Free financial health check pay off for SMEs

SMALL firms in West Yorkshire are benefitting from a free financial health check launched to help them survive the economic downturn.

Cleckheaton-based accountants Clough & Company says that it has seen a substantial uptake from local firms keen to get their finances in order.

The financial health check, worth £1,500, provides firms with a comprehensive understanding of their fiancial situation through a full business assessment including an overview of the company’s revenue, cash flow performance, costs, overheads and sales.

The Yorkshire Forward financed scheme is open to businesses in Yorkshire that have been trading for a minimum of 12 months and employ at least five staff.

Ian Drinkwater, sales director at Bradford-based Applelec Sign Components, which recently took advantage of the health check, said the assessment had helped the firm effectively plan ahead.

“Over the last four years we’ve grown from a two man business to a thriving company with more than 20 staff and a £3m turnover,” he continued.

“We undertook the financial health check as the recession meant that we were unsure what this year would bring – we needed to see transparency over our overhead and breakeven point.”

Mr Drinkwater said that the health check had helped the firm plan better and cut costs despite knowing what its most profitable products were.

“To do this we didn’t lose staff like many companies have. We simply gained access to and utilised better management information,” he added.

Simon Wilson, client relationship partner at Clough & Company said: “The financial health checks have provided local businesses with a viable way to operate as effectively and economically in the current climate to ensure that they are best equipped to take advantage of the market when it improves.”

To apply companies can either consult their existing accountancy or Business Link can advise them of a local approved accountancy supplier for an independent perspective.