Following one of the toughest years on record economically, many small business owners are looking ahead to the remainder of 2021 with more than a little trepidation.
Though the roll-out of a vaccine and the finalisation of the UK’s Brexit deal offers some hope of calmer waters ahead, many SMEs are still facing huge challenges when it comes to balancing the books.
The current national lockdown has forced a number of businesses to close their doors, and, while many are able to continue to operate online, others are left reliant on furlough payments and other Government support to keep going.
And with one of the worst financial recessions ever recorded predicted to be around the corner, managing cashflow is crucial.
Here are five tips to help you keep a handle on the books and minimise the month-to-month pain threatened by current and upcoming challenges.
- Forecast – it’s absolutely essential to produce daily, weekly and monthly forecasts to project a clear picture of your requirements. The reality of the figures in front of you may be difficult to stomach, but you’ll thank yourself for the warning.
- Review all debts – Late payments from your clients cause a real headache for any small business owner, so be sure to stay on top of what’s owed to you.
- Keep costs down – Review every expense line from largest to smallest and reduce, negotiate and eliminate costs wherever possible.
- Review your assets – Consider any stock, equipment or other assets, which are surplus, that you could sell in order to raise capital.
- Explore new revenue opportunities – The downtime for many businesses can be a source of frustration, but it’s also the perfect time to create a plan to expand or diversify your offering.
There are no quick-fixes for solving cashflow headaches, but these practical tips will hopefully help provide some guidance during such a tough period.
Cooper Accounting is here to help small businesses, partnerships and sole traders from across Kirklees, Calderdale and Wakefield with their cashflow challenges.
We presently offer a free consultation and can provide friendly advice to help you get a better grip on your immediate future. Get in touch