News release for immediate use

Caution required as we move out of recession warns Reynolds and Co
 

Solihull based Chartered Certified Accountants Reynolds and Co are warning that whilst the end of the recession may well be over for many businesses, the end of a recession can be just as dangerous as the recession itself.

For many business owners who have survived the recession, the fact that orders start to arrive may seem like the long awaited answer to a prayer.

Whereas for those who started their business during the recession, possibly because they had been made redundant, may also view a sudden increase in business as being the result of their hard work.

Nigel Reynolds, md of Reynolds and Co commented, "Unfortunately, the truth may be far worse and ultimately have the result of destroying their business.

"There is much comment in the media that the economy is growing and that we are heading out of recession - however the challenge now is to manage that growth.

"In this I am not just talking about controlling the overall economy, but also the growth of the smallest start-up business.

"The issue here is one of taking on business from three different types of clients - the first is the client that no-one else wants. It is usually because they have either used up their credit facilities elsewhere and no one else will do business with them.

"The second is a client which has taken on a contract far beyond their current facilities, and they are simply looking to spread the risk.

"Lastly there is the client which is already over extended and cannot get additional funding from its bank and is looking to sub-contract large tranches of the contract to spread the cost.

"The answer to all of these is to be cautious and to remember not to‘look a gift horse in the mouth'- but the challenge is how do you stop someone else creating problems for you?

"The first thing you should do is to have a business plan in place which allows you to factor in the additional business costs and benefits and see whether you have both the financial resources, as well as the people and equipment, to allow you to fulfil the project.

"The next is to check the credit rating of the company who has approached you with the order. There are a lot of ways to verify a businesses credit rating, and if you use Invoice financing then it

comes as part of the package. If the company does not have a good rating then the Invoice Finance Company won't provide cover for them.

"Alternatively you can do your own credit checks through one of the many independent agencies that are available today.

"Many of them require you to spend £300 or more with them but one that I usewww.creditcheck.comallows you to do individual checks as and when you need to for a cost of about £10. For a small business watching their cash-flow this is a major tool.

"The main thing to remember in business is that everyone is looking out for themselves so before you become a victim make sure you protect yourself with a business plan and check up on the people you are doing business with - and that includes existing customers!

"As we come out of the recession more businesses will fail than failed during the recession due to taking on business which either they do not have the resources to deal with, or where the customer they are dealing with is passing their problems down and do not pay their bills.

"Take action now and become more professional and avoid the pitfalls ahead of you.

"Failure to be proactive may cost you and your family everything."

Additional information may be found atwww.reynoldsandco.co.uk

Ends/

Editors' Notes

Release issued by Steve Holden of Prominent Media and Communications Limited, Vienna House, Birmingham International Park, Solihull, West Midlands. B37 7GN. DIRECT - 07973-32996

Photograph - Nigel Reynolds, md of Reynolds and Co

Reynolds and Co

Reynolds and Co are Chartered Certified Accountants and specialise in accountancy (including Solicitors' Accounts Rules), taxation and business advisory services. This includes Management and Business Services, Business Start Up Support, Tax Management and Tax Returns Support, IT Support and Payroll and Booking Keeping Services.

The firm has over 75 years financial and taxation planning experience and is a member of the Association of Chartered Certified Accountants (ACCA) the largest global body for professional accountants - with 162,000 members of the accredited body across the World.

Reynolds and Co, offer clients high quality business advice with a personal service. Their approach is to build lasting relationships with clients, with a real focus on getting to know the aspirations of their clients business and personal needs.

This results in the solutions that they deliver being tailored, practical and value-added and a have a commitment to provide the same high quality service to all of their clients. They are advisers to businesses and their owners as well as the more traditional role of accountants.