We are all well aware of the fact that the cost of living has risen dramatically. With this, it is clear that so has the cost of doing business. Organisations of all sizes are struggling to keep their heads above water. Fortunately, many have found support during economic change with an external accountancy solution.
Accountants can provide support and guidance to businesses during this challenging time and make some of the tougher decisions a little easier.
In this blog post, we will discuss the ways in which accountants like us can help you during the cost of living crisis and current economic situation. We understand one solution may not be enough for some so we will also give you a few tips and tricks we’ve learnt along the way that might push you in the right direction.
Better Grasp On Cash Flow
One of the main ways an accountant can support a business during these tough times is by getting a better grasp on their cash flow. This will help directors and owners to understand where their money is going, what is coming in and most importantly, what needs to be paid and when.
This makes it easier to make more informed decisions about their spending and could potentially save them a lot of money in the long run.
Not only that but with proper preparation and strategy from an outsourced expert, we can predict further into the future and identify any possible issues before they arise. When trying to navigate economic change, having a plan for the future is key.
This doesn’t just mean knowing where your surplus cash is going or who you’re going to pay first each month, it also means being prepared for the worst and having the ability to bounce back with efficient planning.
Review All Business Processes And Outgoings
As well as taking a closer look at your cash flow, it’s important to review all outgoing costs associated with running your business. This includes things like office rent, staff salaries, marketing spend and everything else in between. Once you have reviewed all outgoings, you can then start to look at ways to make savings.
For example, while you may struggle at first, it might be possible to negotiate better rates with suppliers, change contracts or move to a cheaper office space. It’s also worth looking at ways to reduce your carbon footprint and become more environmentally friendly. Not only will this save you money but it will also make your business more sustainable for the future.
There are many ways to cut costs and save money but it’s important to remember that you should never sacrifice quality or your customer’s experience. The goal is to find a happy medium between cost-saving and providing a high-quality service or product. We can offer that support during economic change, so get in touch today for more information.
Managing Redundancies
No one wants to do it and, ideally, this will be the last resort. However, with the level of difficulty many businesses are facing, it needs to be said that there is someone out there that could advise and assist you in making hard decisions.
An external accountancy solution can be vital in reducing the stress on you and your team. This is an emotionally charged time for everyone involved. Having impartial advice and access to professional resources can make a big difference.
We can assist you in making decisions throughout many areas for your organisation:
- Assessing which roles are no longer cost-effective or necessary
- Identifying where economies can be made
- Calculating redundancy packages
- Negotiating settlements
Fully understanding your financial stance before going into this is detrimental to the well-being of your employees as well as the future of the business. Jumping into decisions like this could not only leave staff in life-changing circumstances, but it could jeopardise outgoings for your company.
Making cuts in the wrong departments because of poor outlook or improper financial planning is the last thing anyone wants right now. So if you are considering making redundancies, or have already started the process, please get in touch.
Raising Prices
We understand that costs have already risen for everyone and consumer habits have changed considerably because of this. However, in order to keep up, you will undoubtedly need to think about doing the same at some point.
An external accountant can provide this kind of direction and support during economic change. With our experience and expertise, we can offer you the following support:
- A review of your pricing strategy
- An assessment of your competitors’ prices
- A report on how increasing prices could affect your business
- When to roll out these new costs
- Where it is most important to consider pricing changes
We understand that this is a difficult decision to make but we also know that it’s one that needs to be made in order to keep your business afloat. If you would like to discuss this further, please don’t hesitate to get in touch.
As well as support during economic change, we can offer impartial advice and access to professional resources. Not only will this benefit you right now, but down the line, your business will have a far more stable structure in place – keeping you cash-flow positive and ready to take on anything that comes your way.
Tax Experts
Businesses are under increased pressure to become more efficient and tax-effective. This is especially true in the current climate, where rates are through the roof.
An external accountant can support you during economic change by providing expert advice on tax planning. We can help you to:
- Save money on your tax bill
- Minimise your tax liability
- Effectively plan for the future
We’ve never met a business owner with spare time for bookkeeping and expenses. So, not only can outsourcing help you keep up, it can ensure you’re never missing deadlines and don’t have any boring administrative tasks to deal with.
Tips For Cutting Costs
Now, it is all well and good having a company like ours tell you right from wrong and get you set up for the future but there are some steps you can take right now to benefit your business as the cost of living continues to rise.
Reduce Energy Usage
As we become more and more aware of the importance of sustainability, it’s never been easier to make your business greener – and save money in the process. With energy bills being one of the biggest culprits in rising costs, there are a number of ways you can do this:
- Educate your team on energy-saving habits such as turning off lights and computers when they’re not in use
- Invest in energy-efficient appliances and low-wattage light bulbs
- Get an energy audit to identify where else you could be making savings
- Encourage people to utilise hybrid working where possible
- Only using necessary lighting and appliances
Not only will these measures help you save money but they’ll also put you in good stead for the future and show your customers that you’re a responsible business. It’s a win-win!
Downsize Your Office Space
In these days of remote working and flexible hours, do you really need all that office space? If you’re not using it to its full potential, it might be time to consider downsizing. Not only are you going to be paying more in rent but it will cost more to heat, power and clean!
You could:
- Rent out unused space to another business
- Work from home more often
- Sublet part of your office (if you have the option)
Shared workspaces are becoming increasingly popular to cut costs, so this is definitely something to look into if you’re considering downsizing your office. Not only will it save you money but it’ll also be good for the environment.
We know that making these kinds of changes can be daunting but we’re here to offer advice and expertise through challenging periods (and good ones!) So please don’t hesitate to get in touch for a quote or more information.
Support During Economic Change
We know that these are difficult times for businesses and we want to do everything we can to help you. As well as offering expert advice, we can provide access to professional resources and take over many elements of your finances that just take up too much time.
If you would like to discuss this further, please don’t hesitate to get in touch through our website, or give us a call on (0)333-090-4629.
