It’s official – UK inflation has crept back up to 3.5%. For small businesses already juggling rising wages, energy bills, and supply chain headaches, this news will feel like salt in the wound.
But don’t panic. While inflation adds pressure, with the right planning, you can protect your margins and stay ahead. At Accounts Direct, we break it down without the waffle – and help you put a proper plan in place.
What’s Pushing Prices Up?
This month’s jump in inflation is being driven by:
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Rising energy and utility bills – water and electricity costs are surging again.
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Higher council tax and service charges – especially for premises-based businesses.
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Knock-on effects from supplier price hikes – if they’re paying more, so are you.
If you’re in retail, hospitality, or manufacturing, chances are you’ve already felt the squeeze.
How Inflation Hits Small Businesses
Inflation doesn’t just make your milk cost more – it quietly eats into your profit. Here’s how:
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Staffing costs go up – with the National Minimum Wage increasing and higher employer NICs kicking in from April.
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Suppliers raise prices – and if you’re not locked into contracts, expect higher invoices.
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Customer spend tightens – they’re watching their pennies too, which can hit your sales.
So What Can You Do About It?
This is where Accounts Direct steps in. We work with small business owners across Manchester and beyond to help cushion the blow – and even find new opportunities.
Here’s what we recommend:
1. Review your cost base
We’ll help you go line-by-line through your outgoings and spot anything that can be trimmed, switched, or renegotiated. You’d be amazed how much you can save just by reviewing subscriptions and supplier contracts.
2. Check your pricing strategy
Are your prices still covering your costs? We’ll help you review your margins, test new price points, and make sure you’re charging what you’re worth – without scaring off customers.
3. Get your cash flow forecasted
Inflation often causes unexpected gaps in cash flow. We’ll map it out, help you plan for any dips, and keep your business running smoothly – no nasty surprises.
4. Lock in better energy deals
We can point you toward trusted brokers or tools to help lock in fixed rates before they climb again.
5. Stay on top of tax efficiency
With everything costing more, making the most of your tax allowances is even more important. We’ll make sure you’re not paying a penny more than you need to.
You Don’t Need to Figure This Out Alone
At Accounts Direct, we don’t just give you spreadsheets and send you on your way. We work alongside you – spotting risks early, suggesting improvements, and putting proper plans in place to help your business thrive, not just survive.
If inflation’s biting into your bottom line, let’s take a proper look at your numbers and sort it out together.
Ready to take control of rising costs? Let’s have a chat and make a plan that works for you.