At the moment the businesses who usually make profits are having to live off their savings, or failing that, they are reliant on benefits which must have left them feeling downhearted,
Managing the cash in a business is more difficult than it seems, and I am sure a lot of people who have had a lousy lockdown will have learnt a lot about the importance of having a savings pot for the business...just in case.
There are lots of traps to fall into when the business is making money. The most obvious is that your turnover may suddenly drop but there are other traps to avoid :
Having a bookkeeper manage the cash flow, maybe even prepare some cash flow forecasts to help you see which weeks/months are likely to be tricky before they happen is definitely worthwhile. This will give you a real sense of reassurance.
It may be possible to negotiate shorter payment terms with customers or even take card payments or deposits upfront to help ease cashflow. If you can change your wages from weekly to monthly this may give you more time to get your customer monies in each month.
Even the most profitable companies can have tricky months, so it is definitely worth keeping a buffer to avoid flying too close the sun.
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I have never used a bookkeeper before so I was a bit apprehensive. Working with BW has been the best decision we have made recently. I knew we needed help with behind the scenes work and this has been a real relief.
Sam B, Cheshunt
I learned more about how to direct my business in 20 minutes talking to Jen than in 4 years of meetings with my accountant.
Rob L, Aston Clinton
It was an experiment but BW has done my end of year tax return for 2 years now. Makes it all very easy and answers any questions. Takes all the stress out of my tax return so I can concentrate on my business.
Jaqueline Parkinson, Harpenden