06/03/2020 | News release | Distributed by Public on 06/03/2020 03:58
As UK businesses cautiously return to trading, a review of the last eight weeks of the ACCA UK and Corporate Finance Network (CFN) SME Health Tracker reveals that the lockdown has had a marked impact on SMEs' financial outlook.
Since early April, the Tracker has gauged SMEs' financial health when the lockdown officially began on the 23 March 2020. Across the eight weeks, the total survey pool of accountancy practitioners that responded represented over 62,000 SMEs.
Averages across the eight-weeks of data indicate a turbulent time for SMEs, who expressed concerns about their cash reserves and survival, alongside experiences of accessing government support.
On the 15 April, 54% SMEs said they could access cash to last another four weeks of lockdown; this fell to 42% on the 4 May. Conversely, 13% of accountants said their SMEs were trading normally in April, compared to 25% at the end of May.
Tax obligations have also been a concern for SMEs with 58% on average deferring tax payments, with only half admitting to their accountant that they will be able to meet these liabilities in six months.
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