Andy Elder, Uswitch business savings accounts expert, said: “While the spring statement introduced no major tax changes, SMEs are still grappling with rising costs, slow economic growth, and uncertainty around future policy.
“The downgrade in economic forecasts reinforces the need for small businesses to strengthen their financial resilience. Without the introduction of support measures, many SMEs — especially in retail and hospitality — will remain under pressure from rising National Insurance contributions and the business rates discount dropping from 75% to 40%.
“With economic uncertainty and cost pressures unlikely to ease soon, business owners may want to prepare for potential tax changes in the autumn, from ensuring cash reserves to exploring alternative funding options and efficiency strategies.”
Top tips for businesses to ensure a good cash flow into the new financial year, according to Andy Elder, business savings expert at Uswitch:
It’s important for small business owners to prioritise financial resilience, especially during periods of economic uncertainty. This may involve a multi-pronged approach:
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Negotiate better terms with suppliers: Seek to renegotiate payment terms, secure discounts for bulk purchases, or explore alternative suppliers offering more competitive pricing.
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Maximise business savings: A healthy savings account can help cover quieter periods and give your business flexibility to jump on new opportunities when they come up. Consider switching banks to get the best savings deals for your business.
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Use business credit cards responsibly: Business credit cards can provide quick access to credit when you need it, whether it’s for emergency repairs or covering payroll delays. Used responsibly, credit cards also offer rewards and benefits such as cashback or travel perks.
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Optimise pricing strategies: Businesses may need to review their pricing strategies to stay competitive. This could involve adjusting prices to reflect rising costs, offering discounts or promotions to stimulate demand, or exploring value-added services that command a premium price.
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Improve invoicing processes: According to the Federation of Small Businesses (FSB), every quarter in 2022, 52% of UK SMEs — roughly 2.8 million small firms — experienced at least one late payment. To reduce delays, businesses may consider clearing invoicing terms in contracts, or organising payment plans upfront. Streamlining your payment plans can help maintain steady cash flow and minimise disruptions.