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May 25, 2020 By Des Ingham Leave a Comment

Starting Up Your Business After Lockdown

We are writing this blog on Bank Holiday Monday, August 25th, so the vast majority of businesses are closed in Northern Ireland and across the UK. But there is no doubt that a lot of businesses will be making the first tentative steps to opening again tomorrow, if they have not already done so.

Entrepreneurial Spirit To The Fore

This doesn`t include the hospitality industry of course, and pubs, cafes and restaurants will be some of the last to open again, although some are doing their best to run a takeaway or delivery service for their customers. The entrepreneurial spirit is certainly coming to the fore and businesses are using their initiative and imagination to find ways of trading once again.

There is a fine balance between getting the economy moving again but also keeping everyone safe from catching Covid-19. But it is one that we have to find and fast if we are not going to suffer the loss of thousands and thousands of jobs, which will in turn lead to financial hardship for many people here in Northern Ireland.

Most Countries In Europe Coming Out Of Lockdown

Most countries in Europe are now in the same position and are beginning to come out of lockdown slowly but surely. This is now a very critical time as we will find out in the next few weeks if we have another peak with a huge rise in the number of people infected, or we can control the rise to a manageable level.

Of course we have already seen the folding of some businesses as they have found that they just have too many overheads to cope with the shutdown of their business during this period, which is a very sad state of affairs. There are many other businesses teetering on the edge of going into administration too. These companies need to get back to some sort of working normality as soon as is humanly possible. There is a lot of talk of the new normal now which is something which we are going to have to live with for the foreseeable future.

If you have a business in Northern Ireland and you are looking at getting back to work in the next few days and weeks, or you have already done so, you may need some help negotiating your way through these testing times.

Grants & Business Plans

At WHR Accountants we can help you in a number of areas. These include advice on how to start up your business after lockdown, advice on grants and funds which may be available to you, help with compiling a business plan to get you through the next few months, and of course help with your accounts going forward.

If you would like to get in touch with us for an initial chat please give our offices a ring on 028 3752 2909. Stay safe and we hope to hear from you soon.

May 19, 2020 By Des Ingham Leave a Comment

Guidance For Employers On Going Back To Work

As many businesses are now starting to turn their attention towards going back to work, if they have not already done so, we thought we would share with you the new Covid-19 guidelines which have been issued by the government on what needs to be put in place for both the workplace and the workforce in order to proceed back to work as safely as possible.

This information has been taken from the Accountancy Daily website which says that:

“The Department for Business, Energy and Industrial Strategy (BEIS) said the information has been developed with input from firms, unions, industry bodies and the devolved administrations in Northern Ireland, Scotland and Wales and in consultation with Public Health England (PHE) and the Health and Safety Executive (HSE).

The new guidance covers eight workplace settings which are allowed to be open, from outdoor environments and construction sites to factories and takeaways.

5 Key Points To Be Implemented

The five key points, which should be implemented ‘as soon as practical’ and which cover all settings are:

Work from home, if you can

All reasonable steps should be taken by employers to help people work from home. But the guidance makes clear that those who cannot work from home and whose workplace has not been told to close should go to work.

Carry out a Covid-19 risk assessment, in consultation with workers or trade unions

This guidance operates within current health and safety employment and equalities legislation and employers will need to carry out Covid-19 risk assessments in consultation with their workers or trade unions, to establish what guidelines to put in place. If possible, employers should publish the results of their risk assessments on their website and the government expects all businesses with over 50 employees to do so.

Maintain two metres social distancing, wherever possible

Employers should re-design workspaces to maintain two metre distances between people by staggering start times, creating one way walk-throughs, opening more entrances and exits, or changing seating layouts in break rooms.

Where people cannot be two metres apart, manage transmission risk

Employers should look into putting barriers in shared spaces, creating workplace shift patterns or fixed teams minimising the number of people in contact with one another, or ensuring colleagues are facing away from each other.

Reinforcing cleaning processes

Workplaces should be cleaned more frequently, paying close attention to high-contact objects like door handles and keyboards. Employers should provide handwashing facilities or hand sanitisers at entry and exit points.”

Our Dedicated Accountancy Team

We hope the above information proves useful to you and if you need any guidance with regards to a business plan or financial advice to help you through the tough months ahead don`t hesitate to call our dedicated team here at WHR Accountants on 028 3752 2909.

May 18, 2020 By Des Ingham Leave a Comment

Furlough Scheme Extended Until October

There has been welcome news in the last few days that the government`s furlough scheme is going to be extended until October. The chancellor Rishi Sunak took this unprecedented step probably with great reluctance considering the eye-watering sum of money this is going to cost, but it had to be done to prevent huge job losses over the coming months.

7.5 Million Workers Furloughed

This extension to the scheme is a pointer as to how long the government expects this crisis to envelop the UK and the wider world. A staggering 7.5 million workers are at present being paid under this scheme but the chancellor is steadfastly standing firm by extending the scheme until October to give businesses the best opportunity to survive the crisis and keep their employees.

Sunak was quoted in an article in The Guardian as saying: “We already know that many people have lost their jobs, and it breaks my heart. We’ve seen what’s happening with universal credit claims already. This is not something that we’re going to wait to see; it’s already happening.”

He added: “There are already businesses that are shutting. There are already people who have lost their jobs. And as I said, that’s heartbreaking to me and that’s why I’m working night and day to limit the amount of job losses.”

The Cost To The Taxpayer Is Enormous

In the same article Paul Johnson, director of the Institute for Fiscal Studies, commented that the furlough scheme is likely to cost the taxpayer upwards of £80 billion:

“To put that in context, in eight months, that is more than we spend on the education system in an entire year, it’s many times what we spend on the police, it’s many times more than we spend on social care, it’s about half what we spend on the whole NHS in a year,”

Businesses Will Share The Burden As Scheme Unfolds

But of course the chancellor will be expecting businesses to contribute and share the burden as the scheme unfolds, whether the majority of businesses can or will support this remains to be seen. Here is what shadow chancellor Annaliese Dodds is quoted as saying in the same article:

“The government must clarify today when employers will be required to start making contributions, and how much they’ll be asked to pay. If every business is suddenly required to make a substantial contribution from the 1 August onwards, there is a very real risk that we will see mass redundancies.”

For help and advice on the effects of the furlough scheme on your business and how best you can negotiate the next few months, please give our experienced financial team here at WHR Accountants a call by ringing us on 028 3752 2909.

May 12, 2020 By Des Ingham Leave a Comment

Start Planning Your Covid Recovery Strategy

There is no doubt that the businesses that plan for restarting their business after lockdown restrictions are lifted are the ones that are most likely to thrive and to return to growth quicker. So it is of huge importance that they get ahead of the curve and plan a solid and workable Covid recovery strategy.

Returning Your Business To Pre-Covid Levels

There are many questions that company directors should be asking themselves in order to be able to return their business to the level it was at before the pandemic hit our shores and everything changed so dramatically.

One major change which is going to happen sooner or later is that the furlough scheme is going to be withdrawn by the Chancellor Rishi Sunak, whether that be a gradual process or a sudden pulling of the rug from under everyone we are not clear, but it is going to happen sooner rather than later because the cost to the governments budget is simply not sustainable for any length of time. Businesses must be bracing themselves for this and have plans in place as to their next move when this happens.

Financial Projections & Cash Flow Forecasts

Assessing financial projections and cash flow forecasts will help to give businesses a rapid health check so they will be able to work out if they will be able to bounce back quickly or if they should expect slower growth and a gradual recovery over a period of time. If a business can show that they have workable financial projections the banks are much more likely to support them and work with them.

One word of caution, if you are tempted to chase suppliers and customers for payments I would hold back a little, everyone is in the same boat and being too demanding right now could result in losing long term loyalty which will come back to bite you at a later date.

Speak To Your Accountant As Soon As Possible

Businesses need to be speaking to their accountants now, gaining information and advice on how to manage their finances in these unprecedented times and checking they have accessed the necessary public and private funding which is available.

We are here to help you with this if you don`t have a designated accountant. For help and advice please get in touch with our designated team of accountants by ringing 028 3752 2909.

May 11, 2020 By Des Ingham Leave a Comment

Are We Going To Kick-Start Our Economy Again This Week?

The televised statement by Boris Johnson last night has brought in a wave of criticism, many critics believing the new rules to be too muddled with the possibility that it may leave the UK open to a new wave of infections. Is the new “Stay Alert” message strong enough for people to grasp or will it lead to some people being irresponsible with social distancing etc?

The Northern Ireland Economy & The Health Of The Nation

We all realise that the health of our nearest and dearest is the most important factor but, putting our accountancy heads on, we also realise how important the economy is to the health of the nation as a whole and to each and every one of us here in Northern Ireland.

So in that context, even if nothing else, the statement by the Prime Minister did provide us with some hope that many businesses may be able to start operating again, even if the way they operate will be significantly different than before the virus hit our shores.

Income & Health Intrinsically Linked

We should never forget that income and the health of the population are intrinsically linked, poverty does indeed costs lives, so it is absolutely imperative that we do get the cogs of industry turning as soon as we possibly, albeit in the safest way possible for all employers and employees.

It is a fact that the majority of the people who have the ability to work from home are in reasonably well paid jobs, which means that the vast majority of people who are out of work right now are some of the poorest in society and need to get back to work to feed their family and keep a roof over their heads.

Poverty can in some instances lead to children going hungry, people`s mental health suffering badly and domestic abuse rearing its ugly head. So we do need to ensure that people can get back to work as soon as possible so that they can provide for their families.

A Tricky Balancing Act Between Work & Social Distancing

It is a very tricky balancing act that the government and all of us have to manage in that we need to get the economy up and running again but at the same time sticking to the social distancing rules and keeping the vulnerable in our society safe and healthy.

But these are the cards we have been dealt with and so we need to do this to the very best of our ability.

Finally, if you have a business that needs some guidance right now on the financial implications that the coronavirus pandemic has thrown up, and how best you can negotiate through the next few weeks and months, please give us a call for a free initial consultation on 028 3752 2909.

May 5, 2020 By Des Ingham Leave a Comment

An Economic Emergency As Well As A Health Emergency

Covid-19 set into motion the biggest health crisis for decades both here in Northern Ireland and across the globe. Of equally grave concern is that the effects of lockdown on businesses is triggering an economic emergency far worse than the financial crash of 2008.

Sharp Decline In Business Activity

The financial crash 12 years ago seemed to decimate the Northern Irish economy more than most, and we seem to be on track for the same to happen once again with Northern Ireland suffering the sharpest declines in business activity of any UK region.

No part of the economy seems to be escaping the effects of coronavirus, with retail, manufacturing, tourism, construction and farming all taking a hit.

In The Middle Of An Economic Emergency

Here is Stephen Kelly, who is the chief of industry group Manufacturing NI, voicing concerns about what will happen in Northern Ireland once the furlough scheme comes to an end:

“Quite clearly we are in the middle of a public health emergency, but we are also in the middle of an economic emergency. We do know that tens of thousands of jobs have been placed into the furlough system in Northern Ireland. And if the intention of furlough is to avoid redundancy for now then we are worried that when the scheme runs out we could be talking about tens of thousands of jobs being lost”.

Phasing Out Of The Furlough Scheme

The chancellor of the exchequer Rishi Sunak said in an interview recently the furlough scheme would come to a halt after a few months but that it would be a gradual phasing out as trading conditions changed. We sincerely hope that this is the case so it gives businesses the chance to get back on their feet and grow again once things get back to something approaching normality.

Whether you are a business who wants advice on the grants and funding that is available right now, or you want to set up a business plan for the next few months covering all eventualities, we are here to help. Just give WHR Accountants a call on 028 3752 2909.