This is intended to provide you with good advice and useful information and not to swamp you and I hope you find it useful
What I am suggesting is what I have implemented myself in my own business
Cash Management
1. Debtors
- check your debtors
- chase anyone who is overdue for immediate payment
- send a statement to everyone who is due to pay you up to and including 31 March
- raise your invoices daily and send them to your customers/clients
- If you are on Invoice Finance
- upload your invoices daily
- drawdown the maximum availability on a daily basis
2. Expenditure
- cancel all discretionary (nice to have/not essential) spend immediately – this might be little used software or simply purchases that you can simply do without
- delay any supplier deliveries which are not immediately required
- delay any imminent capital expenditure unless it is business critical eg Fire/Burglar Alarm
3. PAYE/VAT – call the tax helpline on 0800 0159 559 and request a deferment for actual or imminent payments for PAYE, VAT, or Corporation Tax – https://www.gov.uk/government/news/tax-helpline-to-support-businesses-affected-by-coronavirus-covid-19
4. Employee Costs – Wages and Contracts
- check the COVID-19 guidelines for SSP https://www.gov.uk/government/publications/support-for-those-affected-by-covid-19/support-for-those-affected-by-covid-19
- check the employee contracts for such as short time working and/or lay off in the event that you simply cannot operate and/or have no orders/customers
5. General
- Business Rates – contact your local council about business rates – note that even small businesses who receive part or full business rates may get a one of grant of up to £10,000
- Review your Insurance Policy and/or contact your broker to check whether you have Business Interruption Insurance and if so formally advise that you wish to make a claim
- Useful Guides
- HMRC Guidance for Employers – https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/guidance-for-employers-and-businesses-on-coronavirus-covid-19
- Support For Business – https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
6. Government Emergency Business Loans
- Make immediate contact with your Bank Manager and advise that you want to pursue the option of the Emergency Business Loans announced this week which will be adminisered through the banking system
- Note that the details have not yet been formally published however the information will be updated on the British Business Bank – https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/
7. Keep your bookkeeping and accounts up to date
- We don’t know the exact process for applying for help however it is unlikely to be an open cheque book
- Anyone lending you any money through any of these options is likely to want to understand your financial position which should include
- Profit and Loss
- Balance Sheet
- Cash Flow Forecast