Half of small firms 'review large costs once a year'

Small businesses are losing money through not counting costs, but could gain without impacting service or staff.

That is the opinion of Clydesdale and Yorkshire Banks, which found that the majority of smaller firms are only reviewing their day-to-day costs once a calendar year.

Furthermore, around one in seven businesses said they have never reviewed their largest costs, with the bank suggesting up to £16.5 billion can be saved.

Paul Shephard, Director for Business and Private Banking, said: "Small businesses are facing daily cost increases, energy bills alone have risen by more than three quarters.

"Even relatively simple measures, such as making sure computers are switched off at night, rather than left on standby; all go towards bringing costs down."

It comes after Chancellor of the Exchequer George Osborne unveiled measures to help small businesses in his Autumn Statement earlier this month, including scrapping the planned 3p rise in Fuel Duty.

Posted by Thomas Fletcher

Last updated: 14th December 2012