HJP Chartered Accountants - Xero Gold Partners

HJP Chartered Accountants - Xero Gold Partners Helping independent businesses achieve their goals. Gold Xero Partners. Forward Thinking Chartered Accountants with over 30 years’ experience.

We'll take that! 😍
02/06/2026

We'll take that! 😍

Are you are running a successful business and now you want to know if, what you have worked so hard to build, is worth s...
28/05/2026

Are you are running a successful business and now you want to know if, what you have worked so hard to build, is worth something?

Want to Value Your Business Quickly? 📈
A common method in the UK is the profit multiplier approach. This method involves applying a multiple to your business’s sustainable earnings to estimate its value. This method is often chosen for businesses whose main motivation is profit creation.

Here’s a quick guide:

Understand the Profit Multiplier 🧮
The profit multiplier reflects your business’s risk and growth potential, varying by industry, market conditions, and specific attributes. It typically ranges from 1 to 10, but can be higher for businesses with strong growth prospects (often technology based businesses).

Steps to Value Your Business Using a Profit Multiplier

a) Determine business earnings:

Start with your business's annual earnings before interest, taxes, depreciation, and amortization (EBITDA). (Earnings means profit after all expenses). Adjust this for one off income or expenses so that you have a 'sustainable' profits amount.

b) Choose an appropriate multiplier:

Consider factors such as:
- Industry standards: Different industries have standard multipliers.
- Growth potential: High-growth businesses often attract higher multipliers.
- Market conditions: The current economy can influence the multiplier.
- Risk profile: Stable and predictable earnings typically have higher multipliers.

(One way to look at the multiplier is to think of it as the number of years it would take to get your money back. If the multiplier is 5 then it will take an investor 5 years of current profits to get their money back.)

c) Calculate the Business Value:

£sustainable EBITDA X appropriate multiplier = £business value

Considerations
Accuracy: The profit multiplier method provides a quick estimate, but it's a rough approximation. For a precise valuation, consider engaging a professional valuer.

📈📊 Other valuation methods: Depending on your business, methods like discounted cash flow (DCF) analysis, asset-based valuation, or market comparables might work better.

Some industries also have a set valuation method.

Getting Professional Help 🆘
For detailed guidance, reach out to our team at HJP Chartered. We have extensive experience valuing small trading businesses and can provide a personalized consultation to also help you navigate the complexities of selling your business.

If your business cannot create profits without you running it, then it might be that you have 'a job' rather than a business and what you really need to do is to make changes so it can work without you. We can help with this too.

Your accountant can help you best if they know what is going on in your life. 🙌Whilst we are not saying you need to shar...
26/05/2026

Your accountant can help you best if they know what is going on in your life. 🙌

Whilst we are not saying you need to share your social diary with us, they are one of the most important people to tell 📞 when a significant life event is on the cards as you don't want to miss some vital tax planning. 👌

So what do we mean by this?

Well, here is a list of some events that your accountant needs to know as soon as possible:

🤍 Thinking of starting a family
🤍 Getting married or a civil partnership
🤍 Separating or thinking of divorce
🤍 Wanting to get a mortgage
🤍 Moving house
🤍 Capital assets purchases (cars, equipment, buildings, etc..)
🤍 Capital assets selling (especially property)
🤍 Thinking of buying a business
🤍 Thinking about selling your business
🤍 Appointing a new director
🤍 Wanting to give shares in your business to another person

The worst phone call for us is:

❌ 'I have just ...'

The best phone call is:

✔'I am thinking about...'

Make friends with your accountant 🤗- they can save you money and help with making great business decisions. 💪

We have been using Xero for 13 years now 👏 and over that time we have seen it improve and its capabilities expand. 🤩We s...
21/05/2026

We have been using Xero for 13 years now 👏 and over that time we have seen it improve and its capabilities expand. 🤩

We still love it 🤍 as much as we did the first time we came across it. The wonder of a bank feed of data directly into accounting software and not having to create backups or do updates was revolutionary then.

Back in 2014 we ran Xero training breakfasts to introduce this amazing technology to our clients - and they loved it too!

We became a Xero Gold Partner in 2018 🎉 (a real achievement) with all HJP using Xero with the exception of literally one or two. We even celebrated with a gold themed office party. 🥇

Now in 2025 there is really not much about Xero we do not know and so far we have been able to fix all the issues our clients have for us 😀

❕ If you are thinking about using Xero for the first time or looking to expand your knowledge we have a package for you: 🙏

H 🤍 Hello Xero 👋- perfect for getting started
J 🤍 Jump up a Level 👆- know the basics but want a bit more
P 🤍 Push the Possibilities 🙌- personalised for the experienced user

Find out more, visit: 👉 https://www.hjpchartered.com/xero-training/

🎉 Happy Birthday Angela! 🥂All of us at HQ wish our HJP Superhero Angela a fantastic day filled with all the things she e...
19/05/2026

🎉 Happy Birthday Angela! 🥂

All of us at HQ wish our HJP Superhero Angela a fantastic day filled with all the things she enjoys. Angela's leadership and vision make such a huge difference in the office as well as to our fabulous clients, and we’re all lucky to be part of her team. Here's to yet another amazing year ahead.

We hope you get some well-deserved relaxation and (most importantly), cake today! 🎂🥳

Heads up to small business owners - UK accounting rules are changing.If you prepare year-end accounts as a micro or smal...
19/05/2026

Heads up to small business owners - UK accounting rules are changing.

If you prepare year-end accounts as a micro or small company, the way your revenue is counted is affected from 1 Jan 2026.

⚠️Here's what you need to know:
• New rules for how revenue is recognised in your accounts
• Applies to accounting periods starting on or after 1 Jan 2026
• Affects both small companies (FRS 102) and micro companies (FRS 105)
• Revenue may be recorded later than it is now
• Your reported profit for 2026/27 could look lower, even if your business is doing the same volume
• This might also reduce the amount of profits available for dividends
• This is most likely to affect you if you sell bundles, subscriptions, long-term contracts, or take upfront fees

☺️The good news:
• Your cash isn't affected, only how figures are presented
• We're already on it and will guide every client through the change
• Early planning means no nasty surprises at year-end

If you'd like to know how this might affect your business, get in touch and we'll walk you through it.

“What’s your budget?” Such an easy question with some complex answers!This could be quite basic - for example, I have £1...
14/05/2026

“What’s your budget?” Such an easy question with some complex answers!

This could be quite basic - for example, I have £10 in my wallet so I can afford the margarita pizza 🍕but I don’t have enough to add pepperoni 🌶. Most of us can then make the resulting decision after answering the question; “Will a margarita pizza be satisfying enough for my £10 or shall I wait until I have another £2 and add toppings?” 💁‍♀️

Business budgeting is really not that different.
❔ What resources do I have?
❔ What value can I produce for these?

Forecasting is an extrapolation of this.
❔ What resources will I have?
❔ What might I then produce with these?

Often we don’t begin an essential financial task like this because we are frightened to be wrong. 😬 I’ll let you into a secret - no forecast has ever been 100% accurate so don’t let that stop you. 💪

As real results happen, compare these with what you thought might happen and ask yourself:

🤔 What did I not consider?
🤔 Why did I fall short/exceed my budget?
🤔 How can I use this knowledge to improve my forecast now?

Similarly to most skills, budgeting gets easier the more you do it.

I hope this has inspired you to have a go 🙌 but if you need help you can always get in touch with our friendly HJP Team who will happily chat about your business budgeting and forecasting - because it's what we love best. 😉

www.hjpchartered.com

We know that getting good advice for your business, especially around tax is a challenge. 🤪🙄 Who do I ask? 🤔 Who can I t...
12/05/2026

We know that getting good advice for your business, especially around tax is a challenge. 🤪

🙄 Who do I ask?
🤔 Who can I trust?

It is tempting to ask a friend and then accept what they say as true. This can cause lots of trouble as your friend's business is not the same as yours and they may not be tax and accounting experts. If you hear what seems like a good idea do run it past your trusted accountant first before running with it.

Here's an example 😉:

🙋‍♀️ Client: I give you permission to claim VAT back on everything, even salaries and tax payments.

😲 HJP: no this is tax fraud.

🤷‍♀️ Client: Well I say you can, so you can. Plus, it's what my friend down the pub said he said to his accountant - and they have done it for him.

😏 HJP: nope still fraud and our job is to protect you - even from yourself. Also, we don't think an orange prison jumpsuit is a good look on you. 😉

If in doubt, get in touch with HJP Chartered for your expert, honest accounting advice. Call us on 01442 872878 - we've got your back.

08/05/2026

By order of the Traitors we celebrated Angela's special birthday last night... Murder, lies, accusations bad wigs and lots of laughs! Archie pulled the wool over everyone's eyes and won the game as the ultimate TRAITOR! How will the team ever trust each other again?

⚠️ Quick but important one for anyone with life insurance 👇Your life insurance payout doesn't have to be hit by inherita...
07/05/2026

⚠️ Quick but important one for anyone with life insurance 👇

Your life insurance payout doesn't have to be hit by inheritance tax - but only if your policy is written in trust. 📝

👎If it isn't, the payout lands in your estate. That means it could be subject to 40% inheritance tax before your family sees a penny of it.

👍Written in trust? It bypasses your estate completely and goes straight to the people you've chosen. No 40% IHT deduction. No delay waiting for probate either.

It's a simple thing to sort, and it makes a massive difference. If you're not sure whether your policy is written in trust, check with your insurer or talk to us and we'll help you explain this to your insurer.

Address

1st Floor, Northbridge Road
Berkhamsted
HP41

Opening Hours

Monday 8:30am - 4:30pm
Tuesday 8:30am - 4:30pm
Wednesday 8:30am - 4:30pm
Thursday 8:30am - 4:30pm
Friday 8:30am - 4:30pm

Telephone

01442 872878

Website

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