Seven steps to beating the cost of inflation

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THE Society of Southern Chartered Accountants has issued advice on helping businesses cut costs in an attempt to beat inflation.

The society says the year ahead will be the most difficult within the economic cycle, as public sector cuts take effect and consumer confidence falls once more.

Ian Davies, the society’s president, said: ‘Although recent figures showed a fall, inflation is still high.

‘This is just one of a number of pressure points facing businesses, especially small and medium-sized companies. Cutting costs is one measure that is within a business’s control though and can make a difference between a profit and a loss.’

It has identified seven key areas where savings can be made, such as re-examining the basics of a product or service to find out where to add value; finding cheaper sources of supply; tackling overheads and using people, space and energy efficiently; moving goods and services to avoid transport costs; improving the use of technology such as communications; re-examining financing costs and looking for ways to pay down debt; and utilising tax allowances and reliefs.