FORWARD THINKING ACCOUNTANTS IN ABERDEEN
9th December 2014 - Putting the “Rainy Day” theory into practice
Here in Aberdeen and the North East these past few weeks have been all about oil, its price and what it means for our economic powerhouse. We have been here before. Oil companies have tended to hire when things are great and then fire when they either realise they are overstaffed or when the margins make uncomfortable reading. Whichever reason it is, it is in my opinion entirely predictable and we only need to look back to realise this.
This is why everyone associated with business in Aberdeen and the North East, has sensibly retained say 20% of their post-tax earnings. Haven’t they?
Yes I know it’s very easy to be wise during or after the event but all of what is happening and will happen is entirely predictable which is why I am very surprised at the collective surprise that it is happening again. Of course it is happening again! Global market, extremely price sensitive product, world politics and strife and of course Westminster Governments which just cannot help themselves when it comes to trying to squeeze yet more tax revenues from the oil industry and which just never seems to have a long term cohesive plan for said industry.
It is too late for this cycle, but please, please, please begin now to plan for the future. Set out a clear business and personal plan and project ahead, setting goals, taking account of worst case scenarios and truly put in place reserves, both business and personal so that when the next downward cycle hits, you can confidently ride out the storm.
Just a thought.