Business confidence & more
As the song goes "things can only get better", it looks as if they already are. With Quarter 1 GDP up 0.7%, inflation down to 2% in May and retail sales growth in May at 2.9%. Maybe, just maybe, we can look forwards positively.
At a grass roots level we are seeing slow but sustainable improvement in many of our clients, as consumers feel more confident in their job security and, disposable income.
Here's looking forward to a better second half of 2024 and solid growth through 2025.
POTENTIAL CHANGES TO COMPANY SIZE THRESHOLDS
Current plans are for the thresholds that define micro/small/medium/large companies to increase for accounting periods starting after 1st October 2024. The idea being to reduce the regulatory reporting burden for businesses and to keep the UK framework competitive.
The increase in thresholds will mean more companies qualify to be treated as a micro entity and a small entity which both have reduced reporting requirements. Perhaps the key point is that the requirement to audit (with some exceptions) kicks in once a company exceeds the small company thresholds (meeting two of the following) which are to be significantly increased to: turnover - £15m, total assets - £7.5m and employees – 50.
But as with everything at the moment, there is uncertainty whether the proposed legislation will make it though to the next government.
CASH FORECASTING
As your business grows over the next 12-18 months it will need funds for working capital and forecasting these needs is paramount to avoid over trading and cash shortages. It is not lack of profits that kills businesses it is a lack of cash.
A cash forecast is a projection of future cash inflows and outflows to aid in strategic planning, better risk management and anticipating future financial needs/opportunities.
We can work with you to build your cash forecast and take advantage of these predictions to grow your business.
PAY YOUR BILLS VIA XERO
Xero now allows you to pay suppliers directly from the "Awaiting Payment" section through your bank for £0.20 per supplier.
This feature can save time and help you manage your cash flow better. Interested? Contact Dan to go through the setup together.