Award-winning Cumbrian accountancy firm, Lamont Pridmore, is calling on local business owners to take urgent action in light of rising costs.
Many companies currently face a perfect storm of reduced trading, the end of financial support and, most importantly higher costs for energy, employees and important supplies.
It is forcing many businesses to make difficult decisions about their future, not least where they can cut costs.
To help Lamont Pridmore has recommended four steps that all companies should consider:
Understand your spending – Owners need to have a better idea of how money is leaving their business including employee costs, expenses and money spent on utilities and other supplies. Only if a business knows where it is incurring costs can it cut them effectively.
Small and across the board – Rather than making a single significant cut to costs, businesses may want to look at making lots of smaller reductions across their entire spending. This can help minimise the overall impact on operations so that products and services do not suffer.
Get on top of debt – With soaring inflation expected to reach more than eight per cent this year, the cost of holding debts is rising as banks and other lenders increase interest rates in line with the Bank of England’s base rate. The cost of servicing these debts will increase as a result, adding extra pressure to already stretched budgets. Where possible, pay off debts to avoid higher interest payments.
Make full use of support and tax reliefs – There are dozens of grants and tax reliefs available to businesses – millions of pounds of which go unclaimed each year. Often owners need to take minimal steps in order to meet the eligibility criteria but could make significant savings. Take for example the current super-deduction, which ends in March 2023. This could help a business save up to 25p on every £1 they spend on qualifying plant and machinery.
Graham Lamont, Chief Executive at Lamont Pridmore, said: “Businesses are experiencing challenging and uncertain times – the likes of which haven’t been seen in most people’s lifetimes.
“Owners cannot afford to underestimate the costs that may lay ahead and need to start taking steps now to reduce expenses, wherever possible.
“The advice we are giving is just the first steps that businesses should consider and ideally they need to reach out for help from their trusted advisers to get bespoke guidance suited to their requirements.”
Graham added that Lamont Pridmore was standing ready to support a wide range of sectors, businesses and individuals with their costs.
If you are struggling with the cost crisis, please speak to us.