1.       Analyse current spend – this step identifies what you procure with the following aims

 a.       Identify billing errors – there are sometimes billing errors and you can obtain refunds

b.      Identify Anomalies – List high value items or spending patterns that could be changed to reduce spend and can lead to considerable savings without tendering e.g. buy cheaper pads rather than expensive ones

c.       Create Usage Profile – This is built once any anomalies are resolved and is used to create the tender and compare tender responses

2.      Tender

a.       Base on usage profile – this will maximise the discount on items that you procure rather than a general discount

b.      Agree discount levels for non contract items

c.       Agree mechanism for adding items to contract

d.      Agree mechanism to monitor orders – essential to manage costs

3.       Roll out               

a.       Design ordering process to keep departments to a contract list to optimise savings – key to achieving savings!

b.      Implement ordering process for departments

4.      Monitor

a.       Review initial invoice – ensure contract has been implemented correctly

b.      Check departments are using ordering process and make any changes required

c.       Check non contract items  - This will identify any items that need to be added to the contract or changes made to items in the contract

d.      Monitor price changes – this will avoid suppliers increasing prices over a period of time

I have successfully used this process to achieve savings in stationery of up to 50%.  If you would like more information please contact me on jack.pokoj@auditel.co.uk!

The coalition agreement makes a clear commitment to “taxing non-business capital gains at rates similar or close to those applied to income”.   In plain English, this translates to a higher rate of tax payable on profits made by individuals on the sale of second homes, buy-to-let properties, stocks and shares and many other types of assets classed as “non-business”.  Commentators are speculating that the rate could be 40% or 50%, which would be more than a doubling of the current rate of 18%.

Relief for Business Assets

The coalition agreement does ensure us that “there will generous exemptions for entrepreneurial business activities”.  So for example, if you are selling your own business or perhaps a shareholding in your employer’s business, the rate of Capital Gains Tax should be lower.  We already have Entrepreneurs’ Relief which partly fulfils this function, whether this is retained or we will move to another form of relief is not clear. 

This does not mean that owners of business assets can necessarily rest easy, for example, Entrepreneurs’ Relief is currently capped at £2m in a lifetime and therefore any excess gains could be subject to the new higher rate of Capital Gains Tax.  We also can not be sure as to how wide the definition of a “business asset” will be and many assets currently classed as such, could fall outside a stricter definition. And most importantly, is the rate of tax on business assets really going to remain as low as the current 10%?

Take Action Now 

Tax specialists have developed a number of strategies which will allow you to lock in the current rate of Capital Gains Tax – the likes of which we may not see again for a very long time!  Readers should ask themselves whether they own any assets standing at a significant gain which would be chargeable to Capital Gains Tax on a future sale. If the answer is yes and the gain is in the region of £250,000 or more, we would advise them to consult a tax adviser and quickly!  The increase could be effective from Budget day, as opposed to 6 April 2011

Year on year landfill tax has been increasing and will continue to increase in order to hurt businesses financially to drive change to meet these Government environmental targets.  Your Company needs to ensure that you are equipped to meet these challenges and be in a position to demonstrate what and how you are controlling your waste management. You will be required to demonstrate robust data reporting, whilst providing the fully compliant environmental audit trial needed to show how you are managing and improving the environmental credentials for your Company.

 Waste Management services

The following services are available:

• Expertise in suitable alternative to landfill namely, recycling Cardboard, Plastic, Paper, Metal, Wood
• Optimise loads and implement reliable cost effective equipment without decreasing service levels
• Dedicated personnel and one contact telephone number to provide specific advice  and ensure seamless  delivery of service requirements
• Experienced in all aspects of waste management including specialised waste requirements such as  confidential, WEEE and Hazardous
• Fully documented compliance and audit trail from cradle to grave
• National network of approved contractors across the UK minimising transport costs whilst also directing material to the most appropriate processing facility, thus avoiding expensive landfill.
• Access to detailed management data through our Online Report Builder platform, whenever you require it.
• Enhance your environmental credentials

1. Start by reviewing your direct energy costs, your travel costs and then your indirect supplier costs. You could even extend this further to consider carbon embodied in materials you use.

2. Review your direct energy use – electricity, gas and heating fuel. Identify the areas of greatest usage in your organisation and those which have the highest impact in terms of cost and/or carbon footprint. Use this information to determine the priority for a more detailed review.

3. Assess the usage patterns identified from this data and consider whether they pass the ‘make sense test’. Are seasonal/weekday/hourly/ day vs night variations as you would expect for your business? If not, why not?

a) Is equipment being left on unnecessarily?

b) Is start up and/or shutdown as you would expect?

4. Conduct a detailed site survey to determine which equipment or processes are the most energy-hungry. Consider the following questions:

a) Is that equipment turned off when not in use?

b) Is it energy efficient – by design, maintenance and how it’s used?

c) Is it fit for purpose?

5. Review your organisation’s processes:

a) Would it be possible to cut out any stages in the process without affecting quality?

b) Can the amount of re-work be reduced by improving quality checking?

c) How can your processes be redesigned to improve efficiency?

6. Consider your organisation’s culture:

a) Is your Energy Policy clear and understood by all employees?

b) Is this reflected in their personal targets?

c) Do you have Energy Champions to provide a readily-accessible source of expertise?

d) What do you need to do to encourage all staff to take this seriously and reduce energy consumption wherever they can?

e) Do you have a highly visible and well-used staff suggestion scheme? They will probably have some great ideas about where savings could be found.

7. Consider your organisation’s equipment maintenance and replacement policy:

a) Ensure that energy efficiency is a key element in decision-making regarding replacement kit.

b) Be aware of the whole-of-life costs of any piece of equipment. Do increased energy costs outweigh purchase cost savings?

c) Can existing equipment be made more energy efficient without having to completely replace it?

d) Ensure that equipment is well-maintained, which will keep it more energy efficient as well as prolonging its life.

8. Consider your travel policy:

a) How much do you spend on business travel each year? Include costs such as car leasing, parking, fuel, insurance, air travel and travel management costs.

b) How could these costs be better managed to generate cost reductions? Eg would it be better to have a pool car or company bicycles than company cars?

c) Are all journeys necessary? Could some face-to-face meetings be held using telephone or video conferencing instead? The supporting technology is improving all the time – if you were to reduce the number of business trips by 25%, how much difference would that make in terms of cost reduction and carbon emissions? This is exactly what Vodafone has done, resulting in double digit millions of cost savings. (Source: Tandberg case study)

9. Consider your distribution channels:

a) Do you need to distribute a physical product?

b) Can you reduce the number of journeys or organise them in such a way as to reduce the number of miles travelled?

c) Is the vehicle fleet fuel efficient?

d) Can you minimise packaging and the size of containers without damaging your goods?

10. Consider how you could encourage your suppliers to manage their energy use in a similar way. If this leads to cost reductions for them, they will be able to pass some of this on to you, creating a virtuous circle of benefit.

Telecommunications services are becoming more important to UK businesses, new Ofcom research revealed today, with communicating on the move vital for many firms. Ofcom’s first comprehensive research into how UK businesses use telecoms services explores take-up, use of services and views about landline, mobile and internet services.

Businesses spent 13.9billion on telecoms services in 2008, accounting for 45 per cent of total retail telecoms turnover. For businesses with five employees or more, the mean annual spend on telecoms services per year is 14,600 which is 19 times more than the average household.

The mix of services being used by business is changing over time, with mobile, internet and data services becoming increasingly important. More than 85 per cent of businesses were satisfied with the range of products and services available across all telecoms markets.

The research shows how businesses are an important part of the telecoms market and telecoms services are playing an increasingly key role in the success of UK businesses. However the research also shows that they could be getting more from their communications service.

The research highlights three main areas of concern amongst businesses using telecoms services:

• Some dissatisfaction with customer service and broadband speeds;
• Difficulties in negotiating a better deal and switching providers; and
• Problems with mobile not-spots in certain areas of the UK.

The research also suggests that some businesses are not taking full advantage of the opportunity to switch provider and get a better deal.

Problems with customer service

The vast majority (8 in 10 or more of businesses) were satisfied with their service. However around half of the businesses Ofcom surveyed said they experienced some frustration with their telecoms services, particularly with inadequate customer service for landline services as well as the cost of landlines and poor quality connections with their mobile and internet/ data services.

Customer service was one of the main reasons for dissatisfaction among businesses that said they were dissatisfied with any aspect of their telecoms services. Problems not being resolved quickly and businesses being kept on hold on the phone were highlighted as key issues.

Businesses not taking full opportunities to switch

The research shows that many businesses believe there is sufficient competition in the market. However it also indicates that many businesses may not be taking full advantage of this, for example by switching provider to get the best deal or asking for a better deal from their current provider.

The research found that 35 per cent of mobile users and 37 per cent of fixed line users had changed their provider in the past four years, while only a quarter (24 per cent) of internet users had switched.

Broadband and mobile availability: the impact on UK businesses

The research shows that communications services are becoming more important for businesses with growing take-up of internet and mobile data services in particular.

However, one of the main frustrations for businesses was dealing with unreliable or poor connectivity. 15 per cent of businesses are frustrated with unreliable mobile connections, 23 per cent are frustrated with unreliable internet connections and 15 per cent are not satisfied with their broadband speed.

One of Ofcom’s priorities in its draft Annual Plan for 2010/11*, which is also published today, is to understand the reason for mobile and broadband not-spots and Ofcom is carrying out detailed research into the extent of these issues in the UK. This follows Ofcom’s research carried out this year into the actual broadband speeds that consumers are getting.

Business communications use

Today’s research found that 90 per cent of businesses with five or more employees have internet connections however, 1 in 6 (16 per cent) of these businesses still use dial-up or ISDN internet services. This increased to 21 per cent for small businesses with 5 19 employees.

Keeping in touch on the move via mobile devices is important to businesses with business packages accounting for 18 per cent of total active mobile SIMs and generating 45 per cent of total mobile revenues. A third (34 per cent) of UK businesses in Ofcom’s survey use Smartphone devices with a higher take up by London-based organisations (46 per cent).

Helping businesses get a good deal

Today Ofcom also published a guide to advise small businesses on how to get the best deal from telecoms providers which can be found at:

Ofcom’s Chief Executive, Ed Richards, said: Ofcom’s research highlights the critical importance of telecoms to UK business. Our research points to important opportunities for industry to respond more effectively to the telecoms needs of businesses. We are also promoting the interests of businesses through our focus on higher speed broadband services, our work on mobile and broadband coverage and improving business customer service.”

However, leasing the same vehicle will allow you to effectively finance that ‘depreciation’ over a fixed term, with monthly payments to suit your cash flow and budgets. It protects you from disposal issues as the finance company take the risk on the projected future value and they will simply collect the car at the end of the agreement. If you lease over 3 years the vehicles will always, in most cases be within warranty. So peace of mind too!

In most cases leasing will be more beneficial than buying. That applies for both business and private users. So don’t buy, lease

• Run more efficient meetings
• Reduce the use of cars to save time and cut carbon emissions
• Make powerful presentations to large audiences
• Save money on events.

Audio conferencing

• Reservationless-Plus - no reservations are required with a dial-in number, conference code and PIN. Features include recording, playback and online call management.
• Automated - make a reservation for a conference call and conduct it without the assistance of an operator.
• Operator Assisted - reduce travel to central locations with large-scale conferences using the  event team.

Web conferencing

• Integrate audio and web into an easy-to-use service
• Host interactive meetings
• Allow technical professionals to gather system information and diagnose desktop issues online
• Support with online events including planning, conducting the meeting and follow-up.

Key Benefits

• Simple to use with conferences set up in minutes
• Easy-to-use 24/7 without a reservation or operator
• Operator assistance available for larger meetings
• Use conferencing to present a professional image internally & externally
• Save sessions for legal & training use
• Features such as mute participants to ensure calls are effective
• Call participants from the conferencing service to reduce costs of calls claimed back in expenses

The bridge was 2 miles long and quickly led the way to Brooklyn were thousands were waiting. Fourth Avenue was wide and stretched for 4 miles before the runners in the green and blue starts met. This signalled the first of many spots were runners ran slowly in convoy before speeding up again to race pace when the road became less congested! Bands greeted us into Queens and crowds kepts the spirits high on this hilly section of the course. At several points I glanced to the left to see the Empire State and Chrysler buildings. Another long bridge, the Queensborough Bridge was the gateway into Manhattan but the last 5 miles had been slow and I didn’t think I’d break 4 hours.

Crowds lined the full length of First Avenue, bands played and the wall of noise lifted me to run faster. Then we crossed into the Bronx, home of the New York Yankees. After a couple of miles it was back onto Manhattan and Harlem. I had to dig deep at this stage as there was a steep hill lasting a mile waiting at Central Park for tired runners. The crowd rose to the occaision and another wall of noise helped me race up the hill and turn into Central Park for the last 2 miles. This undulating stretch seemed to last forever but I kept up my pace before crossing the finish line in 3 hours 58 minutes.

The statistics were 5 boroughs, 26.2 miles, 100 bands, 42,000 runners, 2,000,000 spectators and £1,500 raised for Breast Cancer Care!

I ran through the 5 boroughs of New York City raising £1,500 for Breast Cancer Care in the process!

The report was the result of Project Discovery, a scheme that Ofgem started in March in which it outlines four possible scenarios for energy use and security in the next 10 to 15 years.

It pointed out the need for investment came at a time of volatile world energy prices and Britain’s increasing dependence on gas imports. This exposure meant that supply disruptions across the world could affect prices. The scenario in which prices could spike by 60% was that of a strong resurgence in global economies, along with missed renewable and carbon targets, and no nuclear facility built before 2020. The report said the cheapest scenario – with a hike in bills of 14% by 2020 – factored in a slow recovery from the recession, coupled with global green stimulus packages. In this option, high carbon prices and government policies would support investment in renewables, nuclear and carbon capture and storage.

But significant changes are needed in the way energy is generated and consumed, the report added. “These are big challenges. Consumers are already enduring high energy prices,” said Ofgem chief executive Alistair Buchanan. “This is why we are consulting with consumer and environmental groups, the academic community and industry to ensure any policy proposals we make are grounded on the best evidence available. Early action can avoid hasty and expensive measures later.”

Mr Buchanan said that the good news in the report was that emissions would fall by up to 43% from 2005 levels, describing the climate change targets as “very, very tight”.

The report came as the UK was facing the effects of the financial crisis, an acceptance that it was “no longer an energy island”, and that it would see a revolution in the approach of power generation, he added.

New legislation governing surface water charges will be brought in as part of the Flood and Water Management Bill, in the next session of Parliament. The new law will allow water companies to apply concessionary charges for community organisations such as scout groups, amateur sports clubs and faith groups.

Ofwat says the cost of providing surface water drainage in England and Wales is about £700m every year, and everyone needs to pay their share. But the policy has led to some not-for-profit groups paying considerably more than commercial buildings – like shops and factories. Churches faced higher bills because the drainage charges are based on the total surface area of their roofs, which governs how much rainwater has to be drained away into sewers.

In a joint statement, the Scout Association, the Football Association, Lawn Tennis Association, the England and Wales Cricket Board, the Rugby Football Union and the Church of England, said they would be “seeking assurances” from all of the main political parties “to make sure these measures become law”.