Protecting small businesses during the economic crisis

Simple steps to help your clients

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Globally we have become accustomed to access to cheap goods, cheap energy and cheap money.

The impact of this shift has been significant for small businesses. The pandemic caused supply chain disruptions and reduced shipping capacity, resulting in increasing global shipping costs. And with the UK leaving the EU, UK businesses have continued to face supply chain disruptions.

Energy and fuel prices continue to rise, and while the government has provided some support through the Energy Bill Relief Scheme, it is unlikely to cover the costs for your small business clients. The additional rising costs of wholesale food for restaurants and increased rent for brick-and-mortar shops, among other factors, are making it difficult for small businesses to thrive.

In addition, inflation has led to rising wage expectations, making it challenging to recruit and retain staff. All of these factors are putting a strain on small businesses as their profit margins and cashflow are getting squeezed.

These stories have been prevalent in the news and it’s likely your clients will have expressed their concerns. With 81% of small business owners worried about the cost of living crisis affecting their business, your clients will be seeking additional advice and support from you to ensure they can stay confident during an economic crisis and are protected from risk.

What can you do?

At Accountex London 2023, Paul Surtees, founder of Capitalise, and Glenn Collins of ACCA discussed the few simple steps that accountants can do to protect their clients in an economic crisis. These are:

  • review pricing for jobs considering the rising costs across the board
  • regularly check business credit scores and boost when needed so clients can win bigger contracts, negotiate better supplier terms and access funding
  • review efficiency of internal working capital
  • checking the credit scores of clients’ customers and suppliers to address external risks.

You can download the free guide from Capitalise.