Whether you have a 31 March accounting year end or any other month in the year, it is imperative that you have a plan. This alert is an offer to support your business by helping you create a business financial forecast for 2022-23, transfer it to your accounting software and produce periodic reports to monitor progress.

If we have learnt anything from the trials and tribulations of the past two and a half years, it is that ‘normality’ has become a fluid state of affairs.

Business challenges for 2022-23

The following bullet points set out some of the external challenges we will need to deal with this year:

• Inflation – rising and set to peak at 10%.
• Supply chain delays and price rises – the price of many commodities is on the rise due to the war in Ukraine, Brexit issues, and transport difficulties continue to create delivery delays.
• Staffing – shortage of skilled and unskilled labour.
• Rising taxes – recent NIC increases, the forthcoming increase in corporation tax and static personal tax allowances will combine to reduce our personal and business post-tax earnings.

Your business plans

Wading blindly into these challenges is like driving on a motorway with your eyes closed.

At a minimum, you should examine:

• The security of your sales forecasts and the likelihood of growing sales.
• The maintenance of supply lines and factoring-in price increases.
• The cost of labour – will you need to consider pay increase to keep your team together?
• Overhead costs.
• Investment in new plant or other equipment.
• Your own drawings/salary/dividends.
• Cash flow implications.
• The need to raise more capital or other funding for your business.
• Solvency.

We would suggest, at a minimum, a forecast of profitability, cash flow and solvency to cover these challenges.

Call now to discuss your planning needs for 2022-23

If you have not yet considered your business plans for 2022-23, please call.