10% of small businesses to fail?
The FSB has estimated that around 10% of the UK’s 5 million small businesses are currently at risk of failing within weeks.
Whether true or not, there is no doubt there will be many businesses struggling over the coming months.
So, what can they do?
- firstly, ensure their bookkeeping is up to date. Business owners need to know the reality of their situation, good or bad.
- forecast cashflow, including tax estimates. Be realistic.
- sort out credit control. Set terms, chase late payers, do due diligence.
- look at business grants
Being proactive is key.
Working with their advisors to assess the situation, forecast the next 6-12 months, and then creating a plan of action will go a long way to reducing stress levels and putting their business in the best possible position to avoid being in that 10%.
Speak to Roake & Cook if you are concerned about your business’s finances. We can offer a range of accounting services, including bookkeeping, year end accounts preparation, and tax advice. We are also Xero software specialists, and we are particularly proficient with our Xero migration service.