Can you utilise the temporary closure of your business?

As we work through another national lockdown, the leisure industry finds itself once again dealing with the temporary closure of restaurants, bars and hotels. Although there may have been lessons learnt from previous closures, such as how to identify funding and grants available and implementing procedures in regard to reopening, there is continued pressure on cash flow due to loss of income, stock wastage and ensuring that the property is kept watertight over the winter months.

Therefore, it would be beneficial to use this time to assess your financial position and safeguard the future of your business by ensuring that your financial information is accurate and up to date.

Cash Flow & Projections 

Reviewing cash flows and projections is essential to ensure you have accurate information for planning and identifying when an injection of capital is required. Through looking at different scenarios, including worst case scenarios, you will be are able to plan more effectively and adapt as quickly as possible. Having realistic and accurate management information will also be invaluable when approaching lenders for additional finance, support or when reviewing credit terms.

Statutory Requirements

Despite closures, businesses must continue to fulfil their statutory requirements. You can use this time to assess your existing bookkeeping and payroll systems to ensure that they have an appropriate business management application that will meet the specific need of your business. Most bookkeeping systems now have add-ons that can provide bespoke reports, which would make it easier to prepare VAT returns for example.

Our specialist EQ Leisure team are here to offer advice and support to help your business properly prepare to welcome back your customers. If you need assistance with funding applications, accounting software or want to discuss your circumstances with one of our dedicated leisure team, please get in touch by calling one of our offices or emailing leisure@eqaccountants.co.uk.