CASH FLOW OF LOCAL BUSINESSES BEING HIT BY LACK OF ‘TIME TO PAY’ LEVERAGE
Local Accountant Advises Businesses in Light of Tougher Fines
Tamworth – 12th September, 2011 – A local accountant has called for all businesses to be proactive in their financial modelling following local evidence that the Government’s Time to Pay (TTP) scheme allowance is dwindling, as well as late payment fines getting tougher. Martin Crook, partner at Albert Road-based Adams Moore, says businesses that have relied on the TTP as a means of aiding cash flow in financial difficulty are being hit by this ‘double whammy’, and advises that sound business plans and regular cash flow forecasts must now form an essential part of any managing directors planning to avoid any hitches in trading.
“The Government’s Time to Pay scheme was a real helping hand for businesses when the recession hit and the banking sector was reluctant to lend. The Government, in essence, gave businesses more flexible payment options and more time than would normally be allowed to settle taxes. However, there is evidence now that this is being given less and less to small businesses and this, coupled with the fact the Revenue has really upped its game in imposing tougher fines for late payment, could spell major headaches for many small businesses who have relied on this help. There has never been a more prevalent time for better cash flow planning.
“Accountants should always be proactive in communicating with their clients in explaining HMRC deadlines, the likely effects of default, and changes in the attitude of HMRC. They should also aid their clients in producing business plans whereever they can” he added.
Adams Moore has invested in a brand new software system to make communication of important news, updates and requirements much smoother in respect of informing clients, and Martin says that this new system has kept the company’s record clean when it comes to late filing fines. In addition, the introduction of the Board Support service – a fixed-fee service providing a higher level of service comparable with an in-house finance director – has been invaluable to many businesses in helping them to manage cash flow and keep their business afloat in the tough financial climate.
“Board Support offers a more hands-on approach, providing on-going help and advice, but the fixed fee means businesses don’t have to worry about bills stacking up or a meter running when it comes to accessing advice during the day-to-day running of the business.”
For further information about Board Support, or any other services offered by Adams Moore, visit www.adamsmoore.com or call 01827 54944.
Adams Moore is one of Tamworth’s largest firms of accountancy and business advisers based in the centre of Tamworth with three Partners, five senior managers and a support team including accounts, audit, payroll and client support. Independently owned, the partners have over 60 years’ experience of assisting businesses of all shapes and sizes, providing quality and cost effective business advice. It recently launched Board Support to offer the next level of support for Owner Managed Businesses.
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