Here at Kirkwood Wilson, we’re a ‘glass half-full’ bunch. We focus on the positives, regardless of what life might throw at us or our clients, we always search for every positive where we can. However, since the outbreak of Covid-19, there’s no denying that we’re living in unprecedented times. Factor in Britain’s departure from the EU and the future for many UK businesses is looking a little scary.
The importance of planning
Now, more than ever, it’s imperative to plan for the future of your business. We’re not suggesting that we get out a crystal ball – no one can know exactly what’s around the corner – but what we can do is plan for most eventualities.
There are 2 main considerations for this:
- Business continuation
- Cash flow.
By now, with the nudge-along from Covid-19, a lot of businesses have taken a large part of their operations into the cloud, which we’re very proud to say we’ve helped many clients get stuck into the digital world. This means that for a lot of businesses, say hypothetically if a total lockdown were imposed again, some of these businesses could continue as normal (or as much as possible) throughout this next period. Apps and digital accounting software have enabled so many people to be unleashed from the power of paper – hurrah!
The importance of cash flow management
The other important consideration is cash flow. It’s one of the things that we, as accountants, live for (and go on and on about – a lot).
Think of cash flow as a lovely plant. Get it right and your business will flourish. Get it wrong and your once lovely plant will wither and die – how dramatic! Your business grows, you grow. You’re happy, we’re happy!
In the most basic sense, you need to make sure that you have more money coming in that you have going out. This is the crucial point of cash flow management. Understanding how your cash flow is doing can help prevent issues like buying in too much stock, general overspends, and long payment terms. By getting on top of your outgoings means you will naturally have more money available should the worst happen.
Here are some of the positives of staying on top of your cash flow:
- You will be able to make informed decisions about your business
- There will be funds available if you encounter any unexpected glitches (like say, a pandemic!)
- You will naturally feel more in control of your finances, which in turn will make you happier and more positive
- You will be able to spot any issues in cash flow, i.e. when you might have cash in abundance or when cash might be a bit tight.
Good cash flow management will help you future-proof your business, making it crucial for helping you to nurture your business.
How WE can help YOU
At Kirkwood Wilson, we help our clients take back control of their business. We don’t just work for you, we work with you and help you thrive. We are providing cash flow forecasts more and more, enabling business owners to put the right plans in place for them (taking away all guessing and not just what they can afford today).
We want to help businesses better manage their cash flow – do you need help? We want to help people grow, raise their ambitions and realise their potential. It’s what we do, it’s what we’re good at, and it’s what we’re passionate about.
Don’t look at where you’ve been, look at where you’re going, and we’ll help you every step of the way. Get in touch with us today to learn more about how we can help you.
