Top tips for FDs in 2011

By LBV

22 Nov 2010

Remember cash is king
Looking at your sales figures and forecasts, it’s sometimes easy to get carried away with how well you’re doing on paper, but there’s no better position for a business to be in than having cash in the bank.

Make sure you have a robust system in place for managing cashflow. Ensure people are chasing overdue invoices, but also take a more strategic view of your debtor book.

Make sure you don’t have too much exposure with one or two debtors as company failures can significantly hit cashflow and put huge pressure on the business.

Be as tax efficient as possible
The 1 per cent rise in National Insurance Contributions (NIC) means you will have to budget for increased employment costs.

Speak to a professional advisor to ensure the business is taking advantage of tax efficient pay, such as salary sacrifice agreements for things like employee pensions, childcare vouchers and increased annual leave.

Also take advantage of other measures like R&D Enhanced Tax Relief for SMEs which has been increased to 175 per cent (previously 150 per cent) and means you can get tax relief on £1,750 for every £1,000 of R&D.

Also note changes to the Annual Investment Allowance (AIA) which will reduce from £100,000 to £25,000 from 2012, making some large capital investments more tax efficient in the short term.

‘Audit’ your auditor to keep costs down
Just like we constantly review our home energy supplier to keep costs down, the same goes for elements of necessary company expenditure.

Recent and planned changes to international auditing rules are expected to increase the cost of financial auditing and reporting for some companies. Paying audit fees can be a financial burden, but if you speak to your auditor in advance about likely fees, there may be a way to keep costs down.

The same goes for other significant but compulsory company expenditure – keep a close eye on all costs.

Talk to your lenders
Keep the lines of communication open with your lenders, and be prepared to talk to other potential funders who may be able to provide a more flexible solution.

As many an FD will know, it becomes far more difficult to secure increased overdrafts or working capital support if your back is against the wall, so keep this constantly under review and don’t leave re-financing until it’s too late.

Remain calm, focused and disciplined
If trading conditions become more difficult, it’s easy to be panicked into knee-jerk reactions, such as cutting staff without strategic thought for the longer term needs of the business.

Remember, there are a number of options for holding onto staff while still reducing overheads, such as reducing working hours or asking staff to take voluntary unpaid leave. Take the time to look at all aspects of the business and make sure the fundamentals continue to be done right, such as the production of detailed, accurate and up-to-date management accounts.

Review management accounts and all other relevant trading and financial information at regular board meetings and encourage all directors to raise specific concerns.

Above all, try not to lose too much sleep.

Christine Wilson
Moore and Smalley Chartered Accountants and Business Advisors

Enjoyed this? Read more from LBV

Latest news

1

Management buyout at Suresite Group Steve Holden

Management buyout at Suresite Group

17 Oct 2025

2

Meet the influencers who have generated £2m sales for one company Helen and Richard Chalu new

Meet the influencers who have generated £2m sales for one company

16 Oct 2025

3

WHN strengthens position in prestigious legal guide Daniel Long

WHN strengthens position in prestigious legal guide

16 Oct 2025

4

Warden appoints new commercial manager to strengthen project delivery and growth Peter Heskine

Warden appoints new commercial manager to strengthen project delivery and growth

16 Oct 2025

5

Stockley's finds its sweet spot Stockley's front view

Stockley's finds its sweet spot

15 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 15:00

Chamber Business Lunch – October
LBV Hub Networking
24 Oct 2025 - 24 Sep 2025

Chamber Business Lunch – October

Lancaster Golf Club, Lancaster, LA2 0AJ

11:00 - 13:30

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Lancaster District Business Support Expo
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
29 Oct 2025 - 29 Oct 2025

Lancaster District Business Support Expo

The Platform, Morecambe, LA4 4DB

10:00 - 15:00

Chamber Breakfast Networking – November
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
06 Nov 2025 - 06 Nov 2025

Chamber Breakfast Networking – November

Porsche Centre South Lakes, Carnforth, LA6 1FW

08:30 - 10:30

Lancashire Police business update with The Police and Crime Commissioner
Lancs-cham-logo.jpg.jpg
LBV Hub Roundtables
10 Nov 2025 - 10 Nov 2025

Lancashire Police business update with The Police and Crime Commissioner

Lancaster Castle, Lancaster, LA1 1YN

14:00 - 16:00

AI, Creativity, and what it means to be human
2.jpg.jpg
LBV Hub Networking
11 Nov 2025 - 11 Nov 2025

AI, Creativity, and what it means to be human

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin