Last week, the Government outlined plans to help cut energy bills for all UK businesses, charities and public sector organisations under the Energy Bill Relief Scheme. This scheme will run for 6 months between 1 October 2022 and 31 March 2023, which means that businesses should start to benefit when their October bill lands. The announcement was followed by large-scale tax cuts detailed in the Chancellor’s mini budget as part of the Growth Plan to further support UK business.
Whilst these are welcome reliefs for many, the political and economical landscape remains unchanged. So, what else can businesses be doing to weather the economic downturn? Now is the time for business leaders to ask some important questions:
- What are your key revenue drivers?
- Do you have other possible revenue streams?
- Have you considered renewable energy?
- Do you have an accurate view of your financial health?
- Have you reviewed your fixed costs? We work with Reducer to help businesses make savings (more on that below)
Using real-time data
Answering some of these questions will be easier for businesses benefiting from cloud accounting software and integrated apps. We’ve long been talking about the importance of real-time data to drive more informed and quicker decision making. This became of paramount importance as we helped businesses through the pandemic and is just as important in today’s circumstances.
We are passionate about the benefits of digital record keeping – it’s just good business practice! The accuracy of real-time data paves the way for forecasting and scenario planning so that you can build your business’ resilience.
Cash forecasts
Cash forecasts are a key business tool and if you do not already prepare them, you really must consider them now. Ideally you should be looking at an annual forecast (which will cover the corporation tax due next year etc) and a 13-week rolling forecast to cover your short term requirements.
Most cloud packages have a basic cashflow function which, if used correctly, can provide adequate information for smaller businesses. For larger or faster growing businesses, you can connect to one of several apps such as Fluidly, Float or Spotlight Reporting. We are well placed to make a recommendation for you, based on your existing processes.
Scenario planning
Using app technology can also enable you to set-up different scenarios, such as changes in revenue or costs, so that you can see the impact on your business instantly.
Whether you are looking to take on new staff or want to see the impact of taking on a loan or increased energy bills, we can help you to plan ahead.
Reduce fixed costs with Reducer
We work with cost management consultancy Reducer to offer free and easy savings on your business utilities. On average, businesses find savings of £1,851 per year.
Reducer’s app integrates with your accounting software, analyses your spend data (on electricity, gas, water and sewerage, waste and recycling, payment processing, telecoms, broadband and mobiles) and compares prices from 100’s of suppliers to produce personalised cost-saving reports. This service is completely free for you to use. Reducer receives a small fee from the supplier if and when you switch. Click here to request further information.
Get in touch
For more information on managing your accounts and preparing forecasts, speak to our digital advisory team on 0161 905 1616 or email us on fintech@haroldsharp.co.uk.