My top tip for employing staff is to employ technically better people than you. I have a full time bookkeeper who is far better than me, a part time qualified ACCA guy, again far better than me and an apprentice who will be better at payroll than me very soon. I don't send anyone out to clients though. The advantages for me are that work is done far quicker and to a good standard. I can spend my time reviewing work, preparing invoices (always fun) and building the business. I can also spend less time at the office and I am aiming to reduce my normal working week to 25 hours having spent years coming in 7 days a week. I think if you are looking to build a business with a resale value on retirement then you have to bite the bullet at some point and take on some kind of additional resource. Disadvantages are the they expect money at the end of the month...
If you do take someone on Chris don't forget to include a non compete clause in the contract of employment to stop ex employee's skipping off into the distance with your best clients!
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I like Robs approach- that is only the second time I've seen it written, the other was a CIMA CFO of a major corporation. As humans we want to be the alpha dog, yet in hindsight Robs approach makes so much more sense.
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Me too. I employ a data entry clerk on a very adhoc basis, who is much faster than me Realised not so long ago that if I pass more of that work to her, it frees up my time to take more work on. It'll cost me more in the short term, but hopefully pay off in the future.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
If you do take someone on Chris don't forget to include a non compete clause in the contract of employment to stop ex employee's skipping off into the distance with your best clients!
Absolutely key.
The other issue with this one is this business owner, given its a full time role and not one you can bring in house (or can you somehow?). He might be averse to taking on someone else (even though its your employee, this is often how as they see it! Down to you to persuade them you arent relinquishing control fully/there to supervise/new bod is fully up to speed with how their business work etc). He knows what he is paying you in fees, but could easily learn what you are paying her and just decide to bring it in house for less. Might even be worth considering doing some of this role between you for a while, with the new bod taking on smaller/in house jobs to start?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
As a side (as usual :)) how many clients can one man, or one woman comfortably service? I have read that the average turnover is £20 - £40k, with exceptions, rather than rules - turning over £60k. With those figures I'm guessing this would include LTD with tax. To turnover the upper scale, are we talking 60 - 80 per week?
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
As a side (as usual :)) how many clients can one man, or one woman comfortably service? I have read that the average turnover is £20 - £40k, with exceptions, rather than rules - turning over £60k. With those figures I'm guessing this would include LTD with tax. To turnover the upper scale, are we talking 60 - 80 per week?
When I started out I was going to take on as many clients as I could. I now know that isnt going to be possible.
Have about 190 clients with GRF of about £165k.
My aim going forward is to get GRF of £300k (looking to get there by end of 2018) which ideally will be made up of somewhere between 150 - 200 clients. Might need to take on about 300 clients to get their initially but as take on a bigger fee jobs rather than increase GRF will get rid of smaller clients accounting for the same fee amount.
I recently did an analysis of my fees. If I got rid of my bottom 20% of GRF clients this would reduce my GRF by about £32k but would half my client numbers which would free up a lot of time. So the long term view is to get rid of the smaller end clients and replace with higher GRF ones.
Long term aim is to get GRF £300k generating pre tax profits of about £120k-£130k. When reach that then my business will complete. Just then a case of maintaining at this level year on year going forward.
