Hello folks. It is a special Sunday edition of My Week. I did not have the time to post on my usual Saturday evening. You see, I lead such an exciting life.
Reviewing the practice’s finances over the week, I went through an emotional roller coaster.
2018/19 will be the best financial year for FT Practice Ltd. Since its inception it will achieve the highest level of profit over its accounting year-end to 31 March 2019. Well done yours truly.
Moving on from self-praise, the financial year 2019/20 is not looking rosy. A significant number of client loss will be incurred towards the end 2018/19 accounting year.
Over 95% of our clients have 31 March year end. The resigning clients are on monthly fees (not refundable), they will stay on until 31 March 2019 before moving on to their shiny new accountants.
Added to client resignations, they are also a significant number of clients who have decided to strike off their companies or go through a period of dormancy.
FT Practice Ltd will start its new financial year, with a 12% reduction in its fee bank. That is concerning. Having said that, doing the sums over the week, I am still able to meet all expenses and earn an income that I will be comfortable to live with.
Yes, the situation is not to my liking. Particularly, when over 50% of fee bank lost is down to me. I was distracted and became complacent. At the same time, it is not the end of my world.
I will recover the lost fee bank. An expensive lesson learnt. Best not to cry over spilt milk. It hurts though.
I was also thinking about marketing. Before diving into it, I want to be clear on my budget, where to spend and the period of an initial boost of expenditure. This will then be followed by continuous marketing.
Clients will leave for whatever reason. Lost clients need to be replaced and growth should be never-ending for any business.
If you are new to my blogs or for those who not got My Week, this is to explain what my blogs are about.
My Week is about my downs, my mistakes, my weakness and my attempts to achieve my objectives, as a small practice owner, and more often than not failing but always keep trying and trying.
My key objective is, to be honest with myself which in turn means being honest with the readers. I see my blogs as an aspect of my real life as a small practice owner.
Life is never all successes. It is, as you know, more failures than successes. It means my week, will rarely be fantastic.