Alan Rodgers of Roger Wood & Co Accountants urges us to stay positive!

Every day we're bombarded with news of more victims of the global recession. Poor trading figures, redundancies, job losses, businesses going under and banks refusing to lend - who could blame us if we all decided to pack up and give up?

But in the midst of all the doom and gloom, Alan Rodgers of Roger Wood & Co is urging the owners of small businesses to stay positive. With good planning and a slightly different way of thinking, he believes we can yield good results for our businesses.

Claw in those bad debts
It's well worth reviewing your credit control procedures to make sure you get paid promptly for the work you've done. There are no guarantees, but making customers aware of your payment terms before you do business with them can prevent confusion and delays.

Cashflow is key
Speak to your bank early if you think that you may face problems. Pay attention to your figures. Keep them up-to-date, do a cashflow forecast and above all, use this information to make key decisions.

Make the most of lower profits
If your business is seeing a reduction in profits and you are self employed, you may be able to save money on your current tax payments. If this year's profit is likely to be lower than last year's, you can elect to reduce your payments on account for the current year. [Unknown] If you are going to make a loss, the loss can be utilised and carried back against previous years profits to create a tax refund. This applies to both the self employed and those trading through a Limited Company

Negotiating time to pay
Generally speaking, if you're late paying your tax or VAT you will usually incur interest and in some cases, penalties. Don't bury your head in the sand! You may well be able to negotiate a payment timetable with HMRC that fits in with your cashflow.

The good news….
Many industries have been hit hard, but many are managing to remain stable in the face of the current climate. 'Standing still' is better than going backwards so this might be a good time to review your business objectives.

And some strong businesses can even thrive during a recession. A number of Alan's clients have seen the last three months perform better than in the same period last year. [Unknown] It is important when looking at your figures to compare the same periods.

With lower fuel prices and mortgage rates PLUS bargains to be found on the high street, many of us are financially better off than we were a year ago!

Finally, Alan believes that we should have a good summer ahead of us. "If more people choose to holiday in this country, it can only be good news for the borough!"

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