This is a good time of year for SMEs to reassess where there business stands, it has been claimed.
Simon Braiult, a spokesperson for the Federation of Small Businesses, explained that as most firms - especially those in retail - experience a slower period after Christmas rush it can be a good time for firms to check their finances are in order.
He said: "What it involves is basically reassessing your outgoings and the money that's coming in and making sure that you are getting everything that you owed - see if you have any bad debt."
Mr Brailut added that it is vital that firms check they are up-to-date in terms of their finances, especially with economic difficulties predicted for 2008.
He also suggested that firms might want to arrange a meeting with their accountant as the end of the tax year approaches.
According to research conducted by the Society of Turnaround Professionals and GE Commercial Finance UK businesses are ill prepared to deal with the effects of a slowdown in the economy.
