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The Small Business Economic Crisis Financial Management Plan



Reduce cash out

  • Cancel expenses that have little or no business benefit (subscriptions/entertainment)
  • Cancel expenses that have little or no personal benefit (reduce your personal income need)
  • Renegotiate terms with required recurring and one off expenses (rent, HP)
  • Seek terms/extensions from suppliers
  • Make time to Pay arrangements for outstanding tax 
  • Defer VAT until March 2021
  • Defer Income tax 2nd instalment until 31 January 2021

Increase Cash In

  • Proactively address cashflow forecasts to identify pinch points so they can be managed
  • Consider all possible payment options from debtors. (Financing, credit card, gocardless, cash discounts etc.,)
  • Use the “what can you afford?” strategy with high risk clients.
  • Prioritise your family income needs over your business income needs. (for the moment)

Debt Management

Debt Control

  • Don’t take on new debt to maintain “business as usual”
  • Use extreme caution if borrowing to make high probability returns
  • Use extreme caution with borrowing to bridge short term cash flow dips
  • Renegotiate debt for better terms, (interest, instalment frequency, length of loan)

Debt Planning

  • Consolidate and refinance debt
  • Check your personal financial credit rating and improve if possible
  • Avoid credit card debt (avg. APR 17.3%) 

Strategic Planning


  • Schedule regular financial debrief with financial/profit advisor
  • Evaluate offering mix where possible, focus on high margin products/services (reduce/remove low margin)
  • Evaluate client mix, focus on historically well paying clients
  • Enhance communication rhythm with clients, more frequent and shorter.


  • Use downtime to plan future strategies
  • Plan & create marketing campaign for after lockdown
  • Market to potential customers leaving your competitors
  • Enact “bold” moves- amplify marketing, focus on increasing profits



  • Set up new general ledger accounts for unique circumstances (eases reimbursements & recasting)
  • Evaluate stock turn, tighten turn on moving product, eliminate non moving stock.
  • Review accounting system- collection of automated invoicing.   (Frequency)

Future Planning

  • Conduct comparative analysis of prior years, months (distinguish cause and effect)
  • Evaluate client history to proactively determine where you can make terms concessions.



  • Ensure all allowances and reliefs are claimed (capital allowances, R&D, EIS etc.)
  • Contact HMRC to arrange time to pay for any outstanding debt, ask for interest waiver.
  • Open a separate “tax account” with your bank
  • Treat Income payments on account as due on 31 July, pay to the separate “taxes” bank account
  • Treat VAT due before 30 June as due but pay to the “tax account” 
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