GO FINANCE CONSULTING LIMITED

Executive Summary

GO FINANCE CONSULTING LIMITED shows typical financial characteristics of a young micro entity with modest assets but currently negative working capital, indicating short-term liquidity challenges. While overall financial health is stable, proactive cash flow and working capital management are essential to avoid distress and ensure sustainable growth. Strengthening equity and operational efficiency will improve resilience and long-term viability.

GO FINANCE CONSULTING LIMITED - Analysis Report

Company Number: 14471301

Analysis Date: 2025-07-20 11:55 UTC

Financial Health Assessment for GO FINANCE CONSULTING LIMITED

---

1. Financial Health Score: C

Explanation:
The company shows early-stage financial activity typical for a recently incorporated micro-entity. While it has established some fixed assets and a modest equity base, the presence of net current liabilities (negative working capital) signals some short-term liquidity strain. The overall financial condition is stable but fragile, requiring attention to cash flow management and operational efficiency to ensure sustainable growth.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Company Age	~2 years	Newly established, still in formative financial stage.
Account Category	Micro	Minimal filing requirements; small scale of operations.
Fixed Assets	1,863	Ownership of some long-term assets indicates investment in operational capability.
Current Assets	1,601	Includes cash and receivables; relatively low, reflecting small scale.
Current Liabilities	(2,601)	Debts due within one year exceed current assets, resulting in negative working capital.
Net Current Assets (Working Capital)	(1,000)	Negative working capital – a warning sign of liquidity stress or timing mismatches.
Total Assets less Current Liabilities	863	Indicates assets exceed short-term debts but by a narrow margin.
Net Assets (Equity)	347	Small equity base; company has some retained value but limited financial cushion.
Average Number of Employees	2	Very small workforce, consistent with micro entity status.
Filing Status	Up to date	No overdue filings, indicating good compliance and governance.

---

3. Diagnosis

The financial "vitals" of GO FINANCE CONSULTING LIMITED reveal a business in its infancy with modest assets and equity. The negative working capital is the most significant symptom of potential distress — it means the company currently owes more short-term than it holds in immediate assets, which could limit its ability to meet short-term obligations without additional financing or cash inflows.

However, the company's positive net assets and lack of overdue filings reflect careful financial management and a degree of operational stability. The ownership and management by two directors with significant control and direct involvement likely provide hands-on governance, which is important for a small entity.

The micro entity’s financial data limitations mean we cannot assess profitability or cash flow trends in detail, but the initial balance sheet suggests the company is in a fragile but not critical condition—akin to a patient with some symptoms but no acute crisis.

---

4. Recommendations

1. Improve Working Capital Management:

   • Accelerate receivables collection and negotiate extended payment terms with creditors to reduce short-term liabilities pressure.
   • Maintain a cash buffer to avoid liquidity crunches.

2. Monitor Cash Flow Closely:

   • Set up rolling cash flow forecasts to anticipate shortages and arrange contingency funding as necessary.
   • Avoid unnecessary expenditures that could exacerbate the negative working capital.

3. Build Equity Base:

   • Consider reinvesting profits or injecting additional capital to strengthen the equity position, providing a financial cushion.
   • Explore grants or subsidies applicable to micro entities in the accounting sector.

4. Operational Efficiency:

   • With only 2 employees, workload and scalability should be reviewed to ensure sustainable growth without overextension.
   • Explore automation or outsourcing for routine tasks to reduce fixed costs.

5. Regular Financial Reviews:

   • Conduct quarterly financial health checks to detect early signs of distress and respond proactively.
   • Engage with a financial advisor or accountant periodically to validate financial strategies.

---