Index

A

acceleration, 44

accounting software, 8, 11–12, 33

accounts, 11–20

book-keeping, 11–13

filing, 3

key performance indicators, 16–20

monthly profit reporting, 13–16

accrued income, 6

acid test ratio, 19–20

adding value, 93

additional services, 43, 45, 89

adjudication, 72

aged debtor report, 68–70

annual accounts, 3, 12

annual budget, 22–6

annual targets, 22

arbitration, 72

assets, 6

B

balance sheet, 3, 12, 17

bank loans, 8–9

bank reconciliation, 13

benchmarks

inter-firm comparison, 16, 17, 42, 78

targets, 22, 77

bidding for projects, 90–1

book-keeping, 11–13

budget control, 24, 26

budget holders, 24, 26

budgets

capital expenditure, 26–8, 63

quarterly reviews, 26

setting, 24

sole practitioner or small practice, 28

business closure, 82

business sales, 83

C

capital, working, 5–7

capital expenditure, 26–8, 63

capital gains tax (CGT), 82, 85

captive fees forecast, 48–9

cash flow management, 57–64 (see also working capital)

cash inflows, 60–2

cash outflows, 63–4

change control, 43–4 (see also additional services)

client brief

change of brief, 44, 89–90

omission of work, 44–5

cliff edge profile, 49–50, 76

closing the practice, 82

combined fees forecast, 52–3

Companies House, 4

competitive tenders, 8, 90–1

contract terms, 66, 87–8

corporation tax, 3, 27, 63–4

costs (see also overheads; resources)

cash outflows, 63–4

monitoring, 36–7, 90

project planning, 32–5

credit checking, 66

credit control, 65–73, 88

‘creditor days’, 61

current assets, 6

current liabilities, 6

current ratio, 18–19

D

daily accounts, 13

‘debtor days’, 61

debtors, 68–71 (see also late payments)

depreciation, 27

design team management, 91

direct staff costs, 33–4

dispute resolution, 71–2

E

exit strategies, 81–6

expenditure, 15, 63–4 (see also costs)

expenses, 43, 63

F

fees, 39–46 (see also payments)

adjustments and changes, 43–5, 89–90

forecasting, 47–53, 60–2

setting, 40–3, 91

finance, raising, 8–9

financial managers, 24

financial recession, 92

financial records see accounts

financial statements, 47–8

financial targets, 22 (see also key performance indicators (KPIs))

five-year plans, 21–2

fixed sum fees, 41

Flat Rate Scheme (FRS), 62

forecasting

cash-flow, 57–64

fees, 47–53, 60–2

project resources, 53–6

forms of contract, 87–8

future possible fees, 50–2

I

income, 15, 60–2 (see also fees)

income tax, 3, 27, 63–4

indirect staff costs, 34

interest on late payments, 67

invoices, 67, 69, 88

J

‘joint and several’ liability, 2

K

key limiting factor, 23–4

key performance indicators (KPIs), 16–20

L

late payments, 67–8, 88–9

liabilities, 6

licence fees, 42–3

‘limited by guarantee’, 5

limited companies, 3–5, 84–5

limited liability partnerships (LLP), 2–3, 83–4

limiting factor, 23–4

liquidity, 6, 17, 18 (see also cash flow)

litigation, 72

loans, 8–9, 18

lump sum fees, 41

M

management accounting, 13–14

marketing, 54

mediation, 71

monitoring

costs, 36–7, 90

performance, 16–20, 36–7

monthly accounts, 13

monthly profit reporting, 13–16

N

national insurance contributions, 63

O

office overheads, 34, 63

omission of work, 44–5

overdrafts, 9, 18, 58

overheads, 15, 34, 63

P

partnerships, 1–2, 83–4

payments, 88 (see also credit control)

contract terms, 61, 66

late, 67–8, 88–9

writing off debts, 70–1

percentage fees, 41, 42

performance benchmarks, 16, 17, 78

performance charts, 36–7

performance indicators, 16–20

performance targets, 22, 76–7 (see also key performance indicators (KPIs))

personal liability, 2

planning, 21–9

annual budget, 22–6

capital expenditure budgets, 26–8

project resources, 31–2

sole practitioners and small practices, 28

strategic, 21–2

possible fees forecast, 50–2

professional indemnity premiums, 63

profit and loss (P&L) account, 12, 14, 17

profit targets, 22, 76–7

profitability, 6, 16–17, 37, 77–8, 90

project performance, 36–7

project profiles, 37

project reporting and control, 31–8

project resource plan, 34–5

purchase order (PO) numbers, 69

Q

quarterly accounts, 13

quarterly budget reviews, 26

quick ratio, 19–20

R

reports, 75–9

aged debtors, 68–70

cash-flow forecasts, 58–60

monthly profit, 13–16

project performance, 36–7

resource allocation, 55

research, 45

resources, 15 (see also staff)

allocation, 55–6

forecasting, 53–6

monitoring, 36–7, 90

planning, 32, 35, 53–6

resources cliff face, 54–5

RIBA Fees Calculator, 40–1

royalty payments, 42–3

S

self-employment, 1–2

selling the practice, 83

shareholders, 4, 84

small practices, 28, 52, 58, 76

software, 8, 11–12, 26, 33

sole traders, 1–2, 28

staff costs, 15, 32–5, 77–8 (see also resources)

staff management, 91

staff resource allocation, 55–6

staged payments, 88

Standard Agreements, 87–8

strategic objectives, 22

strategic plan, 21–2

sub-consultants, 91

T

tax

capital expenditure, 27–8

capital gains, 82, 85

depreciation, 27

partnerships, 2, 3

payroll, 63–4

self-employment, 2

sole practitioners and small practices, 28

VAT, 13, 62

technology, 26

time charges, 41–2

time-recording, 32

trade sale, 83

turnover analysis, 6–7, 17, 76–8

U

unit price fees, 42

unpaid fees see late payments

V

variations, 45

VAT, 13, 62

W

websites, 95

weekly accounts, 13

work in progress (WIP), 15–16

working capital, 5–7

writing off debts, 70–1

Z

zero-based budgets, 23