We all know that the UK is leaving the EU’s single market. And depending on your political and economic views, this could be a good or a bad thing – only time will tell. As businesses we can’t control the outcomes, but we can and should take steps to navigate the uncertainty.
Here are some practical tips, which our friends at Xero prepared, to help you prepare to get through:
1. Use tech to keep your finances agile
With so much uncertainty on the horizon, getting your finances and cash flow in good shape is imperative to help your business to survive. Cloud accounting software enables you to invoice fast, handle payroll, reconcile with banks, record and manage expenses, all in one place. With your finances under control and a clear view of your financial picture, you will be in a much better position to stay afloat.
2. Manage your debtors in good time
For growing businesses in particular, late payments can pose a significant challenge. A recent Xero investigation into late payments revealed that small business owners are spending an average of 10% of their day – which equates to two days per month – chasing late payments. Know your customer and credit check them to make sure they are able to pay their bills. It’s also a good idea to agree payment terms before you supply to help keep cash flowing.
3. Invoice clearly and promptly
Incorrect invoicing can hold up payments. It’s important that any delays are not because of your own errors. Make sure you know where and who to send invoices to, and raise the invoice as soon as the job is complete. Cloud based software enables you to invoice from anywhere, meaning you can even invoice the job on the way home to help with cash flow.
4. Be pessimistic when forecasting
Most businesses have remained relatively unscathed by Brexit so far, but the process is only beginning. With this in mind, it’s important to consider the worst case scenario for your business and to plan accordingly. How will the change in trading taxes affect you once we leave the free market? How will your profits be affected by leaving the EU? Plan for the worst case, and anything less than this will be a bonus.
There will be terrific opportunities coming, so with some planning, businesses can be in a great position to take advantage of what comes next.