Turnover falling

ended 14. July 2022

A report has just been published by the Office for National Statistics showing that 24% of businesses say their turnover decreased in June 2022 compared with May 2022. What strain are companies under right now and what can they do to alleviate it (in terms of cash flow and cost management? Any tips or advice?

1 responses from the Newspage community

SMEs are under huge pressure at the moment with rising costs for stock, fuel and utilities. To add to the pressure, employees are looking for higher wages to offset the increased cost of travelling to work, heating and eating. They are either demanding higher salaries or moving role, further piling pressure on small businesses. In the current climate, cash management and forecasting are essential for businesses to make informed decisions on spending and activity. Cashflow forecasts, management accounts and proactive decision-making are key to being ahead of the curve and being able to respond to challenges. Apps like Float or Fathom can analyse accounting data to give visibility on these. Scenario planning for the worst case and ensuring your business continuity plan is current to plan ahead for potential challenges and how they will be met are key. Cutting unnecessary spending, shopping around for the best price and engaging with procurement services can also help the bottom line. Investing in staff and workplace culture are also essential to retaining good staff. Unhappy staff who leave and can’t be replaced are a huge threat to business continuity and turnover if short-staffed businesses can’t meet customer needs and sales fall through. Finally, engage with your accountant, they should be able to help with all of the above and not just file your year end returns. Talk to us, we don’t bite.