• For Businesses
• For Candidates

With the current economic crisis showing no signs of improvement in the near future, Beverley Aitken, Tax Partner at Maidstone-based DSH Chartered Accountants and Business Advisors, reminds businesses that there are ways to minimise the risk to an organisation’s prosperity. Here she provides some top tips on how to survive, and indeed thrive, during the credit crunch.

1. 
   1. Invoice on time and chase debtors – you will not get paid until you invoice and even then you will probably have to chase.
   
2. 2. Cash flow forecasts and budgets are even more crucial when there is a credit crisis. If you are not aware of the cash flow on at least a weekly basis you may not know how bad things are until it is too late to do anything.
   
3. 3. Talk to your bank manager – don’t let your overdraft surprise him. Also, unauthorised overdrafts attract high bank charges and interest.
   
4. 4. Talk to your suppliers – if you are in difficulty do let your suppliers know, they will often agree deferred terms and this way you preserve your suppliers.
   
5. 5. Stock – take care not to hold too much stock. This can be expensive and take up much needed cash. But, beware of tight lead times where stock holding is crucial to keeping satisfied customers.
   
6. 6. Whilst it is good to reduce costs ensure you only trim excess not essential costs. For example,  marketing spend is often reduced but this can have a knock on effect, reducing customers and sales.
   
7. 7. Although painful, you may need to look at reducing staffing levels. But again, care should be exercised to ensure you don’t direct yourself at key people who will be needed when business picks up.
   
8. 8. Although finance is perceived as difficult to secure at the moment there are still deals to be done and this could be an opportunity to rationalise all finances.
   
9. 9. It is also possible to negotiate terms with H M Revenue & Customs for business tax liabilities including VAT. A quick call can save a lot of worry.
   
10. 10. Last but by no means least, talk to your accountant. He should have the skills and expertise to guide you through the storm. It is a strength, not a weakness, to ask for help.

For more tips on surviving the credit crunch, call 01622 690666 or visit http://www.dsh.co.uk/