Majority of UK SMBs expect costs to rise and pressures to increase
Intuit QuickBooks’ latest quarterly Small Business Insights Survey reveals that small and medium businesses across the UK are facing mounting financial pressure, with 57% predicting costs will rise over the next three months and that, of these, 64% are worried about the negative impact on their business.
Nearly half (47%) report ongoing cash flow challenges, while 51% admit financial or resource management hurdles are holding their business back.
As SMBs struggle with increased international supplier costs, supply chain volatility, and economic uncertainty, Intuit QuickBooks urges urgent adoption of smarter financial management processes. The findings highlight a stark need for better financial planning, and financial guidance to help businesses navigate ongoing headwinds.
Pauline Green, Head of International Compliance at Intuit says: “SMBs may not be able to control global markets, but they can control their finances and be better prepared for changes. In the face of rising costs, supply chain pressures, and economic uncertainty, robust financial planning procedures play a vital role in helping businesses stay on the front foot.”
Further key stats from the Insights Survey show:
- 57% predict costs will rise over the next three months
- Among those expecting cost increases, 64% are concerned about the impact
- 47% are facing cash flow challenges
- 42% source from overseas, exposing them to global cost pressures
- 51% say poor financial or resource management is holding their business back
Amy Hancock, Owner of accounting firm Hancock & Hastings, shares her five expert tips for building financial resilience, strengthening your business to be ready for whatever comes next.
1. Make time to review your numbers
Set aside 30 minutes each week to look over your income and outgoings. This regular check-in can help you spot overspending, identify cashflow issues early, and highlight opportunities for savings. Developing this habit not only improves visibility but gives you the confidence to make more informed financial decisions.
2. Improve financial awareness across your team
You don’t need a finance department to boost financial understanding. Equipping team leaders with the knowledge to understand core financial concepts – like gross profit, overheads and cash buffers – can lead to smarter, more proactive decisions across the business. A financially informed team is better prepared to adapt when challenges arise.
3. Forecast with flexibility
Building financial forecasts is essential, but going one step further and modelling different scenarios makes your business more agile. Think through potential changes such as supplier price increases or loss of a major client, and use this to test your resilience. Scenario planning gives you a clear picture of your options if the unexpected happens.
4. Invest in automation
Modern accounting software can help streamline everything from invoicing to payroll. Automating routine tasks saves valuable time, reduces the risk of human error, and gives you up-to-date data to support decision making. It also frees up resources to focus on strategy and growth.
5. Work with an accountant
Bringing in a qualified accountant can add real value beyond just year-end accounts. From identifying risks and tax planning to supporting long-term growth decisions, the right accountant is a trusted partner who helps your business stay compliant, agile and financially sound.
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