If you’re concerned about how rising costs will impact your SME, you’re not alone.
With over 58 per cent of SMEs worried about rising costs, driven by high utility prices and staff shortages driving salaries up, it’s time to review how efficient your business is.
Having an effective cost management system is essential to securing your business’s future and overcoming the hurdles that are thrown your way.
Here are some key factors you must consider when boosting your SME’s efficiency:
Review your costs
Combating rising costs can be difficult, but the first step is to know where you currently stand.
With an overview of your current expenditure, you can spot if you are spending significantly more in some areas and whether there is scope to combat these.
For example, could you get a more cost-effective deal with an alternative supplier?
Perhaps downsizing might be a better option?
Optimising your cost-efficiency is crucial to beating rising costs – you should constantly review and adapt your outgoings where possible.
It is important you explore and secure alternative approaches that achieve your objectives and minimise costs.
You should implement cost-control measures and promote a culture of financial prudence to reinforce your SME against rising costs.
Focus on sustainability
SMEs remain concerned over the demands for the ever-changing environmental, social and governance (ESG) requirements.
In line with the Net Zero by 2050 goal, you need to make an active effort to decarbonise your costs and services – you can read more about the Net Zero strategy here.
To achieve this goal and save money along the way, you are likely to need to invest in more sustainable practices initially.
Small changes such as moving to motion-sensored lighting in office spaces or encouraging remote work to cut down on rent costs will help to keep your SME more sustainable in line with both successful ESG requirements and the Net Zero strategy.
It can be challenging to collect and report ESG data if you do not have the correct ESG reporting system – our team of expert accountants will help to set you up with an effective ESG system.
It is important to embrace and adopt a well-structured ESG strategy as you will attract investors who prioritise sustainability which will further lead to an increased capital flow.
Disciplined financial planning
It is crucial you stay disciplined with your financial planning and prepare for the unexpected.
You need to stay on top of tax updates, for example, as they can occur at any time during the year.
An efficient SME will have clear and precise financial goals which can be achieved through a disciplined structure implemented from the very start of their startup.
By carefully planning your financial choices and payments, and taking our professional advice, you can make sure you’re making the most of any tax reliefs you’re entitled to.
If you would like advice or more information about how to boost your SME’s efficiency for 2024, get in touch with us today.