A Yorkshire business leader has urged the county’s managing directors and financial controllers to carefully consider their firm’s cash and credit position.
While businesses being able to restart has been welcomed as good news, companies of all sizes are being urged to proceed with caution.
Writing for The Business Desk, John Alderton, managing parter of law firm Squire Patton Boggs, said: “You will need to carefully consider the business’s cash and credit position.
“Businesses should work up Plans A, B and C – best and worst case scenarios, and something in between.
“Profitability will be challenged from all directions. What about any deferred liabilities taken on during COVID-19, such as rent and PAYE deferrals?
“Have you taken advantage of one of the government-backed loan schemes, such as CBILS? The interest payments will start all too soon. If you deferred the March 2020 VAT payment, the March 2021 repayment date will creep up on you.”
Managing cashflow can be a breaker for many businesses, so it is important to get all of your outstanding invoices paid to you as fast as possible.
Cooper Accounting can create a plan to reduce the figure on the debtors list.
