Are your business finances fighting fit?
- 8th December 2020
We have all learned this year to expect the unexpected, but is your business prepared and resilient to cope with potential disruption?
Recent events have seen the demise of businesses such as Arcadia. Although the Covid-19 outbreak may have been the nail in the coffin, it was definitely not the root cause. This is why it is more important than ever to ensure that you have all your ducks in a row.
- Do you have enough cashflow in your business?
- Have you planned for repayments of deferred liabilities?
- Have you considered the start point of any loan repayments?
- Are you able to meet both current and historical liabilities out of your cashflow?
- Are you prepared for the impact of Brexit?
All of these things could have a major impact on your business performance and sustainability.
During this year of unpredictability, we have seen business taking various different approaches with regards to survival. Some have diversified their services to ensure they could continue to trade, particularly so in the hospitality sector. Some businesses have had to invest in PPE, online payment platforms and various other measures to enable them to continue trading.
We also saw amazing innovation and creativity from some businesses. Distilleries changed to making hand sanitiser gel, businesses started to make PPE of varying different types. With these innovations comes opportunities for potential R&D tax relief. Many businesses are not even aware they could have a claim.
There are a number of steps that all businesses can take to improve their business finances.
This could include working with suppliers and discussing options for extending your payment terms or could you order just-in-time. The same goes for your customers. Can you offer enhanced payment options to your customers to get your money in more quickly? Also, thinking about your VAT periods and whether it is worth accelerating purchase invoices and deferring invoicing to improve your cashflow.
Cashflow projections, forecasting and strategic business planning are critical to ensuring your business finances are resilient. When was the last time you performed a thorough healthcheck on your business finances? With so many business owners concentrating on keeping the business running and supporting their staff, who themselves may also be struggling, Forrester Boyd are here to support you, provide you with the expert guidance and advice and help you to navigate your business through the storm.
All data and figures referred to in our news section are correct at the date of publishing and should not be relied upon as still current.