UK businesses focus on cutting costs to survive the credit crunch

A survey carried out by the accountants Baker Tilly shows that a growing number of British businesses are considering cutting their costs to compensate for an anticipated dip in earnings as the UK economy slows. Finance directors of more than 100 listed and owner-managed companies in the turnover range £20m to £25m were surveyed in February and again in early April and the results illustrate growing concern about the UK’s short-term economic future. In February cost cutting was an immediate consideration for around 26% of the FDs surveyed but this had shot up to 45% by the end of March.

With headcount looking like it will be the first cost-cutting casualty (25% of the FDs surveyed are considering limiting recruitment, while 15% are looking to make redundancies), the next few months could be a very busy time for outsourced experts like Auditel; not only do we help businesses lower the cost of their overheads but, just as importantly, we act as an additional management resource, freeing up time for internal personnel to focus on the core business.

Laurence Longe, Baker Tilly National Managing Partner, said: “A cross-section of British businesses began to feel the widening effects of the credit crunch during March. Most are considering belt tightening and are proposing increased vigilance to deal with the tough market conditions. We are in a period of uncertainty and companies are focusing more attention towards internal controls and assessing external risks. Working with external experts that have experience in operating through these situations can help companies avoid potential pitfalls.”

Visit our corporate website to learn more about how our expert outsourced services help companies lower and manage their operating costs, and our franchise opportunity website to find out how you can build a successful and fulfilling career as an Auditel consultant.