Keep The Money Coming in for Your Company Formation

It is the start of a new year and it is now more important than ever to plan for how you will maintain a healthy cash flow in 2010. In our second ‘Tips on Cash flow’ installment, we give you some more guidance on the best strategies on how to keep your company in the black:

Lets Talk Tax
While the current administration has not been exactly renowned for its consideration and support of the SME sector, it has developed some schemes that do offer help to the small business owner. One of these schemes is called ‘Time to Pay’. The premise of this initiative is giving tax relief to businesses with cash flow problems. Talk to the HMRC and see how they can help.

Put cash flow before corporate hospitality
While it is important that the working environment of your company is still good, company parties, incentives and staff perks should take a back seat in the current economic climate. Your clients will be operating a similar policy, so don’t feel obliged to continue excessive corporate hospitality.

Talk to your bank manger
Ignore the clever marketing strategies all banks seem to employ these days; banks have always been focused on the bottom line, profit. Therefore, during a recession there are ruthless when it comes to loans, overdrafts and any other form of structured lending. It is vital that you build a relationship with your bank manager and ensure they are aware of any cash flow problems as soon as possible.