When we decided to update our Brexit advice after 29 March 2019, little did we know that we’d still be in the EU. The uncertainty is a huge source of frustration to business owners up and down the country. However it doesn’t change our key message. To get through the uncertainty, it’s vital to make sure your business is in the best shape possible.
Here are steps you can consider.
If you employ staff from other EU countries
Encourage your EU staff to apply for Settled Status before 31 December 2020.
Assess the risks
Just as you’d do for any other issue facing your business, you should assess the risks. Some businesses will be more directly affected. For instance, if you have suppliers in other EU countries, you may want to look at UK-based alternatives should there be disruption. Other businesses will be affected indirectly, for instance, if consumer confidence and spending reduces you may sell less.
Work on profitability and cashflow
Perhaps your business is doing well at the moment? However, could you survive a period of disruption? Check you are being paid promptly by customers, and by the most efficient means possible. That might mean taking payments by credit card, or by switching to a provider with a lower card fee. It might be that you make credit control a regular activity, or better still, automated (ask us how!). You might decide to discontinue low value sales, to enable you to focus on those with better margins. Whatever you do, by improving cash and profits you’ll improve your resilience.
Unfortunately, accounting is often seen as just a ‘compliance’ activity. But good management information can help you decide what changes and improvements to make. Ask us if you don’t have access to good quality information about your profits and cash, or if you are worried about Brexit.