The global credit crunch has hit the UK economy hard, meaning it's an anxious time for small business owners across the country.

"Small businesses need to keep a tight rein on cashflow, make sure they can pay and be paid on time and keep a dialogue open with their bank," said Allen Blewitt, chief executive of ACCA says. "While it is tempting to worry about the global situation, a level and sensible approach is needed during these turbulent times."

But while there's not much you can do about customers not spending as much as they did last year, there is plenty you can be doing to ensure that your own business is in as good health as possible.

ACCA offers the following 20 tips to minimise the impact the credit crunch and economic slowdown will have on your business:

• Good financial planning is crucial. Don't be scared of facing and making difficult business decisions

• Start questioning early your credit facilities with UK retail banks

• Maintain a meaningful dialogue with your bank and also with your accountant if necessary

• Review your bank charges. Could you switch accounts and find a better deal with a new bank? Could your current bank give you any special deals as a loyal customer?

• When it comes to rolling-over banking facilities, watch out for hidden charges and factor those into financial planning if necessary

• Review all your direct debit arrangements for the business and for your personal finances
  Small businesses need to keep a tight rein on cashflow, make sure they can pay and be paid on time and keep a dialogue open with their bank

• Try to clear credit card debt. But if you use them, try to pay without incurring interest and pay off balances before charges are incurred

• Chase your cashflow and if you can't make payments, then let your creditors know why and when they can expect a payment

• Pay special attention to cash flow forecasts and to monitoring cashflow. Ensure management accounts are up-to-date, and that all key financial reconciliations are done, reviewed, and outstanding items cleared

• Tighten up credit control, cash collection procedures and treasury management

• Look carefully at your forward order book, and the timing of future orders

• Consider carefully current and future customers and their ability to pay - do not simply rely on credit ratings

• Pay particular attention to investments and major capital expenditure.Appraise rigorously and consider the extent to which such items can be rescheduled

• For those businesses which import / export, consider foreign exchange hedging and where this could be relevant to your business

• For December year-ends, be clear about stock and work-in-progress valuations and get early audit agreement to valuation principles. Do the same for all ‘'fair value' items on your balance sheet

• Look critically at staff requirements/recruiting strategy. Instead of taking on new staff, you could consider paying for more paid overtime

• Consider, where relevant, temporary or fixed-term assignments but make sure you have weighed up the pros and cons against full-time recruitment

• Be cautious in awarding pay rises and in setting up staff incentive schemes.Ensure such schemes relate as much to profitability and cash generation as much as to growth. Be alert for performance distortions related to incentivisation schemes

• Critically evaluate your own financial drawings from the business. Are they appropriate in the light of current and future profitability and cash generation? Cars? School fees? Home improvements? Holidays? Insurances?

• Revisit the Risk Register as a matter of priority. Are all risks included, particularly financial/liquidity? Are risk mitigation measures still valid? Are mitigation owners being proactive in their responsibilities?