Award-winning accountancy firm and haulage specialists, Salhan Accountants, is encouraging businesses in the sector to conduct a thorough review of their financial pinch points ahead of the UK’s departure from the EU.
With the prospect of a no deal Brexit growing, Salhan Accountants is worried that some hauliers and logistics firms may be too exposed in certain areas, such as cash flow or debt, which could lead them into financial distress
The firm, which is a member of the Road Haulage Association, says there are a number of tools at businesses disposal to help them evaluate their current position and plan ahead, including detailed management accounts and the implementation of the latest online accounting software.
Dr Anjulika Salhan, Director at Birmingham and Droitwich-based Salhan Accountants, said: “Everyone is very much doom and gloom about Brexit, and the majority of businesses hope it will all go ahead without complications, but it certainly pays to be prepared.
“Some businesses may find that after the 29 March they enjoy an increased workload as customs brokers seek additional capacity to get goods into and out of the continent efficiently, while others may see a decline in trade or additional costs associated with complicated border arrangements.
“Even those who do not operate on the continent and work further down the supply chain are likely to have their work and finances affected if a no deal Brexit occurs, so while there is still time left it makes sense to review your current finances and see what steps can be taken to ensure a minimal impact on your turnover and profit post-Brexit.”
The firm said it was genuinely concerned about how some businesses might cope and feels that some companies in the sector could be one of the hardest hits if Brexit takes a turn for the worst.
“Once businesses have assessed their position and taken a closer look at their cost analysis, they may find that there are certain parts of their company that could be run more efficiently or, with the help of a tax planner, they could reduce their liabilities,” explained Anjulika.
“Even if Brexit isn’t disastrous, this type of information could prove really useful to businesses who conduct this research now and provide them with a competitive edge over those who are just sitting and waiting for things to change.”