Survive the Downturn - Think Cash

Extract from ICAEW report: 8 Ways To Survive The Downturn

Find out how managing cash flow and access to capital and funding can help you survive the downturn.

Managing cash flow and access to capital and funding are critical to all businesses – more so in difficult times.

It is important to keep updating your cash flow forecasts and examine your debt cycles, stock and overhead levels and working capital.


Be proactive

Be proactive in managing your cash. Put cash flow and financing on the agenda for every management meeting.

Consider what you can do to improve your sales in a declining market:

* Can you reduce your stock levels quickly to boost cash?
* How reliant are you on your major customers and suppliers?
* How robust are your credit control procedures?
* If you are ’cash rich‘ do you need to conserve this cash or could you use surplus cash for the longer term benefit of the business?


Minimise your tax liabilities

It’s more important than ever to minimise your tax liabilities where possible and ensure that you are paying the correct amount of tax. Make sure all capital allowances and expenses have been claimed. Are you taking maximum benefit for all losses?

If you have difficulties making your tax payments, talk to HMRC before they become due; it may be possible to agree repayment deals without suffering any surcharges for late payment.


Talk to your financiers

It is vital that you talk to your current financiers before you get into difficulties. If you delay telling your finance providers about changes in your circumstances, they will lose trust in your future forecasts.

Source ICAEW - full report can be downloaded by clicking here.