How Has COVID-19 Affected Louth Businesses?

Louth is the home to approximately 17,000 residents and is now the largest market town in East Lindsey District Council. Louth brings in many visitors due to its assortment of markets held within the town centre. A regular weekly market is held as well as monthly farmers markets and Christmas and Victorian Sunday market which are commonly a colossal hit with residents, businesses and visitors. 

Disastrously, the impact of COVID-19 has damaged countless businesses globally, hitting smaller companies worse than larger ones. A large number of the businesses in Louth are SME’s and family-run. The government’s new tier system puts Louth in tier 3 and on the highest COVID alert, meaning a lot of these businesses have had to close their doors once again. 

Louth town was once thriving and full of life, market days especially captivating consumers both residents of Louth or from surrounding areas.

If the market were to no longer exist an approximate of 20% of Louths businesses could fail

Christmas Market 

Louth Christmas market provides stalls for people young and old to enjoy; however, this iconic event was cancelled six months in advance due to the global outbreak, as the beloved event brought in people from all over Lincolnshire and social distancing and safety measures could not be guaranteed. Over 80 paying stallholders are unfortunately out of pocket at one of their busiest times of the year.

The market did provide not only stalls but also entertainment such as:

  • Live music 
  • Food and drink 
  • Arts and crafts 
  • Meeting and greeting Santa Clause

However, not all hope is lost. Many of the independent makers and small business owners you can find at Louth Christmas Market have moved their stalls online. Take a look at your favourites on Twitter and Facebook where you may still be able to purchase some Christmas goodies from them.

Restrictions on businesses

As we are in an area experiencing an increasing number of infections, stricter regulations have been put in place to reduce the number of cases and keep everybody safe. 

For example, in tier 3:

  • Hospitality settings such as restaurants, pubs, cafes must close and are encouraged to continue formulating money by offering a take-away service or click and collect. 
  • Indoor entertainment centres must close, including cinemas, theatres, casinos and bingo halls. 
  • Indoor attractions must close, including zoos, theme parks and fairgrounds. 
  • Weddings and funerals are allowed; however, this is with a limited amount of people attending. 

These are just a select few restrictions causing businesses to make massive changes to how they operate, in some cases preventing them from operating altogether. 

Due to Louth being a market town and relying heavily on people travelling from the surrounding areas to visit our popular attractions, being unable to do so has significantly reduced the revenue generated by businesses. On account of this, smaller companies are struggling to not only make a profit but more so breakeven. If you’re struggling and need assistance with your accounts or understanding the government help available, contact me today.

A Brief History Of Louth

If you are not acquainted nor familiar with Louth, this blog post will give you an insight into the town and its history. Louth is a large market as well as an industrial town situated in East Lindsey, Lincolnshire. It is located very rurally in the East of Lincolnshire and contains attractions such as St James’ Church, Hubbard’s Hills, the market, many independent retailers, as well as the last remaining cattle market in Lincolnshire.

Louth started off as a Saxon village. Its name originated from the Saxon word meaning ‘loud’ due to the loud gushing of the river. A monastery was built in Louth in the late 7th century. In the 9th century, the Danes took over Lincolnshire and subsequently destroyed Louth’s monastery. However, they gave Louth many of its street names.

In the 10th and 11th centuries, Louth became a small market town. Peasants from surrounding villages would use the market to buy and sell goods. Eventually, in the Middle Ages Louth had a population of around 1,500.

A Cistercian Abbey was built in 1139 at Louth Park. The parish church of St James was also an integral part of life for the people who lived there.

Henry VIII closed down Louth’s Abbey in 1536. The King sent a man to list valuables in the parish church which outraged the people of Louth. The man agreed to go and find out what the King intended to do with the valuables before proceeding.

This event sparked anger and men from Louth started a rebellion, marching towards Lincoln but were blocked by royal troops. As a result, the uprising broke down, and ringleaders were executed.

Louth prospered in the 16th and 17th centuries and its population grew, despite plague outbreaks. One outbreak in particular killed 700 people in Louth in 1631, which was a large chunk of the overall population.

A school was built in Louth in the 13th century, but the Grammar School was not established until 1551. The 18th century saw Louth grow even more and develop a carpet-making industry. A canal was eventually opened in 1770 to make trade easier of goods.

1801 saw a population of 4,250. This doubled 50 years later. 1825 saw a parliament act that cleaned the streets and a year later, the streets were gaslit, despite many Louth residents living in slums.

A dispensary was formed in 1803 for poor people to get free medicine and in 1873 Louth’s hospital was built. 1848 saw the railway reaching Louth which improved business from the canal method previously.

In the 1920s and 30s, the first council houses were established, and electricity lit up the town.

A War Memorial was established in 1922 in memory of those who fell in WW1. In WW2 15 people in Louth died from German bombings.

The population continued to grow in Louth from the 1920s onwards with around 17,000 people inhabiting the town now.

Please read my blog about some of the top reasons to want to live and work in Louth.

Accountants Face Exceptional Challenges For The End Of 2020 And Beyond

With the COVID-19 pandemic causing more uncertainty and disruption, this has led to an increase in challenges in auditing financial statements for accountants. Not only this, but extra difficulties have come to light with regards to Brexit and the transition period finishing on 31st December 2020. Not only this, but climate change has become another important topic of 2020 as well as COVID-19 and Brexit.

These three key issues are predicted to alter areas of financial statements. This is because investors will want to gain information that will clearly explain how directors of businesses have responded to their implications. Transparency will be vital for this to occur.

Directors will also be obliged to review every area of every financial statement, which will be subject to judgement and estimation uncertainty. Furthermore, forecasting will also play a vital part in conducting impairment as well as concern reviews. The uncertainty of all this could require help from other sources.

Soon auditors will have to demonstrate levels of professional scepticism. This increased uncertainty amongst financial professionals will mean that they will need to take an approach that involves seeking good-quality corroborative evidence as well as evidence derived from different sources.

Those preparing annual reports are urged to commence the planning early due to the challenges in the upcoming reporting season. There must be a focus on transparency and engagement across organisations to gather information with auditors. It is also important to think about the reporting deadlines and making their scope as flexible as possible because of the extraordinary challenges that will be occurring for auditors and preparers. These challenges will not only be affecting their professional lives, but COVID-19, Brexit and the climate crisis will affect the personal lives of auditors too.

The key lessons that we can learn in preparation for this are to be as organised and flexible as possible to meet these deadlines. Preparing for the worst financial scenarios due to the three key challenges will also be important in ensuring no more challenges will arise from the ones already established.

The Institute of Chartered Accountants in England and Wales (ICAEW) provides lots of relevant resources and will be able to develop these resources to the changes which are occurring at the end of 2020. They offer technical support with regards to the COVID-19 situation with information for auditors and preparers free of charge.

Take a look at my blog here to see how some UK accountants are voicing their concerns about their environmental worries.

Top Reasons to Live And Work in Louth

Louth is a stunning town situated in the East of Lincolnshire. Here are the top reasons why you should live and work here.

The Location 

Louth’s stunning location is second to none. It is situated in the heart of the Lincolnshire Wolds. The Lincolnshire Wolds is renowned for being an Area of Outstanding Natural Beauty. Its calming hills and deep valleys are striking against the coastal landscape of marshes and dunes.

Being East Lincolnshire, it is very near the coast so perfect for those summer beach days or winter walks next to the sea. The Wolds is sparsely populated, so pollution is at a minimum. Therefore, expect to see the sky and stars at night in all their glory! 

Without a doubt, Louth is the perfect location to work from home!

Louth Market

Louth is a traditional town and with that comes a quaint market which trades on Wednesdays, Fridays and Saturdays. Although with the pandemic, these days might vary or be cancelled so best to do your research if you wish to venture to the Louth Market. Once it is up and running, you can see what the market has to offer, from delicious food to pretty crafts; the market has it all!

The Beautiful Parks

There are some beautiful parks to visit, walk-in, have picnics in and socially distance in too! These are Hubbard’s Hills and West Gate Fields. Hubbard’s Hill was established in the early 1900s. It is beautiful in the summer where children can paddle in the river and families are seen catching crawfish with nets.

Westgate Fields has lawns surrounded by lime trees, oaks and ashes and has a beautiful view of St James’ Church poking over the tops of the trees. There are four leaf sculptures to visit, these are carved from oak and are owned by Louth Art Trail.

The Attractions (when they open!)

The attractions are limitless in Louth! There is much to see and do in this lovely town. All of which to be frequented when the lockdown is lifted once again! Louth has its own Golf Club, taking advantage of the hilly terrain and acres of grass.

Louth Museum opened in 1910 and was modernised in the early 2000s by the Heritage Lottery Fund’s money. It contains the largest collection of Victorian woodcarver Thomas Wallis paraphernalia in the country as well as other historical artefacts.

St James’ Church is a sight for sore eyes and worth a visit for its history and photogenic-nature. It was a gathering point for the Lincolnshire Rising in 1536. This was organised by Catholics to protest the Monasteries dissolution. There is a cafe and souvenir shop too.

When theatres re-open, Louth Riverhead Theatre is THE place to visit! It is owned and run by a small number of volunteers. There are touring productions, musicians, tribute bands, musicals, poetry recitals, evenings with television personalities and comedians who perform there.

Lincolnshire Wolds Railway is another great attraction of Louth. It runs for 1.5 miles between two stations, Ludborough and North Thoresby.

Playhouse Cinema is the only cinema for 15 miles and contains three screens. It was a former chapel and became a movie theatre in the 1920s. It shows the latest releases, classic films, independent ones as well as live recordings from the Royal Ballet and Royal Shakespeare Company.

If you need any help with the accounting of your business in Louth, don’t hesitate to get in contact with me.

Remote Working Continues For Accountants Seven Months Into The Pandemic

The shared experience of working in the office vanished when the COVID-19 pandemic hit the UK. The feeling of company and teamwork in a space disappeared along with this and challenges soon arose for businesses trying to keep things running smoothly and remotely.

Some businesses coped better than others. Ones which were more used to removing sensitive financial data from the office were better equipped at working remotely. These organisations have been laying the groundwork for years of being able to balance the books from the comfort of their homes, so the pandemic was a good opportunity to put this into practice.

These businesses had worked to gain a continuous accounting process. This automates routine accounting tasks that require complicated calculations such as depreciation and amortisation. Therefore, these processes become continuous because of how automated they are. This automates the generation of financial statements, transfers with eliminations and reconciliation tools including AP sub-ledgers and the general ledger. Technology is an efficient way to process transactions for accountants and counteracts the complexities that come with working remotely.

The goal is for these automated processes to happen continuously. The pandemic has focussed on a need for automatic technologies and has also highlighted the importance of the cloud in doing so. The cloud allows sensitive financial information to be stored securely. This could involve data privacy as well as internal permissions when accountants are outside of the office.

Cloud-based technologies are updated regularly in line with the newest standards and regulations which often change. The cloud is kept modern and running smoothly. This maintains compliance for organisations.

With automated systems, there is increased accuracy. There is no need to rekey information from system to system manually. This reduces the chance of human data entry errors, so saves time that can be dedicated to other internal operations within the businesses. It also increases the quality of work-life for employees when functions are automated and left to the end of the month. The most tedious work has become more automated.

In conclusion, although remote working continues for accountants seven months into the pandemic, there have been advantages that have come with it. These advantages mentioned above have sped up the work of accountants by saving them time and removing more tedious aspects to complete. Accuracy has increased and the overall move to automation couldn’t have come at a better time for accountants.

If you need any help with your accounting needs, get in contact today.

UK Accountants Voice Their Environmental Worries About Businesses’ Approach To A “Sustainable Recovery”

The Global survey of accountants this year has unearthed accountants’ disappointment of businesses environmental as well as social strategies. These accountants and financial experts support the move to a “sustainable recovery” but fear that businesses are only escalating negative environmental/social impacts.

The survey was part of a report by the Association of Chartered Certified Accountants (ACCA). It was titled “Mainstreaming Impact: scaling a sustainable recovery“.

In its research, it asked 829 accountants and finance experts around the world about the environmental progress and performance among the organisations they work for.

It was recorded that 90% of those questioned were not happy with the current environmental and social sustainability efforts carried out by their organisation. The accountants said that they want to see their organisations increase all their efforts to become more sustainable, and in doing so, create positive societal change post-pandemic.

One in 20 of the accountants and financial professionals surveyed said that finance teams did have an essential role in contributing to a “more socially inclusive and environmentally sustainable future”.

75% of respondents mentioned that the business they currently work for needs to target the social inequalities which still exist to this day. This could be through wealth, race, sexuality, sexual orientation, religion and gender.

However, an additional 10% to this said that businesses need to make more efforts in curbing the environmental damage, a forefront topic of 2020 behind the global pandemic.

A worrying statistic showed that only 54% of respondents believed that they had the training and skills that were vital to combat the environmental and social change in the business they are employed by.

Many of those surveyed highlighted the barriers businesses face to environmental and social improvements. For example, the cost implications, a narrow focus on returns and a lack of senior management.

Helen Brand, chief executive of ACCA stressed that accountants have “a huge role” to play in environmental performance improvements. She added that this was “because it’s through professional education that accountants can support the transition to a net-zero carbon world.”

Head of sustainability at ACCA, Jimmy Greer said that “Professional accountants and finance teams are central actors, with the skills, knowledge and ambition to do more” and that businesses “need to make board level governance commitment to additional and intentional social and environmental positive impact creation.”

Greer finished by saying that businesses “must allocate resources within finance teams and across organisations to build decision-making capabilities related to environmental and social impact.”

If you need any help with your accounting needs, get in contact with us today.

How to Find the Best Accountant in Louth

Finding the best accountant to assist with your business can be tough. There are a lot of choices out there and knowing what to look out for when researching is essential. Before I dive into what you should and shouldn’t look out for, let’s go over the basics of what an accountant can help you with. 

What can an accountant help you with?

The practice of accounting covers a variety of different principles and services. Most accountants will be able to assist with most financial business elements including but not limited to; payroll, self-assessments and tax returns, bookkeeping and VAT, charity accounts and resident management accounts. 

The new Making Tax Digital scheme is another area of accounting you may wish to seek help with. 

On to how to find the best accountant in Louth ….

Google

The easiest and most obvious way to find an accountant in your area is to look online via search engines such as Google and Bing. This will usually bring up a few different results depending on the area you’re looking in with a mix between individual businesses websites and directory websites such as Yell or Bark. 

Google will also show you results from the Google Maps/Google My Business search results. These results are great as they allow you to see the businesses reviews, opening times, FAQs and more at a glance. 

Social Media

Social Media is a great tool for finding new accountants you may not have heard of before. You can use the search bar on social networks such as Facebook to search for terms like “accountant louth” and then filter by pages related to this search. You can also use the Facebook recommendations tool to ask others in local groups which accountants they would recommend. This leads nicely onto my next point …

Ask other business owners

Asking other business owners for recommendations is a great way to get an accountant that is well trusted by your peers. As mentioned above, you can use social media to achieve this or if you’re part of local networking groups and events you could ask here too.  

What to look out for

Qualifications and experience

A good accountant should be well qualified and experienced in their field. Most accountants will display their qualifications on their website and may include case studies of businesses they have worked with. 

Qualified accountants will be registered with the ACAA (Association of Chartered Certified Accountants) and will likely display the ACAA badge on their website and social media channels. You can also check the ACAA website to ensure your chosen accountant is registered. 

Who do they work with

Some accountants will specialise in certain industries while others will work with businesses in a variety of sectors. Some will specialise in small business accounting and others will work more with larger corporations. 

Researching who your potential new accountant works with may be beneficial if you’re looking for someone who either specialises in your industry or who works primarily with businesses of a similar size to yours. The best way to do this is to just have a chat with your chosen accountant and discuss your needs and any questions you may have.

What they do

As mentioned at the start of this article, different accountants may offer slightly different services. If you have a couple of different accountants in mind, check online or have a chat with them to see if they cover the multiple different services you may need. It’s also worth thinking ahead to potential future services you may need from them – if you’re a small business with no employees now, this may change going forward and you may end up needing payroll services. In this case, it would be good to choose an accountant who offers payroll services from the get-go rather than having to change or hire an extra accountant further down the line!

Hopefully, this short guide is helpful in aiding your search for the best accountant in Louth. If you’d like to speak to me about my accounting services, contact me today.

Five Changes Accountants Are Making To Their Way Of Working

The COVID-19 pandemic has shaped the way accountants are re-inventing themselves. More specifically, it has led to the acceleration in the way that accountants are altering their way of working. Here are the main five changes that accountants are making to their style of working this year in response to the pandemic.

Saving it all to the cloud

With the pandemic changing accountants’ way of working to the work-from-home method, it has been more critical than ever to save, share and locate vital documents all in one place. Using shared digital resources has made accounting more accessible than ever before.

The cloud has been vital for scanning applications where all hard copy forms can be loaded onto a screen, making transactions much faster as well as suppressing the risk of transmission of the virus on paper sheets sent via post.

This not only saves time but money as well and brings with it the ability to operate documents anywhere at any time. Furthermore, any worries of a data disaster or losing vital hard copies becomes obsolete as the cloud continuously backs itself up. Accountants needn’t be concerned with losing anything as the cloud has been proven to hold data forever firmly.

Develop data analysis skills

Accountants are expected nowadays to produce data analysis that will allow their clients to make strong financial decisions. Information is vital and detailed analysis is more critical than ever. 

Analysing information will allow businesses, as well as individuals, to see if they are spending too much money or whether they have too many or too little employees working for them. As a result, brushing up on data analysis skills will enable accountants to become more productive and efficient, as well as more helpful to their clients.

Improving their social media presence and usage

Accountants used to rely on their services based on recommendations and word of mouth. This was their free and easy advertising method. However, now we are living in the age of social media, which is the new word of mouth, especially during the pandemic where many of us are staying at home a lot more and not socialising face to face with our peers.

When a business is looking for an accountant service, they will look online. Reviews and recommendations on social media platforms are what they will use to gauge what sort of accountancy firm you are. Implementing a healthy social media plan can get you that business and recommendations. Imagine all the other accountancy firms in your city having Twitter, LinkedIn and Facebook and your firm having none of those. You will not be recognised or stand out at all. You will lose out on important business. As a result, accountants are embracing social media and strengthening their social media and online presence to cover all bases.

Outsources for specific needs

Many accountants are outsourcing accountants from specific departments that can take care of a business’s specific financial requirements as opposed to general accountants who do not have full knowledge of some particular financial subjects. This is to cover all bases and make clients more trusting and feel more valued when dealing with accountants who have been tailored to their client’s specific needs. This also means that services are consistent as well as scalable with experienced and qualified accountants. Furthermore, other businesses can focus on other aspects such as the core of their business and leave the accounting to more experienced professionals.

Mobile accountants

Everything is now done electronically, with paper invoices long gone and digital receipts the new norm. Mobile accountants have access to software which now allows them to work remotely from their home. This gives them more time to service more customers and in more depth.  

Accountant’s Guide to Managing Your Business Finances

Financial management can take many years to master. Managing your money is difficult but so vital to grow and develop your business. Nowadays, we are blessed with the ability to hire accountants to help manage our business finances for lower costs than you may think. However, you cannot be purely reliant on accountants alone as you are accountable for managing your finances. Here is your guide to equipping yourself with the essentials to manage your finances…

Understand the basics of finances

All business owners must have the basic skills of managing finances in order to have a successful business. There is terminology which is vital to know like the breakeven point, net profit, cash flow, expenses and gross revenue. These will be terms used on a daily basis so make sure you understand them all.

Furthermore, you must also understand business accounting documents such as revenue forecast, cash flow statement, income statement and balance sheet. If you aren’t familiar with these terms and documents, google them and research what they all mean and do. It will be invaluable knowledge for your business. 

Keep track of your cash flow

Cash flow is the money that goes in and out of your business and is easy to lose track of so ensure you are organised and know where it is at all times. The inflow of your business is from selling your goods whereas your outflow is the money your business spends on stock, payroll as well as marketing too. Try to always keep your outflow lower than your inflow, even though this could prove difficult. Just bear it in mind at all times and never lose track of your business goals.

Ensure your business and personal finances are kept separate

If you are a small business owner, it may seem easy and simple to have all your finances in one account. This is not recommended as it makes your business disorganised and can lead to tax issues as your business grows larger in the future. The first thing you should do when setting up your business is having two separate bank accounts for your personal life and company.

Spread out your tax payments

Paying your tax in a lump sum isn’t always the wisest of moves as large amounts of money leaving your cash flow can seriously affect it. Instead of this, try and opt for tax as a monthly expense. This will help you with budgeting.

Have a business cash reserve

Have a business bank account that can be used as a cash reserve. Top it up as often as you can and make it easy to withdraw money when needed for your business. This will take the pressure off when you have any additional bills to pay for your business.

If you need assistance with your business accounting, contact me today!

Self-Employment Income Support Scheme Re-opened

The self-employment scheme has been re-opened by the UK Government. Sole traders are now able to claim up to £6,570 for their lost income since 14th July 2020. An earlier scheme offered £7.8 billion to 2.7 million people in the months of May and June 2020.

Chancellor Rishi Sunak said that this scheme will ensure “people’s livelihoods across the county will remain protected as we continue our economic recovery – helping them get back on their feet as we return to normal.”

HMRC will be contacting potential eligible individuals and advise them that they are able to claim for a second grant. They have until 19th October 2020 when the scheme closes.

The UK Government is under immense pressure to extend worker support packages due to the rising unemployment levels across the country. According to the Office for National Statistics (ONS), almost 750,000 jobs have been lost since lockdown commenced in March.

If applying for the Self-Employment Income Support Scheme (SEISS), you must prove that your business has been affected by the pandemic adversely. This could be if supply chains have been disrupted or individuals have had to self-isolate.

The grant will allow applicants to gain 70% of their average monthly profit. It covers three months and will be stopped at £6,570.

In order to qualify for the scheme, applicants need to earn at least half of their general income through their self-employment. Their trading profits each year can be no more than £50,000 too.

However, according to the Association of Independent Professionals and the Self-Employed (IPSE), only half of the five million people self-employed in the UK are eligible for the grant.

The chief economist at the Bank of England predicts that the UK economy will grow by around a fifth in the second half of 2020. This would be the fastest rate since the monitoring of quarterly GDP began.

The chief economist at the Bank of England (Andy Haldane) wrote in the Daily Mail that the economy has been rising by 1% each week over the past three months. According to Mr Haldane, the UK has also recovered half of its losses since the pandemic began.

The Bank of England has forecast a 20% increase in GDP in the second half of 2020, however, unemployment levels could be 7.5% and 2.5m could be out of work by the end of 2020.