Small businesses and the self-employed are holding too little cash to help them get through unforeseen events, according to recent research.
22 per cent of businesses hold no cash savings at all, whilst 40 per cent hold less than £1,000.
With more than five million self-employed people in the UK and almost five million more considering starting their own business in the next few years, the research highlights a need for SMEs to improve financial resilience.
A spokesperson comments: “Starting a new business is a significant life decision. While many self-employed people relish greater flexibility and control, the first few years can often bring long hours, additional stress and relatively small financial rewards. Quite often, issues that can affect the ability to earn, such as ill-health or childcare mean that many businesses are failing to prepare financially.”
As the UK prepares to leave the European Union, it is more important now than ever that UK SMEs look at ways of improving profitability, working capital and cashflow, enabling their businesses to be more agile and flexible to respond positively to the changing economic landscape.
At Beavis Morgan, we work with a wide range of businesses of all sizes and across many different business sectors, helping them with strategic planning, system implementation, business turnaround and improving business performance for the future.
Our diverse team of tax professionals are also committed to ensuring that your tax reporting obligations are fully satisfied and that every opportunity to lawfully exploit tax savings is made known to you, restructuring your affairs in a tax effective and efficient way.