How is inflation affecting your business?
We’re all aware of the current cost of living crisis but are we considering the increasing cost of doing business? Independent research from the Close Brothers Asset Finance and Leasing, emphasises the increasing costs businesses are having to swallow because of the current financial climate.
The survey was completed by 911 UK SMEs and shows that despite the multiple pressures faced, around 66% of businesses would still be looking to seek funding for investment within the next 12 months and 39% feel they have missed an opportunity recently due to lack of available finance.
Around two-thirds of businesses have been negatively impacted by rising inflation and only 40% believe that the 2% target from the Bank of England is realistic in today’s environment.
To help out their employees, 60% of businesses plan to raise wages to keep pace with the cost of inflation even though this is something they have not been asked to do.
In addition to this, 23% have chosen not to pass the increased costs onto their customers (27% will pass them on fully, 49% partially) this will have an impact on their cashflow which could cause problems in the future. Around 42% admit that the increased cost of doing business has actually caused them cashflow issues already.
When seeking financial support and advice, 25.4% of business owners contact an accountant, that’s where Essendon come in. We are happy to help with financial advice and support at this time when we all need it most. Contact us – and we will be happy to help in any way we can.
Roger loves ‘getting his hands dirty’, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice.
Using an extensive network of business contacts to leverage the best guidance and practical solutions, he has been called a Business Godparent due to his caring, hands-on approach.
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