The rising energy prices are a big cause of concern for many business owners across the country.
These rising prices mean that everything from the electricity that powers your computers to the equipment you buy from suppliers is getting a lot more expensive.
For a lot of businesses that are already running on tight margins, these increased costs can make a significant dent in their profits, causing many to go out of business.
To keep your business afloat amongst rising energy costs, here are some changes that you can consider making.
Check your current energy contracts
The first thing you should do is check any of the current energy contracts that you have and see when they are due to run out.
The prices of energy are only expected to rise further over the next few months so, if you’re able to renew a contract now, you should.
This goes for your electricity, gas, and electric bills – today is the cheapest price you’ll be able to get these contracts at, so it’s worth doing it as soon as you can.
Look for opportunities to cut back on your expenses
For many businesses, these rising costs mean taking a look at your financial statements and finding ways to cut back.
As long as you’ve got a good bookkeeping process, you should be able to look through all of your accounts and see what areas you’re spending the most money on.
Together with your CFO, you can look at areas where you’re spending too much and look for ways that you can cut these costs down to compensate for higher energy costs.
Consider going green
Greener energy choices like LED light bulbs and solar panels have been growing in popularity, but there’s become an even greater need for them at the moment.
Although it involves a large up-front investment, powering your business with renewable energy is one of the most effective ways to reduce your reliance on energy companies and keep your energy bills down.
Not only will taking a greener approach to energy be better for your business but, you’re also helping the planet and reducing your carbon footprint.
Encourage your team to be more energy efficient
It’s also important to encourage your team to help you in your bid to keep your energy costs down by being aware of energy consumption.
For example, turning the lights off when you leave a meeting room, not printing out all their work, and turning the heating down when they don’t need it.
You can do this by installing a smart meter where everyone can track their daily energy consumption, and by communicating with your team about the changes you want them to make.
Looking for business accountancy services
Direct Peak provides a dedicated business tax accountant, who will prepare your annual accounts and tax returns. They will be on hand to answer any tax queries you have.
Your business tax accountant will ensure that the company is set up in the most tax-efficient way and that you are claiming for all the correct expenses to maximise your earnings.