Small or Micro Business

Clock Creative Communications Limited was formed in 1999 and is a North West based family owned brand and integrated communication specialists. Clock is a small company that has experienced year on year growth and been successful in winning a number of industry awards that recognise the company’s success.

THE ISSUE:
During its early years the company engaged with typical high street accountants who performed the usual services for the company of payroll preparation, year-end accounts, and completion of its corporation tax computations.

Meetings with the accountants to discuss the accounts were found to be confusing, intimidating and the business was unable to get adequate understanding of the performance, the key indicators and its financial health.

As a new and growing business the directors required a more pro-active service than the typical offerings in order to identify on a timely basis the business performance, and its short and medium term outlook and forecasted results in order to make the necessary business decisions an early stage, small, growing business required.

THE SOLUTION:
summ.it were introduced into Clock and took custody of all their accounting requirements in 2003 and is still engaged with the client.

With a competitive annual fixed fee arrangement payable on a monthly basis that spreads the cost of the services over the year this allows the business to understand its service costs without the fear of any nasty surprises at year end.

In addition to the standard compliance requirements of the production and submission of year end statutory accounts, corporation tax computations and monthly and year end payroll processing summ.it introduced the production of quarterly management accounts within 15 days of month end. The accounts are presented in non-statutory format, tailored to the businesses key indicators with graphical headline sheets that provide a clear no jargon understanding of the business performance in the period. The accounts are discussed with the directors to enable a solid understanding of the performance and its impact on the financial position of the business.

Alongside the historical reporting, summ.it work closely with the business to establish the most tax efficient remuneration packages for the directors and also in looking forward by producing annual profit and loss account, balance sheet and cash flow forecasts that form targets for the business each year on which direct comparison is made with variance analysis in the management accounting pack.