Given the current economic climate, many businesses and individuals across the country continue to be affected by the rise in the cost-of-living and are under pressure as there seems to be consensus that government support isn’t enough. Although some industries may not be affected as others, the majority of SMEs are feeling the bite.
What can SMEs do to try and make some savings with the rise in cost-of-living?
Revise your outgoings – we come across lots of clients and prospects every day who don’t know how much they spend. If you don’t know what you spend and don’t therefore adapt your prices you might be losing money where you shouldn’t. With the current cost-of-living crisis, you may notice your total spend increasing but you need to look more into where it is specifically increasing from. We could advise on looking into keeping your business costs under control and see what potential tax allowances could be done.
Seek professional help – at AIMS we offer a fixed price per month, so you won’t have to worry about a surprise bill or hourly costs. We could look into your business financials to improve your cashflow where possible and provide business advice and support.
Insurance – If you own your premises, and its value has increased but you haven’t declared the updated asset values to insurers, the policyholder may not fully recover in case of a claim. You might also want to check coverage limits, and increase policies where possible.
Mortgages – if you have one at the moment, it may be a good time, during the cost-of-living crisis, to review your current rates, if they are fixed or variable, and look into a potential re-mortgage as it can save you and your business money in the long run. A re-mortgage could also lower your monthly payments, depending on the type of financial product, as you could lock in a longer-term fixed rate.
There is no magic answer to the increasing costs SMEs are facing, but the above might be able to save on the pennies. If you require more technical and detailed help from a qualified business accountant, we’ll be happy to provide further assistance. Find your local AIMS Accountant today.
