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Stratford-upon-Avon

13 The Courtyard
Timothy's Bridge Road
Stratford-Upon-Avon
Warwickshire CV37 9NP

01789 294484

enquiries@gjassociates.co.uk

London

7-8 Stratford Place
Mayfair
London
W1C 1AY

0207 495 0304

enquiries@gjassociates.co.uk

Tackling the cost-of-living crisis

The new Prime Minister, Liz Truss has, as promised, sought to tackle the cost-of-living crisis in her first few days in office. She is the fourth Conservative Prime Minister to govern the UK in a little over six years. The government has seen many major changes over this time including Brexit, the corona pandemic and now a cost-of-living crisis exacerbated by Russia’s invasion of Ukraine and volatile energy markets.

One of the Prime Minister’s first moves after her appointment was to appoint her new cabinet. This included the widely expected appointment of Kwasi Kwarteng as her new Chancellor after he previously held the position of Secretary of State for Business, Energy and Industrial Strategy. The previous Chancellor, Nadhim Zahawi, spent only two months in the job.

As expected, the Prime Minister announced to a packed House of Commons that the government will introduce an energy price guarantee from 1 October 2022 to help tackle the continually increasing energy costs. This will see the average household have their energy bills capped at £2,500. The Prime Minister also confirmed that the £400 energy rebate for UK households announced by the former Chancellor and fellow leadership contender, Rishi Sunak, would be rolled out next month as planned.

The new cap will stay in place for two years and should help to offset the previously announced 80% increase to the energy price cap to £3,549 that was set to come into effect from 1 October 2022. This will save the average household at least £1,000 a year before considering further predicted increases. The savings, for all households, will be delivered through a new ‘Energy Price Guarantee’ which limits the price suppliers can charge customers for units of gas. There will also be equivalent support for homes that do not pay direct for mains gas and electricity – such as those living in park homes or on heat networks.

The Prime Minister also announced help for businesses and public sector organisations, many of whom are facing crippling energy costs. Initially this help will be made available for six months with the possibility of further help for vulnerable businesses and industries to be announced at a later date. At the time of writing, no further details had been published.

The new Prime Minister also revealed that the ban on fracking in England will end and that up to 100 licences for drilling and fracking will be issued to help combat the energy crisis and make the UK more energy self-sufficient. This should help to ease future problems with energy supplies. A new commitment for the UK to become a net-energy importer by 2040 was also announced.

There had been calls for the government to introduce a windfall tax on energy firms to help pay for these measures, which will be at an enormous cost to the exchequer. However, there was no announcement of such a windfall tax with the Prime Minister saying such a move ‘would discourage the very investment we need to secure a homegrown energy supply’.

Hopefully these measures will reduce predicted inflation and support families and businesses across the country. It remains to be seen if any further support measures will be announced and, if and when, we will be notified of a date for the forthcoming, September emergency financial statement.

Grenfell James Technology Adoption Index

How does your business perform against others adopting financial tech? Find out with our interactive diagnostic:

1.

How does your business receive invoices?

A)

Invoices are mainly received in paper form

B)

Invoices are mainly received by email

C)

Invoices are emailed then automatically forwarded to a designated mailbox

2.

How are purchase invoices processed?

A)

Invoices are entered manually

B)

Invoices are attached to manually raised invoices

C)

Automated software (e.g. ReceiptBank, 1Tap, HubDoc etc) collates invoices

3.

How are accounts processed?

A)

Using Excel/paper-based

B)

Using Computer-based, offline software

C)

Using cloud-based accountancy software

4.

How often is business data revised?

A)

Data is updated annually

B)

Data is updated quarterly

C)

Data is updated monthly or more often

5.

How is banking updated for your business?

A)

Banking is updated manually

B)

Banking is updated by imports

C)

Banking is updated via a live feed

6.

How are bank payments made?

A)

Bank payments are manual

B)

Bank payments are made using bulk imports

C)

Bank payments are made directly via accounting software

7.

How are bank receipts reconciled?

A)

Receipts are chased and reconciled manually

B)

Receipts are chased and reconciled automatically

C)

A third-party platform is used to chase debts and collect fees

8.

How often are management reports produced?

A)

No reports are provided

B)

Reports are provided but often too late to be valuable

C)

Reports are automated with real-time information

Score 8-12:

Curious Exploration

Your financial technology phase is Curious Exploration

% of respondent businesses are in this phase too.

Switching accountancy systems may seem like an upheaval, but can be much more straightforward than most businesses imagine. From talking to our clients, they have found moving from paper invoicing and desktop-based accounting software to the cloud and apps quickly makes the transition process a worthwhile investment of time. Digital accounting solutions bring in streamlined processes, up-to-date business data and greater confidence in the accuracy of information when making financial decisions.

Grenfell James works with your team to fully assess the needs of your business and minimise the impact of any transitions for solutions we recommend.

Find out more about App Advisory

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Score 13-19:

Measured Discovery

Your financial technology phase is Measured Discovery

% of respondent businesses are in this phase too.

Once cloud accountancy software is in place, there’s still plenty of scope to improve your accountancy processes and make sure your business is maximising the benefits of adopting a digital accounting solution. Grenfell James assesses each business to understand how any implemented solutions are being used, identify areas for improvement and the needs of the business overall to support your business goals and achieve success.

Our team of experts can discuss a range of time-saving automation and get different apps and cloud-based solutions talking to create and manage a digital accountancy eco-system to help your business grow.

Find out more about App Advisory

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Score 20-24:

Bold Innovation

Your financial technology phase is Bold Innovation

% of respondent businesses are in this phase too.

You know the benefits of accounting technology and the impact it can have on your business goals. If you want to take it a step further, our team can conduct a systematic review of your processes, apps and business goals to ensure your digital accountancy ecosystem is keeping pace with the changing needs of a growing business.