Thursday 19 July 2012
Small business employers need to plan ahead for employee holidays in order to ensure cashflow is not affected, it has been claimed.
Clive Lewis, head of enterprise at the Institute of Chartered Accountants in England and Wales (ICAEW), said it is essential that companies properly prepare to ensure business is not disrupted.
"With economic prospects still uncertain, firms must try to ensure they keep cash flowing," he noted.
ICAEW urged employers to ensure that holidaying staff complete a proper handover before leaving for their break.
"Staff involved in raising sales invoices and chasing customers for payment must properly brief the staff standing in for them," the body advised.
Employers also need to make sure suppliers or customers are aware of any alternatives to their regular contacts, and that stand-ins have a full list of contact details for suppliers and customers.
Small businesses should also take steps to ensure customers pay for goods or services rendered before heading away on their own holidays.
"Make sure invoices are still paid on time otherwise you could damage your credit rating and limit your access to supplies on credit," ICAEW urged.
"If the person authorising payment is away make sure that someone else can authorise it in their absence. The same applies with cheque signatories."
Business leaders then need to debrief people when they get back, enabling them to get up to speed as quickly as possible, the accountancy institute urged.
Posted by Sarah Parish