CASE STUDY

First dream home purchase and annual tax savings of £13,500

Mr Ravi, Wholesaler

Bloom began working with Mr Ravi in August 2016. From the first meeting it was clear that he and his business needed help. The business had potential, but having been seriously let down by his previous accountant and business associate, the business was in a mess. 

The directors, both husband and wife, had no idea how the business was performing and frustrated with their current rented home, they were desperate to purchase their first family home. The business was being run with entirely manual processes, which included the directors spending significant time, usually working late evenings and weekends, manually generating invoices and trying to maintain customer balances via spreadsheets. It would come as no surprise that these balances were difficult to determine and manage.

The problem continuously worsened and eventually it was established that the business was owed significant amounts of money from their customers, approximately £500,000! The directors weren’t only juggling a tough business model, but also family obligations including a new-born baby. Ravi was struggling to spend quality time with the family and keep the business running, whilst working incredibly long, unsociable hours, facing continuous stress and suffering from ill health.

The biggest change that Bloom implemented for Mr Ravi’s company was to set up a fully online cloud accounting system. This provided immediate and massive time savings for the directors as their system could now be accessed anywhere, anywhere and more helpful information was readily available.

In addition, as the company became more profitable, there was a tax planning opportunity to change the structure of the company, by transferring and splitting the shares equally with his wife, who already had a very active role in the company. This would result in a huge tax saving of at least £13,500 per annum.