I thought it would be useful to give some tips to help your business weather these strange times. We have been in lockdown for several weeks now so you may well be looking at how your business may begin to move back to business as usual – or as close to usual business as the easing of lockdown measures will allow.
It is more important than ever to keep on top of your cash flow. Try to do a cash flow forecast (you can download a free guide on forecasting from my website) and predict when critical dips in your bank balance might happen.
It is worth remembering that a ramp up in business out of lockdown will often mean a further dip in your finances. For example, you may need to buy stock or fully fund staff before sales increase.
Claim as many of the government aid measures as you can.
If you are in retail, hospitality or leisure you should already have applied for the £10k or £25k grant and rates relief. If you have not already done so make sure you apply for this aid.
If you are a VAT payer you can defer all VAT payments due between 20 March and 30 June for VAT returns ending February, March and April. You must submit a VAT return as usual but cancel any automatic payments so the money due isn’t taken. If you are a net VAT reclaimer just carry on as usual.
If you have had to cease, or reduce, trading for the duration you will probably know about the job retention scheme. The portal is now fully functioning so get your claim in as soon as you can. Remember furloughed staff are not allowed to do ANY work for you whilst they are furloughed. However, the government are talking about an adjustment to the scheme to allow for a phased return to work of furloughed staff.
There are three government backed loan schemes available so check them out to see if they are appropriate to your circumstances: the business interruption scheme; the coronavirus future fund; and the Coronovirus bounce back loan (you cannot apply for this loan if you have already taken advantage of the business interruption scheme loan).