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Accountancy Experts Advise On Credit Crunch Survival

UK businesses that target international markets could find themselves emerging from the credit crunch in even better shape, says global accountancy organisation MGI.

The UK’s businesses have been battening down the hatches for months, with ongoing economic uncertainty making for difficult trading conditions.

But Andy Grout, the current chair of MGI, the worldwide association of independent auditing, accounting and consulting firms, says that businesses that take steps to protect themselves against the impact of the credit crunch can emerge leaner and fitter to take advantage of a future upturn.

“Clearly, it makes sense for any business to keep their cash flow positive rather than negative, for example by acting quickly if clients fail to pay up and by curbing their own outgoings,” he said.

“And the marketing budget may seem an easy target for cutting costs, but there is actually little sense to taking a low profile with your target markets when the competition is tougher than ever and sales are hard to come by.

“Businesses also need to be proactive in tapping into new markets. Enterprises that trade overseas are already benefiting from the weaker pound, which makes UK imports cheaper, so it may be worth diversifying your income sources by seeking business in different markets than the ones you are used to.

“Trading multinationally gives you the advantage of operating in more than one market, and although the credit crunch has hit home globally, not all nations are experiencing its effects in the same way. That means that peaks in one market will help to smooth out troughs elsewhere.

“With the margins on overseas sales often greater than those at home, investing in an international sales drive could certainly be worthwhile, both now and when the recovery comes, by giving a new dimension to your businesses that you may not have otherwise enjoyed.

“UK and Ireland MGI members have excellent communication and personal links with MGI offices around the world, giving access to knowledge and information on local markets and investment opportunities globally.

“Whatever you do, it’s vital to do what you do as well as you possibly can. Make sure your customer service is spot on, so there’s no reason for your existing clients to go elsewhere, and that you are proactive in dealing with potential customers, to give yourself an advantage over less client-focused competitors.”

MGI, which was founded in 1947, is one of the world’s largest organisations of independent auditing, accounting and consulting firms, with over 260 member firms in more than 77 countries.