Managers Sophie Helliwell and Nathan Broster outline the current financial challenges facing owner-managed businesses and how BHP is stepping up to help.
A recent survey from the Institute of Directors (IoD) found that business confidence has taken a sustained hit over the summer months. It’s perhaps no surprise that this is the sentiment among UK owner-managed businesses (OMBs) given the current cocktail of increased energy prices, rising interest rates and stubborn high inflation levels.
For many company shareholders, directors and senior managers, periods of uncertainty can lead to issues that can not only impact your bottom line but also result in increased anxiety and stress.
Impact on cash flow
A key risk in any downturn is external factors leading to short-term cash flow issues, perhaps for the first time in a business’s existence.
And without a proactive debt recovery strategy in place, customers who are themselves feeling the effects of the economic climate may understandably slow down invoice payments. This can have the knock-on effect of reducing cash in the bank, potentially making it difficult to pay wages and creditors, leading to fines and penalties.
Longer-term, lack of cash flow can result in missed opportunities for growth and owners not being able to draw funds despite potentially still making a profit.
This is all especially pertinent for smaller business owners who perhaps haven’t needed or don’t have the financial resources to employ full-time, in-house finance teams.
Support to grow your business
If this is your situation, what help is out there? Well, the good news is plenty!
Here at BHP, our Digital Finance team can help you to gain a better understanding of your finances, support you in driving your strategy, and ensure you have everything you need to help grow your business and meet your ambitions.
Our expert team can work as a trusted advisor and as an extension of your own finance function. We’ll ensure you’re always in control and assist with everything from management accounts to budgeting, projections and forecasting, tax and compliance, data, and reporting.
Tailored package
Providing bespoke accounting packages, we can also support you with:
- Accessing available grants and small business support
- Compiling performance reports, including scenario-based projections
- Outsourced bookkeeping, VAT and payroll
- Invoice issuing and debt management
- Cloud accounting software advice, set-up and training
- Debt solutions including invoice financing, business loans and debt insurance
Our systems use the latest technology and can be used by finance and non-finance individuals alike, generating opportunities for in-house cross-departmental collaboration and faster, more informed business decisions in the day to day.
Our aim is to guarantee peace of mind that we’ve got your finances covered, so that you can get on with running your business.
Find out more about what how we can help here or get in touch by emailing digital.finance@bhp.co.uk.
