FEATURE
ACCOUNTANCY SERVICES
Being prepared with business finances in 2021
By Helen Crapper (pictured), founder of Insight Finance Solutions G
rowing up as a farmer’s daughter in the Peak District, there were two things I heard a lot – “there's no such things as bad weather, just bad clothes” and “be prepared”.
While I believe these two mantras taught me well – not
just for the ever-changing elements, but for life in general – they're not foolproof. There's always the rain shower that wasn't forecast or ripping your waterproof jacket gate vaulting just before the storm (true story). It seems the events and general state of the world in
2020 were only predicted by ancient prophets and The Simpsons’ writers. We really do feel like we've been hit by a surprise hurricane while wearing nothing but our underwear. 2021 is proving that we are definitely not out of the
woods yet and there is still some uncertainty around what could happen, so it is essential to be prepared – especially when it comes to your business finances.
HOW PREPARED IS YOUR BUSINESS FOR 2021? When it comes to your business finances in 2021, we get to look back to the last apocalyptic year and take a moment to assess those who supported you, including your accountant. You started your business through passion, ambition,
drive and desire, and you can’t be expected to know every aspect of business finances. Yet many business owners aren't aware that instructing an accountant is so much more than finding someone to simply hand over a box of receipts to once a year.
CASHFLOW FORECASTING Cashflow forecasting has been one of the best tools in our accountancy arsenal throughout 2020. Remember Tom Cruise in Minority Report on his glass screen, plotting and predicting different future events? That's what it has felt like in 2020 with the enforced legislation and various support packages that have sometimes changed business plans within a matter of hours. As businesses were either forced to close, reduce
capacity, furlough staff or completely pivot, we have been able to use intelligent and intuitive software to forecast business cashflow. This has allowed business owners to plot a proactive crisis management strategy should the ripple effect of issues occur with enforced lockdown, tier systems or increased social distancing measures. When the stuff has hit the fan (because it has!),
businesses that have spent the time using cashflow forecasting have overcome overwhelm to create a pandemic plan to save jobs and save their businesses.
COMMUNICATING CLEARLY At a time of such uncertainty, clear communication has been the key for business owners – with staff, suppliers, landlords, HMRC, local Government and customers. Having a clear picture of business finances and various proactive plans in place has meant business owners have felt informed and supported to have difficult conversations for the survival of their business.
62 business network February 2021
UNDERSTANDING WHAT SUPPORT IS AVAILABLE AND HOW TO APPLY FOR IT Every announcement of new financial support for businesses has happened very quickly, and it has been difficult for business owners to make sense of it. A lot of the guidance has been confusing and taking the time to understand the criteria, understand eligibility and know where to claim has been imperative for many small businesses. Accountants have worked around the clock to ensure we
can distil it into easy-to-understand information for small business owners. By being provided with this information instead of trying to figure it out for themselves, business owners have had the mental space to focus on what they know best – their business. While we can never predict the future, we can do our
best to be prepared with a plan for weathering all different types of continued Covid-19 storms. And when the storm hits, with a plan in place, we don't have to think in a crisis, we just implement and follow the plan. What I invite you to take away from this is that accountants are some of the best-placed experts to offer support in navigating through these turbulent times to ensure your business's survival.
While I can't help deliver shopping or volunteer for the vaccine campaign, I wanted to do my bit for local businesses and have launched free virtual business finance surgeries every Monday morning. This is a free chat in confidence on a 1:1 basis designed to help you start a business finances pandemic plan. Visit
insightfinancesolutions.com for more details.
‘As businesses were either forced to close, reduce capacity, furlough staff or completely pivot, we have been able to use intelligent and intuitive software to forecast business cashflow’
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92
