Page 6 - SME Toolkit: The Star Covid-19 Edition

6 THESTAR www.thestar.co.uk Wednesday,May27,2020
ACCOUNTANTS
in association with
CONTACT
TOP TIPS
Focusing ahead to review the future of your finances
“Many businesses are using the lockdown to review their business strategy and focus on the steps needed to ensure they are ready to take full advantage of the eventual restart of the
economy,” says
Malcolm Pope
These could the above in a be: “Manybusinessesareusing costed, com- Adapting thelockdowntofocuson prehensive
ofShorts. Putting
their route
t o m a r k e t
as required to enable direct sell- ing to the public/end user.
With fast turn-around being key, thinking about assets which may convert to cash quickly post lockdown and ongoing stock profiles.
Introducing new prod- ucts or services that will be in demand post COVID.
Thinking about staff
businessplan and if appro- priate talking to the bank about CIBLS or funders to ensure financial firepower
to cope with the restart.”
Shorts Chartered Accountants Cedar House, 63 Napier Street, Sheffield, S11 8HA
Tel. 0114 2671617 info@shorts.uk.com
thestepsneededtoensure theyarereadyforthe eventualrestartofthe economy”
Buy now, pa1y later?
As part of the raft of to consider this, Government support to along with any
UK businesses, VAT and loan repayments, Self-Assessment payments, very carefully. which ordinarily would have High-level cash been made over the coming flow forecasts months, have now been should be being deferred for a while, until prepared, to allow
Malcolm Pope of Shorts Chartered Accountants
Consider cr2edit carefully
Most businesses will offer it is important that busi- credit to their customers, nesses consider:
says Malcolm Pope. Whether to offer Although, the injection of credit at all?
cash into the economy from Should they look for the Government should ena- deposits?
ble a reasonable proportion Whattodoifa
of pre-lockdown debts to be customer does not settled over the coming months, adhere to new credit terms? relief of the same magnitude is What credit are they still unlikely to be provided again, so receiving from suppliers?
and whether they have the right skills for the future.
Automating more pro- cesses to improve efficiency, cut lead times and improve customer experience, and investing in websites, brand- ing, and messaging.
Looking at comple- mentary markets where barriers to
entry are low.
early next year.
To avoid any significant issues in the medium term, businesses will need
the appropriate and neces- sary planning for the future to start now.
3 Consider financial aspects of approaches
Many successful clients are looking at new ap- proaches / markets / products in anticipation
of the end of lockdown, says Malcolm. “If this is appropriate to your business, it is
important to ask the right questions to un- derstand how a change of business model affects your finances.” “For example,
if looking to sell more online, where will
you source goods ? How much stock will you need? When will you pay for it? How
will you track profitability of individual stock lines to drive optimal stockholdings?
Understand your key drivers
“We have an increasing number of clients who want a better handle on their finances and we often h4elp them understand the key financial drivers of their business, adds Malcolm “These will vary, but a few key drivers, monitored regularly, can make
a difference quickly. It may be as simple as monitoring weekly sales based on your break-even point, but moving on to such measures as the ratio of some costs to those sales can often unlock additional profit and cash for your business.”
5 Look to digital to make a real difference
COVID-19 is set to be one of the biggest drivers for businesses seeking a more digital ap-
proach, says Malcolm Pope. “Your accounts should be no exception. We have seen soft- ware such as Xero make a real difference
for clients. It not only allows finance teams to effectively work remotely but can help streamline the finance process and give a
real-time view of your finances. Another consideration is acceleration towards a
more cashless society. Can your systems cope with increased electronic payments?”
Malcolm Pope