With the current financial climate continuing to prove challenging for farming and crofting businesses, and the need for agricultural businesses to plan ahead, a free cash flow surgery is being run for NFU Scotland members.
Low farm gate prices and reductions in EU support payments have seen agricultural incomes moving in a downward trend, serving to highlight the importance of managing cash flow to ensure a business can meet its debts and deal with problems quickly and efficiently.
Cash flow management is also vital where a business is expanding and adequate working capital requirements to cover stock and outstanding debtors is critical.
And as such, NFU Scotland and its Business Helpline partners Johnston Carmichael have teamed up to host one-to-one surgeries with cash flow consultants who are able to offer a wide range of support services to help address and resolve issues in the cash flow process.
The drop-in surgery, to be held at Thainstone Mart on Friday, August 11, is open to all NFU Scotland members. Johnston Carmichael’s cash flow consultant Gordon MacLure and Business Advisory Senior Manager Jane Mitchell will be in attendance to offer the one-to-one sessions for those members looking for guidance on options to improve their cash flow, and related tax planning advice.
Colin Gordon, NFU Scotland’s Financial Director said: “The key to the success of any business is efficient management of its working capital. Anticipating when the ebbs and flows are likely to occur as well as good management of inventory, debtors and creditors are crucial for efficient cash flow.
“An efficient cash flow strategy could mean altering the way you approach your bank, suppliers or customers; it could also mean taking prudent decisions on whether you lease or buy capital equipment or just giving you the chance to step back the from the business to gain an overview to identify the pinch points.
“The free event will allow our members to get pertinent and relevant advice from our partners at Johnston Carmichael on a one-to-one basis and I’d urge as many as possible to take up this opportunity.”
Johnston Carmichael’s Jane Mitchell advises: “The production and price cycles of agricultural businesses dictate that cash-flow requirements of businesses vary from year-to-year.
"The continuing need to keep pace with developments in agriculture mean that many businesses are faced with making strategic decisions on a regular basis which may affect cash-flow. For anyone facing these questions, we are here to help guide your thoughts through these one-to-one sessions.”