< Previous20 Business Link www.blmforum.net FINANCE T here are many challenges and potential pitfalls to overcome for businesses as the furlough scheme comes to an end and the pandemic continues to depress the economy. Although some of these issues have arisen as a direct result of the coronavirus crisis, the outbreak has exacerbated many pre-existing financial burdens, making difficult trading conditions more hostile for businesses. One of the biggest threats is that – post- furlough – cashflow is weak as outstanding and uncollected invoices build-up and there’s a halt the movement of products and services is halted. Since lockdown, many businesses have been more cautious and have made cost- saving measures – such as searching for cheaper suppliers or letting go of some suppliers altogether. Elsewhere, companies have lost contracts and longstanding clients as other companies seek to reduce overheads or have been forced to shutter their operations in the wake of the outbreak. On its own, this weaker cashflow would be a major hindrance, but it comes amidst an already established culture of late payments that has pervaded the corporate world for years. A study from the Federation of Small Businesses (FSB) shows that sixty-two per cent of small businesses have been subject to late or frozen payments in the wake of the outbreak. Only ten per cent of those firms surveyed have agreed to payment terms with clients, meaning most of this fresh wave of poor practice has not been formally signed- off by creditors or debtors. Indeed, late payments contribute to 50,000 insolvencies every year, costing the economy £2.5 billion. If it was an Keeping up with cashflow With the furlough scheme at an end, businesses will be looking to secure finance to fill shortfalls and take measures such as redundancies to help improve cashflow. 22 Á 20-23.qxp_Layout 1 02/09/2021 13:34 Page 1www.blmforum.net Business Link 21 FINANCE © Shutterstock /ESB Professional 20-23.qxp_Layout 1 02/09/2021 13:34 Page 222 Business Link www.blmforum.net FINANCE issue that businesses were contending with before the outbreak, it’s only been heightened in this ‘new normal’. However, there are ways in which a company can secure funding to cover the gap in cashflow posed by late invoices. Chief among these is invoice finance. This is the simplest means of releasing cash tied up in a businesses’ outstanding invoice. It sees a business sell its invoices to a third party who will advance some of the funds it is worth up front for a cut. Thousands of businesses already rely on this kind of financing to maintain a healthy cash position, whilst others use it to take back control of cashflow issues that arise from late and unpaid invoices – more so since Perhaps the biggest draw is that businesses can be paid most of an invoice within forty-eight hours instead of the typical thirty-day period specified on most invoices. Of course, this is far from the only finance solution businesses can draw from. Asset-based finance is a specialised method of providing companies with working capital and term loans that use accounts receivable, inventory, machinery, equipment and real estate as capital – essentially, any loan to a company is secured by one of that company’s assets. This option is commonly used to pay for expenses when there are gaps in a company’s cashflow, but it is also frequently used for start-up financing as well as refinancing existing loans, financing growth, mergers and acquisitions, as well as management buy-outs and management but-ins. Although it’s not suited to meet every business requirement, it can prove useful for those that have stretched their credit limits with vendors and reached lending capacity at the bank. Companies can also take out loans to fill the gap and bolster cashflow, though some companies may already be at their limit with their banks or otherwise don’t meet the requirements for securing loans with traditional lenders. In these situations, companies can turn towards alternative lenders and finance providers. Private equity, for example, is where investors provide long-term equity capital investment in a company in return for either shares, a percentage stake in the business and/or, sometimes, a seat on the board. Although many businesses might be loath to dilute their ownership, private equity does offer a good option of raising capital for businesses that aren’t ready to list on the stock exchange. Another form of private finance is an angel investor – a high net worth individual who makes use of their own personal disposable finance and makes their own decision about making an investment. Angels would normally take an equity stake in a business in return for providing equity funds. As well as capital, angels can also provide their experience, knowledge and contracts, making them especially attractive to early stage businesses. Every investor is different and will therefore provide differing amounts, but typical investments range from between £10,000 and £500,000, though deals of up to £2 million are becoming more commonplace as angels group together in syndicates. Although angels are one of the most significant investors in start-ups, that shouldn’t deter more established firms from making enquiries. It’s important to keep in mind that securing an angel can be a difficult and protracted process, as well as being harder to research and contact compared with a private equity firm. Although securing finance of one form or another is a way in which companies can strengthen cashflow, there are other options such as reducing overheads and operating costs and downsizing. Depending on the company and, indeed, the severity of the financial shortfall, this approach may be pursed independently or in conjecture with invoice financing or a loan. In this current financial climate, with the effect of the pandemic, and with the end of the furlough scheme forcing many employers’ hands, a lot of businesses may soon be looking at redundancies as a necessary way to improve and increase their cashflow. Payroll is often the biggest expense for a business so, in times such as these, it’s often one of the first places bosses or financial advisors will look at to save money. 20-23.qxp_Layout 1 02/09/2021 13:34 Page 3www.blmforum.net Business Link 23 FINANCE It’s a simple but effective method – a company can save tens of thousands of pounds a year by letting staff go, be that through shuttering whole departments, or consolidating multiple job roles into one. Although nobody wants to lose their jobs, it’s often necessary for companies to take such measures to stay afloat and to continuing trading through this period of increased economy strain and uncertainty. However, it’s worth noting that there are other ways to cut payroll costs without letting staff go – such as cutting salaries, turning full-time staff into part- timers, cutting bonuses, enacting leaves of absences and shortening the working week. The coronavirus crisis remains an unprecedented and challenging time for businesses. As well as bringing its own unique set of challenges, it has also heightened many existing issues, making cashflow problems a more pressing challenge for businesses. In many cases, it has forced companies to take drastic measures to remain afloat and continue to navigate the ‘new normal’. Solutions include invoice financing and securing loans, be that from traditional lenders, from private equity providers or alternative finance, and making cost cutting measures in- house, such as redundancies. In any case, there exists expert advice to help inform business decision making so companies can make the best decisions to bolster cashflow and continue trading. © Shutterstock /Farizun Amrod Saad Post-pandemic business recovery – where to begin? Begbies Traynor Group explores options available to businesses for recovery following the closure of the furlough scheme. The Coronavirus Job Retention Scheme (CJRS) comes to an end on 30 September 2021, concluding the government’s financial contributions towards furloughed employees’ wages. As the economy reopens, company directors will be required to consider what the future holds for their business in this new and challenging landscape. Some businesses may find themselves unviable in their current form and, therefore, require some level of reorganisation at both a financial and operational level. Company rescue advice is critical to secure the survival of your business, stabilise company operations, and ensure long- term viability. A licensed business restructuring expert can conduct a financial health check of your business to diagnose the pressure points and address financial health concerns. Company restructuring Recovery for a distressed company can be achieved through a moratorium procedure that allows the business to continue trading with an insolvency practitioner acting as ‘monitor’. This gives breathing space while a turnaround plan is solidified. Alternatively, a Company Voluntary Arrangement (CVA) or a Restructuring Plan may help an indebted company negotiate an affordable and sustainable repayment plan with creditors. When a company is threatened with legal action, administration can halt litigation until a long-term solution for maximising creditor returns is identified. Company finance There is a range of corporate finance solutions available, including invoice finance, asset-based lending and traditional commercial loans, which may give your business a necessary injection of capital. Our UK-wide locations include offices in Yorkshire and Lincolnshire where we offer a free, confidential consultation to company directors. For more information call 01724 389 630 or email scunthorpe@btguk.com © Shutterstock /Afiq Sam 20-23.qxp_Layout 1 02/09/2021 13:35 Page 424 Business Link BARNSTONE ACCOUNTANCY & MANAGEMENT Q&A As a family-run practice with a difference, how do you tailor your services and meet the needs of different businesses, sole traders and individuals? Barnstone Accountancy & Management is a family-run accountancy practice with a difference. We believe in taking a more personal and hands on approach to consultations so that we can tailor our accounting solutions to our clients’ specific needs. Unlike most Accountants we are open 6 days a week and if a Client or prospective Client tries to contact us, we guarantee that we will get back to them within 24 hours. Providing a wide range of tax and accountancy services from the comfort of our converted barn, the tranquil, rural setting allows us to offer an ideal environment to discuss our clients’ finances in complete confidence. This relaxed atmosphere and our honest, jargon-free approach means we can really get to know our clients’ and their business, either over a cup of tea in a comfy chair or, as has been more the case recently, via a video conference call. We like to be on first-name terms with all our clients. This allows us to have friendly, stress-free and straightforward conversations, with the focus upon open communication and attention to detail. By doing things this way, we work with our clients’ and not for them meaning we can be more proactive in delivering a Service that is tailored to meet their exact requirements. How are you able to offer bespoke services without the bespoke price tag? One of our key aims is to ensure that our clients only pay for what is necessary to complete what they are asking us to do. Depending upon the service selected, this can be on a fixed price or on a per item basis. We can also help our clients to spread the annual cost of their accounting by providing our service on monthly instalment terms, meaning we help our clients to prevent unplanned for bills coming all at once. We also believe that the more work our clients entrust to us, then the lower it should cost them for our Services. For example, if a client requests for us to complete their bookkeeping, payroll and end of year accounts, then the overall package would cost less than the cost of each individual service. For existing clients, we also have a referral scheme where if they recommend our service, which then results in a new client signing up to our services, they receive a reduction of their next invoice (currently £50.00+vat). You aim to take the fear out of tax and accountancy – part of this is by getting to know clients and avoiding all the industry jargon. How else do you set clients’ minds at ease? Another of our company key aims is our stated intention to “Take Your Fear out of Tax and Accountancy” and unlike many accountants, we don’t leave our clients out in the cold until Annual Tax return time. Instead, we like to maintain regular contact with all our clients throughout the year to ensure that they are aware of any upcoming deadlines and that they are kept informed of any tax, financial or industry-specific changes that may potentially affect them and their circumstances. For example, during the recent COVID-19 chaos we ensured that our clients were kept abreast of the constantly evolving situation regarding the Government SSEIS grants and other funding schemes that were available to them. If our clients request it, we are also more than happy to deal directly with HMRC and/or Companies House on their behalf. We appreciate that it can be daunting to discuss something as complex as disputing a Self-Assessment Tax return with the HMRC Tax advisors, so by utilising our Agent dedicated line to HMRC we can usually help bring matters to a conclusion in a far timelier manner than if our clients were to utilise the general public HMRC telephone queuing system. Can you tell us about how Making Tax Digital has impacted yourselves and your clients? During the past eighteen months we have been working with HMRC and Sage, by piloting applications that assist in the development of the next phases of Making Tax Digital (MTD). Although this does commit some of our time, we feel it will be of benefit to our clients as we are Q&A Barnstone Accountancy & Management We recently spoke with Barnstone Accountancy & Management about putting the client’s needs first, offering a bespoke service, and what effect digital technologies are having on the industry. 24-25.qxp_Layout 1 02/09/2021 13:39 Page 1www.blmforum.net Business Link 25 BARNSTONE ACCOUNTANCY & MANAGEMENT Q&A involved in the forefront of the introduction of the program and therefore, we will be well placed to assist them when the full roll out comes into effect. As such, we are actively encouraging our clients to start utilising accounting software both to help them with the management of their day-to-day business finances but also with an eye towards the MTD roll-out. Although MTD will proactively drive most businesses to upgrade from ‘shoe box accounting’ (i.e. storing all receipts, invoices & statements etc. in a box until tax return time!!) it will allow greater clarity of an individual business’s financial position and if regular record keeping inputs are maintained we do not believe it should become an onerous task. In fact, the more a business keeps their records up to date then the less their overall accounting fees should be – the resulting MTD records will be used directly to produce quarterly and annual returns, therefore making the overall process more efficient. We also appreciate that Digital technology does not suit everyone therefore, we provide the option of an all-encompassing service to our clients where we can take hard copy documents, load them onto appropriate software and complete the necessary returns. This way we can do as much or as little as our clients require by tailoring our service to exactly match their needs. On a similar topic, are digital technologies a help or a hindrance when it comes to tax and accountancy? Advancing technology has seriously changed the face of accountancy over recent years. Whereas accountancy used to conjure up images of large dusty ledgers being filled in by Dickensian- styled filing clerks, there is now a different perception especially as all VAT registered businesses will be legally required to keep digital VAT records and send returns to HMRC using MTD- compatible software from April 2022. Whilst there are many different software packages to choose from, here at Barnstone we are agents for Sage and Xero Accounting software. These fantastic packages allow you to quickly and easily create and track invoices, monitor cash flow, accept payments, record transactions, automate admin, capture expenses, and much, much more all in live time. Being cloud-based, these applications also allow you to manage your transactions regardless of location - all you need is a compatible device (whether that’s a desktop computer, laptop or mobile phone) and a network signal to allow you secure and uninterrupted access to your accounts. At Barnstone, we definitely believe that digital technology is a wholesale improvement in how all Businesses manage their finances and by wrapping our arms around the tech, we are proactively helping our clients to be ready for the next roll out phases of Making Tax Digital. To what extent have you been affected by COVID-19 and, moreover, how have you been able to help clients tackle challenges posed by the pandemic. Whilst the COVID-19 pandemic has undoubtably been challenging for the vast majority of the UK population, our family included, we have adapted to the new way of working and communicating relatively easily. Although we are located in the village of Greetham near Rutland water, five miles away from Oakham in Rutland and eight miles away from Stamford in Lincolnshire, our client portfolio is spread across the whole country ranging from Slough in Berkshire to Newcastle and we were therefore already carrying out a lot of our Business remotely before the pandemic struck. By utilising recently enhanced conferencing software and improving our remote working practices, we have managed to uphold our personal presence with our clients and maintained face to face contact when required. In fact, we have found that by embracing the technology, we have actually made both our own and our clients’ businesses more efficient as we have removed the need for the majority of any accountancy based travelling burden. To find out more, visit www.barnstoneaccountancy.co.uk, email enquiries@barnstoneaccountancy.co.uk, or call 01572 811497. 24-25.qxp_Layout 1 02/09/2021 13:39 Page 226 Business Link www.blmforum.net OFFICE SOLUTIONS flexibility As more businesses adopt hybrid working, offices are set for a redesign. Focusing on 26-29.qxp_Layout 1 02/09/2021 13:47 Page 1www.blmforum.net Business Link 27 OFFICE SOLUTIONS © Shutterstock /Monkey Business Images In light of the pandemic, how offices are designed, and the resources provided moving forwards are shifting. More firms are set to adjust their spaces to accommodate flexible working, uncertainty, and the upsizing and downsizing of staff, but also to attract talent and bring employees back to the office. With talk of hybrid working being the future, as well as present, and a more efficient way of working that promotes better work-life balance, employers are considering how their floorspace can be utilised to facilitate and encourage different ways of working. With many colleagues choosing to work from home for part of the week, less space is likely to be required for standard desks. This provides the opportunity for an office designed with open plan, agile areas, bookable working spots, specialised zones, informal spaces, and innovative, modular furniture that can be reconfigured easily as desired. Offering a plethora of locations to work in is key, to anticipate and adapt to changing needs, and gives a workforce the chance to better control their workday, enhancing productivity, satisfaction, and engagement. Instead of having specific spaces for every employee, we are now turning to an open environment that presents the different flexible workspaces that could be needed, and with days in the office reducing, and the workplace becoming an important hub for connection, there is particular focus on ensuring a variety of collaborative and break out areas are available as offices become a vital location for reigniting company culture. Dynamic spaces that can be adjusted with movable boundaries for meetings and socialising are worth integrating, though this must be balanced with smaller spots like pods, booths, and quiet rooms for independent work - tasks requiring intense focus - which also offer 28 Á 26-29.qxp_Layout 1 02/09/2021 13:47 Page 228 Business Link www.blmforum.net OFFICE SOLUTIONS Treat different (even controversial) beliefs with respect or face the consequences! Every day on social media, people broadcast their opinions on matters of society, politics and culture. Unsurprisingly, we have seen that employers increasingly feel duty bound to discipline employees whose controversial opinions do not conform with company values. However, what employers may fail to appreciate is that employees who voice controversial opinions could have protection under the Equality Act 2010. Under the Act, it is unlawful to treat an employee less favourably because of a philosophical belief - but what is a philosophical belief? A philosophical belief has to be worthy of respect in a democratic society, not incompatible with human dignity and not in conflict with the fundamental rights of others. In Forstater v CGD Europe, the Employment Appeal Tribunal held that a belief that sex is biologically immutable – i.e., that a trans-woman is not in reality a woman or a trans-man is not in reality a man – was a philosophical belief protected under The Equality Act 2010. The judgment clarified that everyone is entitled to believe whatever they wish and that the only beliefs not worthy of respect in a democratic society are those which involve grave violation of the rights of others, tantamount to the destruction of those rights. The Forstater judgment does not mean that an employee who holds a gender-critical belief can mis-gender trans- colleagues with impunity. However, it does mean that employers should exercise caution before contemplating taking any action against an employee who expresses views which cause offence and are in conflict with their culture. Employers Beware! The boundary of what constitutes a philosophical belief appears to have been extended... To find out more, visit www.sillslegal.co.uk, email info@sillslegal.co.uk, call 01522 542211, or visit Aquis House, 18 – 28 Clasketgate, Lincoln, LN2 1JN. Stephen Britton, Head of Employment Law, Sills & Betteridge LLP an area of calm. Furthermore, with more meetings taking place online, partitions for audio and visual privacy should be positioned in open spaces, and easy to access tech provided, while making certain colleagues can plug and play in all office areas and connect and charge tech. Acoustics must additionally be investigated, especially if an office space is to be heavily centred on promoting collaboration. Installing acoustic baffles, wall panels, and carpets can all improve the acoustics of a workplace. When establishing a hybrid office, it will also be essential to assure remote and on-site workers can be brought together effectively to allow collaboration and full participation for remote staff. Firms will therefore need to consider integrating further technology, software, more stable Wi-Fi connections, and tools like Slack and Teams to facilitate this, and at the same time make sure to budget for any necessary extra security and privacy infrastructure. This may involve supplying conferencing technology for actions including easy screen sharing, and more screens in meeting rooms, to potentially give remote participants each their own, and ensuring these are movable for for example breakout sessions and side talks. As a result of COVID-19 there is heightened focus on designing offices for staff wellbeing too, showing that a company values its employees and their health - both physical and mental. The past year has of course seen COVID-secure measures installed, from altered floorplans to allow social distancing to hand sanitiser stations and touchless doors, to address the spread of the virus and mitigate any concerns of workers. On top of this, though, as 26-29.qxp_Layout 1 02/09/2021 13:47 Page 3www.blmforum.net Business Link 29 OFFICE SOLUTIONS Bespoke hygiene solutions for returning workers In the wake of the coronavirus crisis, cleaning and hygiene have never been more important. Fortunately for companies returning to the workplace, Chemex is here to help. Chemex work with a wide range of industries including food, infection control, emergency medicine, leisure and facilities management, transport & engineering. It believes in building partnerships with its customers and, by taking the time to understand what is important to them and their business, it can then design a bespoke package to suit them. The company has a unique approach to giving complete peace of mind that includes effective staff training which complements our market-leading products and systems. Bespoke cleaning and hygiene control programmes are set up and your staff is trained to follow them correctly and safely. This ensures the effective use of products to maintain a clean, safe environment. Most of its products are supplied as High Performance, Super Concentrates. Chemex supplies free of charge, high-tech dosing equipment to automatically dilute the concentrate on our customers’ premises. That means it isn’t transporting water – saving millions of truck journey miles a year. It also means plastic trigger bottles are refilled and re-used rather than going to landfill. We pass that saving on to our customers. As more and more companies are opening up again following lockdown, Chemex has everything you need to do so safely. From offering friendly help and advice, to complete hygiene control packages, the company has it all. Solutions include wall-mounted touch-less sanitiser dispensers with backboards, and free-standing hand sanitiser stations. To find out more, visit www.chemexuk.com, or email Chemex Lincoln & Boston franchise owner Peter Cussans peter.cussans@chemexuk.com. employers truly commit to delivering workspaces that contribute positively to health and wellbeing, other trends are being adopted with vigour. Introduction of cleaner air ventilation, promotion of natural light or use of circadian lighting where this is lacking, more comfortable and ergonomic furniture, incorporating artwork, choosing colours based on their psychological connection, and biophilic design are frontrunners here. The last of these, proven to reduce stress and improve productivity, is particularly popular, seeing nature brought indoors in the name of wellness, through plants - which boost oxygen levels and consequently concentration - living walls, wood and stone elements, and views of the outside world. Meanwhile, to encourage physical activity, furniture solutions such as stand-up desks to prevent extensive sitting are being employed, and bike storage and shower facilities provided. Wellness support should go beyond the physical however, with policies, procedures, and resources put in place, and managers trained to establish positive working environments. With the future of the office people-centric, one should engage with employees during the space planning process. They will be the one using the office after all. Surveys, interviews, focus groups et al. are all good options to get colleagues involved, and will in turn help them adapt to any change. To then gain an understanding of how space is actually being used, AI is being wielded. The technology can point out where individual working happens, where teams congregate for one on one or group conversations; useful information which can be utilised to modify and optimise these spaces as the office evolves. © Shutterstock /Anel Alijagic 26-29.qxp_Layout 1 02/09/2021 13:47 Page 4Next >