Accounts software can help firms face 'difficult economic challenge'

News Article - 22 May 2012
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Britain is predicted to be facing its "most difficult economic challenge for two decades", according to the governor of the Bank of England.

Accounts software can help businesses to manage their finances and accounting responsibilities more effectively in periods of economic downturn.

Mervyn King suggests that inflation rates will continue to rise, affecting economic growth and property markets, while interest rate-setting policy will have to adapt to try and get inflation back to the two per cent target.

Addressing the annual Mansion House dinner for City bankers, Mr King stated that average real-terms take home pay in Britain will "stagnate" this year as the cost of food, fuel and other items continues to rise.

"We believe that a slowdown in the economy this year, creating a margin of spare capacity, will be necessary to dampen price and wage pressures and ensure that we fulfill our remit by returning inflation to the target," he explained.

Chancellor Alistair Darling has unveiled new powers for the Bank of England to manage the UK's financial stability following the recent credit crunch.

Britain's inflation rate rose in May this year to 3.3 per cent, up from three per cent in April and significantly in excess of the government's two per cent target.

Article keywords: Businesses should make the first move in developing and using sustainable environmental measures, the Institute of Chartered Accountants in England and Wales has claimed.<br/><br/>The organisation's chief executive, Michael Izza, told an audience at Peking University that accountants should be ready to embrace their roles as guardians of the eco-friendly changes.<br/><br/>&quot;Preservation of our environment is the single greatest challenge facing society in the 21st century, &quot; he said.<br/><br/>&quot;As a profession with a long track record in developing the frameworks which allow for the efficient measurement of financial and non financial information, accountants have an important role to play in helping business deliver, &quot; he added.<br/><br/>In practice, accountants across the globe would need to define sustainable business reporting, provide high quality supporting evidence and make the case that being good would be beneficial for business.<br/><br/>Meanwhile, global design and business consulting firm Arup recently told the Financial Times that society's sustainability objectives were aligned with those of business.<br/>

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