TOP Redditch accountant Alistair Hayward-Wright has warned that funding and managing cashflow will be key if the area’s businesses are to successfully navigate the economic downturn caused by Covid-19.
The alert follows Chancellor of the Exchequer Rishi Sunak’s summer budget last week where the he announced a £30billion blueprint to help save the struggling economy.
Mr Hayward-Wright said that despite this shot in the arm for the economy, businesses will face huge long-term financial challenges unless they act fast to manage their finances.
“Our economy has shrunk to devasting levels since March and that has impacted jobs and the financial health of the majority of businesses,” said Alistair, of Hayward Wright Accountancy Group.
“The reality is that we are facing extremely tough times but firms here in Redditch can navigate the downturn by planning carefully.
“Essentially this means taking time to have a strong overview of their cashflows, while some should look at options around invoice or asset financing to secure their futures.
“Sadly, it is also a fact that many businesses haven’t accessed some emergency Government grants and loans over the past few months, leaving them exposed.
“Those aren’t simple tick-box exercises and will need good, in-depth business plans to prove the long-term stability of the business, especially if firms are taking an alternative route and looking at bank loans.
“Vitally, despite the Chancellor announcing welcome news for various industries, it will not solve the cashflow problems so many are facing.
“Taking advice now, more than ever, will give local businesses the guidance they need to cope, save jobs and ultimately, their futures.”
For more on surviving with the impact of Covid-19 visit www.haywardwright.co.uk