Published: 13/07/2026 By Katie Drake
For many businesses, summer provides a valuable opportunity to step back from day-to-day trading and take stock of their financial position. Whilst activity may slow during the holiday period, autumn often brings increased trading demands, significant tax liabilities and renewed pressure on cash flow.Taking time now to review the financial health of the business can help directors identify potential challenges early and put plans in place before they become more difficult to manage.
Here are five key areas worth reviewing over the summer months:
1. Update your cash flow forecasts
Business conditions can change quickly. Customer payment patterns, operating costs and trading performance may differ significantly from expectations set earlier in the year. Reviewing cash flow projections for the next three to six months can help identify potential funding gaps and provide time to consider appropriate solutions before cash becomes constrained.
2. Keep a close eye on working capital
Strong sales do not always translate into healthy cash flow. Debtor balances, stock levels, supplier payment terms and purchasing commitments can all have a significant impact on liquidity. The summer period can be an ideal time to review these areas and identify opportunities to release working capital ahead of busier trading periods.
3. Prepare for upcoming financial commitments
Whilst summer may feel relatively settled, autumn often brings a number of significant financial obligations. VAT, PAYE and corporation tax liabilities, together with finance repayments, insurance renewals and other regular commitments, can place considerable pressure on cash reserves. Ensuring these obligations are reflected within financial forecasts can help avoid unwelcome surprises later in the year.
4. Stress test the business
A strong forecast should consider more than just the expected outcome. Directors should consider how the business would cope if sales slowed, customers paid later than anticipated, margins reduced or unexpected costs arose. Testing different scenarios can help identify risks and highlight where further action may be required before problems begin to develop.
5. Use the quieter period to seek advice if needed
Not every cash flow concern indicates serious financial difficulty. However, where forecasts suggest sustained pressure or growing creditor balances, seeking advice sooner rather than later can significantly increase the range of options available. Whether the solution involves improving cash flow management, refinancing, restructuring or exploring formal recovery options, early action generally provides greater flexibility and better outcomes.
Looking Ahead
The summer months provide an ideal opportunity for directors to review the financial health of their business and prepare for the challenges and opportunities that autumn may bring.
A proactive review now can help strengthen resilience, improve decision-making and ensure the business enters the final months of the year in the strongest possible position.
At Turpin Barker Armstrong, we work closely with accountants, solicitors and business owners to provide practical, independent advice across a wide range of business recovery and insolvency matters. By reviewing financial resilience before pressures begin to escalate, businesses and their advisers are often better placed to make informed decisions and preserve future options.