Brought to you by
Bright full colour logo
Bright was created in 2021 when Thesaurus Software Ltd. and Relate Software Ltd. decided to join...
Save content
Have you found this content useful? Use the button above to save it to your profile.

How to best manage the cost of living crisis

28th Aug 2023
Brought to you by
Bright full colour logo
Bright was created in 2021 when Thesaurus Software Ltd. and Relate Software Ltd. decided to join...
Save content
Have you found this content useful? Use the button above to save it to your profile.

Grocery bills. Energy prices. Interest rates. The cost of living crisis has spread across the nation like wildfire. We’ll spare you the gory details, but there isn’t one business, one household, that hasn’t been directly impacted by these overhead increases. However, while it can sound like the end of the world, for some firms, they’ve been able to transform it into an opportunity.

This requires firms to be innovative, think outside the box and use the right technology. There are several factors to consider, such as revenue preservation, cash flow and investing in strategic demand generation. Here are six key tips on how to equip your firm with the right armor, so you can competently and strategically win against the cost of living crisis.  

Take control of your cashflow  

Understand your cash flow thoroughly. Afterall, cash flow is what keeps your business above water. There are three key ways you can do this. 

Reduce your overhead costs  

Lower your expenses. Understand when and where exactly your money is going so you can decide where to reduce your overheads. Although this won’t exactly protect your firm against bigger economic issues, making this small change could have a long-term impact on the financial health of your firm.  

Track profitability and time  

Analysing which jobs and clients are most (and least) valuable can help you prepare for those more difficult economic periods. As the saying goes, time is money, so focus on which clients are more profitable and which services are the most sustainable. For example, what about forecasting or more advisory services? With the right technology, you can track staff costs against client revenue, identify your profit sources, review your fee structure and even track your growth strategy.  

Utilise electronic payments  

Setting up more automated payments for your clients’ employees lets you make any last-minute changes, schedule payments in advance and eliminates the need to create bank files. Depending on which payment platform you choose, payments can be submitted and received in as fast as 90 seconds. This means less time spent on payments, and more time spent supporting and helping your clients. 

Monetize your expertise  

Many accountants may feel they’re underqualified to offer such advisory services – like navigating their clients through a cost of living crisis. However, it’s quite the contrary. With your financial knowledge and industry expertise, you’re in a great position to offer valuable information. Identify your clients’ pain points and alleviate them with data-driven solutions. After all, their success is your success. Going the extra mile for your clients and helping them overcome obstacles has a ripple effect too – like increasing the likelihood of referrals and customer reviews. 

Invest in client relationships and the right software 

When you first onboard a client, take time out to understand and learn about their business’ needs and how they operate. The more you know how their company and industry functions, the better positioned you are to offer a more tailored and personalised service. Communicating with your clients like a human being will also offer a personal touch, so they can see it’s not just a robot behind the screen doing their tax returns and payroll. 

Also, juggling multiple tasks at once can overwhelming at the best of times, but doing this on top of a cost of living crisis? No thanks. With the Bank of England raising interest rates for the 14th time, it can be hard to see the bigger picture when you’re trying your best to stay afloat. Using the right technology will help you analyse, measure and monitor your practice, which will ultimately help set you up for success. So invest in a comprehensive tech stack that can help you streamline, automate and organise your current processes. 

  • Practice management software can help you streamline and better organise your team’s tasks. If you use Bright’s solution, AccountancyManager, you can see exactly what everyone’s working on in real-time, track how long they spend on their tasks, and weigh up billable against unbillable hours. This lets you keep an eye on profit sources and identifies areas you might need to work on. 

  • Payroll software can help you save time each pay period by automated a lot of the manual work that’s involved in payroll, HR and payment tasks. If you use Bright's solution, BrightPay, it's integrated with accounting software, pension providers, and a direct payment platform. BrightPay’s batch processing feature also lets you process static payroll clients in seconds – which is especially handy for firms who have a lot of single-director companies or payroll clients that don’t change each pay period. 

If you wish to learn more about Bright and their suite of products, why not book a free 15-minute demo and see how you can recession proof your practice with ease. 

Book a demo

Ross Graham 

 

Written by Ross Graham | Bright

 

 

 

Related articles: