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.
We would suggest, at a minimum, a forecast of profitability, cash flow and solvency to cover these challenges.
If you wish to discuss your business needs, or have not yet considered your business plans for 2022-23, please call us on 01752 752210.