Many businesses this year have surplus cash in their trading companies.
Once you have set funds aside for:
- Working capital (on average 3 to 6 months of business overheads)
- Future tax liabilities
By using a simple cashflow tool you’ll know what is surplus (see our free download for business owners here) then what next?
The big responsibility then for the business owner is to plan what to do with it and to evaluate whether it is at any risk.
- Reinvest in the business (IT, team, sales and marketing, processes) – you’ll need a plan and budget to stay honest and succeed
- Evaluate and protect it from risk – speak to us about how.
- Extract it – you’ll definitely want tax advice!
- Invest it externally in markets / products – this is where a great financial adviser comes in
If this has sparked your drive to do something with the cash in your business or possibly raised a concern that it is at risk, then we are poised and ready to hear from you.
“I never worry about action, but only inaction” ~ Winston Churchill
November 11 2020 by Rebecca Phillips