Recent economic forecasts for 2020 published by H M Treasury will do little to inspire business confidence. In their comparison of independent forecasts published last month, the unemployment rate is estimated to rise to 8% and in the same period, GDP falls by 9%.
The only good news is that inflation remains on the low side, the RPI forecast is 1.4%.
Obviously, these numbers are estimates and hide wide ranging differences in various business sectors.
Based on these forecasts it would be sensible to keep a watchful eye on your business performance. This should include the calculation and response to key performance indicators.
For example, no business can support losses for an indefinite period. Exhausting hard-won reserves of profit and cash-flow is not to be recommended.
If you need help setting up financial indicators to support your efforts to stay in the game please call. Once created, you will then be able to plot your progress or otherwise as the present disruption spins out in the coming months.
Be prepared, stay informed.
- Are you ready for 1 January 2021? - November 25, 2020
- Furlough claims from 1 November 2020 - November 24, 2020
- Are you eligible for further self-employed grants? - November 19, 2020
- Current businesses subject to lock-down - November 17, 2020
- Are you eligible for Universal Credit? - November 12, 2020
- Government financial support extended - November 9, 2020
- Get ready for end of EU transition period - November 5, 2020
- Are you making the most of your accounts data? - November 4, 2020