|
|
27 Jul 2011
INCREASING COSTS are hindering small firms' ability to survive, according to a new survey.
Research among 87 accountancy firms, found that 42% of accounting advisors believe their business will die if costs continue to rise at current rates.
The Cebr/Make It Cheaper survey found that rising costs (72%) was the most significant threat to their practice, with 82% warning that the country has become an unbearably expensive place to do business.
ReesRussell partner Jonathan Russell said many factors were impinging on entrepreneurs: "With ever increasing complexity of regulation, the lack of available finance and depressed demand, there is very little incentive even for the most enthusiastic entrepreneur."
David Ingall of JWPCreers said: "Rising costs are a problem for all businesses but particularly smaller ones. A major cost is petrol and that seems to be ever increasing whatever the market price seems to be. The Government could take a hand in this as the increase in price means an increase in the VAT collected. Or is the increase in VAT on fuel covering a shortfall in other areas?"
You may also like
Search thousands of financial jobs:
Search thousands of financial jobs:
Careers
Search for jobs
Click to search our database of all the latest accountancy roles
Create a profile
Click to set up your profile and let the best recruiters find you
Jobs by email
Sign up to receive regular updates with the latest roles suitable for you
Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment
Don't forget the fixed overheads
Whilst higher direct costs such as fuel are squeezing margins, office rents are usually fixed for 3-5 years and business rates continue to rise year on year. When revenues are falling and staff numbers are declining, these fixed overheads are increasingly difficult to absorb!
Posted by: Graham, 27 Jul 2011 | 11:34
Squeezing additional value
Organisations that have survived the past three years have done so by cutting operational costs to the bone. But as it becomes clear that business is now operating in a new economic world, not just surviving a short term downturn, it is essential to accept that business practices are changing fast.
Wholesale replacement of core technologies is still not an option. So how can companies implement new business practices and improve operations within the existing technology framework? By making the most of (and in some instances customising) existing systems organisations can achieve better control over purchasing, implement customer facing web applications and transform payment and credit control processes.
Companies cannot wait for an upturn; future business success now depends upon squeezing additional value from existing systems through custom development and support.
Tim Nolan
CEO
Nolan Business Solutions
Posted by: Tim Nolan, 26 Aug 2011 | 14:43