Business review

Businesses in the United Kingdom are continuing to be hit by the economic downturn and the longer it goes on the harder some are finding it to be able to cope. Books are being scrutinised as accountants look for ways to save and scrimp to stay fighting another day.

Where some are struggling, others have failed. These collapsed companies act as both a warning to similar firms but they also represent a great opportunity. Companies' approach to risk has dramatically reduced after watching early risk takers go by the wayside, however, with the fate of these companies now in the hands of administrators looking to claw back whatever they can, there is the chance to snap up some cheap assets. The problem is deciding where to draw the line between investing and gambling.

However, with the fate of many banks just as uncertain, coming up with new finance is tricky for many businesses. The main way at the moment seems to be to change the conditions of loans they have, but some banks are wary of giving too much leniency in times like this.

This leaves companies looking at themselves to find ways to cut costs to free up funds for other ventures. While for some this is a painful exercise, others see it as a worthwhile exercise that in the long run will bring them benefits.

Financial discipline is a lot tighter than in recent years with expenses and company perks being trimmed back. Travel is being minimised, often under the guise of eco-friendliness when in reality this is a term that is only applied when it comes alongside a cost cutting measure. Companies are approaching customers and suppliers with an old fashioned eye and there has been a return to credit checks and reinforced supplier agreements.

Suddenly the role of the finance department has moved from easy street to one of the most focused upon in the company. With bean counters, calculators, spreadsheets and financial management software ahoy, financiers are having to read accounts before analysing them and coming up with ideas for how and where the company can make savings.

The buzzword in business at the moment is 'survival' and that requires a fastidious attention to what's going in and out of a company's accounts. While companies in previous recessions have shown that having a gutsy attitude can lead to huge success, many more forgotten businesses tell a very different story that should act as a warning sign for anyone who isn't too sure what to do in the current climate.

Andrew Regan writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.

Article Source: ArticlesBase.com - Keeping Accounts Level in the Recession