Snow... the chilling cost to businesses
13 Jan 10 - Group
It has been reported by the Federation of Small Businesses (FSB) that the recent heavy snow fall which has gripped most of the U.K has cost the economy an estimated £600 million a day.
Many employees, due to transport and child care issues, have failed to attend work which has impacted productivity. Those hardest hit have been the construction and retail sectors, alongside businesses that rely on passing trade from office workers, and "pavement" trades such as hairdressers. These businesses have experienced problems with the public reaching them, due to the icy conditions and grit shortages. Even those who may have benefited from the current climate such as local corner shops have been impacted to a degree via delays to supplier deliveries.
Cash flow in particular has been a major factor for many companies with the disruption causing delayed payments. Damian Evans, Director of leading independent accountancy practice iC suggests that businesses consider electronic BACS payments – particularly during these weather conditions: "Cash is king. It’s imperative no matter what the forecast – be it the economic environment or the weather itself - that businesses have in place a cash management policy to ride the storm! At iC we advise clients on cash flow management and regularly recommend implementing an electronic payment system which is a speedier and easier method of receiving payments and managing cash."