With the start of the New Year, many accountants in London are focussed on looking at what 2023 holds for small business owners in the UK.
Clients are asking us about the predicted trends in commerce and what they can do financially to ensure the coming year shows growth along with any other areas for small businesses that will be critical for them to pay attention to.
As part of our premium accounting services this is something we are ready for every year, but 2023 is already looking to be challenging.
Let’s take a look at what small business accountants and their clients will be looking at in the coming year.
Adapt to Survive
2022 was all about the post-pandemic era, however some small businesses feel that they are not out of that slump yet. The cost of living crisis and rocketing fuel and energy costs are reshaping the business landscape, andsmall enterprises must be agile and adaptable to stay ahead of the curve. Redefining marketplaces, flexibility in meeting customer demand and creative cost-cutting solutions are needed for small businesses to sustain profitability in 2023.
Many businesses will be taking a much closer look at their operating costs and looking for ways to reduce energy bills and transport expenses. As professional small business accountants we provide this service as part of our range of accounting services, and we know that businesses will welcome these accountancy services to enable them to maintain profitability and keep costs down.
A significant change in thinking is that where businesses were apprehensive about allowing employees to work from home on the grounds of productivity, this has been proven incorrect. Initially SME owners felt employers worked best in the office, however owners are adjusting to the realisation that remote working can be very successful.
As the energy pricing crisis continues, we are reviewing our clients energy and office costs and advising where significant cost savings can be made through people working at home or remotely. The employees save travel costs and if the office lights, heat, workstations and AC are not on, the business makes considerable savings.
A recent report by Microsoft Surface revealed that 56% of people feel happier working from home and happy workers tend to be more productive. This is likely to see moves towards work hub spaces and hotdesking for many small businesses for the first time.
Make sure you discuss these ideas with your London accountants and use their experience to get the figures clearly mapped out before you change anything.
Producing Your Products
With the final Brexit rules now fully in place and technology innovations disrupting many business landscapes , businesses should be ensuring they are creating the data and tech savvy workforce that will be required for future success.
As human jobs continue to be augmented by technology, businesses must train staff with skills needed to work alongside smart machines and to grow those exceptional human skills that currently can’t be automated.
There is no doubt that digital transformation initiatives will continue at pace in 2023, however, harnessing technology to streamline your business or increase efficiency is not only about cutting edge technologies.
More and more small businesses are utilising a number of software platforms to liaise directly with their small business accounts and allow both the owners and their accountants to track the companies current and most up to date financial position. Efficient and cost effective accounting services rely on the movement of information in both directions.
Consolidated platforms can also simplify how emails and messages are processed or how users access services and content. Appraising the latest technology carefully is vital and you should focus on the user experience and start by considering how the platform makes employee’s working day easier, shave time off jobs and free up time for other tasks.
A new small business mantra is being born and “doing more with less” will be a watchword across 2023 as small business owners look to rationalize every process and aspect of their operation.
Additional Factors
If small businesses want customers to continue to spend with them, then businesses must pay attention to customers’ needs and create great experiences. Those small businesses that are nimble and prove themselves able to innovate at speed, will increase their chances of success in 2023.
The other significant reason why businesses will need to be adaptable is the continuing supply chain issues in the UK due to the implementation of post-Brexit rules.
As premium London accountants offering professional accounting services we have a firm grasp on the UK’s economics and don’t necessarily subscribe to the doom and gloom predictions of some media sources.
We understand that the economic outlook for many countries doesn’t look great in 2023 but by reducing exposure to volatile market pricing of commodities, as well as building protective measures into supply chains to deal with shortages and rising logistical costs, the year can still deliver a profitable return.
We are increasingly advising clients to review their environmental policies and this will be important this year as the world is significantly more aware of climate issues and that they will pose a much bigger challenge than anything that has been experienced in recent decades.
Consequently a number of consumers prefer businesses with the right environmental policies and often prioritize factors such as ecological impact and sustainability when choosing who to buy from or do business with.
Use the vast experience of your professional accountants in London to ensure your business makes this year a good year.
The Wrap
Business owners and their small business accountants have been through a number of challenges and undergone an unforeseen amount of change over the past few years, and it is evident that there will be no slow down of the challenges in 2023. We are all still faced with the after effects of the global pandemic, war in Ukraine, economic challenges, as well as the never ending wave of technology development.
But professional accountants in London like us still firmly believe that SMEs are the beating heart of the UK economy and small businesses will be essential in helping strengthen that economic growth.
We all have a responsibility to ensure we are doing everything we can to help the SMEs in the United Kingdom thrive and survive.
Book your free 15 minute consultation today and find out more about our range of accounting services.
