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Accessing cash for growth in 2023

Kirsty McGregor Feb 01, 2023

Growing businesses are exciting but growth is much harder if the business doesn’t have cash and capital reserves to fund costs. As your client's trusted adviser, offering valuable advice on how they can access more cash will be key in helping them succeed this year. 


In fact, recent research found that 71% of businesses remain confident about business prospects over the next six months, despite the rising costs we’re still seeing today.  


By offering pockets of advice that help them to access working capital will be crucial for them to take advantage of new opportunities and go for growth this 2023.


Here’s a few quick ways you can help them do just that: 

  1. Working with suppliers to arrange credit terms is tough if a business’ credit score isn’t strong.  This may mean businesses have to pay out for goods on proforma or short payment terms, rather than enjoy the luxury of 30 or 60 days’ free credit. 


Tip: Help your clients to start understanding the importance of their credit score on their cashflow and how to track and improve it to access more. 


  1. If more staff are required to cater for an increase in demand, they will of course need paying weekly or monthly and this requires the cash to be in the account.  Plus HMRC will want their payroll taxes shortly afterwards too. 


Tip: Help your clients watch their cashflow levels to ensure that they can afford taking on new costs to their business. 


  1. Increased overheads from marketing, larger premises or equipment all need to be paid for and usually before the business has benefited from the higher profits. 


Tip: Encourage and open honest conversations to talk about business plans now and in the future to spot the need for greater free cashflow, and whether funding is required ahead of time.


  1. If a management team is very busy, there are risks of overtrading (When costs are increasing and margins may not be as accurate as business owners thought).   Are your clients really making the profits they thought they were when they are setting prices?


Tip: Ensure that all costs are up to date for materials, wages, overheads and other fixed costs such as recruitment agency fees, machinery downtime, higher insurance premiums etc. You can read more here about how to reduce the risk of overtrading. 


Accountants can have real impact and add true value to their relationship with clients when they support them through the commercial realities of growing a business. 


This not only also brings higher fees for your firm but greater retention, as businesses are more reliant on you to help them deliver their longer term plan for success.


We’ve partnered with Fathom to discuss how you can help clients understand the importance of cash management in the coming year, plus steps you can take as their adviser to support them on that journey. 


Register here and start 2023 with a positive plan to help develop more growing clients!

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