Average small business expenditure totals £1m per year

 In Small Businesses & Startups

New research from American Express has found that UK small business expenditure has risen to an average of over £1m per year.

Overview of small business expenditure research findings

Small business expenditure includes all outgoings related to asset purchasing, recruitment and operational costs.

These are the key findings from the study – conducted in partnership with the Centre for Economics and Business Research:

  • Micro-businesses (1-9 employees) spend an average of £225,379 per year
  • Larger SMEs (50+ employees) spend an average of £3,000,000 per year
  • Older SMEs (established 15+ years ago) spend an average of £1,385,400 per year
  • London-based SMEs spend an average of £2,000,000 per year

Respondents cited the biggest individual costs as hiring new staff (24%), paying suppliers (20%) and investing in new technology (19%).

How can small businesses reduce expenditure?

With costs increasing consistently, every small business could benefit from taking another look at its expenditure. They can then plan how to minimize their outgoings.

To conduct a detailed audit of your small business expenditure and identify opportunities to make savings, you need to call in a specialist small business accountant.

Specialist accountants will analyse your overall cash flow. They’ll then look at costs integral for your business, and identify those which could be removed or reduced without impacting your operations.

They can also help streamline your financial administration processes, and recommend opportunities for increasing productivity to offset rising costs.

Get a grip on the rising costs of running a small business by drafting in an accountant who specialises in your business type and working practices.

Call on 3 Wise Bears for more expert small business accountancy advice.

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