Economic uncertainty is stalling investment and rising interest rates continue to affect consumer spending, but there are some glimmers of positivity.
Here’s what we know:
- Companies are adopting a wait-and-see approach in the face of fears of a downturn, as economic uncertainty and interest rates concerns make their mark on investment and spending alike.
- Ongoing post-Brexit uncertainty is being combined with concern that the US Inflation Reduction Act is diverting investors to the US that would otherwise invest in the UK.
- Banks remain unwilling to lend and members bemoan that government-supported schemes are failing to reach those most in need of funds.
- Some improvements in payment terms for SMEs are being noticed. However, to suggest that the issue of late payments has been resolved would be untrue.
- Companies are turning once again to cheque payments as a means to buy more time, and reduced confidence in securing payment is leading businesses to hold cash for longer across the board. Meanwhile, demand for debt management software is increasing.
Recommendations from us:
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- Effective accounting controls are those that operate seamlessly and regularly in the background. They alert you well in advance to the existence of problems so that remedial action can be taken as soon as possible.
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- Prevention is better than cure. This will save you a significant amount of time and money.
If your business needs help or guidance with accounting and finance management, contact us for a consultation.