Wi-Fi Network - Risks & Security

It is almost expected that businesses offer Wi-Fi as a facility to their customers these days. However, having a guest Wi-Fi network adds a security risk to your business. Using appropriate security software, firewalls, etc. can help mitigate against such risks.

Securing your wireless access points will help you to protect your network from hackers, viruses and malicious software. Hackers no longer need to hack into their victims computer directly and can obtain personal information simply by being connected to the same network as that user.

Wi-Fi Network Security Threats

Even in a scenario not involving identity theft, unauthorized access uses network resources and having a large number of people connected to a single network could slow a home or office network substantially. A strong password paired with suitable router settings could reduce the risk of unauthorised access and ensure that your data is protected.

You should secure you Wi-Fi network with a password. If you have a guest network for your customers, you should password protect this too and change the password regularly. Your customers can be provided with the password if and when they need to access your network.

Most wireless access points come with either a default password such as "Admin", "password", or some other simple phrase that is meant to be used to configure the device for use the first time it's connected. After configuration, this password should be changed. There are several encryption types from WEP-16bit to WPA2. A good rule of thumb to remember when choosing an encryption type is to choose a type that is both secure and suits user's needs. For most purposes WEP-64 or WEP-128 bit encryption should be enough for most standard home or small business networks. However, WPA or WPA2 could be the best choice if higher security is needed (for example if your business stores highly sensitive documents such as customer financial information).

Wireless security is often perceived as something complex and difficult.  However, in reality it is fairly easy and many of the same steps used to secure a standard desktop or laptop computer can be applied to wireless security as well. However, ultimately it's up to the user to research their security needs and then implement a proper solution for the needs of their business.

Stay tuned to our blog to know more on how to run your business successfully.

Visit www.apjaccountancy.com for more information and help for running Small Business and Contractor Business.

5 simple steps for a Perfect Elevator Pitch!

Our “elevator pitch” is the short, concise answer to "What do you do" that you can give in the time it takes you to move up a couple of floors in an elevator with someone. So, as a contractor or small business, if you were to write your elevator pitch today how would you do it?

5 Steps for a Perfect Elevator Pitch

Here are a few tips:

1.    To begin with, write down one sentence about who you are and what you do. This can be something along the lines of "I am an accountant who works with local businesses and helps with business planning in addition to the traditional audit and tax services."

2.    Next, write one sentence describing the benefits of what you do. Focus on the customer and what they gain as a result of engaging your services.

3.    The next step is to describe your ideal clients and/or customers. For example you could say, “In general, I specialise in the SME sector, working with owner managed businesses. In particular, I have helped a lot of owner-managers with succession planning issues.”

4.    Now you need to describe what makes you and your firm unique. This is your value proposition – what it is that you can offer to your client that they will value and that your competitors do not or cannot offer.

5.    The final part of your elevator pitch is the most important – asking for the business. This can be something subtle such as, “perhaps we could meet for a coffee next week to discuss the requirements of your business and identify areas that I can help you with”.

Your elevator pitch is now complete. Type it up, save it, print a copy to keep in your briefcase and memorise your pitch so that you have it with you when you need it (which could well be in an elevator!)

Don't forget that the elevator pitch has to be short and intriguing at the same time.

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Tips for Motivating Your Team

Learning how to manage a team effectively is one of the most difficult skills any manager has to develop. Keeping your team motivated, enthused and focused on the firm’s goals is critical to the success of your business, but how do you do that exactly? Here are a few tips to help you motivate your team and bring them with you as you strive to move your business forward.

It starts with you - Your team will look to you for guidance and inspiration. No matter what sort of a day you've had, pull it together and be a role model of positive energy whenever you're in sight. Your team will follow suit.

Be open - Share information. Keeping everything as open as possible will lend a sense of ownership to the team. Your employees will feel a part of the business, and once engaged, will often provide suggestions for improvement.

Set Goals - Set targets for your team and let them know when they get there. Don’t forget to provide regular feedback to the team. Let them know how they are doing and congratulate them when milestones are achieved.

Listen to your team – they need to know that you understand (and care about) their concerns, challenges and problems.  Never assume that because someone worries often that they worry about nothing - often team members will spot potential issues long before they happen. Give feedback, acknowledge that you have listened to what your team has to say and provide them with answers where possible.

Give them ownership - Let your team have responsibility and a degree of autonomy for their part of a project. Allowing them to take control will give them ownership and a sense of personal responsibility. They will want to impress you and win your approval. This can only benefit your business.

Have you tried any of these? Share any tips that you have used and that worked well.

Feel free to contact us if you need further information onhow to successfully run your business.

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Confirmation of Income for Mortgage Purposes

Many mortgage lenders are now requesting a copy of the official HMRC tax calculation (SA302) as confirmation of income for mortgage applicants; Previously, they would have accepted income confirmation by the borrower’s accountant. There is thus a conflict between planning to minimise income for tax purposes and declaring a higher level of income to support a mortgage application.

A further problem is that the SA302 HMRC calculation cannot be downloaded from the HMRC website when third party software has been used to submit tax returns, and copies are not routinely sent out by HMRC. To obtain a SA302 calculation you are required to phone HMRC and ask for the form to be sent out by post. This usually takes about 14 days.

Income for Mortgage Purposes

The accountancy bodies are calling for HMRC to allow accountants to download and print off the SA302 for their clients to support their mortgage applications.

Subscribe to our monthly tax newsletter designed to keep you informed of the latest tax issues. Contact us if you need further information on any Taxing, Accounting or Bookkeeping issues.

Limited Company vs.Sole Trader or Partnership

Are you thinking of operating as a limited company against partnership or the vice versa? Choosing the option depends on a lot of factors like your investment, revenue, taxes, etc. and mainly on what your needs are. Opting the wrong option could impact your business negatively.

Limited Company vs. Sole Trader/Partnership

Here are some basic differences listed between Limited Company and Sole Trader/Partnership:

Company	Sole Trader/Partnership
A company must be formally incorporated with a written constitution in the form of a Memorandum and Articles of Incorporation. There is, therefore, an initial setup cost.	There are no formation costs, but a written partnership agreement is advised.
Companies are governed by the Companies Acts. A company must:- - Keep accounting records - Produce audited accounts (if turnover > £6.5m) - File accounts and an Annual Return with the Registrar of Companies. This information is available to the public. - Keep Statutory Books	Sole traders and partnerships are not required by law to have annual accounts nor to file accounts for inspection. However, annual accounts are necessary for the Inland Revenue tax returns.
Companies may have greater borrowing potential. They can use current assets as security by creating a floating charge.	Sole traders and partners are unrestricted in the amount and purpose of borrowings but cannot create floating charges.
Incorporation does not guarantee reliability or respectability but gives the impression of a soundly based organisation. Personally, there may be prestige attached to directorship.	The unincorporated business does not carry the same prestige.
Tax is payable on directors’ remuneration paid via PAYE on the 19th of the following month. If applicable, higher rate tax is paid by shareholders on dividends under the self-assessment rules. Corporation tax is payable 9 months after the year-end.	For a sole trader or partnership, tax is generally paid by instalments on the 31 January in the tax year and the 31 July following the tax year. For an ongoing business tax for 2012/13 is payable:- first payment on account on 31 January 2013, second payment on account on 31 July 2013, with any final balance due on 31 January 2014. For a start-up business this is slightly different and covered in more detail later in this publication.
First year losses in a company can only be carried forward to set against future profits.	Losses generated by a sole trader or a partner can be set against other income of the year or carried back to prior years.
For profits up to £300,000 tax is charged at 20% (2013/14)	Profits are taxed at 40% on taxable income in excess of £32,010 and at 45% over £150,000 (2013/14)
There is both employers’ and employees’ national insurance payable on directors salaries and bonuses. The NI charge is greater than that paid by a sole trader/partner, but there is no NI charge on dividends.	A partner/sole trader will pay Class 2 NI of £2.70 p.w. (2013/14) and Class 4 NI dependent on the level of profits.
Shares in a company are generally transferable –therefore ownership may change but the business continues.

Know the differences and wisely choose the best option not only fulfilling your short term needs but also your long term business standing.

Still can't figure out what to choose? Contact us and Arrange Your FREE No-Obligation Meeting to know more. Call us at ✆✆ 020 89310165 ✆✆

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