Accountants hate to be the bearer of bad tidings but sometimes it’s necessary to make business owners aware of the financial realities to ensure a business can get through any economic storms that may be on the horizon. Current data shows that there is little to feel optimistic about in the coming months.
Calls are increasing for the Bank of England to cut the base rate sooner rather than later to help stimulate an economy that could go into recession.
UK factory activity fell at its fastest pace for three years following the Brexit. The latest results from the The Markit/CIPS manufacturing purchasing managers’ index show that the sector is suffering a contraction.
This combined with a fall in consumer and investor confidence is beginning to feed into a gloomy economic forecast for the coming months. For business owners, now might be a good time to batten down the hatches and protect against future uncertainty.
This of course begins with an honest assessment of profits and losses. While business owners are natural risk takers and opportunities can be found in any economic climate, the important thing is to take calculated risks that will ensure the business can survive and thrive in uncertain times.