what to do with money in business

D

dingdong

Registered User
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Hi

Our business is starting to go well. We are a small profitable company with 400,000 euro in the black constantly. Just sitting in the current account. I only need about 100,000 for cash flow.

My bank offered a depsoit of 3.2% which is crap but better than nothing.

Can anyone give me any ideas what to do with money, or best way to invest it in most tax efficent manner.

Help appreciated
 
My accountant does my year end, but has,nt offered any extra advice. Should he be? or should i get my own personal advisor.

I pay him 2000 per year for non audit accounts. so i don,t know do you pay more for someone to work closer with you.
 
I would imagine that you would probably have to pay for additional service but an accountant or other financial advisor with a more intimate knowledge of your business and personal finances would presumably be much better placed to offer specific advice than posters on a discussion forum such as this?
 
Is the balance growing consistantly & at what rate is it incrementing?

Does the company need to invest in equipment/premises improvements?

What about training/advertising?

If all the usual things are taken care of then why not give yourself a pay increase :)
 
i could take more wages but taxed highly on this just wondering a better tax effecient way , thanks for your help
 
as well as considering salary increase it may be well worth while considering pension funding options. The company can most likely make significant contributions to a company pension scheme if one exists. this can be very tax beneficial. make sure you get good advice from someone competent in this area.

obviously once this money has been put into pension it is gone so ............

if you wish to keep the money within the business then shop around for better interest rates (northern rock, rabodirect, anglo etc.).
 
what line of business is the company in ?
Expand, take on more employees. Buy the best tax and investment advice.
Invest in new ideas, improved machinery, premises. Expand within your core competance or try a new venture within the company and see how that works. Theres lots of things you can do.
 
Thank you all for your comments, great little site!!!, Can you recomend any good independent financial advisor?. As i think accountants are all getting backhanders from there own newtork of advisors and financial people.

Would love to start somthing again from scratch, ?? do i need more sleepless nights!!!!!!!!!!, but life is about risk , no pain no gain!!!

Thanks
 
dingdong said:
As i think accountants are all getting backhanders from there own newtork of advisors and financial people.
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Silly comment. If you don't trust your accountant then get another one but don't tar the whole profession with one (presumably inaccurate) brush. I am not an accountant by the way.
 
dingdong said:
Hi

Our business is starting to go well. We are a small profitable company with 400,000 euro in the black constantly. Just sitting in the current account. I only need about 100,000 for cash flow.

My bank offered a depsoit of 3.2% which is crap but better than nothing.

Can anyone give me any ideas what to do with money, or best way to invest it in most tax efficent manner.

Help appreciated
Click to expand...

I'd go "skiing" in Switzerland every year ;)
 
dingdong said:
My accountant does my year end, but has,nt offered any extra advice. Should he be? or should i get my own personal advisor.
Click to expand...

dingdong said:
As i think accountants are all getting backhanders from there own newtork of advisors and financial people.
Click to expand...

Just to clarify, most practising accountants are authorised by their respective governing body to provide investment advice to clients. However many choose not to do so, mainly because of the difficulties in complying with the very heavy regulation of investment recommendations. The general wisdom out there is that the level of commissions payable by banks etc for client referrals is tiny at best, and would not cover the work and risk involved, given that the volume of such work would not justify an accountant investing in the sort of software and processes that a dedicated financial advisor would use on a day-to-day basis.

Most accountants, if asked, should be happy to provide a client with a list of regulated financial advisors who may be able to help them in relation to investment decisions. The client can then pick one or two from the list and make up their mind themselves.
 
dingdong said:
As i think accountants are all getting backhanders from there own newtork of advisors and financial people.
Thanks
Click to expand...

You think wrong. This one doesn't. By all means express your views but don't tar everyone with your brush.

Then again maybe all builders are cowboys, all politicians are corrupt and all footballers are .... well not on the Cork team anyway.
 
dingdong said:
Hi

Our business is starting to go well. We are a small profitable company with 400,000 euro in the black constantly. Just sitting in the current account. I only need about 100,000 for cash flow.

My bank offered a depsoit of 3.2% which is crap but better than nothing.

Can anyone give me any ideas what to do with money, or best way to invest it in most tax efficent manner.

Help appreciated
Click to expand...

A SELF-ADMINISTERED PENSION FUND is very suitable to you in this situation
 
Why is this necessarily "very suitable" in this specific situation (about which we only have partial info)?
 
ubiquitous said:
Just to clarify, most practising accountants are authorised by their respective governing body to provide investment advice to clients. However many choose not to do so, mainly because of the difficulties in complying with the very heavy regulation of investment recommendations. The general wisdom out there is that the level of commissions payable by banks etc for client referrals is tiny at best, and would not cover the work and risk involved, given that the volume of such work would not justify an accountant investing in the sort of software and processes that a dedicated financial advisor would use on a day-to-day basis.

Most accountants, if asked, should be happy to provide a client with a list of regulated financial advisors who may be able to help them in relation to investment decisions. The client can then pick one or two from the list and make up their mind themselves.
Click to expand...
I think that's good advice and a good answer to an ill-considered remark.
 
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