance.

If you charge a premium price, the customer needs to experience a premium proposition. Quality, service, reputation, branding and delivery all need to support the price.

Charging more without delivering more can damage trust and reputation very quickly.

Market penetration pricing deliberately sets a price lower than competing alternatives to attract customers and encourage them to switch.

In some situations, a business may even price an item below cost. This is often called a loss leader.

The logic is that the initial product brings the customer into the business, giving you an opportunity to sell other profitable products or services later.

However, there is a significant risk.

If customers only buy the low-priced offer and there is no effective cross-sell or upsell, the business can simply end up making losses.

It can also become difficult to raise prices once customers become accustomed to the lower level.

Economy pricing is built around keeping the product and the cost of providing it as lean as possible.

The customer receives what they need without unnecessary extras, and the business charges a low price while still covering costs and making profit.

Low-cost airlines and supermarket own-brand products are familiar examples of the principle.

In practice, successful economy pricing is not simply about being cheap.

The businesses that make it work usually have tight cost control, efficient processes and good visibility of their numbers.

If your costs are badly controlled, a low-price strategy can quickly become a low-profit strategy.

Price skimming can work where a business launches something distinctive into a market with relatively little competition.

Initially, the price is set high while the product is new and the business has an advantage.

As competitors enter the market and alternatives become available, that position may become harder to maintain.

This means businesses using price skimming need to watch the market and keep developing what comes next.

It tends to fit businesses with innovation, differentiation or a strong early advantage.

Pricing is not purely mathematical. Psychology also affects how customers interpret a price.

For example, a business might price something at £99.99 instead of £100.

The financial difference is tiny, but the number can feel different to the customer.

The same principle can be applied to hourly rates, daily rates and other offers.

Psychological pricing is about how the price is perceived, not just the number itself.

Bundle pricing combines several products or services into one overall package.

The customer may pay less for the bundle than they would if every element were purchased separately.

For example, a business might separately offer tax support, financial planning, accounting systems and regular meetings, then create a package that combines several of those services.

For bundle pricing to work, you need to understand the cost and profitability of the individual elements.

Do not simply chase a bigger sales figure.

The bundle still needs to make financial sense.

In practice, the answer may be more than one.

You do not have to use the same pricing strategy across everything you sell.

One product might use premium pricing. Another might be used to attract new customers. Services may be bundled together, while a new product may use one strategy at launch and another as the market changes.

One size does not fit all.

Come back to the basic questions:

• What are we trying to achieve?
• Do we understand our costs?
• What profit do we need to make?
• What are competitors and alternatives charging?
• What does the customer value?
• What is happening in the market?

Then choose the pricing technique that supports those answers.

Another useful pricing approach is target costing, where we start with the market price and required profit, then work backwards to the cost the business can afford.

Research matters.

For example, talk to customers, use surveys, test landing pages and look at competitor offers to understand what customers are comparing you with.

Do not rely entirely on assumptions.

If the price is too low, bringing it back up later can be difficult. If the price is too high, you may lose customers and opportunities.

Pricing should therefore remain flexible.

Markets change. Demand changes. Competitors change. Your costs and proposition may change too.

Your pricing strategy should be reviewed as the business develops.

A pricing strategy is the approach a business uses to decide how its products or services will be priced. The choice should reflect costs, profit goals, customers, competitors, positioning and wider business objectives.

There is no single best strategy. The right approach depends on what you are selling, what you are trying to achieve, your costs, your customers and the market you operate in.

Yes. Different products, services and customer groups may need different pricing approaches. Your strategy may also change as the market and business develop.

No. A higher price needs to be supported by a strong proposition, quality, service and customer value. Otherwise, the premium can be difficult to justify.

Not quite. Economy pricing relies on low costs and efficient operations as well as a low selling price. The business still needs to make profit.

Review your costs, target profit, competitors, customer feedback, demand and the purpose behind the pricing change. Avoid changing prices based on guesswork alone.

• 00:28 - Why pricing should reflect performance, experience and worth
• 00:53 - Introducing six pricing strategies
• 02:07 - Why pricing must support your business goals
• 03:39 - Costs, target profit, competitors and customer value
• 06:11 - Premium pricing
• 07:19 - Market penetration and loss-leader pricing
• 08:24 - Economy pricing
• 09:51 - Price skimming
• 10:38 - Psychological pricing
• 12:24 - Bundle pricing
• 13:30 - Choosing the right mix of pricing strategies
• 14:21 - Customer research, flexibility and avoiding guesswork

• How to Calculate Pricing Rates for Your Services
• What Is Profit? Gross Profit and Net Profit Explained
• How to Price Using Target Costing

Choosing a pricing strategy is not a formula.

Your objectives matter. So do your numbers, your customers, your competitors and the market you operate in.

Premium pricing, penetration pricing, economy pricing, price skimming, psychological pricing and bundle pricing can all work in the right circumstances.

The important thing is to understand why you are choosing a particular approach and whether the numbers support it.

Start by knowing your costs and understanding the profit you need. Then research your customers and competitors, and be prepared to adapt as the market changes.

Plan it, Do it, Profit.

If you want to explore the numbers behind your pricing decisions, use our free online business calculators to test different costs, profit and pricing scenarios.

If you need help understanding your pricing, costs, profit or wider business numbers, you can contact us for an initial chat.

You can also watch more practical finance and business support on the I Hate Numbers YouTube channel, or listen and follow on Apple Podcasts.

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