Future proofing your business
There’s never been a more important time to make sure your money is working as hard as you are for a secure future.
According to a survey by the Federation of Small Businesses, nine out of ten companies have seen a rise in operating costs compared to last year. This will come as no surprise to many business owners who are feeling the pinch of rising fuel, utility costs and increased taxes. With prices continuing to rise at their fastest rate in 40 years, there has never been a more important time to consider whether your business has plans in place to help it weather a storm.
Our friends at Aldermore have shared their ideas on how you can future proof your business. See below for some you may want to consider:
- Cash reserves - Build up a cash reserve to help you weather unexpected problems. In times of economic uncertainty, the peace of mind that comes from having money put aside can be invaluable. In the same way that you may set personal savings goals and set aside money each month to work towards this, look at ways that you may be able to do the same for your business.
- Savings for tax - Set aside a percentage of your income to pay your VAT and tax bills every week or month to avoid surprises. Rises in national insurance contributions and an expected increase of 6% in corporation taxes next year mean that this is an area you cannot afford to overlook or not plan for.
- Consider a savings account - Don’t leave spare money lying idle in your bank’s current account. Business savings accounts are open to all types of businesses and typically pay a higher rate of interest than business current accounts. Do your research to find out what the right type of account is for you. Easy Access accounts, as the name suggests, make saving simple because you can add to or withdraw from your savings at any time. This makes it the perfect account if you want to build your savings pot but want the security of being able to access your funds.
- Check your savings are FSCS protected - The FSCS (Financial Services Compensation Scheme) protects your savings if your bank or building society goes under. It protects up to £85,000 of savings per individual per financial institution. Although most financial institutions are protected by the FSCS, it’s important that you familiarise yourself with the eligibility criteria and rules.
You can find out more about the FSCS at Financial Services Compensation Scheme | FSCS
Remember, most business savings accounts operate seamlessly alongside your business current account and can be set up in as little as 15 minutes. A little time invested up-front could make all the difference.
Ready to take the next step? Why not take a look at the specialist Business Savings Account Aldermore Bank has on offer.
Aldermore Bank are one of several partner services available to our business customers via our Marketplace. You can access all of these services via our Bank app or online banking.
This content was created on 7th September 2022
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