Managing Cashflow During Brexit
Any changes can be stressless if you will well prepared. Because we will face transition periods caused by #Brexit, taking some steps in terms of managing cashflow is crucial in your business.
Be aware and see some tips:
1. Make sure any changes to payment terms are agreed in advance and are documented so you’re protected against adverse terms being imposed retrospectively. If they are a signatory of the Prompt Payment Code, you can always raise a challenge.
2. If suppliers or customers ask you for extended payment terms, do a little haggling – you can always ask for something in return. If you do grant longer terms, you may be creating a cashflow gap that’ll need to be filled. Consider talking to your bank manager about access to emergency credit facilities.
3. Review your budgets and cashflow forecasts to ensure you can cope with any adverse impacts e.g. exchange rate movements or duty hikes.
4. Follow up outstanding debts now to reduce liability and strengthen your cashflow position.
And my last advice is to implement #CloudAccounting tools, which they will give you all the information in real-time and peace of mind.
Please share this information with your business contacts as we all care about our partners!