BUILDING A FINANCIAL PLAN FOR YOUR BUSINESS
Updated: Jul 14
8 weeks into lockdown and the initial panic of COVID-19 beginning to settle, it’s a great opportunity now for businesses to take stock of their situation and begin to look at what’s next. Now more than ever, businesses need a bit of extra help to survive this crisis. Having a good understanding of your cash flow and a plan for the months and years to come is vital. Getting advice from an expert who can really help you plan this will make a massive difference.
Eight weeks into lockdown: What are we at Purple Accounts seeing?
Well, small businesses are typically a hardy bunch and current times are no exception. We've been encouraged by businesses now taking a greater interest in their finances, getting into Xero more regularly and understanding their financial position. Customers are really exploring Xero on a day to day basis and liaising with us as their expert support, to understand what their costs are, what are the one-off costs, potential future costs etc..… so they know what’s going on with the numbers.
For most, it’s given them the time to step back and ask themselves 'how am I going to come back from this?"
From the furlough scheme, grants and a deferral of tax payments, to the Coronavirus Business Interruption Loan Scheme (CBILS) and bounce back loans(BBLS), the government has provided a variety options for businesses to consider. While this support has been largely welcomed by the small business community and taken on by many, businesses now need to prepare for that support to be retracted or reduced.
If we plan for it, this helps take away the element of surprise. If we focus on what we can control, then we’ve got a lot more opportunity and options to come out of it in a better position.
Adapting to a change in demand
So how can businesses begin to adapt to that forthcoming change? This is an opportunity to go back to building the businesses we really want and as small businesses, we are adaptable and perfectly positioned to make things happen - and quickly. Big businesses struggle to be so flexible. If demand has gone away, what demand is there now? What alternatives are there to keep the cash flowing as much as possible? How can your service or product adapt and evolve to this 'new normal'?
Getting help from an expert For business owners struggling to understand their finances, not sure what to do next or don't know how to take that next step forward, it’s a good time to speak to an expert accountant who does this every day for their clients.
To start with, I really recommend using a really simple cash flow monitoring tool to help you. There's a FREE template attached to this blog.
Business owners shouldn’t need to feel like they need to do it all themselves. That’s the benefit of having a trusted advisor who can understand the numbers and use the tools available to them to provide business owners with guidance and advice.
1. Go back to the beginning and look at your business plan - just a simple review 2. Make sure all your finances are up to date. Need help with this? Just ask and we can take care of it for you. 3. Allow time to create a simple cash flow habit everyday to gain confidence in your numbers and how they change
Use the attached tool to help you, but if you need help just get in touch with us.
Purple Accounts Small Business Centre is your trusted, expert accountants and business support in Warrington. With friendly, 'one stop' branches in Stockton Heath and Padgate - never worry about deadlines, paper piles and tax again!
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