Interest rates have now settled at levels many business owners and investors have not seen for over a decade. Even if the Bank of England begins to trim the base rate later this year, most commentators expect the cost of borrowing to remain well above the ultra-low rates of the past. That means every small business and higher-income individual should be thinking carefully about both sides of their balance sheet; the money they owe and the money they hold.

On the borrowing side, many companies and households are now facing the end of fixed-rate loans or mortgages arranged several years ago. Replacing these loans can mean a noticeable jump in interest costs, reducing cash flow and profitability. For directors, this might also affect drawings and dividends. Reviewing finance arrangements before they renew is therefore essential. Options may include refinancing with a longer-term fixed rate, negotiating flexible repayment terms, or repaying part of a loan where surplus cash is available.

On the savings side, higher rates are opening new opportunities. It is no longer sensible for business current accounts to hold large sums earning little or no return. Moving surplus funds into notice or fixed-term deposits can make a real difference, especially when supported by accurate cash flow forecasts. Individuals with significant personal savings should also ensure they are using tax-efficient wrappers such as ISAs or pensions where possible.

For limited companies, the use of directors’ pension contributions remains one of the most effective ways to take advantage of higher deposit returns while achieving corporation tax relief.

In short, higher interest rates are a mixed blessing. Borrowers face higher costs, while savers can finally earn a return worth having. A review with us will help identify how best to balance these two effects, manage debt prudently, and make cash work harder for both business and personal wealth.

Even the most advanced accounting software is built on a principle that has stood the test of time: double entry bookkeeping. First described more than 500 years ago, it remains the foundation of every set of accounts today. For business owners, understanding the basics can make reports and figures much easier to follow.

What is double entry?

Double entry means that every financial transaction affects at least two accounts. One side records where the money is coming from, the other shows where it is going. This ensures that the books always balance. In practice, for every debit there is an equal and opposite credit.

The accounting equation

At the heart of double entry is the accounting equation:

Assets = Liabilities Equity

Assets are what the business owns, liabilities are what it owes, and equity represents the owners’ interest. Every transaction will change at least two of these areas, but the overall equation must always stay in balance.

Debits and credits explained

The terms “debit” and “credit” can be confusing because they mean different things depending on the account type. The basic rules are:

• Assets increase with debits and decrease with credits
• Liabilities increase with credits and decrease with debits
• Equity increases with credits and decreases with debits
• Income is recorded as a credit
• Expenses are recorded as a debit

By following these rules, the accounts reflect the true financial position of the business.

An example in practice

Suppose a business buys a new computer for £1,000, paid from the bank account. The double entry would be:

• Debit: Computer equipment (asset increases) £1,000
• Credit: Bank account (asset decreases) £1,000

The books balance, and the transaction is fully recorded.

Why it matters

Double entry is more than a technical exercise. It gives business owners confidence that every transaction is captured, helps spot errors quickly, and forms the basis of reliable financial statements. Without it, reports such as the profit and loss account or balance sheet would not be possible.

Final thoughts

Modern software hides much of the detail, but the double entry rules are still working behind the scenes. For business owners, knowing the basics can make it easier to interpret accounts and to have more informed conversations with their accountant.

Winning new business is always positive, but before you commit to a new customer it is wise to carry out some checks. A little time spent at the start can save trouble later if the customer is unable, or unwilling, to pay. We often advise business owners to put a simple process in place for checking new customers.

1. Check who you are dealing with

Start by confirming the customer’s legal identity. If it is a company, search Companies House for free to check it is registered and still active. Make sure the person you are speaking with is authorised to place orders. If the customer is a sole trader or partnership, ask for basic details in writing so you know who is responsible.

2. Review their financial standing

A credit check can reveal whether the customer has a history of paying bills on time. For companies, filed accounts at Companies House can give a sense of size and stability. Trade references are also valuable, especially if the customer is asking for credit terms.

3. Be clear about terms and conditions

Before supplying goods or services, set out clear terms. These should cover payment dates, late payment charges, and what happens if there is a dispute. Using written contracts or standard terms gives both sides certainty. It also makes it easier to enforce your rights if payment problems arise.

4. Consider how much credit to offer

Even if the customer appears sound, it may be sensible to limit credit at the start. You can increase limits once they have shown a good payment record. Asking for deposits or stage payments reduces risk, especially for large orders.

5. Keep records of checks and agreements

Keep a simple file of all checks carried out, copies of contracts and any credit limits agreed. This helps if there are disputes later and shows that your business has acted responsibly.

6. Trust your instincts

Finally, listen to your instincts. If something feels wrong, take more time before agreeing to proceed. It is usually better to turn away a doubtful customer than to chase unpaid invoices.

Taking these steps helps protect cash flow, which is vital for every business. We can help design a straightforward customer acceptance process, so you can grow sales with greater confidence.

The government has announced permanent changes to business rates that will benefit thousands of small firms in the retail, hospitality and leisure sectors. From April 2026, qualifying businesses will see their bills reduced, with some enjoying discounts of up to 40%.

What has changed?

Business rates have long been a concern for high street shops, restaurants, pubs, and leisure operators. Rising property costs, combined with tight margins, have made rates one of the biggest overheads for many.

In a move designed to support growth, the government has confirmed:

• A permanent business rates discount of 40% for eligible retail, hospitality and leisure premises with a rateable value below £500,000.
• A freeze of the small business multiplier, to prevent rates bills from rising in line with inflation.
• The continuation of business rates improvement relief, so that firms making property improvements will not face immediate increases in their bills.

The government estimates that around 250,000 businesses will benefit from these measures, giving a much-needed boost to high streets and town centres across the UK.

Who qualifies?

The discount applies to occupied properties that are wholly or mainly used as:

• Shops.
• Restaurants, caf�s, pubs or bars.
• Cinemas, gyms, or other leisure facilities.
• Hotels, guesthouses or self-catering accommodation.

Properties with a rateable value of £500,000 or above will not be eligible, and relief is subject to subsidy control limits for larger groups.

Why is this being introduced?

The government has stated that the aim is to “level the playing field” between high street operators and online retailers, who do not face the same property-based costs. The measures are also intended to encourage investment in local communities by making it more affordable to run physical premises.

For many small businesses, the changes could mean significant annual savings, freeing up cash to invest in staff, marketing, or refurbishments.

What to do next

Although the relief will not take effect until April 2026, it makes sense to review your property situation now. Points to consider include:

• Checking your property’s rateable value to confirm eligibility.
• Reviewing your business structure if you operate from multiple premises.
• Considering whether improvements to your premises could be planned with improvement relief in mind.
• Budgeting ahead, as although relief is generous, it may not cover all increases in costs.

How we can help

We can review your current rates position, check eligibility for the new reliefs, and advise on planning around the April 2026 changes.

If you operate in the retail, hospitality, or leisure sectors, please contact us so we can confirm how these new rules will affect your business and ensure you make the most of the available reliefs.