CASE STUDY: Stockslegal Ltd
John Trick acquired Stocks solicitors, Personal Injury practice, based in Burnage, Manchester from a retiring practitioner when he was introduced to Wilson Henry by one of its existing clients.
John’s predicament was that he had received last minute advice from his Accountant at that time of a significant personal tax liability as well as other practice tax liabilities. Having had no advice he has not planned to put funds aside to meet these liabilities.
Our first task was to arrange time to pay with HMRC for the personal tax liability whilst we assessed how the finances of the business could be better managed.
Second to help recruit a cashier to look after all internal accounting and finance and for Wilson Henry to oversee and advise this cashier as well as look after ongoing compliance work. We put in place procedures to prepare monthly management accounts and review of KPI’s and assessed the short term cash flow.
Thirdly we began to prepare the management information and looked at preparation of 12 monthly budgets as a means of managing monthly results. This involved training staff so that over time our involvement moved from preparing this information to training the cashier / management accountant to prepare the information.
It became apparent that incorporation offered significant advantages including tax. Also one of John’s main concerns had been the level of his personal mortgage. John was delighted when he was able to phone his wife to explain that via careful tax and cashflow planning he was able to extract sufficient funds from the company to pay their mortgage!
The relationship has continued to build over time and Wilson Henry have regularly been part of the Stockslegal management meetings to help consider the ongoing business strategy in times of significant legislative changes affecting the whole industry to ensure that the business model is continually tweaked to move forward in a changing market place.
Wilson Henry provide on-going services to the business in the form of:
- Overview and assistance with monthly Management Accounts and ad hoc advice
- Preparation of annual projections to allow monitoring of actual v budgeted results
- Preparation and submission to Companies House of annual statutory accounts;
- Processing of monthly payroll and P11ds
- Preparation of annual forms P11d’s;
- Meeting SRA Accounts Rules reporting requirements;
- Successfully negotiated time to pay arrangements that gave the business funding headroom
- Recruited cashier to help manage the cash in the business
- Production of timely management information and KPIs and Budgets to measure performance
- Training internal staff so they could take on more of day to day tasks
- Enable client to extract funds to pay personal mortgage
- Continuing to deliver compliance services
- Helping the business plan through a sector that has encountered significant economic challenges over the past few years