Ready for whatever happens

Harris & Co

1st April 2019

Money Matters

Harris & Co

By Phil Harris

Principal

Harris & Co

AS I write this in early March, it is still uncertain if we will exit the EU on 29 March and on what terms, if any.

It is hard to plan ahead when the precise terms of our future trading relationship with the EU are still being negotiated.

The exact impact on businesses is hard to predict, even for the 'experts'.

It could be that our economy booms or it could be that it stalls. No-one knows for sure.

So what can you do to be ready for every eventuality? Well, whichever way the economy goes, the management of cash and costs is going to be critical for businesses - either to fund growth or to ride out a down turn.

Some key metrics remain constant whatever the state of the economy and you need to start getting yours in shape to get your business in the best position to deal with whatever direction the economy takes:

1 Finance - knowing where you stand every minute of every day is vital. There are some great cloud-based packages out there to give you access to your numbers 24/7. Some of these have great add-ons like cash forecasting tools that can really help you enhance your financial management.

2 Daily break-even sales - check every day how you've done against your break-even figure and take the appropriate action.

3 Costs - look critically at your cost base and identify any you can reduce, especially the big fixed costs.

4 Debtors - monitor daily and chase them frequently.

5 Creditors - monitor regularly and don't let major debt build up.

For more advice or to find out about the services available at Harris & Co Chartered Accountants, call 01604 660661 or visit the website www.harrisandco.biz

Harris & Co