CW aims to help SMEs a fighting chance

ACCOUNTANTS Campbell Woolley are warning small business owners not to forget that cash is king in this recession.

The Manchester firm claims that more than half of companies in the North West with a turnover of less than £5m have no regular accounting procedures in place to help manage cashflow,  which has proved fatal for thousands of businesses.

Andy Fleet, audit and assurance manager says that many owner managers are now busy ‘fighting fires’ and ‘appointing’ themselves finance managers while neglecting  what they do best,  often with dire consequences.

He says: “Small business owners are entrepreneurs at heart and not accountants.

“However, many are neglecting their day jobs, which may be driving sales, business development or client management, to juggle company finances which is having a detrimental effect on their business. Sadly, it is becoming an all too common scenario.”

The firm has launched a new service to help entrepreneurs keep on top of their monthly income and outgoings, to prevent businesses running out of cash.
Its Management Information Accounts include the preparation of monthly accounts that will allow business bosses to spot any potential difficulties early.

The product shows profit and loss, income and expenditure and any liabilities such as potential bad debts from clients who are not paying regularly.

It also includes 13-week cashflow predictions, and can also predict future problems and trends.

Mr Fleet said:  “Many SMEs only prepare accounts once a year as part of legal requirements, and owner managers often mistakenly believe they can keep on top of their finances. But in these turbulent economic times it can be an extremely difficult task.”