Verified case study

Clarus Knight Accountants helps SMEs to grow

by Richard Mahoney | 5 January 2017

Clarus Knight Accountants helps SMEs to grow

Client testimonial

“It is great having Clarus Knight on board. They are accessible, driven, relatable and understand what it is like to run a small business. They help us look at our finances strategically rather than putting a finger in the sky, and this support has helped us to become a more professional company.”

Ashley Smith, Co-founder, Euphonica


Executive summary

Clarus Knight is an accountancy firm for start-ups, and small and medium-sized businesses.
 
Clarus Knight accountants combine deep expertise with outstanding customer service, to support clients as their business grows. Services range from book-keeping, compliance and stakeholder agreements, through to strategic tax planning, fund-raising and corporate finance.
 
Understanding and complying with accounting regulations can be challenging for time-poor business owners, and many SMEs find the requirements overwhelming.
 
These client stories demonstrate how Clarus Knight has helped three businesses to take control of their finances, and use their accounts to drive growth. They cover a £3500 VAT refund, the use of management accounts to increase revenue, and remote book-keeping and cash flow.
 


Management account insights save founder time and drive business growth

Euphonica is a music events company. Euphonica partner with brands and venues to create bespoke musical experiences, and supply DJs, bands, lighting, and sound at the UK and global level. Euphonica has worked with Somerset House, Rolls Royce and the Tate.


 As Euphonica has grown as a company, the accounts have become increasingly complex and time-consuming to manage. Co-founder Ashley Smith was spending two days a week managing the book-keeping for rolling contracts.

Frustrated with the level of service from their existing accountant, Euphonica turned to Clarus Knight. Managing Director Richard Mahoney came on board in July 2016, in an outsourced Financial Director role.

Richard immediately took control of the management accounts, including budget, profit and loss, and cash-flow.

Bookings are cross-checked against invoices to catch potential payment issues early and resolve them quickly and professionally. Regular monthly review meetings help the team to understand their cash flow patterns, identify their most profitable clients, and strategically plan for growth. 

As a result, Euphonica has successfully freed up founder time to focus on their key clients and increase revenue and profit. The company has a firm financial basis to prepare for future investment discussions.


£3500 VAT refund for newly incorporated freelancer

Deciding whether to trade as a sole trader or to incorporate as a limited company is a tough decision for many freelancers. The decision to incorporate is subjective, based on a nuanced understanding of costs, compliance requirements and individual circumstances.
 
Clarus Knight worked with a freelance Web Developer who was registered as a sole trader, paying income tax and national insurance. By incorporating as a limited company, the Web Developer benefitted from a more tax efficient profit extraction method and alongside the use of the Flat rate VAT scheme, was better off by £3,500 per annum.
 
In addition to VAT registration, Clarus Knight delivered company formation and structure, a shareholder agreement and filing and compliance. This saved significant time for the Web Developer and reduced the risk associated with him carrying out these tasks himself.
 


New bookkeeping software clarifies cash flow and reduces stress

Bogged down in accounting paperwork, a Construction SME had lost control of their creditors and debtors. They did not understand how to use their accounting software and found the situation incredibly stressful.
 
Clarus Knight helped the Construction SME to switch to a new software product that was easier to use. Clarus Knight provided remote book-keeping including ledgers and bank reconciliation, along with regular reports on who to pay and who to chase. This provided a clear view of the true cash position.
 
Having a firm grasp on cash flow helps the Construction SME plan ahead. The support from Clarus Knight has saved them time, most importantly, has significantly reduced stress.
 


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Richard Mahoney

Richard Mahoney is the founder of Clarus Knight Accounting. Clarus Knight want our clients to be happy, fulfilled and to ultimately achieve their goals. We work hard from the outset to understand these goals which help us build strong and long-lasting relationships.