Case Studies
MAAP's clients range from family-run retailers to aircraft maintenance operators. We also deliver many different levels of service. So the best way to demonstrate how we can help you is to take a glance at a few case studies.
Our approach is simple and reliable. We relieve you of the drudgery of book-keeping and take care of the accounting process all the way through the year to produce financial statements and tax computations. The best part is that because we are so efficient, the cost of our complete year-round service can often be less than the amount you are paying your existing accountants. So you can either continue doing all the book keeping work and paying over the odds, or you can join these other clients that have benefitted from MAAP's services.
If you would like to save money, and spend more time on the golf course, call us on 01202 474545.
Case Study 1: A family partnership Retailer
Case Study 2: Personal Service Company - IT consultant (IR35)
Case Study 3: Leisure centre (With bar and restaurant)
Case Study 4: Estate Agency (three offices)
Case Study 5: Builders (with CIS contractors)
Case Study 1: A retailer in family partnership
Annual Turnover: £230K
Partners: Husband and Wife
Staff: 2 - 4 (monthly paid)
Client:
- The client prepares a simple reconciliation sheet (provided by MAAP) that accounts for the cash taken through the till and the amount eventually banked, after incidental purchases, wages and drawings.
- The client keeps all their suppliers’ invoices in either a ‘paid’ or ‘unpaid’ lever-arch file. All we require from the client is to annotate each invoice or batch of invoices as they pay them with the date of payment, the method of payment (cash, cheque, debit or credit card).
- The client rings through the wages for the month and is provided with payslips and detailed summaries in good time for pay day on the last Saturday of the month.
- The client delivers their accounting records on a quarterly basis the moment they receive the last relevant bank statement that covers the VAT quarter.
- The client is in constant contact with MAAP during the year, seeking advice and keeping us informed of any new developments such as the purchase of new equipment, the taking out of loans, injection of capital, etc.
Fee per month: £75.00 +VAT
(£900 +VAT per annum)
MAAP:
- MAAP prepare the monthly payroll records and posts payslips and reports in good time for the end of month pay day.
- Upon receipt of the quarterly paperwork, MAAP writes up the Sales Day Books (SDB), Purchase Day Book (PDB) and prepares and reconciles the bank records to date. We then calculate the VAT and return the records to the client in good time for the client to submit the VAT return.
- The quarterly reports we supply give the client precise details of the turnover and expenditure to date and the estimated bottom line profit for the year to date
- At the end of the accounting year, we collect any additional information from the client on business financing or personal investment affairs and then prepare the financial statements, personal and partnership self assessment returns.
- We also prepare the annual payroll returns to the Inland Revenue.
Case Study 2: Personal Service Company - IT consultant (IR35)
Annual Turnover: £100K
Company: 1 director/shareholder
Client:
- The client raises his own sales invoices using a MS Excel format supplied by MAAP.
- The client keeps details of purchases, banking receipts and payments on a MS Excel supplied by MAAP.
- Details of travel and expenses are accounted for on a monthly basis using a MS Excel spreadsheet supplied by MAAP.
- The client takes our advice each month about the most tax-efficient way of taking profits out of his Company in the form of salary and/or dividend.
- Each VAT quarter the client emails through the spreadsheet summaries and scans of the bank statement.
- The client discusses each service contract with our IR35 tax expert to review his potential employment status with reference to this tax regime.
Fee per month: £55.00 +VAT
(£660 +VAT per annum)
MAAP:
- MAAP has published many articles on this tax regime. We believe we offer a good value service to consultants who provide the specialist skills through the medium of their own personal service company.
- Each month we evaluate the potential liability to extra income tax and National Insurance that IR35 brings to companies of this sort and discuss the best way to avoid unnecessary IR35 tax arising on 5 April each year.
- Upon receipt of the quarterly summaries we prepare the VAT return and evaluate whether they should switch between the fixed rate VAT scheme and the normal method depending upon their future spending patterns.
- At the appropriate time in the year, we prepare their annual financial accounts including the Corporation Tax return, as well as their annual payroll returns in April.
Case Study 3: Leisure Centre (with bar and restaurant)
Annual Turnover: £400K
Company: 10+ directors/shareholders
Staff: 20+ (Monthly payroll)
Client:
- The client records the daily takings’ from the three tills on the premises (entrance, bar and restaurant) on to a MS Excel spreadsheet that automatically calculates the VAT and generates the summary income reports the management require.
- A second daily MS Excel spreadsheet is prepared that reconciles the cash taken through the tills to the amounts banked after allowing for payments to suppliers and wages, etc.
- The staff incur travel and subsistence expenses which they reclaim from the business using reclaim forms supplied by MAAP.
- Many of the staff are engaged on a flexible part-time basis and are paid by the hour. Management submit details of hours worked and MAAP returns payslips and summaries in time for pay day at the end of the month.
- Suppliers’ invoices are first approved by the department managers, and then collated for collection by MAAP mid-month. MAAP processes the invoices and prepares a detailed Purchase Ledger that lists all outstanding invoices by supplier. All documentation is returned in time for the management to decide what suppliers should be paid at the end of that month.
Fee per month: £650.00 +VAT
(£7,800 +VAT per annum)
MAAP:
- MAAP’s role in this engagement is to provide a full-outsourced finance department that ranges from dealing with typical problems that arise in any bought ledger department, right through to advising the Board on long-term business development strategies.
- We prepare monthly management accounting reports that provides the management with the information they need to assess profitability and monitor cash flow.
- Previously, these clients were paying an annual accountant's bill of £4K, and then a further £12K for an in-house book-keeper using Sage Line 50. MAAP was invited to tender upon the retirement of the book-keeper. We were able to devise a much more streamlined accounting system that relieved management of over 50% of the paper work as well as providing a welcomed cost saving of £6K per year.
- MAAP oversees all financial reporting and the Company Secretarial role.
- The AGM and filing of accounts were normally completed within 10 weeks of the financial year end.
Case Study 4: Estate Agency (three offices)
Annual Turnover: £350K
Partnership: 2 partners
Staff: 10+ (Monthly payroll)
Client:
- The client prepares and collates sales and purchase invoices in lever-arch files that are delivered to MAAP offices for processing on a regular basis throughout the month.
- All tax and accounts (suppliers) related correspondence is forwarded to the MAAP office and dealt with by us.
- The agency employs a mixture of full-time and part-time staff, some of whom are paid basic and performance related bonuses. MAAP is informed of the payroll run by email, and returns the pay packets on the same pre-arranged day.
- The client keeps us informed of any new equipment leases or similar service contracts as they arise.
- The primary objective of the client was to out-source the accounting function so that they could employ staff that could concentrate on being estate agents and not bean-counters.
Monthly fee: £175 +VAT
(£2,100 +VAT per annum)
MAAP:
- MAAP collates and posts all accounting information into our accounting software to produce full management accounts with detailed sales and purchase ledgers.
- We follow-up late payers (credit control) and prepare cheque runs for suppliers based on their payment terms. The client approves and signs the cheques at the end of the month.
- Sales income can vary substantially from month to month, and MAAP providing a three month cash flow forecast is an important part of the client’s fiscal management planning.
- We are able to provide the client with full monthly management accounts.
- At the year end, we prepare financial statements, the partnership tax return and the partners’ individual self assessment tax return.
- We are on hand throughout the year to discuss employment and tax planning issues.
Case Study 5: Builders (with CIS contractors)
Annual Turnover: £200K
Company: 1 director/shareholder
Salaried staff and CIS contractors
Client:
- The client has their own in-house book-keeper that keeps the books on Sage Line 50.
- The client prepares their own payroll and CIS returns.
- Client supplies MAAP with the Sage printouts and supporting year end schedules
Fixed fee: £780+VAT
MAAP:
- MAAP prepares the annual financial statements based on the information supplied.
- We also prepare the CT600 Corporation Tax return.
- We oversee the return of the payroll and CIS returns during the year.
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