With energy prices at record rates in the UK, and experts not expecting a return to the levels we saw at the start of 2021 until later this year, many businesses will be looking at ways they can minimise the impact on their cashflow.
An increase in global demand and supply shortages has meant that wholesale prices have surged. Not only are businesses facing soaring energy costs, many are also continuing to feel the strain of the pandemic.
Businesses that are not on fixed rates with their suppliers will experience significant increases in their rates and that could worsen with analysts expecting a second record surge in 2022. The high cost of these new bills will have a negative impact on businesses’ cash flow.
According to cost management comparison app Reducer, UK businesses are currently wasting £7.6 billion on bills that aren’t right for them.
There’s also the worry of suppliers going bust, increasing the uncertainty for their customers who would then be automatically switched to another supplier – and placed on high, out-of-contract rates.
To minimise the impact and find a better energy deal for your business you’ll need to compare suppliers and seek out contracts that offer more security for the future.
Analysing your spend history to identify areas where you are overspending will also help. This can be done through the likes of Reducer, which gathers the information it needs by connecting to your Xero account and is FREE!
We can do it for you!
If you are an Armstrong Watson client and we have access to your invoices then we can automatically check for savings for you. If we do not currently hold your invoices you just need to forward paper or PDF copies of your invoices for those expenses outlined above to your usual contact at Armstrong Watson and we will do the rest.
Reducer has already found thousands of pounds of savings for our clients. To find out more and see what they had to say about the service here.
