Could your company cash be working harder?
Could your company cash be working harder?
Many owner-managed businesses build up cash reserves over time. Some of this money is needed for tax, wages, working capital or future plans. But once cash starts to grow, it is worth asking a simple question: is it working hard enough?
Why review surplus cash?
Company cash often sits in a current account earning little or no interest. That may be fine for day-to-day funds, but larger balances can usually be managed more actively.
For business owners, the aim is not to take unnecessary risk. It is to make sure surplus cash is in the right place, earning a sensible return while still being available when the business needs it.
How cash deposit platforms can help
Cash deposit platforms give businesses access to a range of bank deposit accounts or stocks and share accounts through one online service. They can make it easier to compare rates and returns, spread money between banks and investments and keep track of investments without opening lots of separate accounts yourself.
Think access first, rate second
The highest interest rate or investment return is not always the best option. Some cash needs to be available quickly for VAT, PAYE, corporation tax, wages or supplier payments. Other cash may be genuinely surplus for a few months or longer.
A practical approach is to split company cash into simple pots:
- money needed now for day-to-day trading;
- money set aside for tax and known bills;
- short-term surplus cash that could go into notice accounts; and
- longer-term reserves that may suit fixed-term deposits.
This helps you balance return with control, rather than chasing a return rate that leaves cash tied up when you need it.
Check protection and risk
Before moving money, check where it will actually be held and what protection applies. The Financial Services Compensation Scheme protects eligible deposits with UK-authorised banks and building societies up to the relevant limit per eligible depositor, per authorised institution.
In plain English, different bank brands can sometimes sit under the same banking licence. So spreading money across different names does not always mean you have spread the risk.
Examples of cash deposit and equity investment platforms:
- Flagstone
- Interactive investor
- InvestEngine
Questions for business owners
If your company is holding a healthy cash balance, ask:
- how much do we need instant access to?
- what tax or business costs are coming up?
- is any cash genuinely surplus?
- are we getting a competitive rate?
- do we understand the access rules, fees and protection?
A quick review can make cash management more deliberate, without making it complicated.
How Wild & Co can help
At Wild & Co, we help owner-managed businesses understand their numbers and make confident decisions. We can help you look at your cash position, forecast what the business needs, and think through the practical tax and commercial points before moving money into different deposit options. Talk to us: Call 01423 222710 or email info@wildandcoaccountants.co.uk
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