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Have you ever wondered about the best ways to protect you and your business? In this series, we’ll look at the key ways to use trusts, insurance and risk-management techniques to protect both your personal assets and the future of the company. In this article, we’ll look at how you can use a trust to shelter your assets. What is a trust? Before we go any further, let’s explain exactly what a trust is and how they can be used. A trust is a legal arrangement where a person (the settlor) transfers ownership of certain assets to another person or entity (the trustee) to hold for the benefit of one or more third parties (the beneficiaries). These assets could be money, property or shares etc. It's essentially a separation of legal ownership from beneficial ownership. These are the three main parties involved in a trust Settlor : The person who creates the trust and contributes the assets. In this instance, the settlor is likely to be you, the small business owner. Trustee : The person or entity (this could be an individual or a company) who holds legal title to the assets and manages them according to the trust deed. They have a fiduciary duty to act in the best interests of the beneficiaries. Trustees are likely to be you and your family members, or anyone in the business who you decide to make a trustee. Beneficiaries : The individuals or entities who are entitled to benefit from the assets held in the trust. This will usually be the family members or other interested parties that you wish to be beneficiaries of the assets held in the trust. What’s a trust deed? The rules for how the trust operates are set out in a legal document called a ‘trust deed’. The trust deed is a legal document that formally establishes a trust. It outlines the trust's rules, names the settlor, trustees, and beneficiaries and defines the trustees’ powers and duties. The deed also dictates how assets within the trust are to be managed and distributed to protect personal assets from business liabilities. How can you use a trust to protect your personal assets? Running a business comes with a certain amount of inherent risk. There’s potential for the business to go bust, for creditors to come after your assets, or for individuals and organisations to make legal claims against you and the business. Setting up a family trust to shelter your personal assets allows you to separate your personal financial security from these inherent risks of running a business. The trust creates a legal barrier between your individual wealth and any financial liabilities or claims arising from the business. Here are the five key reasons why a trust is worth considering 1. Shield your personal assets from any business liabilities If your business faces bankruptcy, lawsuits, or significant debt, your personal assets can become vulnerable. This is especially true for sole traders or partnerships, where you don’t have the protection of limited liability as an incorporated company. By transferring your assets to a trust, these assets are legally owned by the trustee, not you personally. This makes them inaccessible to the owner's personal creditors, in most cases. 2. Mitigate the risk of being an entrepreneur Being an entrepreneur involves taking on certain risks. Sales can plummet, businesses can fold and unexpected external conditions can scupper your well-laid plans as a business owner. With your personal assets held in a trust, you can take calculated business risks knowing that your family home, savings and other personal investments are safeguarded. The family trust provides you with a crucial safety net to secure yours and your family’s future. 3. Enhance your estate and succession planning Protecting your personal assets is the key function of the trust. But a well-managed family trust can also help with the orderly transfer of your assets to future generations. Having the family trust set up prevents your hard-earned assets from being tied up in your estate upon death. This is great for estate planning and helps your immediate family achieve a smoother transition and protects these important assets from potential claims against the estate. 4. Balance control vs. ownership As the business owner, once your assets are held in a trust you are no longer the legal owner. However, through a trustee or appointor role, you can still maintain a significant degree of control over how the assets in the trust are managed and distributed Even though you no longer hold legal ownership of these assets, you can still balance a level of control over the assets, while also enjoying the benefits of reduced liability and risk. 5. Benefit from better tax planning, in some instances Asset protection is the primary driver of a family trust. But having the trust in place can also make it easier to distribute income among beneficiaries in different tax brackets. As such, there may be an opportunity to enhance the overall tax position of the whole family. Tax planning within a trust structure is a complex area and should always get professional advice from your tax adviser. Helping you enjoy the protection of a family trust Having worked so hard to create a profitable business, it’s vital to take every opportunity to protect your personal assets and the future prosperity of your family and loved ones. Talk to our team about the key benefits of setting up a family trust, and the potential benefits you could achieve in your own specific business and family situation.

Projecting your cash flow is essential. By forecasting ahead, you gain a clear picture of your financial position in the coming months, which allows you to take the right steps to protect your cash reserves. Detailed forecasts also make it possible to test different scenarios, identify savings, and develop strategies that keep the business secure. Staying on top of changing conditions Forecasting is not a one-off exercise. Your cash flow should be reviewed weekly or at least monthly, depending on the size and complexity of your business. This regular check gives you time to address problems before they become critical. For example, if a customer payment looks likely to be late, you can tighten credit control, chase invoices earlier, or agree staged payments to protect your position. Modern tools like Float, Fathom, or Futrli connect with your accounting system and can automatically update your forecast when new invoices or expenses are added. This saves time and ensures the data you are working with is always current. Strengthening your financial position A forecast is only useful if you act on what it shows. If your outgoings consistently outweigh your income, you need to address both sides of the equation. On the income side, consider whether your prices reflect the value you deliver. A modest increase, communicated well, can have a big impact. Look at new revenue streams, such as offering a premium version of an existing service or introducing subscription-style billing to smooth income. On the cost side, carry out a quarterly expense review. Cancel unused software licences, renegotiate supplier contracts, and monitor stock levels to prevent tying up cash in slow-moving items. If staffing costs are a concern, explore flexible hours, cross-training staff to cover more roles, or outsourcing specific tasks that don’t need full-time employees. Small adjustments can add up to a significant improvement in your forecast. Preparing for the future One of the biggest strengths of forecasting is the ability to model “what if” scenarios. Adjust the assumptions in your forecast to see the impact of a 10% fall in sales, a delayed client payment, or an increase in energy bills. This allows you to put contingency plans in place before problems arise. If a scenario shows a cash shortfall, you can line up funding early, when you are in a stronger negotiating position with banks or investors. Alongside scenarios, build a rolling 12-month forecast. Extending beyond the next few weeks or months helps you plan for seasonal peaks, tax payments, or larger one-off expenses. This longer view makes your strategy more resilient and gives you confidence when making investment decisions. Talk to us Cash flow forecasting is not just about avoiding problems; it gives you the insight to grow safely and take opportunities with less risk. Call us on 01904 787 973 if you’d like support setting up a forecast that works for your business and puts you firmly in control of your cash flow.

How often do you get to the end of a working day and wonder where the time went? Perhaps you never got to item three (or even item one!) on your to-do list. How can you solve this problem without working longer hours? The answer is very simple, but the art in the solution is where the gold is. The answer to free up time is to delegate more, either to existing team members, new people you recruit, or externally to outside contractors. However, if delegation were that easy, everyone would be doing it now, right? So, what is the art of delegation? We say art, because delegation is not an exact science; different approaches are needed depending on who the ‘delegate’ is. Time and effort are required to effectively pass on tasks to others. Often, the time the delegator needs to put in initially is greater than if they did the work themselves – that’s why so many people don’t delegate. The view that ‘it’s quicker for you to do it yourself’ holds you trapped and unable to be more productive and effective yourself. It also stops others from developing better ways to do things than you already know, i.e. if you teach them your way, then they can master that AND add their own value, two minds being better than one. Here are some essential principles to apply to help you to delegate (as opposed to abdicate!): Delegation Assess the task, issue to the right person and support, helps build trust and respect Be specific and crystal clear for greater communication Request they repeat back instructions, so you know you were understood, enabling higher productivity Set a time frame and request clarification that the task has been achieved, ensuring jobs are completed on time and are profitable Both parties to review, opens the door for future work Abdication Issue tasks to anyone and forget about it, shows distrust and a lack of respect Giving unclear and little information results in poor communication Don’t ask if you were understood, results in low productivity Don’t set a time frame – it can mean jobs are delayed and over budget Different expectations can result in disgruntled clients No review results in no future work Delegation is a skill to be learned; applying these principles consistently will ensure long-term success. Action list Which tasks am I currently doing that I could delegate to others? What can I do with the time I free up? Who are the best people for me to delegate these to? (Make sure they want to do these as part of their career development). What is the best way to document what is expected and how it should be done? What support and review process is needed to ensure success? Get in touch Delegation is one of the fastest ways to free up your time and focus on the parts of your business that really need your attention. At Inglis, we work with business owners every day who face the same challenge: too many tasks on their plate and not enough hours in the day. We can help you streamline your financial processes, take essential but time-consuming work off your shoulders, and give you the space to focus on growth. If you’d like to spend less time buried in admin and more time leading your business, book a call with Donald Inglis .

Digital systems and cloud technology have revolutionised the running of the average small business. But with software systems comes the ever present issue of cybersecurity. And it’s not just the big league, like Boots and Marks & Spencers, that have to worry about getting hacked. A recent BBC News article highlighted how one cracked password is all it took for a ransomware gang to destroy a 158-year-old transport company, putting 700 people out of work. So, what can you do to increase your cybersecurity and keep your business, customer and finance information safe from hackers and malicious software? Here are five ways to help protect your business 1. Use strong passwords and multi-factor authentication (MFA) Make it mandatory for your team to use complex, unique passwords for all business accounts and devices. And make sure to enable multi-factor authentication (MFA) (sometimes called two-step authentication) so all software and system log-ins require a second form of verification, This makes it far more difficult for hackers to gain access to your systems. 2. Keep software and security patches updated Regularly update all your operating systems, software, apps and security patches, so you’re always using the most up-to-date versions. Cybercriminals will exploit any known vulnerabilities in out-of-date software, so patching these gaps is a critical step in preventing attacks. 3. Train your staff to recognise phishing and poor security Your employees are often the first line of defence. Provide regular training on how to spot suspicious emails, texts or calls. And make sure your team-members knows to avoid clicking on malicious links or downloading unverified attachments for example. 4. Secure and regularly back up your data Make sure to back up your critical business data to a secure, separate location, like an encrypted cloud service or an external drive. With back-ups in place, you can be up and running quickly in the event of a ransomware attack or data breach. 5. Adopt the Cyber Essentials scheme The Cyber Essentials initiative is a government-backed certification scheme that explains five ways to protect your business against the most common online threats. By completing the Cyber Essentials scheme, you demonstrate your commitment to cybersecurity and give the business increased protection against potentially harmful attacks. Helping you keep on top of cybersecurity Keeping your business and your data safe and secure is a core responsibility for every small business owner. And there’s plenty of advice available to boost your cybersecurity. The National Cyber Security Centre has a mix of advice, schemes and training available for small and medium-sized UK businesses. And if you need 1-2-1 advice, our team will be happy to offer support and connect you with local cybersecurity experts.

Would your business still thrive, or would it suffer a catastrophic failure if you suddenly stepped away? It’s tough to remove yourself from the day-to-day operations when you’re passionate and busy. However sudden accidents, illnesses, or family emergencies can – and will – happen and you need to be able to step back knowing your systems are robust enough to cope. Build in resilience For your business to work for you, you need to make yourself replaceable. Large corporations have plans in place to mitigate what’s known as 'Key Person Risk'. But when you run a small entrepreneurial venture, who is the backup? The more you can train and empower your team to perform the business’s essential daily functions without micromanagement, the closer you'll be able to enjoy a lifestyle business. Establish repeatable and scalable support infrastructure to run the daily operations and create a great team that you can lean on. Your staff need a common purpose, knowing why what they’re doing matters, as well as clear expectations around their roles.  By creating a suitable work environment, where employees both individually and as a team are more efficient and likely to enjoy what they do, you’ll breathe easier knowing they have your back (and your business) in an emergency. Finally, it’s important to know what the business looks like without you. An exit strategy is often thought of as the way to end a business – which it can be – but in best practice, it’s a plan that moves a business toward long-term goals and allows a smooth transition to a new phase. That may involve re-imagining business direction or leadership, keeping financially sustainable, or pivoting for challenges. A fully formed exit strategy takes all business stakeholders, finances and operations into account and details all actions necessary to sell or close. Strong plans recognise the true value of a business and provide a foundation for future goals and new directions. Top Tips No one is irreplaceable – Challenge yourself to step away for a week. Which systems fall over? Which procedures get left hanging? Which duties get ignored? Go cold turkey as a test case for the time you may have to leave your business in the hands of others. Embrace innovation – Get systems that are simple, streamlined, effective and can be used by multiple key team members. Make sure anyone can log in and see exactly what’s needed for what reason at any time. Recognise the value you’re creating – A business that doesn’t rely on its owner is worth a lot more when the time comes to sell or pass the reins to someone else. Over the years, we’ve grown into one of the leading accountants in York, expanding our range of accounting services whilst staying true to our core values. If you would like to talk to our team about structuring your business to make it more reliable, then book a discovery call with Donald Inglis .

When you’re running a business, it’s easy to get caught up in the day-to-day activity and lose sight of the big picture. Taking stock of the health of your business is important. Knowing where you are allows for more effective planning, early warning about any issues, and the chance to better chart a course for success. There are some quick ratios that will help you to gauge the health of your business. We can help you to assess your business health and show you how to calculate these vital checks. Liquidity ratios Liquidity ratios are about how quickly you can turn your business assets into cash - which helps you assess whether you’ll be able to pay the bills if cashflow gets tight. High ratios are better, as this means you’ve got more assets than liabilities. Current ratio Current ratio = Total current assets / Total current liabilities As a general guideline, 2:1 is a good current ratio, but this does depend on the kind of industry you’re in, and the nature of the assets and liabilities. Quick ratio Quick ratio = (Current assets – stock on hand) / Current liabilities This measure excludes your existing stock, which you may not be able to quickly turn into cash, and is seen as a more realistic quick snapshot of your position. Solvency ratios Solvency ratios look at sources other than cash flow to see whether your business will be able to settle debts. Leverage ratio Leverage ratio = Total liabilities / Equity This is a measure of whether your business is reliant on debt financing or equity to fund your assets. A higher ratio can make it harder to borrow money. Debt to assets Debt to assets = Total liabilities / Total assets This tells you what percentage of assets is being financed by liabilities. Profitability ratios Profitability ratios will let you know how efficient your business operations are. Where possible, it’s good to measure your business against others in your industry. Gross margin ratio Gross margin ratio = Gross profit / Total sales This ratio tells you whether you can cover the necessary business overheads from your sales. Net margin ratio Net margin ratio = Net profit / Total sales This measure tells you the percentage of sales dollars left after you’ve settled your expenses, except for your income taxes. Checking your business health is a great habit to get into Using these ratios helps you to understand your current business health and allows you to plan. Talk to us about how to calculate the factors in these ratios in order to keep your business on the right track.

Contracting or freelancing requires you to wear a lot of hats. Relationship-building, keeping track of your time, marketing your skills and actually doing the work. But one of your priorities should also be establishing how you handle your money and setting the groundwork for good habits. Understand your deductions Before you start, it’s essential to understand what expenses you can and can’t claim. This means you’ll keep the right receipts and track the right expenses. Figuring out what’s what can be a little confusing as everyone has a different working set up and what you can claim for can vary between industries and occupations. Talk to us about your business expenses from the beginning. This will also help you plan for any bigger work-related purchases that you may need to make. Get a system sorted You’ll thank yourself later for setting up a good system now. Getting your expenses recorded and your invoices collated means you’ll be able to spend more time doing the important stuff in your business. It’s not just about saving time - keeping on top of your cash means you’re more likely to succeed. Do your research and choose a system that will work for you. Consider choosing a software platform which allows you to record your time spent on projects, it’ll make sending those invoices that much easier! Stash that cash When you’re running your own business or working for yourself, it’s important to always keep your tax obligations top of mind. Make sure you have money set aside in a separate account or consider entering into voluntary instalments. One way to budget and keep on top of your business tax is to pay yourself a wage. Keeping your accounts separate also prevents you from thinking of all your business income as spending cash! Remember to also put aside a little extra to cover your holidays and any quiet periods. How we can help We can help make this process easier, so talk to us about setting up systems that take the headaches out of your finances. Give us a call on 01904 787 973 or book a call with Donald Inglis .

Are you undercharging for your services? It can be hard to tell, particularly if you’re in a niche industry or you’re a contractor. Costs have been rising, so it may be time to rethink your own pricing. Here are five signs that you might be undercharging: Nobody ever questions your quotes – Do all your new clients accept your quotes or charges without asking any questions, requesting a breakdown or wanting a discount? It’s possible they’re delighted to be getting such a great deal. You run off your feet but you can’t afford to get help – When you’re working yourself to the bone, but there’s not enough money left over to employ someone to help you, your prices are too low – or something else needs to change. Your prices have been the same for two years or more – In most industries, prices increase just slightly each year. Leave your prices flat for too long and you’re not keeping up with the market; make sure you review your fees annually. You’re overbooked – When business is booming and there’s no room for new clients, it’s time to raise your prices. Clients don’t treat you as well as they should – When clients think they’re paying peanuts, they’ll often take you for granted. They don’t see your time as valuable, so they feel free to mess you around.What should you be charging? Finding your pricing sweet spot could take a little time. You’ll need to do some research, maybe ask around a little, and find out where your competitors are pitching their rates. We can help too. If we have clients in similar industries we might be able to give you some indication of typical fees, so give us a call on 01904 787 973.