8 min read
In this comprehensive guide, we will explore how an accountant can help you with recession-proofing your UK startup.
1. Implementing effective cash flow management
- Resolving any payment issues
- Sending out invoices promptly
- Regularly reviewing your receivables
- Streamlining your inventory management
- Negotiating better payment terms with suppliers
- Seeking better interest rates
- Guidance on renegotiating loan terms
- Consolidating debts to help manage cash flow
2. Create a rainy-day fund
Business accountants are also capable of offering guidance regarding secure and low-risk investment options, such as certificates of deposit and bonds that offer a consistent albeit not necessarily high rate of return yet can help you expand your emergency savings.
3. Maximising legitimate expenses and reducing tax liabilities
4. Reviewing tax strategies and compliance
They can work with you to optimise your business structure, find tax-efficient ways to extract profits, or identify relevant capital allowances.
5. Ensuring adequate business insurance coverage
- Equipment insurance
- Tax enquiry insurance
- Public liability insurance
- Employer’s liability insurance
- Professional indemnity insurance
6. Reviewing and adjusting pricing strategies
During a recession, you may need to analyse your costs, margins, and market conditions to determine the optimal pricing for your products or services. An accountant thoroughly analyses your production and operational costs to help you understand the potential impact of different pricing strategies on your sales volumes and revenues and leaves room for profit. They can also aid in researching what competitors are charging for similar products or services.