How to survive BREXIT: An accountant’s point of view
With the ongoing uncertainty of how Brexit will affect British businesses and trade, firms are facing potentially turbulent times ahead.
While it may feel like Brexit has created unprecedented levels of uncertainty, business and consumer confidence regularly gets knocked by world developments. That being the case, it’s always a good idea to be prepared.
Make time to develop your business
Many business leaders admit that they struggle to find time to work on their business. They spend so much of their time ensuring clients and customers are happy that often their own businesses are forgotten. Take a step back, look at your own business needs and where you spend your time and stop doing anything that doesn’t add value to the business.
Let technology help keep your finances on track
In times of uncertainty, getting your finances and cash flow in good shape is imperative to help your business to survive. Cloud accounting software, such as Xero, enables you to invoice fast, handle payroll, reconcile with banks and record and manage expenses. With your finances under control and a clear view of your financial picture, you will be in a much better position to ride the wave and come out on top the other side.
Invoice clearly and promptly
Incorrect invoicing can hold up payments. It’s important that any delays are not because of your own errors. Make sure you know where and who to send invoices to and raise the invoice as soon as the job is complete. Cloud based software enables you to invoice from anywhere in the world, meaning you can even invoice the job on your way home to help speed up the process.
Manage your debtors in good time
Late payments can pose a significant challenge to all businesses. Small business owners spend an average of two days per month chasing late payments - that’s 48 hours of valuable time that could be spent in other areas of the business. Credit check customers and agree payment terms at the outset to help keep the cash flowing.
Try to be as realistic as possible when forecasting
While Brexit may not have had much of an effect on your business thus far, it’s important to consider the worst-case scenario and plan accordingly. For example, how will the change in trading taxes affect your business and its profits? Accurate business forecasting allows to generate a variety of ‘what if’ scenarios. Knowing how your business might be affected by a variety of situations will help you plan better for the future.