24 Aug Being prepared in times of recession
On Wednesday 12thAugust, Chancellor Rishi Sunak confirmed what we were all expecting, that the UK is now officially in recession.
The coronavirus lockdown measures caused the economy to shrink by 20.4%, between April and June compared to the first three months of the year.
This has pushed the UK into its first technical recession – defined as two consecutive quarters of economic decline – since 2009.
We have seen over the past 5 months how hundreds of billions of pounds have been spent, in an attempt to support the economy and protect jobs.
Unfortunately, no one has yet discovered the place of existence of the luscious magical money tree, so sooner or later all of the money that’s been poured out will somehow have to be poured back in again.
A few ideas are starting to be floated around, including the possible introduction of an online sales tax and/or a potential raid on capital gains tax. Nothing as yet is for certain, but whatis clear is that there will be moves made to help balance the books as the country tries to recover.
These decisions could have a major impact on businesses, small and large, which means being as prepared as possible for the ongoing uncertainty.
Get to grips with your business’ finances
If 2020 hadn’t given you enough reason already to take control of your finances then let the big ‘R’ word be it!
Gather as much accurate data as you can on your outgoings and your income so that you have a clear picture of your current state. Then get to work on a plan that will help you into a position where you’re flexible and able to adapt to any changes that may lie ahead. (This may be identifying ways to address any debts that you’re owed or need settling, cut business overheads, or filling your pipeline to create extra revenue – along with exploring a whole host of other opportunities to maximise your profitability.)
Your budgets and financial plans may also need to be revised as any new rules introduced could have unexpected impacts on revenues and costs. Those businesses with a clear understanding and real time view of their current financial position as well as reliable future projections will be best placed to survive and flourish.
We here at Link Accounting, are perfectly placed to support you through these uncertain times as your virtual finance department. Whether you live in Banbury, Brecon or beyond.
We can work with you to review your business finances, give you clarity on your current financial position and implement the financial systems you’ll need to adapt and respond to any challenges presented in the coming months.
You will never be alone! Using our recommended software means you will stay connected to your data and to us as accountants. Scalable, cost effective and easy to use – you can access cloud-based software from any device with an internet connection, making your bookkeeping, planning, accounting and forecasting much, much easier.
We have lots of experience helping companies grow, in sustainable, future-focussed ways, and we’d love to help make your business secure and your dreams a reality, even amidst this global crisis! Drop me a line or just book a free 30 minute consultation, to chat about how we can best work together.