How Our Birmingham Based Accountants Saved A Small Business In Edgbaston From Financial Turmoil
Small businesses often face financial challenges that can threaten their survival. A recent report shows that 57% of SMEs find it harder to borrow money for cash flow management. Our Birmingham-based accountants stepped in to help a struggling Edgbaston business overcome its financial troubles.
This blog post explains how we turned things around for them.
Exploring the Financial Challenges of the Edgbaston Small Business
Small businesses in Edgbaston face tough money problems. A report from ACCA shows they struggle to get loans and manage cash. Rising interest rates make it harder to borrow money. In fact, 57% of small firms say getting loans for cash flow is more difficult now.
They also have trouble with supplier credit, as 47% report it's harder to get.
Cash flow is the lifeblood of small businesses, and late payments can be devastating.
HMRC's Time to Pay scheme, which helps firms with tax bills, is also harder to use. About 27% of small businesses say it's more challenging to get this help. Late payments from customers keep causing cash flow issues for UK small firms.
These money troubles make it hard for Edgbaston's small businesses to grow and stay open.
How Cheylesmore Accountants Birmingham Rescued the Business
Cheylesmore Accountants stepped in to save the Edgbaston small business. They used smart tactics to turn things around and put the company back on track.
Restructuring Finances and Managing Costs in Edgbaston
Our accountants in Birmingham helped a small business in Edgbaston fix its money problems. We looked at their finances and found ways to cut costs. We also made better plans for their future money needs.
This helped the business stay afloat during tough times.
Banks need to work better with small firms, says Glenn Collins from ACCA. He thinks banks should offer more useful money products for these businesses. Collins also suggests that small firms could try to get money from investors instead of just banks.
This advice comes from an ACCA report about money issues faced by small businesses today.
Improving Financial Predictions and Assessing Risks
Financial predictions and risk assessment are key to business success. Our Birmingham accountants help small firms in Edgbaston plan for the future. We use tools to forecast cash flow and spot potential issues.
This helps owners make smart choices about money. Research shows that 43% of small businesses already use accountants for better forecasting.
Risk assessment is another vital service we offer. We look at all parts of a business to find weak spots. Then, we suggest ways to fix them. This gives owners more peace of mind. In fact, 75% of small business owners say extra help from accountants boosts their faith in future success.
Our work saves time too, with 80% of small firms saying an accountant saves them at least three hours each week.
Table showing areas that needed addressing and how we addressed them issues
Our team identified key areas requiring attention and implemented effective solutions for the Edgbaston small business. The table below outlines the main issues and our approach to resolving them:
| Area of Concern | Identified Issues | How We Addressed Them |
|---|---|---|
| Cash Flow Management | Inconsistent cash flow due to poor financial forecasting and overspending. | Implemented a cash flow forecasting tool and advised on cost control measures to ensure better cash management. |
| Tax Liabilities | High tax liabilities due to missed deadlines and unoptimized tax planning. | Conducted a tax review, restructured liabilities, and optimized tax planning to reduce the overall tax burden. |
| Bookkeeping and Financial Records | Poor record-keeping leading to inaccurate financial statements and delayed decision-making. | Set up a streamlined bookkeeping system using cloud-based software, providing real-time insights into financial performance. |
| Compliance Issues | Non-compliance with VAT regulations and other statutory requirements. | Regular compliance checks and VAT training were provided, ensuring the business met all statutory obligations. |
| Budgeting and Cost Control | Lack of a proper budgeting system led to uncontrolled expenses. | Developed a detailed budget plan, including variance analysis, to help the client monitor and control costs effectively. |
| Profitability Analysis | Inability to identify profitable areas of the business. | Conducted a profitability analysis by segment, helping the business focus on high-margin products and services. |
| Debt Management | Accumulating debt and missed payments to creditors. | Negotiated better terms with creditors, consolidated debts, and set up a repayment plan to manage liabilities effectively. |
| Financial Strategy | No clear financial strategy, affecting long-term business growth. | Developed a strategic financial plan outlining growth targets, investment opportunities, and risk management strategies. |
By tackling these key areas, we helped the Edgbaston business regain its financial footing. Our targeted approach addressed the most pressing issues faced by many SMBs today.
Conclusion and Future Outlook for the Business
Our accountants turned the tide for the Edgbaston small business. We fixed their money troubles and set them on a path to success. The company now has a bright future ahead. They can face challenges with confidence thanks to solid financial plans. We also have clients in the Harborne area and recently helped a local coffee shop increase their revenues, through our strategic tax planning.
This and various other cases show how expert help can save a struggling business.