Business owners predict running costs to increase

News Article - 08 January 2008
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Four-fifths of all small to medium-sized business (SMEs) owners think that the cost of running their company will increase this year, it has been revealed.

According to research by Bank of Scotland Business Banking, 12 per cent of respondents expect the cost to increase by more than ten per cent and an additional 30 per cent believe it will rise by between five and ten per cent.

Ivan Matviak, head of the firm, commented: "Small business owners are acutely aware of the impact that additional fixed costs can have on the bottom line and the majority will have seen many of these costs increase exponentially over the past few years."

He said that it was vital that firms try and control costs by looking for the best deal from service providers and careful planning of expenditure.

The research also found that the majority of SME owners think interest rates, rents and property prices will increase during 2008

Credit insurer firm Euler Hermes recently told the Financial Times that smaller companies are most at risk of insolvency this year as they are less adaptable and rely heavily on borrowing and the UK economy.

Article keywords: Accountants are increasingly being able to undertake their jobs on a flexible basis, a report suggests.<br/><br/>Those working in senior positions within the <a href="http://www.access-accounts.com/" target="_self">accounting</a> industry can now job-share or work part time if the need arises, according to data compiled by charity Working Families.<br/><br/>Cherie Booth is expected to present the charity's report, entitled Hours To Suit, at a conference on Tuesday.<br/><br/>Developments in technology such as home broadband, business phone lines are thought to have helped with flexible working.<br/><br/>However, Jonathan Swan, co-author of the report, said: &quot;The downside of technology is you are suddenly always available. <br/><br/>&quot;There is a technology creep where it comes into your weekend and times when you should be relaxing, so you have to work out the master and servant roles.&quot;<br/><br/>A report from Oxford University recently claimed that working from home could help reduce the nation's <a href="http://www.access-accounts.com/carbon-emissions.aspx" target="_self">carbon footprint</a> if accompanied with behavioural changes.<br/>

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