WE have seen a lot of positive data recently indicating that the UK economy is starting to recover.

Exports are up and so too are consumer spending and retail sales figures, which suggests that confidence is returning.

This is good news for Somerset businesses and will bring welcome challenges such as choosing which projects to invest in and managing cash flow when your business is growing.

Overtrading and running out of money is a real threat to a growing business.

Don’t assume that because you are profitable, you are safe.

Cash remains the lifeblood of any business and if you are not converting sales into cash receipts fast enough then you might run out of cash.

Businesses looking to grow should talk to an accountant with experience of working with growing businesses for ideas on how to manage their working capital. Rob Cadwallader, BJ DixonWalsh, 01823-462400.