FINANCE

Making a difference : Baines Jewitt directors ( left to right ) Jed Lester , Mike Bigley , Anne Cowley , Don Adams and Trevor Cook .

PICTURE : DOUG MOODY

s we continue to emerge from the Covid pandemic , coupled with the effect of Brexit and the war in Ukraine , the UK economy is facing a challenging future . Although global stock markets continue to perform well , UK business owners are tackling rises in inflation , interest rates and the cost of living .

Closer to home , households are grappling with significant price rises in pretty much everything from fuel to tomatoes .

This will inevitably start to impact on businesses , many of which have little , if any , reserves left . Against this backdrop , many firms still face high sickness rates among staff as the implications of Covid rumble on . So what should businesses do to protect themselves , their people and their customers ?

From prioritising debt and cash flow , to being highly communicative with employees , customers and suppliers , prominent Teesside chartered accountancy firm Baines Jewitt outlines a 20-point plan to help firms focus on areas that are likely to make a difference .

Director Anne Cowley explains : “ As a priority , businesses need to concentrate on cash , people and customers . This includes reviewing finances , prioritising the wellbeing and skills of staff and supporting customers .

“ Most importantly , don ’ t wait . At a time of economic uncertainty , it is vital that you act quickly and decisively .”

According to Anne , key areas to focus on are : CASH

1 . Cash flow Do you have sufficient cash in the bank to continue to operate for the next three , six and 12 months ?

2 . Forecasting What do the finances for your business look like in the short and medium term ? Your forecast will enable you to make the right decisions to keep your business moving . Preparing longer-term cash flow forecasts will help you to understand what additional funding requirements might be required .

3 . Collect cash you are owed Speak to customers that owe you cash . Show empathy to those who are struggling and work with them to agree a payment schedule .

4 . Do you owe cash to suppliers or others ? If so , speak to them and agree a payment plan that works for you both .

5 . Do you need access to additional cash ? If so , look at your options , although consider the impact of any additional borrowing .

6 . Make the most of available support Make the most of tax deferrals , grants and other financial support that may be available to you .

7 . Review and refine pricing and payment terms Think about the best way you can get paid , in a way that is fair and appropriate for your customers .

128 | Tees Business