According to the Office for National Statistics (ONS), one in three businesses in the UK are seeing operating costs equal to or greater than their total turnover. For CFOs and finance teams, this means that they need to introduce a long-term, sustainable strategy to reduce spending so the business can make savings to protect assets or to boost growth.
Plans to lower operating costs can be built into forecasts and budgeting but I would argue that a cost-conscious culture should extend way beyond the finance team and become common throughout the entire business.
The latest figures from the ONS come from an assessment of the impact of the Covid-19 pandemic on the economy. Perhaps unsurprisingly, companies in the arts, entertainment and recreation sectors have suffered the most, with 42 per cent of firms in those areas saying operating costs were higher than turnover, followed by accommodation and food services at 29 per cent.
Of course, we all know that 2020 has seen unprecedented trading conditions and, sadly, a large proportion of firms have taken significant financial hits. However, even for those who have seen relatively little impact, the economic recovery period is the ideal time to review what more can be done to strike that critical balance between the amount spent to keep a business running and the amount it turns over.
- Topic:
- Finance
Introducing financial automation software to your business requires a big adjustment, but it’s a change that you’re highly unlikely to regret. It makes it much easier to integrate your systems and improve performance right across your organisation. These are just five of the ways that it could benefit you.
- Topic:
- Finance
It is rare in the UK that we have to worry about disease, famine, natural disasters or other catastrophes, but as recent events have shown, we cannot avoid them completely. The coronavirus (COVID-19) pandemic has dramatically affected the economy, cost numerous lives worldwide and put a huge strain on the business world.
Even before the outbreak of COVID-19, the Health and Safety Executive (HSE) found high levels of stress in the British workforce. As a society, the level of stress that some employees endure is not healthy at all. To help alleviate stress in finance teams it is important for businesses to equip them with an efficient, up-to-date accounting system.
There are three primary ways in which having a modern accounting system will improve the day-to-day running of your business. Firstly, it will be a more efficient use of your time and money. Secondly, regularly upgraded and updated software helps you stay protected against hacking attacks and to maintain effective overall digital-security measures. Finally, these systems allow for more effective and efficient communication across sectors of your finance team and the rest of the business. All these factors will significantly improve the way that your company operates while simultaneously lowering the levels of day-to-day stress among your employees.
- Topic:
- Finance
It’s safe to say that there were very few businesses that would have been prepared for the impact Covid-19 has had on their team, operations and revenue. In just a few short weeks in March everything changed so dramatically and so quickly that it was extremely difficult for finance teams to be able to plan, manage and navigate through it.
- Topic:
- Finance
Health & social care in Britain is a diverse industry and can encompass everything from at-home assistance to assisted living facilities. People of all ages and backgrounds are likely to need health or social care at some stage in their lives, and this means that there are millions of potential stakeholders out there. As a project planner in this industry, how can you ensure that you meet their needs in an effective way?
- Topic:
- Finance
You’d be hard pushed to find a sector that hasn’t been affected by the widescale disruptions of COVID-19, but for the financial world, the effects have been far greater than most.
From the large hit the global economy has taken due to a world in lockdown, to largescale supply chain disruptions and the subsequent closure of many businesses both temporarily and, in some cases, permanently, the finance sector has certainly been left shaken.
Now, as lockdown measures are slowly starting to lift in the UK, it’s clear the world as we knew it before will never be the same again. Of course, no one can be certain what the full fallout of the current pandemic will be, but here are a few thoughts on what could be in store for the world of finance over the coming years.
- Topic:
- Finance
Spotting opportunities has always been an important role of the finance team. Even in the face of an unprecedented event like Covid-19, where safeguarding the business to protect the operation, jobs and long-term viability is the number one priority - a good finance team should always be able to balance its responsibilities.
- Topic:
- Finance
It goes without saying that the past few months have been particularly difficult for many businesses. No one could have predicted the events that led up to a nation in lockdown, with many companies left with no choice but to halt or reduce operations in the wake of the Covid-19 pandemic.
For many, business survival lay in quick decision making and, where possible, putting robust measures in place to protect their firm from financial damage.
- Topic:
- Finance
The top priority for any business right now will be the safety and wellbeing of employees - ensuring everyone is following the government’s strict guidelines for social distancing to help halt the spread of Covid-19.
But as your business looks to protect the health of its employees, it’s also crucial to help protect their jobs too - as well as the longevity of the business. The challenge set out by Covid-19 to all businesses is extremely complicated and difficult, but if finance teams communicate clearly across the business and collaborate, they can help to reduce the impact on revenue, profits and the operation of the business.
- Topic:
- Finance
When it comes to technology, the pace of development is having a profound effect on practically every industry — and the world of finance is certainly no exception. Advancements in cloud, artificial intelligence (AI), blockchain and robotic process automation (RPA) are revolutionising the finance industry, and it is becoming clear that innovative companies leveraging these technologies are better placed to keep business running as smoothly as possible in difficult times.
How can finance leaders keep up with the increasing rate of change and uncertainty, and leverage technology to move forward? Read on as we offer insights into the implications of implementing disruptive technologies and how businesses can make the most of them in times of uncertainty.
- Topic:
- Finance
