4 March 2024

5 Common Concerns for Business Owners Right Now (and how financial advice can help)

It’s safe to say that business owners are facing a unique set of challenges in today’s day and age. From the impact of inflation on business operations to the talent shortage and the rapid pace of technological change, the business landscape is more demanding than ever. The good news is, however, that as accountants, we can help.

From working with many small to medium enterprises over the past few years, we’ve identified the 5 common concerns that business owners have right now, and here is our financial advice. 

  1. Inflation and economic trends

UK businesses are currently facing the ongoing challenge of inflation, impacting everything from operational costs to pricing strategies. Here’s how you can overcome these pressures:

  • Dynamic financial planning: Regularly update your budget and forecasts to reflect changing costs. Building a financial buffer can also help cushion against unexpected inflation spikes.
  • Boost operational efficiency: Look for ways to streamline processes and reduce costs. This might involve automating tasks or renegotiating supplier contracts.
  • Diversify revenue streams: Explore new markets or products to create additional income sources, reducing your vulnerability to inflation in any single area.
  • Stay informed and seek advice: Keep up with economic trends and seek advice from financial advisors for tailored strategies.
  1. Income extraction in uncertain times

Determining the most effective way to extract income from your business requires careful consideration, especially regarding tax efficiency. You need to consider how you manage and utilise it within the framework of tax regulations.

Key to this is making the most of available allowances, thresholds, and exemptions. This could involve drawing a balanced mix of salary and dividends or strategically planning pension contributions to benefit your future self while optimising current tax liabilities.

Tip! An expert can help you navigate the complexities of tax laws, ensuring you’re claiming all the tax reliefs you’re entitled to adhering to the relevant Annual Allowances and aligning your short-term needs and long-term financial goals.

  1. Technological advancements and adaptation

For businesses, embracing technology means more than just adopting new tools; it involves a mindset shift towards innovation and adaptability. Technologies like artificial intelligence, cloud computing, and advanced data analytics are powerful tools that can streamline operations, provide deeper insights into market trends, and enhance decision-making processes.

If you’re not a tech whizz, a financial professional can provide investment advice in technologies like AI and cloud computing, ensuring they align with your business goals and offer a solid return on investment. 

  1. Regulatory changes and compliance

Staying informed and compliant, especially in data protection and environmental standards, is crucial for businesses in 2024. Luckily, this is an area where financial advisors can be invaluable as they can help you understand the financial implications and advise you on compliance strategies. 

Our recommendation if this is an area of concern for you: Proactively adapt to legal changes, invest in compliance training, and align your internal policies with new regulations. These are key steps to ensure your business is compliant (so you can avoid penalties).

  1. Business Protection for 2024

If the past few years have taught us anything, protecting your business against unforeseen events has become more critical. This means not just insuring against physical risks but also safeguarding against digital threats, which have become increasingly prevalent. These measures can help mitigate the risks associated with digital operations and ensure business continuity in the face of cyber threats.

Give yourself peace of mind

In facing today’s diverse business challenges, from inflation to technological shifts, remember that expert financial advice is your key ally. It empowers you to navigate these complexities with confidence, ensuring your business not only survives but thrives in 2024.

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