Even after a huge blow to the Prime Minister, in which MPs voted to give Parliament a legal guarantee of a vote on the final Brexit deal, people are still left with little-to-no information about UK-EU trading conditions, as well as how things will change after the departure of Britain. In addition to this, the government wants a temporary “implementation period” of about two years (which is likely to be extended). With all this, it’s not hard to see why many businesses owners are quite anxious about the future, with many unsure how to prepare.
Even with the House of Commons vote to give MPs a meaningful say on the final deal of Brexit, it’s becoming increasingly known that we might be leaving the EU with no trade deal in 2019.
The British government says it doesn’t want to adopt any existing model for trade such as the Norway model. Which involves adhering closely to EU regulations in return for access to the single market. And not a Canada-style free trade deal. Brexit Secretary David Davis has suggested a “Canada plus plus plus” deal
Whilst it is impossible to plan ahead with full certainty, preparing for the worst case scenario will allow businesses to take into account the strengths and weakness of their own operations so they can plan to react quickly to rapidly changing outcomes and a vast array of scenarios.
Even though you’re probably well aware of what needs to be done, here are some practical tips to help prepare for the upcoming departure from the EU:
Use tech to keep your finances agile
With so much uncertainty expected in the future, getting your finances and cash flow in good shape is imperative to help your business to survive. Cloud accounting software helps you to invoice fast, handle payroll, and manage expenses, all together in one location. With a clear view of your financial outcomes, you’ll be in a much better position to stay afloat.
Manage your debtors in good time
Late payments can cause a significant challenege. It is believed that SME owners spend 10% of their day chasing late payments. This adds up to two days per month. Know your customer and agree payment terms before you supply to help keep cash flowing.
Invoice clearly and promptly
If invoicing is incorrect or poorly laid out it can cause a hold up in payments. If there are any delays, it’s vital that they aren’t a cause of your own errors. Make sure you know where the invoices are going to and raise one as soon as work is complete.
Be pessimistic when forecasting
As said before it is important to plan for the worst case scenario for your business in mind. Consider if and how the change in trading taxes affect you once we leave the free market. If you plan for the worst, than anything slightly postive will be a bonus.
Employers need to identify employees who may be affected by changing immigration rules, if any changes will happen. This will help highlight potential skill gaps post-Brexit.The best action to take would be to support your current workforce. Educate and support employees to get a permanent residence card if employees wish to apply to become British Citizens. As well as this it will also be a good idea to invest in learning, in order to develop talent and retain your people.