CHARTERED ACCOUNTANTS AND BUSINESS ADVISORS
Understanding this challenge is essential. Businesses can focus on offering other benefits to motivate and incentivise staff, which may include the Enterprise Management Incentive Share Options (EMI).
It is also essential for a maintenance business to understand the frequency of sales. Often annual maintenance is required on an aircraft, which makes it possible to predict peaks and troughs in income. Working with clients to bring their service interval forward can have significant benefits to staffing and cashflow.
Often large payments with short payment terms are due to larger US based aviation companies. This impacts cash flow and exposes the business to exchange gains and losses. Requiring customers to pay in advance is simple way of overcoming cashflow problems, when upfront investment is significant.
Our approach to supporting a business in the Aviation sector is similar to that of all clients. First ‘Listen’: What problems are the company facing? Staffing? Cashflow? What are the present and future goals of the business owner?
It is key to talk to a business owner so that we can fully understand what they need. Once we understand the problems, we then try to understand how the business actually operates. Talking about the business in a common-sense way almost always reveals the problem and a solution.
Problems with cashflow are generally solved by better job planning and forecasting.
Understanding and then optimising how a business operates, means the business owner is less stressed and feels more positive about the business. Cashflow and often profits increase as a consequence. As profits increase we are well positioned to advise on reducing taxes, and increasing personal wealth.
