Managing your cash flow as your business reopens

Published: Tuesday 23 June 2020

Following announcements that more businesses can gradually start to open, a number of businesses will experience pinch points in their cash flow management; working capital will have been eroded and delayed VAT and other payments will begin to fall due as Government support measures start to come to an end.

It is no secret that, in the past, more businesses have failed coming out of a downturn than going into it and the importance of cash flow forecasting cannot be understated; it enables you to identify potential shortfalls at an early stage and to adapt your operations to suit.

Hazlewoods has created two basic financial model cash flow templates, which are available to download free from our website, here.

If you need assistance in completing the templates, or require a bespoke model, we would be pleased to help.

Businesses may find that they need to raise finance in the coming months. Debt finance, including bank overdrafts and loans (including Government backed loans) is the most obvious and common source of finance for SMEs. However, there are other options available including equity finance, business angels and venture capital/private equity investment.

More details on types of finance for SMEs and how to access it can be found in our fact sheet here.  Our advisers are happy to speak to businesses looking at ways to raise finance.

If you require assistance in managing liquidity, or want to understand the impact of your decisions on profits and cash flows before you make them, please contact a member of the team who would be pleased assist you in preparing a financial model, comprising an integrated monthly forecast balance sheet, profit and loss account and cash flow statement.For more information or to discuss a bespoke cash flow forecast for your business, please get in touch with Paul Fussell at paul.fussell@hazlewoods.co.uk or 01242 680000.

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Paul Fussell
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