A growing number of UK firms are at risk of going under due to soaring costs and the need to repay covid loans.
The stark warning has been reported by the BBC, following recent research, which found that in the first three months of 2022 there was a 19 per cent rise in the number of firms in “critical financial distress” compared to the start of 2021.
The report found the construction and hospitality sectors to be among the hardest hit.
It comes as firms are continuing to be impacted by disruption to supply chains, higher wages, increases to National Insurance contributions and rising energy costs. Loans that helped firms survive through the pandemic are now also being repaid.
So, in this seemingly perfect storm, what easy measures can businesses take to save cash?
Go digital
Embrace cloud accounting to take the strain out of bookkeeping. Explore the different software that is available and find the most cost-effective choice for your business. It will save time and ultimately money, freeing up staff to take your business to the next level.
Focus on people
Hiring and training staff can be an expensive process, even more so for smaller firms. If you do not think you can afford to take on more staff, why not consider giving your existing team extra skills. Upskilling your existing workforce will give them the tools to add more to your business and will also keep them engaged, which will pay off in the long-term.
Ditch the paper
Why not take your money-saving drive as a chance to go paperless? This will help cut costs of stationery which can very quickly add up. It will create a more streamlined work process and will help your business boost its environmental credentials.
Seek help
Outsourcing the financial function of your business may be beneficial as you may not be making the most of tax planning and other ways of making your money go further.
Are you looking for business advice but unsure where to start? Contact our expert team today for support.
