Businesses across the UK are feeling the squeeze of increasing energy bills and raw materials, especially as the inflation rate recently hit nine per cent.
With inflationary pressures increasing outgoings, as well as staff feeling the pinch on their wages, you are probably looking for other areas to cut costs.
All VAT-registered businesses should be using one form of cloud accounting to comply with HM Revenue & Customs’ (HMRC) Making Tax Digital regulations.
However, the software is capable of much more…
As you are already paying for cloud accounting software to remain compliant, it is worth considering how to get the best value for your money, by harnessing the full power of the software.
In fact, by using cloud accounting to automate more processes, productivity can be dramatically boosted, thereby increasing employee output.
The software allows repetitive manual data entry tasks to be eliminated by automatically updating data.
Not only does this give your employees more time to dedicate to other tasks, but this also reduces the number of human errors – which, again, saves valuable time and energy.
With cloud accounting allowing for accounts to be accessed from anywhere, this provides an opportunity to evaluate the company’s fixed costs.
The need for large office spaces could be redundant if more employees are opting for a hybrid working approach, or solely working from home.
Whilst this is not a possibility for every business, should the option to downsize be available, this can make a substantial difference to the business’s costs, with both rent and bills being reduced.
Monitoring cash flow
The software is also a handy tool for nurturing a healthy cash flow.
As accounts are constantly updated, it is much easier to spot growth opportunities as well as potential issues as soon as they arise.
For instance, if one of your products or services has experienced a sudden increase in demand, this can direct action to increase production and sustain sales, which in turn facilitates growth.
On the other hand, the insight from data can also highlight issues. If the cost of a raw material you use increases, the data can inform how this would impact your profits, along with whether alternative materials may be needed.
Looking to optimise your business’s cost? Contact us.