Businesses are facing increasing pressure to adapt to economic challenges as recent Budget announcements on employer’s National Insurance and minimum wage hikes add to the already significant cost pressures from inflation, reduced consumer demand, and the ongoing cost-of-living crisis.
According to research*, 31% of business owners with turnover of £5million or more anticipate making redundancies in 2025, and 30% acknowledge they may default on debt within the next 12 months.
With these challenges in mind, focusing on cost-effective and resilient strategies is essential. Here are five key areas where thoughtful planning and action can help businesses navigate economic pressures and prepare for the future:
1. Build practical, scenario-based forecasts
Create detailed, integrated profit and loss, balance sheets, and cash flow forecasts that model various scenarios.
Scenario planning enables businesses to prepare for potential challenges and make informed decisions before the situation exists and pressures escalate. By modelling different outcomes, you can better understand your options and responses and discuss these with your advisers.
At PM+M, our cloud accounting team can help you build tailored financial models to make accurate predictions and gain valuable insights for strategic decision-making.
2. Embrace automation and AI to boost efficiency
Automation and AI can transform operations by improving efficiency and accuracy across your finance team. By automating routine tasks like data entry and reconciliations, your team can focus on strategic priorities. Implementing AI-driven tools can also enhance decision-making by identifying patterns and trends that might otherwise go unnoticed.
We can guide you in selecting and implementing the right technologies to streamline workflows, allowing your business to concentrate on growth and innovation.
3. Use real-time insights to drive decisions
Access to accurate, real-time financial data is critical for making informed business decisions. With cloud-based accounting solutions, businesses can monitor key financial metrics like cash flow and profitability, enabling quicker, more informed decisions.
Our cloud accounting services provide access to intuitive dashboards and reporting tools, giving you a clear view of your business’s financial health whenever you need it.
4. Optimise cash flow with innovative software
Maintaining strong cash flow is critical to business resilience. Streamlining invoicing, payment runs, and efficient purchase invoice approvals can help improve the ability to see your overall position much quicker. Using tools to make sure you are optimising payment terms with suppliers can help extend the working capital cycle and provide cost-saving opportunities as an alternative to any lending.
Our cloud team can help ensure you have the right tools to optimise your cash flow.
5. Make confident decisions with bespoke reporting
Every business is unique, and tailored financial reports provide insights that reflect your specific goals and challenges. Whether you need to track profitability by product line, customer segment, or geography, bespoke reporting provides you with the information you need to make better business decisions with software that can adapt and evolve as you grow.
At PM+M, we design custom reports that go beyond generic templates, helping you make smarter, data-driven decisions to manage costs and drive growth.
Get in touch
By focusing on resilience, efficiency, and strategic spending, businesses can navigate today’s challenges and build a foundation for future success. Proactive planning and thoughtful decision-making are key to withstanding economic pressures and preparing for what lies ahead.
If you would like to discuss how PM+M’s cloud accounting team can support you with your goals for 2025, including cash projections and scenario planning, app recommendations to improve efficiencies, bespoke reporting to make accurate predictions, and much more, get in touch by emailing enquiries@pmm.co.uk.
*Research conducted by Censuswide, among a sample of 500 18+ UK Business Owners (Businesses with a turnover of £5m+).
