The latest indicators for the UK economy are pointing towards a cashflow crisis for businesses
We cannot emphasise enough in the critical role cashflow plays in your business and early experimental data on the impact of the coronavirus (COVID-19) on the UK economy and society show that now more than ever, you need to be on it. The data tells us:
- Over half (54%) of businesses that had not permanently ceased trading said they were owed outstanding invoice payments as a result of the pandemic.
- Less than half of all businesses had cash reserves to last six months.
- On the 23 August 11% of the entire UK workforce were Furloughed.
- There was a continuing trend of reduced home working according to the latest Opinions and Lifestyle Survey (OPN), with 20% of working adults exclusively working from home.
- Between 21 and 28 August, total online job adverts remained around 55% of their 2019 average for a fourth consecutive week.
- In the week commencing 24 August, overall footfall increased to over three-quarters of its value the same day a year ago for the first time since lockdown began.
The Business Impact of COVID-19 Survey (BICS) by the ONS is voluntary and currently unweighted, so it may only reflect the characteristics of those who responded. Results presented are experimental.
There are myriad apps and tools to help you automate your invoicing and collection and to get your cash on track as apart of a cloud accounting setup (we can help with that too). It is very clear from the survey that cash flow planning is absolutely necessary right now and we can help you plan forward and make better business decisions.
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