Our Blog

Over the coming months the senior team of Langdowns DFK Chartered Accountants will give you a little insight into what we think is going to happen locally and around the world, how this might affect you and your business, and most importantly keeping you abreast of those tax saving opportunities!

February’s blog comes from Neil Raynsford, Portfolio Director for Langdowns DFK. Neil works with all kinds of SMEs and specialises in international businesses, and is the firm’s representative for the DFK International Association of Accountants. Neil is an enthusiastic skier, and we all hope that his booming voice does not set off an avalanche! As a passionate Spurs supporter he is hoping that ‘Arry will not be departing the club before they have successfully secured a place in the Champions League.

Times are Changing

I heard a commentator about three years ago say “Europe could become the new 3rd World if it is not careful”. I remember thinking at the time, “what sort of idiot peddles that opinion, that’ll never happen!”
I have just returned from the DFK European Conference in Barcelona (yes, accountants’ conferences can be fun too!) where the hot topic was not the trouble and strife across the Euro Zone, but the need for innovation and modernisation, not only in our industry but across the continent, as this will be the key to future success.
There was a time when the Europeans were the great conquerors of the world and at that time they represented 20% of the global population, now that statistic is more like 7% and is fast approaching 5%. The growth of the emerging markets in China, India and others is staggering. I can’t help thinking that over the last 20 to 30 years Europe has been resting on its laurels and not moving with the changing world economy.
The problem with Europe is of course the differences in cultures, traditions and attitudes; whilst the German economy is growing at 2%, others are shrinking at far faster rates. How do you reconcile all that?
At the conference there were no such difficulties. There was one opinion that the way to improve the whole, is to concentrate on what you as an individual can influence and improve your cog in the mechanism so it runs as smoothly and as efficiently as it can. We heard several speakers say:

Your clients/customers are the key to your future success
Outperform their expectations
Improve timeliness and efficiency
Constantly innovate your product or offering
Focus on areas you can excel in
Challenge the conventional wisdom
Do not be afraid to try something different

So this is exactly what we shall be doing. Working closely with our clients we continually look to improve our service offering and how we deliver these services to make it efficient as possible.

We’re accountants that like to understand our clients’ aspirations and how we can help them achieve their goals. If we can relieve a businessman of his bookkeeping, so that he can focus on the next big development or look at improving the efficiency of the business, then we are doing our bit to help innovate and modernise the areas that we can control.

And if you are looking to expand your business into Europe or globally we are ideally placed to help. DFK is a global association of accountants and advisers, able to give you local expertises wherever you or your business may need it; be it the local taxes if you are emigrating or the implications of setting up a new company.

So, it doesn’t matter what industry you work in, SME’s are the vital to any economy. The emerging countries will not be immune to the same economic cycles, and Europe’s time will come again. We just need to do the very best we can and improvements will happen.

The DFK Conference is not renowned for an evangelical style, but there was a level of optimism and determination that I haven’t seen at the last few events. There was a strong feeling of “rolling up sleeves” and “if you do not help yourself, no one else will”.

So here endeth the lesson, jump to it…!

January’s blog comes from Graham Taylor, Portfolio Director of Langdowns DFK. Graham works with a wide range of clients and oversees many of our specialist assignments, such as charities, solicitors, and estate agents. Graham is a keen sports fan and avid Saints supporter, as well as a father of two.

2012 will be a great year!

Needless to say, there don’t seem to be too many people around these days saying this at the moment. A few minutes of listening to Robert Peston on BBC’s news programmes telling you about the doom and gloom around the economy, and it’s very easy to feel like the Mayan civilization maybe got it right in their prediction of the World coming to an end on 23rd December 2012 (a real pain for me, I have to say, as my birthday’s not until 5 days after!)

Yet, for me, there is one key ingredient that anyone must have, individual or business, to try to ensure 2012 becomes a “great year” and that is CONFIDENCE.

Don’t get me wrong – there is no doubt 2012 presents many financial pressures on both a macro and micro scale. But, when all you are hit with on news headlines and front pages is the negatives, it is very hard sometimes to find positivity. Yet positivity breeds confidence, and confidence is absolutely fundamental in getting any business (or country!) on the right course.

Positive news is out there:

Inflation is on the fall – latest figures show UK inflation was 4.2% for December, and the Bank of England are now confident this will fall to 2% by the latter part of 2012 (their ideal target)
This makes it a lot easier for the Bank of England to then justify increasing their quantitative easing program, and this should help significantly to stimulate growth in the UK economy (even their last announcement to extend this by a further £75billion will only be completed early next month !)
The World Bank is still predicting that the whole Eurozone will only contract by 0.3% in 2012. Given the well-publicised problems of Greece, Italy, Portugal and Ireland, this still suggests there are opportunities for expansion within the UK’s biggest trading partners.
Interest rates are still at an all time low, and the UK is one of the few European countries at the moment to seem capable of maintaining its “AAA” credit rating following a series of down-grades amongst the rest of Europe, most notably France.
The eyes of the World will be firmly on the UK this year, with both the Queen’s Diamond Jubilee celebrations and, of course, the Olympic Games to shout about.

A number of clients I am speaking to do have very positive outlooks for their own businesses into 2012, and I think it is this focus on growth opportunities (usually having already pulled in the purse-strings on overheads by now) that are likely to lead to the most success going on to thrive over the next 12 months. And I wouldn’t be an accountant if I didn’t say, make sure you have produced budgets and forecasts. These give you valuable indicator of resource and funding requirements, which as we know are not always easy to come by. They also provide a means of measuring success or identifying when things are straying from an initial plan.

My belief leading into 2012 is that it can be truly inspirational, not just to you individually but to all those around you too. I certainly believe 2012 carries lots of potential (and, who knows, maybe even a record medal haul for our Olympians, a European Championship for our football team, and Premiership football for the Saints... well, it does not harm to believe!)

PS : I am still planning to celebrate that birthday in style!

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