8 April 2020: During these unprecedented times, cash flow management is key for businesses to survive.
Collecting the outstanding monies owed to the company may be a struggle as so many businesses are going to be impacted. However, stringent planning is required where future output is going to reduce due to the lockdown and sufficient cash flow is still required to keep up with overheads, whether it be staff wages, rent or supplier demands. Retail, hospitality, leisure and nurseries have been given a 12 month holiday from rates. Other businesses may still have to include these into their monthly forecasting.
Tax reliefs introduced over the past couple of weeks will ease some of the strain, including the VAT break from 20 March to June 2020 that will not need to be paid before March 2021. Income tax payments have been delayed along with Corporation Tax payments. HMRC are agreeing to more time to pay arrangements more than ever before.
When things get back to normal, many businesses will find it difficult to re-recruit the same loyal, skilled work force, therefore, with insufficient working capital business owners can take advantage of the employee retention scheme available.
BRI are a team of business recovery professionals who are happy to discuss and explore the options available to you in these critical times. Initial consultations are free of charge and strictly confidential.