< PreviousTAXATION10www.blmforum.netYou can now read Business Linkon thego!Digital Editions now available on iPad & iPhoneWWW.BLMFORUM.NETIdeal for those who spendtime away fromtheir officeAudit requirementshave changed – areyou in the know?asks Robert Anderson, Audit Partner,Streets Chartered Accountants The government’s changes tocompany law, applying tofinancial years ending on orafter 1st October, will allowmany limited companies andlimited liability partnershipsmore choice in decidingwhether to have an audit.Qualification as a smallcompany (or LLP), subject tocertain restrictions, is nowsufficient to qualify for auditexemption. Previouslybreaching one of the turnoveror asset thresholds would havetriggered an audit. However, thenew legislation goes further and also allows all subsidiarycompanies and LLPs regardless of size to be exempt fromaudit provided that the qualifying parent guarantees theliabilities of the subsidiary. Again this is subject to certainrestrictions.Generally a company qualifies as a small company if it meetstwo out of the following three thresholds – turnover not morethan £6.5 million, balance sheet total (being the sum of allassets) not more than £3.26 million and number of employeesnot more than fifty. A company generally ceases to be small inthe second year that the thresholds are breached.A company cannot qualify as a small company if it is, or wasat any time within the financial year to which the accountsrelate, a public company, a certain type of financial servicescompany such as an insurance, banking or investmentmanagement company or a member of an ineligible group.Provisions are still in place such that if 10% of shareholdersrequest an audit then one must be performed. In addition,some companies regardless of the thresholds still like the goodgovernance and assurance provided by having an audit.Companies may also require an audit as a condition of grant orloan funding. The new rules also do not replace the thresholdslaid down in other legislation, for example, in relation to charityaudits.In terms of groups, parent companies will need to considerwhether they are prepared to guarantee the liabilities of theirsubsidiaries. After all a group structure is often in place to ringfence the liabilities of certain activities. In addition if thesubsidiary is of a significant size then the group auditors maystill need to perform audit procedures on the subsidiary as partof their audit of the group accounts.Robert Anderson is an Audit Partner, with StreetsChartered Accountants, a top 40 UK accountancy firm.Telephone 0845 880 0320, email info@streetsweb.co.uk orvisit www.streetsweb.co.uk.10:Layout 1 29/10/12 14:19 Page 1Long and winding roadDear Sir,The government must not let the pace slip if the mortgage market is to carry on its road to recovery. TheFunding for Lending Scheme has clearly begun to make a difference, but this is only the beginning, and there is along way to go. With Funding for Lending helping to improve conditions in the wholesale funding markets, we nowneed to see a similar push on lending to small and medium-sized firms, which, coupled with the FSA’s changes tocapital and liquidity, should help businesses access the finance they need. Here’s hoping the banks are listening.P SacksSheffieldLettersLettersSomething to say? Write to: Business Link Magazine, Armstrong House, Armstrong Street, Grimsby, North East Lincolnshire DN31 2QE or email: letters@blmgroup.co.ukThe greatjobsmysteryDear Sir,I’m sure I’m not aloneamongst your readership inbeing utterly baffled at thefall in the number of peopleclaiming Jobseeker’sAllowance, whilst theeconomy continues toflatline. Just where are thesepeople going to and who arethey working for?The latest unemploymentfigures also showed that payis rising, although still not inline with inflation. What thisshows is that the recovery isgoing to be a drawn outprocess. What we need fromthose in Whitehall is aprogramme that makes iteasier for companies toemploy people, introduces amore competitive taxsystem and invests in anoutdated transportinfrastructure. Only thenmight be see the pace ofrecovery quickening. F LewisLincolnREADERS’ LETTERSwww.blmforum.net11Are the Chinese taking advantage?Dear Sir,I recently engaged in an exposé of the cash flow advantage that Chinese manufacturers have overtheir western competition. The new statement by Sainsbury’s to extend its credit payment to suppliersfrom 30 days to 75 days for settlement of their account after delivery of the goods as opposed to aChinese manufacturer being paid 50% with order and 50% before the goods leave the Chinese shoresexemplifies the arrogance and opportunism of the ‘great’ and the ‘good’ in our Society.Why is it that UK manufacturers and suppliers cannot get 50% with order and 50% before thegoods leave the factory gates from retailers like Sainsbury’s, Tesco’s and the like? Why do Britishmanufacturers have to rely on the Banks or private investors when Chinese manufacturers areconducting their business and their manufacturing process on UK customer money?Is it any wonder that the Chinese have huge investments in UK and US government stockearning interest on what is essentially ‘our money’ being paid in advance for goods that the Britishretailer is paying interest on (at a far more exorbitant rate) before waiting - what will now be 75days from Sainsbury’s to get paid for their endeavours?A rather more serious question is, “Why is a bone-headed less than commercially minded PrimeMinister and his government telling energy suppliers how much profit they should earn when hisso called economic advisers do not appear to have pointed out the very basic shortcomings ofbusiness enterprise where Sainsbury’s can even think they can get away with arbitrarily movingfrom a 30 day to a 75 day account settlement regime?”As a chartered financial planner I would put most of the economic experts and a media thatseems more interested in a man trying to ride his bike out of the gate at number 10 DowningStreet than dealing with the real problems of this country, in a very large boat and set them afloatin the North Sea for all the use they are.China has all the money because it demanded it in its terms of trade. British manufacturers arepoorly resourced because they have contracts drawn up by “clever” lawyers that allow thisSainsbury’s payment injustice to be perpetrated. It is wrong and if Mr Cameron would divert hiseyes from the energy companies to the small business sector then he might well be able to putthose clever lawyers out of business. Terence P O’Halloran BSc FCII AIFPLincoln11:Layout 1 29/10/12 14:19 Page 1The introduction of the EnterpriseZones in our part of the worldhave come about as part of asustained effort to encourage moreproperty development – a sector thathas proven to be particularlydepressed since the start of therecession. Yet the simplified planninglaws that the Enterprise Zone statushave introduced are perhaps contraryto other legislation that developersneed to be aware of.For example, the CommunityInfrastructure Levy has the potential tomake a major impact on planning andproperty – and in our region, Newarkand Sherwood is the first local authorityin Britain to adopt the Levy. The aim ofthe Levy is to use it as a means ofsecuring funding for infrastructureneeded for development to go ahead.The intention is to unlock developmentand support growth at strategic andlocal neighbourhood levels, and councilsare required to publish the charges toensure developers are aware of what’srequired.In Newark and Sherwood, the Councildiscussed the introduction of the Levywith a large number of developers,agents and infrastructure providersduring its consultation process beforethe Charging Schedule and InstalmentPolicy came into force last December.Under the Levy, retail developments arecharged between £100 and £125 per sqm and industrial developments up to£20 per sq m though offices are exempt– so, for example, industrialdevelopments in the Newark GrowthPoint must pay a levy of £20 per squaremetre. It’s likely that the CIL will beintroduced elsewhere in our region withBassetlaw District Council havingcompleted its consultation processearlier this year.There are obvious benefits for theCIL, given that often major industrial,retail and residential developments willrequire alterations to the infrastructurein any case – but it adds a furthercomplication to those wishing to createnew developments, especially as theindividual councils have theopportunity to set their own rates andtheir own criteria for applying them. Bycomparison, for example,Huntingdonshire in East Anglia havedecided in their rates to exemptindustrial developments – but they docharge for hotels and health facilitieswhich aren’t charged in Newark.It’s perhaps not surprising, given thepotential confusion with the constantlychanging laws, that many companiesare making greater use of propertyexperts and attending a growing rangeof seminars across the region tounderstand the various issues – suchas the Frameworks for Recoveryseminar at Leeds’ White Rose Centreon Tuesday 20th November, jointlyorganised by PKF (UK) LLP, LambertSmith Hampton and Irwin Mitchell LLPIndependent property adviser GVAhas been instructed to market theZenith Control Centre inWakefield on behalf of theDepartment for Communities andLocal GovernmentFirm foundationsThe introduction of theCommunity InfrastructureLevy adds a furthercomplication to commercialproperty development12www.blmforum.netCOMMERCIAL PROPERTY12-13:Layout 1 30/10/12 16:40 Page 1– where among the speakers is Phil Crabtree, Chief PlanningOfficer at Leeds City Council, who will examine how thecurrent changes in decision making and funding can assistin delivering development projects.A number of companies in our region have decided tocontract out their property work to specialist organisationsto allow more informed discussion of their portfolio andtheir potential changes. For example, Humberside Airport’sproperty work will now be handled by law firm AndrewJackson, with Bill Fisher leading on all non-contentious workincluding development, sales and lettings and partnerStephen Kell advising on any contentious property matters.Meanwhile, Scunthorpe-based Nisa, the independent retailgroup, has agreed a national property service withSanderson Weatherall LLP, the national independentpractice of chartered surveyors and property consultants.The practice will provide comprehensive property adviceand services to its members, including informationregarding acquisitions, business rates, property valuations,landlord and tenant advice and assistance with disposals.David Rastrick, partner at Sanderson Weatherall says, “Thisfunction will provide members with a convenient, trustedsource of property information. It will also relieve them ofsome of the ongoing complexities associated with themanagement of commercial premises whilst also makingvaluable cost savings.”Moves such as this illustrate that commercial property,despite the downturn, remains a top priority for manybusinesses, and high quality space remains available andsought after. Independent property adviser GVA, forexample, has been instructed to market the Zenith ControlCentre in Wakefield on behalf of the Department forCommunities and Local Government. Situated in Paragon Business Village, the Zenith ControlCentre extends to 30,000 sq ft and incorporates office spaceand a double height control room suitable for a variety ofuses. Matthew Tootell of GVA is handling the letting andsays, “Zenith Wakefield provides a virtually oven-readysolution for a wide range of potential occupiers looking for ahigh specification finish, in-built technology and a resilient,extremely secure environment.”The commercial property sector is at something of acrossroads with attempts to simplify development andplanning laws often at odds with increased legislation.Happily, Yorkshire and Lincolnshire’s property specialists areproviding a valuable service for those looking to relocate.Humberside Airport’s property work will now behandled by law firm Andrew JacksonCOMMERCIAL PROPERTYwww.blmforum.net1312-13:Layout 1 30/10/12 16:40 Page 2entrePointC0845 0542 403New Serviced Offices Hull City CentreNew Office Space From £150 monthAll Inclusive includingReceptionHigh Speed internetPhone LineRates & UtilitiesMeeting Rooms & conference facilitiesReception and Secretarial ServicesVirtual Office and Postal Services www.centerpointgroup.co.uk14:Layout 1 29/10/12 14:20 Page 1Boughton The centre is within 10 miles of A1(M) which links to the A1, M18,M62 and M1 Motorways, with access to Nottingham via A614 andNewark via A616.Boughton Industrial Estate, Boughton NG22 9LD• Offices • Meeting Rooms • Workshops • Coffee Shop• Large Industrial • Land • Showers • ParkingLincolnLocated at the southern end of the A46 Lincoln bypass and adjacent businesses (McDonalds etc), the site has excellentlinks to the A1.Gateway Park, Lincoln LN6 9UH• Offices • Meeting Rooms • Workshops • Self Storage• Telecoms and Broadband • ParkingDinningtonThe site is less than 3 miles from junction 32 of the M1 providing access to the M18 and approximately 8 miles from Rotherhamand 15 miles from Sheffield.Nobel Way, Dinnington S25 3QB• Offices • Workshops • Telecoms and Broadband • ParkingMansfieldThe centre is situated on the Millennium Business Park locatedoff the A617 Chesterfield Road, ideally located for Mansfield towncentre. Junction 29 of the M1 is approximately a 10 minute driveaway.Enterprise Close, Mansfield NG19 7JY• Offices • Workshops • Telecoms and Broadband • Parking • ShowersSheffieldThe Gatewayʼs prominent location is within easy walking distanceof the train station and city centre amenities, as well as linking directly to J33 of the M1 motorway via The Parkway.Broad Street, Sheffield S2 5TF• Offices • Serviced Offices • Virtual Offices • Showers• Meeting Rooms • Hot Desks • Co-working• Staffed Reception • Telecoms and BroadbandNewarkThe centre is situated close to Brownhills Leisure World on thebusy Brunel Business Park located off the A46 Newark bypasswhich provides easy access to the A1.Brunel Business Park, Newark NG24 2TT• Offices • Meeting Rooms • Workshops • Self Storage• Telecoms and Broadband • ParkingFor further information about any of the properties above please contact us on: T: 0800 039 3900 www.evanseasyspace.comLetting Enquiries0800 039 390015:Layout 1 25/10/12 13:24 Page 1GROUND FLOOR OFFICESTO LET - PRIME LOCATIONIN GRIMSBYTELEPHONE 01472 310302FROM £150 PER MONTHRecently refurbished to a high standardEasy access to motorway, ports and towncentreSecure off street parking for staff andvisitors Flexible terms WE AREHERE16:Layout 1 25/10/12 13:26 Page 1chestertonhumberts.comNottingham 01159 476236 chris.roper@chestertonhumberts.com14 Market Place, Grantham ng31 6lj R55,)'#((.5,.#&5/(#.51#."55!,)/(5ł)),5-&-5,5) 5553 sq m / 575 -+5 .R55t20,000 per annum exclusiveR55#.#)(&5)Ń5I5-.),!5-*5)(51st & 2(5ł)),-5.).&&#(!5157 sq m / 1,6935-+5 .R55/#.&5 ),550,#.35) 5/--5-/$.5.)5*&((#(!(#.5m5/-.)(5)65,(."'5ng31 9swR55(.5#(.,(&5, /,#-"'(.65*,)0##(!5762 sq m / 8,2015-+5 .5#(/-.,#&5-*R55t25,000 per annum exclusiveR5 35.)((5)0,"5,(R55))5-#453,5I5,5*,%#(!5.5,,Ļ5)3&5),,-.,-65/..)(5#(5-"ŀ&5ng17 5aeR55,)'#((.&35&).5-//,(5*/")/-R55,")&50#&&5 ),5t250,000R55,!5-#.5) 50.925,-651#."5*).(.#&5 ),5&.,(.#05/--5-/$.5.)5*&((#(!R55,)/(5ł)),5.,#(!5,5.",)/!")/.51#."55 /&&35ŀ..5,(-ŀ&5)65/..)(5#(5-"ŀ&5ng17 4ejR5,")&50#&&5 ),5t150,000R5,)/(5ł)),5.,#(!5,5) 567 sq m / 7205-+5 .R5-#(.#&5/**,5*,.-5#(5!))5)(#.#)(R5/#.&5 ),550,#.35) 5/--5-/$.5.)5*&((#(!(#.5i65-.1))5)65#(2.)(5ng16 6ntR55#(!&5-.),35#(/-.,#&51,")/-5) 5,#%5(5&)%5)(-.,/.#)(R55t8,500 per annum exclusiveR55#."#(5&)-5*,)2#'#.35) 5$/(.#)(5285) 5."515;5."538 linking (-ŀ&51#."5,3R55**,)2#'.5!,)--5#(.,(&5ł)),5,5264 sq m / 2,838 -+5 .#.),#5&65#.),#5.,.65(-ŀ&5ng18 5suR55.#&5)(-(.5 ),5510,0005-+5 .5)Ń50&)*'(.5)0,535-.),3-R55/#.&5 ),5&.,(.#05/--5-/$.5.)5*&((#(!R55#.5,50.74 acresR55#.5#-5#''#.&350#&&5 ),5t100,000TO LET - 214 sq m / 2309 sq ftTO LETFOR SALETO LET – 301 sq m / 3248 sq ftTO LETFOR SALEcelebrating201217:Layout 1 26/10/12 13:00 Page 118www.blmforum.netWAREHOUSING SOFTWAREStock seems to be the issuemany warehouse operators areconcerned with these days.Ensuring optimum levels of stock inparticular is key and making certainthat enough storage space is availableis also important. The nature of thesoftware available to monitor andmanage this is improving all the time,with ever-more effective ways ofintegrating stock level managementand ways in which to store itemseffectively as well as efficiently. At the recent Totally Logisticsexhibition in Doncaster, a trip to B&Q’slarge distribution centre in Worksopwas available for delegates and thesolutions they have in place includedrobotic picking solutions for items toobulky or seasonal to be stored in busierareas of the facility. This resulted ininnovative use of space, utilising roofspace as well as high racking to ensurebusy areas are easy to work in andspace was not wasted. A pickingsystem that involved the use ofwireless scanning mitts attached at thewrist also meant pickers were free touse both hands, not wasting time withunwieldy scanners attached tomachinery or trollies.With picking in particular, routes areone thing that have been improved inrecent years, with software that existswhich suggests effective ways acrossthe floor, meaning less time is wastedtravelling to and from various points inoften large areas. As Craig Such from Azzure IT Ltdsays: “Generation of optimised pickinglists that guide staff through theoptimum pick routes is helpful. TheDynamics NAV solution we provideallows you to forecast the demand youwould have for each stock line – this isthen used to suggest what stock levelsyou should hold, when you shouldreplenish and in what quantities.Overall this allows you to makeoptimum use of your warehousestorage locations, keep the right levelsof the right products whilst providingefficient ways of working.”Azzure provide a system based onthe Microsoft Dynamics NAV, which iseasy to use and most operatives willbe familiar with the technology. This ofcourse means less time needs to bespent on training or acclimatising to anew system. Craig explains what advantages thereare to using a management system:“The savings depend on the currentpains faced by each organisation butoften mean more efficient use ofstorage which reduces storage costs,better stock level planning whichimproves cashflow, reduces storagerequired and improves customerservice by having the right product atthe right time. The software systems also offerPicking the bestWarehousing forms the basis of most logistics operations. Thankfully technology is making itmuch easier to run things smoothly. We take a look at potential timesavers and cost reductionsoffered by selecting the right software.Effective picking routes are somethingmore warehouses need to utilise,voice picking too can offer betterworkplace methods, providing anefficient, hands-free way of working.18-19:Layout 1 25/10/12 13:28 Page 1WAREHOUSING SOFTWAREwww.blmforum.net19improved picking efficiency, meaninggaining the ability to generate picksheets that tell staff to pick stock in themost efficient manner. Accurate stockinformation will also available, allowingyou to improve customer service andto locate stock much more effectively.”Smart way of workingAs well as system-based solutions,there has been a small rise in the useof smartphones to do business inwarehousing. Apps which offerwarehouse management are probablymore suited to smaller businesses, butinventory and price managementoptions are available. Ordermanagement stats and options toinclude price increases and decreaseswhich can be accessed by sales andpurchases are also covered by severalnew apps. Apps also exist that can readbarcodes, meaning you can manageinventory across warehouses, checkcompetitor pricing and can even allowaccess to product reviews, givingthose in the warehouse awareness tofeed back to marketing or customerservices to further improve productoffering. It could be the differencebetween stocking an unpopular itemor stocking up on a popular one due toinformation on several factors, ratherthan just cold figures. As smartphone technology andconnectivity improves, it will probablybecome more common to see thesekind of apps being used professionally.An increase in touch screen technologywithin warehouse and supply chainmanagement has already been seen,but use of open source and widelyavailable apps could change the waycompanies do business in the future.Intelligent use of storage can be seen here atB&Q’s distribution centre in Worksop.AZZURECombining the ultimate in service, support and expert industry knowledge to provide best fit IT solutions for warehouse management, distribution andmanufacturing. Our Microsoft Dynamics solutions are proven to improve efficiency, productivity and profitability.0845 467 9950 www.azzure-it.comEND-TO-ENDMICROSOFTDYNAMICSERPCRM & CLOUDSOLUTIONS18-19:Layout 1 25/10/12 13:28 Page 2Next >