Small Businesses And The 2010 Budget
The 2010 emergency budget has done small business very little good, if any. In fact, it has actually harmed the potential for growth for many such businesses, meaning that they will have to be even smarter at managing their resources to survive or thrive. Most small business sell direct to the public, who following the budget will have less spare cash in their pockets and less job security.
All small business need good cash flow to be able to stay in business. If cash stops coming in a business can very quickly go under, sometimes within a matter of months. A good accountant is essential to help you to manage cash flow. Experienced accountants will help you to map and monitor you cash flow as well as to suggest ways in which you can improve it. They will also find better ways of paying for stock that reduce the impact of a slowdown in cash flow on your business.
Big companies can weather a period of financial crisis more easily than small companies can. They have greater assets, which they can use to borrow against and they also have larger margins, which can be cut to take them through the lean times. However, there are still areas where small businesses can make savings; good accounts are essential to help identify where those cost savings can be made.
Unfortunately, the government’s emergency budget did not include the freezing of business rates or the subsidising of commercial rates. Something that would have really helped existing small businesses and those people who want to set up a new business. As a result, small businesses need to consider if they can reduce those overheads themselves. Moving to smaller premises is one of the obvious ways of reducing these overheads. Your accountant will help you to consider the true costs of moving and understand how quickly you can actually begin to benefit from reduced overheads once the cost of moving have been taken into account.
A good accountant will always review your business plan with you following a budget. Doing so makes sure that you fully understand the implications the changes will have on your profitability and to identify any business opportunities that arise from the new rules.
Want to find out more about improving your cash flow? Visit Accountancy Extra for the best accountants in Leeds and the best accountants in Halifax.
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