BY RICK SCHOFIELD , PARTNER , AZETS
Money Matters – Five Top Tips for Small Businesses and Their Owners
WITH THE THIRD LOCKDOWN HAVING HUGE EFFECTS ON MANY BUSINESSES , COUPLED WITH THE END OF THE BREXIT TRANSITION , THE FIRST QUARTER OF 2021 IS BOUND TO BE WORRYING . HERE ARE FIVE TOP TIPS TO HELP SMALL BUSINESSES AND THEIR OWNERS WITHSTAND THE NEXT STEPS OF THE PANDEMIC , AND BEYOND .
Grants :
With Lockdown 3.0 taking grip , have you considered all available grants to help your business survive ? There is still a wide range of Government support available to businesses ; including the Self Employed Income Support Scheme , the Coronavirus Job Retention Scheme ( to claim for employees on furlough ) and grants from local councils which are there to assist businesses that are forced to close .
Financial records :
Now more than ever you need to have your accounts under control and in order ; the financial insights you can access from your accounts helps you make smart choices . This may mean just keeping up with your book-keeping , but for those key decisions you will probably want to prepare cashflow forecasts to review those ‘ what if ’ scenarios . Don ’ t forget to utilise the new technology available to help streamline your finances ; Optical Character Recognition apps can capture your invoices and post them into your accounting software , whilst cloud accounting software can link to industry specific and general apps for workflow , timesheet recording , cashflow forecasting etc . Work smarter not harder !
Protect your staff :
Even without the end of the Brexit transition and Lockdown 3.0 , January is often a time when staff think about a change in their careers . Given the increased likelihood for individuals to want to transition to a more flexible and home-based work pattern , where their work and your business needs allow this , can your business allow for more flexibility with working patterns to help retain key staff ? Separately , do you now have the potential to bring in new talent where there were previously geographical constraints ?
Protect your wealth :
As business owners you work incredibly hard , have taken business risks , put your houses on the line , often put families second , etc . There could be a number of changes in the tax landscape this year ( e . g . a new wealth tax , capital gains tax rates mirroring income tax rates and valuable reliefs removed ); it is therefore important that you consider the most appropriate business structure for the future and start considering Inheritance Tax and succession planning if you have not already done so .
Stay safe and mentally healthy :
It ’ s easy to say but often difficult to do or put into action when you ’ re juggling your business , employees , suppliers , your bank / finances with home-schooling and family life . It is vital that you hit the ‘ off switch ’ and take a break . Mental health is key to you and your business surviving .
Azets is the UK ' s largest regional accountancy and business advisors to SMEs .
Local offices : Ashford : 01233 629 255 / Canterbury : 01227 454 861 Maidstone : 01622 690 666 / Orpington : 01689 827 505 Sandwich : 01304 249 997
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