INDUSTRY OUTLOOK rates . This could affect business costs and impact consumer spending , creating both a compliance and a cash flow headache .
Pivotal then to preparing for any policy change lies in accurate financial planning . Access to the latest , up-to-date financial data is crucial for A & Bs to do precise projections , allowing stakeholders to make informed choices and confidently navigate regulatory shifts .
The cash flow dilemma
The number one concern for SMBs is cash flow and it remains the biggest challenge during times of legislative change . The scale of the problem is huge but , all too often , businesses are operating in the dark with poor or incomplete data .
The number of company insolvencies in the UK rose 14 % in Q4 2023 compared to the previous year and was the highest quarter since Q4 2008 . Cashflow is a major factor and has become a growing concern in a post-COVID , post-Brexit climate .
Late payments are at the forefront of the issue and the previous government stated that paying small businesses on time could boost the economy by £ 2.5 billion annually . Promisingly , Labour promised to clamp down on late payments in its manifesto with packages designed to help entrepreneurs and SMB owners .
This could include the enforcement of stricter penalties for companies that delay payments or introducing government programmes offering loans , grants or tax breaks , which can ease cash flow challenges . It ’ s imperative that we see these policies come to fruition but that could take time and these won ’ t be a quick fix .
A new wave of compliance ?
Whilst the new Chancellor is yet to confirm a budget or any changes to tax policy , the Labour government has pledged to implement policies that prioritise workers ’ rights , improve job security and create a more resilient www . intelligentfin . tech
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