Reduced business costs create positive outlook for UK companies
The results of the latest survey prepared by the BDO accounting group, state that the costs for businesses operating in the UK have fallen, making it possible for companies to invest in real growth.
The fall of the total costs for February 2015 – the first decline in spending since 2009 – is considered to be due to lower oil prices that are almost 50 per cent down on figures from June of last year. The BDO’s research also indicated that spending cuts will encourage more companies to invest in expansion options, especially as consumers have more purchasing power.
According to the report, the company is still planning to recruit, as the UK economy in the period of steady growth, and is expected to last at least until mid-year. The study produced by the BDO is taken from some of the most significant studies in the UK. The study produced a similar message in the report prepared by the Federation of Small Businesses, which also considered companies prospects here to be positive, mainly due to a more stable economy and lower rates.
Less than half of the surveyed companies reported an increase in costs next year. During the last quarter, 4.2 percent of companies said they recruited staff, although a large number did struggle to find employees with the necessary skills.
How to cut your business costs
Running a business is expensive, but it is possible to reduce costs and increase profits without reducing headcount.
• Supplier Change
Although it is important to have reliable suppliers, don’t feel that you should just continue with the contract, if you are not sure that you are getting the best deal. Shop around for cheaper providers that offer the same level of service, or one that provides a better service at a lower price.
• Outsourcing to Experts
The idea of outsourcing may seem like an additional cost for the company, but outsourcing professionals will save you time and money in the long run. For example, an experienced accountant to minimise tax bills will make sure you claim all allowable expenses and tax credits when you complete your tax return, possibly saving hundreds of pounds. You will also be less likely to miss deadlines, which will reduce the probability of punishment. Other fields of business can also be transferred to outsource companies and preserve valuable resources in your business.
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