Facebook - Shropshire Business Twitter - Shropshire Business LinkedIn - Shropshire Business

Think ahead - plan cash flow carefully

Shropshire business owners will need to plan their cash flow strategies carefully as the lockdown starts to ease.

Many businesses have taken full advantage of Government support through the furlough scheme, deferring PAYE and VAT bills, or accessing business interruption or bounce back loans. But it’s vital to think about how your cash flow will look when the arrears or loan repayments kick in over the coming months.

You may need to rationalise costs, re-assess your property requirements or review staff costs – but whichever approach you take, regular cash flows and budgets will be essential to keep a clear picture of your situation.

If you’re in arrears with HM Revenue and Customs, you can still negotiate long-term payment arrangements too, but only if you have robust plans and projections to support your application.

Given the unprecedented circumstances we’ve all faced, sadly there may be many businesses facing liquidation, but for those who are in the position for a good recovery, you’ll need to maintain a regular supply of goods - so review your supply chain carefully.

And up to now, your customers will probably have tolerated a degree of disruption, but as things move forward, they may be less understanding.

As businesses adapt and change to adjust to the “new normal”, there may be scope for tax breaks - the Research and Development Tax Credits offer a generous benefit if your business has improved processes or developed new products.  Now could well be the time to take stock.

The easing of the restrictions is also the perfect opportunity to review your overall operation to streamline future business plans.

Take a look at your strengths, weaknesses, opportunities and threats, or list your three biggest dangers, three biggest opportunities, and three biggest strengths – and if you have other business partners, complete the exercise independently and then review your individual thoughts.

The key will be how you plan moving forwards from this point. Write down your actions with deadlines and hold each other to account. But don’t set unrealistic objectives, as failing to reach them will be demotivating.

*Mark Bramall is a director of Dyke Yaxley Chartered Accountants, in Shrewsbury and Telford

Playing the generation game

Tricky challenges for family-run firms?

1st July 2020

Finance is key to smooth transition

Businesses urged to make sure their finances are in best possible shape

15th May 2020

Deadline warning for self-employed

Third round of vital grant support will soon come to an end

22nd January 2021

New finance drive is launched

Funding will help businesses recover from Covid pandemic

22nd February 2021

Property industry in the spotlight

Chamber hosts webinar to keep businesses informed

13th November 2020

Covid support could be open to more people

Change in criteria means self-employed who missed out previously may qualify

28th April 2021

Careful preparation is key

Businesses warned even stricter Coronavirus conditions will follow

20th March 2020

Construction projects face new normal

By Tim Lloyd, CQS Solutions

1st July 2020

Financing business growth

By Kerry Haughton, The FSE Group

1st July 2020

Self-employed must act fast to secure help

Just days left to claim potentially crucial support grant

9th July 2020

CORONAVIRUS: A helping hand for businesses during lockdown

Check out the latest entries on our bulletin board

18th March 2020

Businesses adapt to life under lockdown

Experts say some clients have discovered new opportunities

30th April 2020

Key small business finance campaign launched

Aim is to help small businesses get the support they need to grow

12th October 2018

Century of success for accountancy firm

Customer service is key to ongoing development and growth

27th November 2019

New rules for online retailers

Businesses must prepare for tax changes

10th November 2020