In this article, we discuss cost and market analysis and the importance of financial scrutiny.
Last month, a story featured in the Guardian revealed that thousands of SMEs are taking legal action against energy suppliers to recoup undisclosed broker fees that have inflated their bills by 10 % – 60 %.
Despite the recent coverage, this is not a new issue, and there is evidence that SMEs have been paying inflated prices for the past decade.
The firm heading up the legal action, Harcus Parker, is calling on the energy regulator to ensure suppliers are honest about the fees they pass on to their customers.
According to the Guardian, “Since October 2022, it has been mandatory for suppliers to disclose these charges to all “microbusiness” customers,” “but small businesses that are slightly larger do not have the same protections.”
Whether your business has been subject to ‘secret commissions’ or not, this serves as a sobering reminder that companies must scrutinize their costs and the markets regularly to identify financial anomalies.
Cost and Market Analysis
Cost scrutiny is a process employed to evaluate the feasibility and benefits of an undertaking such as a project or policy. It can also be applied to any aspect of business, including operational costs.
Understandably, service delivery is the main focus for most business owners and employees to generate revenue. Without income, there is no business.
As such, cost scrutiny often takes a back seat. It is a time-consuming and repetitive task frequently collated with administrative duties; however, it is a specialism and as vital a process as quality auditing to ensure an effective continuation of service delivery.
Identifying short-term or sustained financial losses could mean the difference between the success or failure of your business.
There is much truth in the adage: look after the pennies, and the pounds will look after themselves. If finance is the lifeblood of a business, then pay it respect.
It is imperative that businesses, no matter the size, seek financial assistance, whether on a full-time, part-time, or ad-hoc basis, from a suitably qualified professional. Get in touch today.
This article was originally published on LinkedIn on 7th February, 2024