Business planning 2022-23 - April

Whether you have a 31 March accounting year end or any other month in the year, it is imperative that you have a plan. This alert is an offer to support your business by helping you create a business financial forecast for 2022-23, transfer it to your accounting software and produce periodic reports to monitor progress.

If we have learnt anything from the trials and tribulations of the past two and a half years, it is that ‘normality’ has become a fluid state of affairs.

Business challenges for 2022-23

The following bullet points set out some of the external challenges we will need to deal with this year:

  • Inflation – rising and set to peak at 10%.
  • Supply chain delays and price rises – the price of many commodities is on the rise due to the war in Ukraine, Brexit issues, and transport difficulties continue to create delivery delays.
  • Staffing – shortage of skilled and unskilled labour.
  • Rising taxes – recent NIC increases, the forthcoming increase in corporation tax and static personal tax allowances will combine to reduce our personal and business post-tax earnings.

Your business plans

Wading blindly into these challenges is like driving on a motorway with your eyes closed.

At a minimum, you should examine:

  • The security of your sales forecasts and the likelihood of growing sales. 
  • The maintenance of supply lines and factoring-in price increases.The cost of labour – will you need to consider pay increase to keep your team together?
  • Overhead costs
  • Investment in new plant or other equipment.
  • Your own drawings/salary/dividends.
  • Cash flow implications.
  • The need to raise more capital or other funding for your business.
  • Solvency

We would suggest, at a minimum, a forecast of profitability, cash flow and solvency to cover these challenges.

Call now to discuss your planning needs for 2022-23

If you have not yet considered your business plans for 2022-23, please call.