12 Oct 2020
Offering the best possible clinical care is the top priority for any veterinary practice, but being in a position to do that is often no easy task. Behind the scenes of any business are a myriad of vitally important external relationships – from who checks the accounts to who cleans the windows...
Image © Roman Tyukin / Adobe Stock
Running a veterinary practice requires wearing a number of different hats – none of which ever fit perfectly, no matter how well they’re adjusted.
You need advisors for a number of things – law, accountancy, HR and business matters. The problem for many is how to find the right help.
Finding an accountantUK tax law is complex, and grows ever more so as the Government fixes loopholes and seeks more revenue without raising headline tax rates.
At more than 20,000 pages, the law is impossible to navigate and it’s quite telling that MPs need to take accounting advice to fill out tax returns for the legislation that they themselves have passed.
A good accountant is a must, but before searching, it should be understood that anyone can call themselves an accountant, whereas use of the words “chartered” or “certified” is legally protected, and requires membership of a professional body where an individual has qualified and is supervised.
As to where to look for an accountant, many begin with friends, family and even rivals for recommendations on the basis that they have first-hand experience. Alternatively, professional bodies such as the Institute of Chartered Accountants in England and Wales and the Association of Chartered Certified Accountants may assist. Each offers a finder tool to narrow down the choice and check on an individual’s stated qualifications.
Several accounting certifications can be noted, too – the most common of which are Certified Public Accountant, Certified Financial Analyst, and Certified Management Accountant.
Before deciding, it’s important to consider what the accountant is needed for – is it for a full service, tax returns or just ad hoc advice? Does the practice have to be local? By looking further afield, less expensive practices may match the need; remember that the web and teleconferencing has made it easy to get personal advice at a distance. And think too about terms of service and what is offered for the price quoted; don’t let price be the sole determinant… check into testimonials and look for online reviews.
Draw up a short list of three before grilling each for experience, services and costs. You should seek a no-obligation free consultation to allow an exploratory discussion. Costs vary across regions and are almost impossible to nail down. However, sole traderships will pay less – say £500pa to £700pa for basic advice and tax returns, while a small limited company may pay £1,000pa to £3,000pa (and more) as business size and accounting complexity increases.
These sums aren’t insignificant, but can be kept to the minimum if the business is proactive in its record keeping. Gone are the days where a taxpayer could give the accountant a bagful of receipts to sort; now HMRC demands decent record keeping and Making Tax Digital is making this more critical. Even so, ensuring that records are accurate, as well as submitted in good time to the accountant, will help with bills; the more work an accountant does to understand the information, or the longer he or she is kept waiting for records or answers, the more this will translate into a larger bill.
Just as the web has disrupted other business sectors, so it has accountancy. A multitude of online accounting service providers exist – Google offers many – but while online works for some, it doesn’t for others.
One tip: beware of any accountant who wants you to use his or her proprietary accounting system – it works for the accountant, but leaves you tied in.
Accountancy is important, but so is a lawyer. Unlike accountants, all lawyers in England and Wales must be qualified and registered with the Solicitors Regulation Authority (in Scotland it’s the Law Society of Scotland while there’s the Law Society of Northern Ireland for that country).
Whatever the need there’s plenty of choice, which is made more difficult by there being more than 125,000 solicitors in England and Wales, 12,000 in Scotland and another 2,300 in Northern Ireland.
Again, as with accountants, friends and family are one option, but each legal problem is distinct and so will need distinct advice. Good handling of an unfair dismissal claim doesn’t qualify the lawyer (or firm) in matters relating to new premises. By extension, big isn’t always best – a small legal firm can do just as well and with lower overheads. Again, the web has made the law accessible – so long as documents can be sent by post or online then a lawyer can be anywhere.
Where a matter is particularly important and a specialism is required, a good source of recommendations for the UK (worldwide, too) is the Chambers and Partners website chambers.com – where lawyers are ranked by name, firm and field.
There is another option – a programme run by The Law Society called Lawyers for Your Business, which aims to help client businesses with a turnover of below £25 million. The programme seeks to help prospective clients understand the legal problem, what it will take to resolve it and the allied costs.
The cost of a lawyer is much harder to nail down compared to accountancy; some might charge £100 per hour while others will charge four figures. Costs will also vary according to the reputation of the lawyer or firm, their experience (juniors cost less than a partner), the complexity of the case and – dare it be written – an individual’s connection with the lawyer and who the enquiring individual is. That said, it makes sense to ask for a full breakdown of likely costs and what can be done to keep them to a minimum. In general, though, expect to pay £250 per hour.
“General” consultancy is another quagmire that can trap the unwary seeking advice or help with ad hoc HR matters.
It’s possible to find potential candidates via websites such as peopleperhour.com where searches can be made according to subject and skill level, along with reviews and charges. For example, searching on “HR”, “recruitment” and “consultant” returns more than 6,000 entries throughout the UK.
One HR consultant in Huddersfield charges £25 per hour, while a legal advisor and HR consultant in Birmingham asks for £60 per hour. The key is to consider what the consultant is wanted for and to navigate accordingly.
LinkedIn is another source to try via the ProFinder tool. The process is simple – outline the type of help sought (say “business plan”), size of business and sector, time scale and scope, and location, and interested consultants will submit quotes for the work.
A maintenance contract is a gamble – as with insurance – of cost against likelihood of claiming on a repair. Making savings involves one of two options – either seeking competitive quotes to hunt down the best price in tandem with service (not forgetting the adage “buy right or buy twice”) or self-insuring, and paying for servicing and repairs.
For many, a maintenance contract comes down to cost and convenience, and the reassurance of having someone on call to fix problems. But this means ensuring the service level agreement suits.
If the self-insured route is to be followed, regularly benchmark costs of unplanned callouts against the cost of competitive quotes. In its simplest form, contractors have an hourly rate, and should have a feel for how long given jobs take and the odds of a callout based on complexity of equipment and its age. From there it’s basic maths, with parts being charged separately and a discount for the regular business. Naturally, costs will rise as equipment ages.
With budgets and profitability under extra strain as practices across the UK adapt to working in the era of COVID-19, it’s tempting to think of cost-cutting as a solution.
But suppliers provide an important service and price is not the only factor to consider, according to Cath Grimsey – practice manager at the independent Johnson and Scott Veterinary Clinics near Ely, Cambridgeshire, and regional organiser at the VMG.
While no one wants to pay over the odds for a service, there’s more to good procurement than securing the cheapest deal. In my experience of both a medium-sized independent equine practice, and more latterly a small independent small animal practice, the quality of the relationship and “fit” are much more important when it comes to selecting a service provider. When we find one that shares our values and understands our ethos, we know they will go the extra mile for us and, in return, we stick by them through both good and difficult times.
Of course, you first have to find your dream service providers and the hectic pace of life in practice invariably gets in the way. Those of us without the support of a centralised procurement department already struggle with getting through the daily “to do” list, without researching the likely return on a new scanner or practice management system. Other obstacles we face include:
The good news is that all of these problems can be overcome and, if you want to ensure that you are working with genuine business partners rather than mere suppliers, it’s time to make some changes:
I advise looking at two additional suppliers per service. This should be enough to highlight whether you are receiving value for money from your current provider. Don’t assume that price reviews are always upwards, by the way. Market saturation and copyright/licence endings can result in cost reductions.
I carry out an annual review of all service providers and contracts – and I include the “loved” suppliers. After all, things change, and every now and then it’s important to check that the reasons that ensured you originally designated them as beyond reproach still apply.
If they do, don’t waste time and energy investigating alternatives as there is no sense in switching anyway. But if the relationship isn’t as good as it was then you may need to revoke their “loved” status, so don’t be sentimental and review their service, together with all of the others.
Getting the right services at the right price is critical in today’s environment, but buying from the right people you have a strong partnership with should help you to achieve this and add a vital layer of support to your business.
