Business advisory for small businesses: cash flow, budgets and growth
Our business advisory services help small businesses plan ahead, not just look back. UniFi Advisory builds cash flow forecasts and budgets with you, sets up monthly or quarterly management accounts, plans ahead for tax bills and helps with decisions such as sole trader or limited company, how to pay yourself and raising finance. George Nicholson, an ICAEW Chartered Accountant, is your dedicated adviser.
What does business advisory include?
Year-end accounts tell you what happened. Business advice for small business owners should help you decide what happens next, using your own numbers.
Cash flow forecasting
A month-by-month view of money in and out, so you can see a squeeze coming and act early instead of finding out from the bank.
Budgeting and forecasting
A realistic plan for sales, costs and profit, compared with your actual results so you can see what's changed and why.
Management accounts
Regular management accounts and a few key figures from your cloud accounting software, such as Xero, explained in plain English.
Planning for tax bills
Corporation tax, VAT, payroll taxes and Self Assessment built into your forecast, so each payment is expected and funded.
Structure and paying yourself
Sole trader or limited company advice, and once you're incorporated, the right mix of salary, dividends and pension contributions.
Growth and funding
Business growth planning: pricing, hiring and investment decisions tested against the numbers first, and a clear set of figures for your business plan or a lender.
What is a cash flow forecast and why does it matter?
A cash flow forecast predicts the money coming into and going out of your bank account over the coming weeks and months, and shows the lowest point your balance will reach. It matters because profit and cash are not the same thing. A profitable business can still run short when customers pay late, stock is bought ahead of sales, or a large tax bill lands in a quiet month.
A good forecast answers practical questions. Can we afford to hire in March? What happens if our biggest customer pays a month late? When might we need an overdraft, and how big? If you're growing, it also shows when you're likely to pass the £90,000 VAT registration threshold, which changes your pricing and your cash flow (GOV.UK: when to register for VAT). Our VAT calculator checks your turnover against the threshold, and our VAT assistance covers registration and your VAT returns. Our employer cost calculator shows what a new hire really costs, including employer National Insurance. If the forecast says you can afford to hire, our payroll services take care of registering you as an employer, which must happen before your first payday (GOV.UK: register as an employer), and running payroll from then on.
What goes into a cash flow forecast?
| Item | What to include | Timing to watch |
|---|---|---|
| Sales receipts | When customers actually pay, not when you invoice | Your payment terms, and how late customers really pay |
| Suppliers and overheads | Stock, rent, software, insurance and other running costs | Quarterly and annual bills, not just monthly ones |
| Wages and payroll taxes | Net pay, PAYE and National Insurance, including employer NIC at 15% on pay above £5,000 a year | Alongside each payroll |
| VAT | VAT you charge, less VAT you reclaim | Usually quarterly, due 1 calendar month and 7 days after the VAT period ends |
| Corporation tax | Tax on company profits for the year | 9 months and 1 day after the end of the accounting period |
| Self Assessment | Your personal tax as a sole trader, or on dividends you take | 31 January and 31 July |
| Loans and finance | Repayments and interest | The dates in your agreement |
| Your own pay | Drawings, salary or dividends | Planned in advance, not taken when the balance looks healthy |
Sources for the tax timings: employer rates and thresholds 2026 to 2027, VAT return deadlines, paying corporation tax and Self Assessment payments on account (all GOV.UK).
How do I create a cash flow forecast?
- Start with your current bank balance.
- List the money you expect to receive each month, based on when customers actually pay.
- List every payment going out, using the table above as a checklist.
- Work out each month's closing balance (opening balance plus receipts, minus payments). It becomes next month's opening balance.
- Find the lowest point, then test a downside case, such as sales coming in lower or your biggest customer paying late.
We usually build it from your cloud accounting software, such as Xero, so your actual figures can be compared with the forecast each month.
How often should a forecast be updated?
For most small businesses, monthly is right: update the forecast when you review your management accounts, and roll it forward so it always looks at least 12 months ahead. When cash is tight, a weekly view of the next 13 weeks is worth the extra effort until things settle.
Which KPIs should a small business track?
Track a handful of numbers you'll act on, not dozens you won't. For most small businesses, these cover profit, cash and growth:
| KPI | What it tells you | How to work it out |
|---|---|---|
| Gross margin | How much each £1 of sales leaves after direct costs | (Sales minus direct costs) divided by sales |
| Net profit margin | What's left after all costs | Net profit divided by sales |
| Cash against forecast | Whether you're on plan | Actual bank balance compared with the forecast for that date |
| Debtor days | How quickly customers pay you | (Trade debtors divided by annual credit sales) times 365 |
| Creditor days | How quickly you pay suppliers | (Trade creditors divided by annual credit purchases) times 365 |
| Break-even sales | The sales you need to cover all your costs | Fixed costs divided by gross margin percentage |
| Cash runway | How many months you could keep going if you're spending more than you bring in | Cash in the bank divided by average monthly net cash outflow |
| A growth measure | What's coming next | Whatever fits your business: orders booked, retainers, subscriptions or enquiries |
We set these up from your bookkeeping so they're consistent month to month, and we talk them through with you rather than sending a report and leaving it there. If your bookkeeping needs work first, see our bookkeeping service.
What are management accounts?
Management accounts are internal reports, usually monthly or quarterly, showing your profit, cash and KPIs against budget so you can act while it still matters. There's no set format or filing deadline. Statutory accounts are different: a limited company must prepare them each year in a set format and file them at Companies House, normally within 9 months of the year end for a private company (Companies House guidance). Our accountancy service covers those.
How do I plan for tax bills so the cash is ready?
Estimate each tax bill well before it's due, then set money aside every month, ideally in a separate account. Most companies pay corporation tax 9 months and 1 day after their year end, and Self Assessment payments fall on 31 January and 31 July, so both can be planned for months in advance.
| Tax | When it's due | 2026/27 rate or note |
|---|---|---|
| Corporation tax (taxable profits up to £1.5 million) | 9 months and 1 day after the end of the accounting period | 19% on profits up to £50,000, 25% over £250,000, marginal relief in between |
| Corporation tax (large companies, profits over £1.5 million) | Quarterly instalments, the first 6 months and 13 days after the period starts | Same rates; thresholds are shared between associated companies |
| Company Tax Return (CT600) | Filed within 12 months of the end of the accounting period | A filing deadline, not a payment date |
| VAT | 1 calendar month and 7 days after the end of the VAT period | Standard rate 20% |
| Self Assessment balancing payment and first payment on account | 31 January | Sole traders, landlords and directors with untaxed income |
| Self Assessment second payment on account | 31 July | Each payment on account is usually half the previous year's bill |
| s455 tax on an overdrawn director's loan | 9 months and 1 day after the year end, unless repaid within 9 months | 35.75% on loans made from 6 April 2026 (33.75% on loans made 6 April 2022 to 5 April 2026) |
Sources: paying corporation tax, paying in instalments, Company Tax Returns, corporation tax rates, VAT rates (all GOV.UK) and HMRC manual CTM61505 for s455.
Example: a company with a 31 March 2027 year end and taxable profits of £40,000 pays corporation tax at the 19% small profits rate, so £7,600, due by 1 January 2028. Setting aside about £633 a month from April 2026 means the full amount is ready when the year ends, nine months before HMRC needs it.
Between £50,000 and £250,000 of profit, marginal relief means each extra £1 of profit is effectively taxed at 26.5%, assuming no associated companies and a 12-month accounting period (HMRC manual CTM03925). Our corporation tax calculator works out your bill, and our corporation tax service covers the return itself.
For sole traders, the first January after your first full year is the one that hurts: you can owe the whole of your first year's bill plus a first payment on account of half as much again. Our personal tax service explains payments on account in detail.
Should I be a sole trader or a limited company?
There's no single profit level at which a limited company always wins. A sole trader pays income tax and Class 4 National Insurance on all the business's profits, whether or not they're taken out. A company pays corporation tax on its profits, and you then pay tax on what you take as salary or dividends. Since the April 2026 dividend tax rise, a company that pays out all its profit can leave you no better off than a sole trader, and sometimes worse off. The tax advantage now comes mainly from profit you leave in the company, which has only borne corporation tax, alongside limited liability and more control over when you're paid. Set that against the extra admin.
| 2026/27 | Sole trader | Limited company |
|---|---|---|
| Tax on profits | Income tax at 20%, 40% or 45% (England, Wales and Northern Ireland; Scotland has its own bands) plus Class 4 National Insurance at 6% on profits between £12,570 and £50,270 and 2% above | Corporation tax at 19% on profits up to £50,000 and 25% over £250,000, with marginal relief in between |
| Taking money out | All profits are taxed as yours, whether you draw them or leave them in the business | Salary through payroll, and dividends from post-tax profits taxed at 10.75%, 35.75% or 39.35% above the £500 dividend allowance |
| Annual filing | Self Assessment return, and Making Tax Digital for Income Tax if your qualifying income is over the threshold | Accounts at Companies House within 9 months of the year end, a Company Tax Return within 12 months, a confirmation statement at least once every 12 months, plus payroll |
| Liability | You're personally responsible for business debts | The company is a separate legal entity, so your personal liability is usually limited |
| Privacy | Your accounts aren't published | Accounts are filed on the public register at Companies House |
Sources: income tax rates, self-employed National Insurance, tax on dividends, Companies House filing deadlines and confirmation statements (all GOV.UK).
Compare take-home pay for your own profit with our sole trader vs limited company calculator, try our tax savings calculator to see how salary, dividends and pension contributions compare for a director, and read our guide to setting up a limited company before you decide. If you do incorporate, the first few weeks matter: share structure, registrations and bookkeeping are much easier to get right at the start than to fix later.
Free white paper
Sole trader or limited company?
The strengths and weaknesses of each structure for 2026/27, and what each leaves in your pocket, with take-home figures at £30,000, £60,000 and £100,000 of profit.
Prefer to run your own numbers? Try our sole trader vs limited company calculator.
How do we plan what you take out of the company?
Most directors combine a modest salary with dividends, and some add company pension contributions. The best mix depends on your profits, your other income and your plans, so we model it each year rather than relying on a rule of thumb. These are the 2026/27 figures that drive it:
- Salary: employer National Insurance is 15% on pay above £5,000 a year, and employee National Insurance is 8% on pay between £12,570 and £50,270 and 2% above that (GOV.UK employer rates 2026 to 2027). Salary and employer National Insurance reduce the company's taxable profits.
- Employment Allowance: it can cut employer National Insurance by up to £10,500, but not for a company whose sole director is its only employee liable for employer National Insurance (GOV.UK eligibility).
- Dividends: paid from profits after corporation tax. The first £500 is tax-free, then 10.75%, 35.75% or 39.35% depending on your tax band (GOV.UK tax on dividends).
- Pension contributions: company contributions count towards your £60,000 annual allowance for 2026/27. Unused allowance from the three previous tax years can be carried forward if you were a member of a registered pension scheme in those years (GOV.UK carry forward). Very high earners have a tapered allowance, which can fall to £10,000 (GOV.UK pension rates).
- The £100,000 mark: your Personal Allowance tapers away between £100,000 and £125,140 of adjusted net income, so the timing of dividends matters (GOV.UK).
- Director's loan account: if you owe the company money at the year end and don't repay it within 9 months, the company pays s455 tax at 35.75% on loans made from 6 April 2026 (33.75% on loans made between 6 April 2022 and 5 April 2026), which it can only reclaim after the loan is repaid (HMRC manual CTM61505).
Our guide on how to pay yourself as a director works through the options in more detail.
How do I prepare for a conversation with a bank or investor?
Lenders and investors want to see that you understand your numbers and that the money will be repaid or put to good use. If you're writing a business plan, we help with the financial side: the assumptions, the budget and the forecast. Before you ask, have these ready:
- up-to-date management accounts, ideally no more than a month or two old
- your latest filed accounts and tax returns, with your tax affairs up to date
- a 12-month cash flow forecast showing the funding, what it pays for and how it's repaid
- the assumptions behind the forecast written down, with a downside case showing what happens if sales come in lower
- a clear answer to three questions: how much you need, what it's for, and when you'll pay it back
We can't promise what a lender or investor will decide. What we can do is make sure your numbers are accurate, consistent and ready, and that you can explain them with confidence when you're asked.
How does it work?
-
1
Book a free call
Tell George where the business is now, where you want it to go and the decisions you're facing.
-
2
Review your numbers
We look at your accounts, bookkeeping and tax position to see what's working and what needs attention first.
-
3
Build the plan
A cash flow forecast, a budget and the handful of KPIs that matter to your business.
-
4
Review regularly
Monthly or quarterly catch-ups to compare results with the plan and decide what to do next.
Run your own numbers first
Tax savings calculator
See how much a limited company director could keep by getting the salary, dividend and pension mix right.
Try it GuideSetting up a limited company
Structure, shares, registrations and the first deadlines, so you start the way you mean to go on.
Read the guide GuideHow to pay yourself as a director
Salary, dividends, pensions and director's loans for 2026/27, with the numbers that drive the choice.
Read the guideFree white paper
Setting up your business: 10 tips that save time and money
Choosing a structure, share classes, registrations, digital bookkeeping and planning for VAT: the early decisions that are expensive to undo later.
Frequently asked questions
What does a business adviser do for a small business?
A business adviser helps you plan ahead rather than only report on the past. At UniFi Advisory that means cash flow forecasts, budgets, management accounts and KPIs, planning for tax bills, and support with decisions such as company structure, how to pay yourself, pricing, hiring and raising finance.
How often should I update my cash flow forecast?
Monthly suits most small businesses, alongside your management accounts, rolling the forecast forward so it always covers at least the next 12 months. If cash is tight, add a weekly view of the next 13 weeks until things settle.
How do I create a cash flow forecast for my business?
Start with your current bank balance. List the money you expect to receive each month, based on when customers actually pay, then every payment going out, including wages, VAT, tax bills, loan repayments and your own pay. Each month's closing balance becomes the next month's opening balance. Look at least 12 months ahead, compare the forecast with your actual figures every month, and test what happens if sales come in lower or a big customer pays late.
Which KPIs should a small business track?
Start with gross margin, net profit margin, cash balance against forecast, debtor days, creditor days and break-even sales. Add one or two that measure growth in your business, such as orders booked or recurring revenue. A short list you act on beats a long one you ignore.
What is the difference between management accounts and statutory accounts?
Management accounts are internal reports, usually monthly or quarterly, that show how the business is doing against your budget so you can make decisions. There is no set format or filing deadline. Statutory accounts are the annual accounts a limited company must prepare in a set format, file at Companies House (normally within 9 months of the year end for a private company) and send to HMRC with its Company Tax Return. Sole traders do not file statutory accounts but report their profits on a Self Assessment return.
When will I need the cash for corporation tax?
For companies with taxable profits up to £1.5 million, corporation tax is due 9 months and 1 day after the end of the accounting period, and the Company Tax Return is due 12 months after the period ends. A company with a 31 March 2027 year end therefore pays by 1 January 2028. Larger companies pay in quarterly instalments.
How much should I set aside for tax?
It depends on your structure and profits, so we work it out for you and build it into your forecast. As a guide for 2026/27, a company pays corporation tax at 19% on profits up to £50,000 and 25% on profits over £250,000, with marginal relief in between. Sole traders pay income tax and Class 4 National Insurance, and need to plan for payments on account on 31 January and 31 July.
Is it better to be a sole trader or a limited company?
It depends on your profits, how much you need to take out, your other income and your plans. Being a sole trader is simpler. A limited company usually limits your personal liability, but it brings more admin, and since dividend tax rose by 2 percentage points in April 2026, paying out all the profit can leave you no better off than a sole trader. The tax saving now comes mainly from profit you leave in the company. We run the numbers for your situation before you decide.
Can you help me prepare for a bank loan or investment?
Yes. We prepare up-to-date management accounts and a cash flow forecast with clear assumptions and a downside case, and help you explain how much you need, what it is for and how it will be repaid. We cannot guarantee what a lender or investor will decide, but we make sure your numbers are ready and that you understand them.
How do I get help with a business plan in the UK?
Start with an accountant who will work through your numbers with you. We help with the financial side of a business plan: realistic sales and cost assumptions, a profit budget, a 12-month cash flow forecast with a downside case, and how much funding you need and how it will be repaid. You tell the story of your business, and we make sure the figures behind it hold together. Book a free call with George to talk it through.
Do you only advise businesses in Hertfordshire?
No. UniFi Advisory is based in Welwyn Garden City, Hertfordshire, and works with businesses across the UK online and by phone. Wherever you are, you deal with George directly.
Written and reviewed by George Nicholson BFP ACA, ICAEW Chartered Accountant. Last reviewed 20 October 2026. This page is general information, not personal advice.
Plan the next 12 months with a Chartered Accountant
Book a free call and George will look at where your business is now and what to plan for next.