A number of small businesses around the UK have admitted that they need to do a lot more to help reduce costs, however, it’s believed that many small business owners are struggling to balance their firm’s expenditure with maintaining growth.
A recent study by American Express Corporate Membership Rewards showed that 56% of principal financial decision makers from small businesses around the UK found that the 2.5% increase in VAT had lead them to review their firm’s expenses systemin an attempt to get more value for their outlay.
In spite of this, 62% claimed that they could do more to achieve greater savings. However, they added that this is astruggle due to the fact that they usually miss out on many of the savings schemes, tax rebates and other forms of discounts enjoyed by larger corporations.
With a large number of small businesses still suggesting that, in spite of the currentpoor economic conditions, they still feel that travelling to meet important clients face-to-face is essential to help win further business and is in fact key to the longerterm survival and success of their company.
The Vice President of commercial cards at American Express UK, Katrina Cliffe, stated:
“Against the backdrop of the VAT increase and speculation about interest rate rises later this year, mid-sized companies are focusing more than ever on maximising business expenditure.”
Ms Cliffe went on to add:
“Travel and entertainment costs typically account for an organisation’s third largest controllable cost after salaries and IT, and our survey shows that mid-sized companies in the UK are keenly aware of the need to put an even greater focus on how to achieve the best value from suppliers and from their overall company spend.”