By The content team StudentsTop 3 ways to help your company with the cost-of-living crisis4 Oct 2022 As the cost of living crisis continues to bite, many businesses are in need of more help. Here’s how their accountants and finance teams can assist… With inflation at the highest rate for 30 years and energy bills soaring to record highs, many businesses are currently feeling the strain. In fact, more than half (53%) expect to stagnate, shrink or go bust in the next year, according to data from the Federation of Small Businesses (FSB). If you’re an accountant working for a troubled company or advising a struggling firm, there are a few ways you can help. 1. Have monthly meetings “In times of stress, it’s important to ensure the basics of good financial management are taken care of,” advises Lee Marshall, partner and head of accounting and business advisory at RSM UK. “Detailed and accurate management information coupled with robust budgeting and rolling forecasts should be discussed with management at least monthly.” Additionally, make sure you present the figures so bosses can understand them. “It’s crucial the business has high-quality, timely data that allows its owners/bosses to make informed decisions,” Lee notes. “Set up their chart of accounts so they can easily analyse income and costs across departments and revenue streams. This will help the business make quick decisions on what lines of business are worth investing in – and which parts of the company need attention.” 2. Invest in forecasting software With the ever-changing economic landscape and costs likely to change throughout even a one-year forecast, Lee points out that it’s more difficult than ever to accurately predict profitability. “Rolling forward old Excel-based forecast models may lead to error through typing mistakes or incorrect assumptions. Luckily, there’s now a range of affordable forecasting tools, which can be integrated with cloud-based ERP systems such as Xero or QuickBooks. These can be linked into the accounting system, so it updates with actuals each month.” 3. Undertake reviews Reviewing fixed-rate contracts is a good place to start, Lee suggests. “Any business that has a fixed-price contract with their customers/clients may need to assess how profitable these contracts are. Because of rising costs, these contracts might become difficult with their losses provided for in their financial statements.” Reviewing energy usage is also important: “When companies measure and report their carbon usage, they often see ways they can reduce their environmental impact,” says Lee. Unfortunately, however, raising prices may be unavoidable. “Businesses may need to pass their energy costs onto customers. If they don’t, they could risk profitability, which may lead to insolvencies and closures.” Further reading:Modern Finance Roles – Business Transformation ManagerModern finance roles: Finance Transformation ManagerExpert advice for every stage of your career The content team are the owners of AAT Comment.