Accountants offer summer tips to small businesses

Date: 14th July 2008

Accountants have said that it is vital that small businesses prepare carefully for staff absences over the summer months.

The Institute of Chartered Accountants in England and Wales (ICAEW) said that small and medium-sized enterprises (SMEs) in the country tended to be particularly impacted by summer staff holidays as they typically have less cover available.

As well as planning for absences from their own team, the accountants said that it was vital bosses made sure they were able to get payments from customers on time.

The ICAEW also said that small business owners needed to make sure invoices are still paid promptly to avoid penalties.

Other advice from the accountants included asking staff to set up out-of-office emails and prompting them to book next year's holiday as soon as they return from their vacation.

Clive Lewis, head of SME issues at the ICAEW, explained: "This is the time of year when most staff will be taking their holidays. This year, with credit being stretched because of the credit crunch, it is essential for firms to examine their debt collection and bill paying procedures, and ensure proper safeguards are in place.

"Planning ahead can help minimise disruption and keep the cash flowing".