Results from the latest survey produced by BDO accountancy group suggest that costs for businesses operating in the UK have fallen, making it possible for companies to invest in growth.
The drop in overall expenditure for February 2015 – the first reduction in costs since 2009 – is believed to be due to the lower prices of crude oil, which are almost 50 per cent down on figures from June last year. The research by BDO has also indicated that the reduced costs will encourage more companies to invest in expansion opportunities, especially as consumers have more spending power.
According to the report, businesses are still planning to recruit as the UK economy’s period of steady growth is expected to last until at least the middle of the year. The study produced by BDO is compiled of some of the main business surveys in the UK. The study delivered a similar message to a report produced by the Federation of Small Businesses, which likewise showed the outlook of companies here to be positive, mainly due to a more stable economy and lower costs.
Fewer than half of the businesses surveyed reported increased costs for a subsequent year. During the last quarter, 4.2 per cent of companies said they had recruited staff, although a large number were struggling to find employees with the required skills.
How to cut your business costs
Running a business is expensive, but it is possible to reduce costs and increase profits without having to reduce staffing levels.
Although it’s important to have reliable suppliers, don’t just continue with a contract unless you are sure you are getting the best deal. Shop around for a cheaper supplier that offers the same level of service, or one providing a better service at a lower cost.
Outsource to an expert
Suggesting that you outsource may appear to be an extra cost for the company, but outsourcing to a professional will save you time and money in the long term. For instance, an established accountant will minimise your tax bill by making sure you claim all allowable expenses and tax relief when you complete your tax return, possibly saving you hundreds of pounds. You will also be less likely to miss filing deadlines, which will reduce the likelihood of a penalty. Other areas of a business can also be outsourced to save valuable resources.
If you would like to know how we could help you save money, contact the team here at The Accountancy Partnership.
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We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!