How to manage your business finances during the energy crisis

Business, Finance - 26/01/2023

With UK businesses experiencing a 424% rise in gas prices and 349% for electricity since February 2021, it’s likely you’re feeling the crunch.

You might be worried about the future of your business. Luckily, there are things you can do to help your business’s finances during this difficult time.  

Financial planning

It’s difficult to predict exactly how the energy crisis will impact your finances. Think about how much you might be paying over the winter months, and whether you can afford this. Take a look at how much you’ve been spending on energy in previous years. Would you still be able to pay the bills if they were doubled, or tripled? 

If the numbers aren’t looking good, it’s worth assessing what is and isn’t cost-effective. Are there any ways you can cut back on expenses? Think reducing office space, using utilities more efficiently or outsourcing processes that are eating away at your time and money?

Compare suppliers

According to Reducer, UK businesses are wasting an average of £7.6 billion on their bills each year. 

You certainly don’t want to be missing out on a better deal when it comes to energy prices, so it’s always worthwhile to check out the competition. You might find a contract that’s better suited to your business, or one that provides more security for the future. 

Check if you’re eligible for any grants

Whilst it’s true that businesses generally have less protection than households when it comes to energy prices, there are some ways to get around this. 

If you’re a small business, you may be eligible for some financial support during the energy crisis. There are a variety of government schemes which offer loans and grants to help your business to increase its energy efficiency, helping you to save money on gas and electricity. 

Seek expert support

Every business benefits from the input of a financial expert. Your bookkeeper, for instance, will  be able to provide you with accurate and up-to-date information on how your finances are doing, giving you a better idea of the bigger picture. They can also help to prepare financial statements and keep an eye on cash flow – jobs that might otherwise be at the bottom of your to-do list.

Is it time to outsource your bookkeeping? Outsourcing will help you to put more time and focus into generating profit during these financially trying times. After all, a steady and reliable income will only help to keep your business afloat. 

We know that the coming months are going to be a difficult time for businesses, especially those who are smaller or newly established, so we’re always here to chat. 

If you’re worried about your finances, we can help. Get in touch with us today to work together.