Episode 84: Know Your Numbers: The Financial Side of Running an HR Consultancy

Episode 84: Know Your Numbers: The Financial Side of Running an HR Consultancy   Host: Mary Asante Guest: Mark Randall, Your Finance Team   Tax changes, rising employment costs, cash flow, pricing and profitability — how well do you really understand the numbers behind your business?   In this episode of HR Voices, Mary Asante is joined by Mark Randall from Your Finance Team to explore the financial, tax and regulatory changes affecting small businesses and independent HR consultants — and what they mean in practice.   From Making Tax Digital and Companies House requirements to employer National Insurance, dividend tax and the true cost of employing someone, Mark explains what business owners need to understand and why financial awareness matters when making business and people decisions.   In this episode, we discuss:   Making Tax Digital (MTD) and what it means for sole traders Tax and regulatory changes affecting small businesses Employer National Insurance and rising employment costs National Minimum Wage and Statutory Sick Pay changes Companies House identity verification requirements Corporation tax, dividends and remuneration for company directors The true cost of employing someone beyond their salary Budgeting, forecasting and planning for tax liabilities Why cash in the bank doesn’t necessarily mean it’s available to spend Cash flow, VAT and managing business finances Pricing, profitability and knowing when to review your fees The numbers every independent HR consultant should understand How financial awareness can help HR consultants give better commercial advice to clients   Running a Business, Not Just Doing a Job   Being a great HR consultant or technical expert isn’t enough on its own.   Mark explains why independent consultants need to understand revenue, costs, profitability and cash flow if they want to build a financially healthy and sustainable HR consultancy.   The conversation also asks an important question: how can HR consultants advise clients commercially about recruitment, retention and people investment without understanding the financial impact of those decisions?   Mark’s Top Tips   1. Remember that you’re running a business Understand your revenue, costs and profitability — and don’t neglect your own business while looking after your clients.   2. Review your pricing As your costs change, review your fees rather than continuing to charge the same simply because that’s what you’ve always charged.   3. Understand your cash flow Know what’s coming in, what’s going out and when tax, VAT and other liabilities are due.   Plus: talk to your accountant. Don’t wait until year-end. Use them as a sounding board for what’s happening in your business and the decisions you’re considering.   Key Takeaway   Financial understanding isn’t just for accountants.   Understanding your numbers helps you make better decisions, prepare for tax and regulatory changes, price your services appropriately and build a more sustainable business.   For HR consultants, it can also help you better understand the commercial realities facing your clients — and become a stronger business adviser as a result.   🎧 Listen now for practical insights into tax, cash flow, profitability, employment costs and running a financially healthier HR consultancy.   📩 Questions or topics for future episodes? Email: [email protected]   #HRVoices #HRConsulting #SmallBusiness #BusinessFinance #HRConsultant