WOW…………In over 35 years of working in a chartered accountancy practice, with 25 of those being at the helm of our own practice here, it will probably not be a surprise to any of you that the last month has been the strangest, and most turbulent, of all time.
We had a budget the second week in March which is now essentially redundant. We’ve had our prime minister in intensive care. The national debt will be the largest in any peace time history of our nation. The country’s output is expected to be at 12.9%, and 50% signifies recession. We are facing mass jumps in unemployment. We are facing large scale business failures. The government seems split between NHS Doves, and the economic Hawks. Investments and pensions have crashed. We are, to put it mildly, in the grips of an economic contaction on a scale not seen possibly since the South Sea Bubble Crash of 1720.
Now is the time to seek our advice, and to turn to your trusted advisors. This trusted advisor status of course doesn’t just end with your accountant, tax advisor, business advisor, but extends to your financial advisor, your legal advisor, and your banking advisor. Embrace, and use the knowledge and experience that these advisors have to offer.
Events are fast moving, and sometimes are changing by the day, or by the hour. After all, not one of us has ever encountered this before. So there is no contingency plan in place. There is no template to use as the model. It will all come down to proactivity, and taking aggressive action to beat or soften the inevitable downturn in the ecomomy.
The rules on making claims on furlough have been relaxed, and clarified, only this week. The self employed will need assistance with making their own grant claims come June. The ” unfair ” outcome of the furlough claims for directors in most small firms may be changed. Banks are looking to make loans. Businesses are looking to take out loans. Forecasts, management accounts, business plans, tax planning, cash flow planning, are all more important perhaps than ever before for the mainstream.
In the last week we are being asked to prepare more business plans. We are helping clients make grant claims. We have a record number of clients bringing their accounts into the office so that they can remain on top of their affairs ( and thank you for this by the way, as it is something that we want you to do, and would strongly recommend that you in fact do ), we are chasing up tax repayment claims, we are advising on VAT deferral,and we are doing so much more than what we would have been doing this time last year.
PLEASE, PLEASE, PLEASE remember that we are here to help you in whatever way we can during these difficult, strange, and turbulent times. Please contact your usual staff member for initial guidance.