Accounting Software Industry News

Soaring energy costs 'hit IT industry'

Wed, 07 May 2008 12:40:41 GMT

The soaring price of electricity in Britain is having a negative effect on the IT sector, a new report states.

Research conducted by Tariff Consultancy indicates that rising energy bills and a shortage of attractive data centre space are in increasing costs for IT managers.

Britain now has some of the highest energy bills in Europe and the Tariff quarterly Data Centre Price Tracker reveals that the average per rack data centre price rose in Europe during April 2008 to almost 800 euros per rack per month, while prices in the UK reached almost 1,000 euros per rack per month.

Margrit Sessions, managing director of Tariff Consultancy, said: "Industrial electricity prices are the clear and present danger to the data centre user and the IT community… Suppliers are taking advantage of rising space utilisation to raise their prices for new space, and boost their rate of return."

Carbon accounting software can help businesses to assess their IT energy costs and make cutbacks where possible to generate savings and reduce the impact of their operations on the environment.

Data centre customers are becoming increasingly concerned about green issues and are attracted to sites that can demonstrate that they are committed to reducing their impact on the environment or are carbon neutral.

Health club pledges to cut energy use

Wed, 07 May 2008 10:56:25 GMT

Esporta has announced that it intends to dramatically cut the carbon dioxide emissions produced by its new Riverside Health and Racquets Club.

The premium health club operator plans to cut greenhouse gas emissions by 20 per cent at the club in Chiswick by generating natural savings.

Businesses are increasingly employing a carbon calculator or carbon accounting software in order to reduce their energy bills and boost their green credentials.

Riverside Health and Racquets Club has installed a new Trigeneration Combined Heat and Power (CHP) unit and dual-fuelled heating boilers in order to cut its energy costs and reduce its carbon footprint.

Glenn Timms of Esporta Health Clubs explained: "In addition, through a combination of negotiated price reductions and energy-saving initiatives being implemented across our 55 clubs, Esporta will be significantly reducing our energy costs this year, equivalent to over 3,000 tonnes of CO2 or the planting of approximately 4,000 trees."

A recent report by the National Audit Office estimated that Britain emitted 733 million tonnes of CO2 in 2005 and must do more to reach carbon emissions targets set for 2012.

Irish Development Agency woos British businesses

Wed, 07 May 2008 10:53:22 GMT

The Irish Development Agency is attempting to attract more investment in the country from the UK.

Following recent changes to the British taxation system, Ireland is attempting to attract businesses with lower rates of tax.

The Telegraph reports that firms in Britain have been receiving letters from the Irish Development Agency (IDA) urging them to consider relocating their business.

Accounts software can be used by firms to keep track of their tax responsibilities and provide a clearer picture of their business financials.

Julie Moran, finance director of online marketing company Latitude, told the newspaper that the letter from the IDA pointed out that she could reduce the corporation tax rate paid by the company from 28 per cent to 12.5 per cent by moving to the Republic of Ireland.

Business leaders have hit out at plans by the Treasury to tax multinational companies on earnings generated outside the UK, while other changes to the tax system have also hit smaller firms.

Advertising giant WPP has announced that it is considering leaving the UK because of tax increases that could cost it millions of pounds each year.

Call for firms to adopt 'green champions'

Tue, 06 May 2008 10:02:26 GMT

Businesses are being urged to adopt 'green champions' in order to promote more environmentally-friendly initiatives.

According to Scottish Business in the Community (SBC), steps being taken by businesses in Scotland to help tackle global warming are "encouraging", but more still needs to be done to make the country a low carbon economy.

The Herald reports that Scottish companies called on firms to adopt 'business champions' during a climate change awareness event in Edinburgh.

The recent May Day Business Summit on Climate Change attracted over 1,600 delegates to 12 locations in Britain and engaged thousands of staff to help combat climate change and reduce carbon footprints.

Susan Rice, chief executive of Lloyds TSB Scotland, announced that the company is now carbon neutral and has further plans to slash its carbon emissions by 30 per cent by 2012, compared with 2002 figures.

"Some of the initiatives are around our customers, such as encouraging online rather than paper communications," she explained. "Others involve our people, our buildings and the way we do business - both internally and externally."

Businesses in Scotland are calling on the government to provide more guidance on how to reduce carbon dioxide emissions and achieve targets and a poll of delegates at the recent summit in Edinburgh found that 65 per cent were prepared to tackle climate change, while 87 per cent wanted the Scottish government to provide more advice.

The May Day Network is the largest movement of businesses in the UK committed to helping combat global warming through collective action.

Ad agency threatens migration over tax

Tue, 06 May 2008 10:00:48 GMT

One of the UK's largest advertising agencies has announced that it is considering moving overseas because of the UK's tax regime.

WPP has stated that changes to the current tax system that would require businesses in the UK to pay tax on their foreign dividends earned overseas could cause it to leave the country.

According to WPP, it is looking into the possibility of moving its London headquarters outside Britain in protest at the government's decision, which will hit the company's profits hard.

Companies concerned about changes to the tax system affecting their business can invest in accounts software to help them manage their finances more effectively.

The move by the Treasury to tax overseas profits could also lead to other multinational groups deciding to relocate their headquarters, analysts have predicted. A number of firms, including drug maker Shire and United Business Media have already stated that they plan to move their bases to Ireland in order to reduce their tax bills.

WPP, which owns J Walter Thompson in the US, believes that changes to the way it is taxed could cost the firm tens of millions of dollars each year in additional taxes.

Ministers insist that any tax increases as a result of changes to the way in which foreign earnings are taxed will be offset by other alterations to the tax system.

SMEs to gain greater access to public sector deals

Fri, 02 May 2008 09:47:59 GMT

Small businesses in Britain will be able to gain access to public sector contracts for free as part of a new scheme aimed at opening up the market to smaller firms.

A new three-month free trial on the Supply2.gov.uk website will offer new registrants access to thousands of public sector contracts.

Contracts valued at under £100,000 in the public sector across the UK and Northern Ireland will be available online as part of a new Enterprise Strategy released in March this year, which outlined measures to increase the amount of government business that is won by small firms.

The trial will run from May 1st to July 31st 2008 and small and medium-sized enterprises (SMEs) will be able to find and bid for public sector contracts more easily.

Shriti Vadera, UK business minister, said: "Introducing Britain's small firms to government procurement contracts online will provide opportunities to grow that they would not have otherwise found. Encouraging more small businesses to register for opportunities will mean buyers benefit from increased competition and access to a wider range of suppliers."

SMEs planning to expand their reach into the public sector can invest in accounts software to help them manage new commitments more effectively.

The free government trial has been welcomed by the Federation of Small Businesses (FSB), which has urged more small businesses to take advantage of the opportunity to deliver goods and services to the public sector.

Accounts software helps firms monitor expenses claims

Fri, 02 May 2008 09:46:57 GMT

Small businesses in Britain are advised to ensure that they monitor expenses claims carefully.

According to the Federation of Small Businesses (FSB), false expenses claims can cost a business financially and also damage its reputation.

Stephen Alambritis, spokesperson for the FSB, suggests that false expenses claims are costing companies more than £1 billion a year, causing serious concern for smaller firms.

Effective accounts software can help businesses to keep track of expenses claims, ultimately saving them money and protecting their reputations.

"Any shrink in the turnover of a business is worrying for two reasons; it limits the ability of the business to use all its income positively but also [affects] the reputation of the business," Mr Alambritis explained. "What we urge all businesses to do is to have good tight expense claim procedures that are fair and firm across the board."

By adopting accounts software, companies can ensure that their business processes, including expense claims procedures, are not too lax.

A recent survey of 3,000 UK workers by Travelodge found that spurious expenses claims filed by respondents included plastic surgery, escorts, council tax, honeymoons, a diamond engagement ring, new cars and even a goat.

However, just eight per cent of the workers polled had been caught and sacked for fiddling expenses claims.

Tesco trials carbon footprint labels

Thu, 01 May 2008 09:45:37 GMT

Tesco has launched a new trial of carbon labels on 20 of its products that demonstrates to consumers the environmental cost of items.

Providing detailed information about the carbon footprint of grocery products from the seed to the shelves, the labels enable shoppers to compare the greenhouse gas emissions created by individual items.

Initially debuting on a series of Tesco own-brand items, the labels are supported by the Carbon Trust and could be rolled out across more products if they prove successful.

Initially carried on a range of goods, including potatoes, orange juice and light bulbs, the labels will be trialled for two years and chart the carbon footprint of goods from manufacture to disposal.

According to Tesco, the decision to introduce the labels was a response to consumer demand. A number of other companies in the UK have also introduced carbon emissions labeling, including Innocent Drinks, Boots and Walkers Crisps.

Each label will feature a footprint logo, endorsed by the Carbon Trust, which can only be used by companies that have committed to reducing their carbon dioxide emissions over a two-year period.

Consumers and clients are increasingly demanding greener products and services and carbon accounting software can help companies to reduce their impact on the environment.

Accounts software can help small business growth plans

Thu, 01 May 2008 09:44:00 GMT

Small businesses in the UK are continuing to press ahead with plans for expansion, despite the current economic downturn.

According to a new report from the Asset Based Finance Association (ABFA), small and medium-sized enterprises (SMEs) are continuing to retain a sense of optimism about the future and to plan for future growth.

The study reveals that the credit crunch in financial markets is not forcing small businesses to reign in their expansion plans for 2008, with 74 per cent planning to grow this year.

Around half of the smaller firms polled stated that they expected to increase borrowing during 2008 and SMEs are advised that they can use accounts software to manage their finances and help to fuel growth.

Two out of three respondents (67 per cent) stated they were confident they will be able to secure the required funding for their expansion plans. However, many of the small businesses questioned believed that more interest rate cuts were needed to boost the economy and more than one in three said they were concerned about late payments.

The recent annual small business survey by the British government revealed that two thirds (66 per cent) of SMEs intend to grow their enterprise over the next two or three years and many will opt for accounts software in order to enhance the way in which they manage their finances.

Chancellor unveils plans for new tax forum

Wed, 30 Apr 2008 10:10:14 GMT

The chancellor has announced plans to create a new business-government forum on tax that will explore long-term challenges faced by the UK tax system.

Alistair Darling told a Chatham House conference on New Financial Frontiers that the new working group will "ensure that competitiveness remains at the heart of any future reforms".

"Tax is one element of the strong business environment which makes the UK competitive at a global level," Mr Darling stated. "The UK corporation tax rate is one of the lowest in the G7. I am determined that we do what is necessary to remain one of the world's best places to do business."

The new tax forum will be chaired by financial secretary Jane Kennedy and will feature representatives from the UK's business community.

Some international firms claim to have left the UK in search of more favourable tax rates and the new working group will be required to conduct a thorough review of the corporate tax regime in Britain.

Membership of the forum will be no more than ten senior representatives of multinational companies, with the government aiming to ensure a diverse representation.

Accounts software can help businesses to manage their tax responsibilities and keep track of changes to taxation rates.

National Grid unveils carbon accounting plans

Wed, 30 Apr 2008 10:09:17 GMT

National Grid of London has announced that it is planning to boost its attempts to reduce its carbon footprint by introducing new carbon budgets.

The energy company will adopt carbon budgets across its UK and US electricity and gas units from April next year, helping National Grid to meet a target to cut greenhouse gas emissions substantially over the coming decades.

National Grid of London has implemented a company-wide plan to reduce its impact on the environment and plans to increase greenhouse gas emissions cuts from 60 per cent to 80 per cent by 2050.

The carbon budgets will be in place from April 2009 and will be integrated into the day-to-day business operations of National Grid of London.

Steve Holliday, National Grid of London chief executive, said: "Minimising our impact on the environment while delivering safe, secure, and economic supplies of energy to customers is not an option, it is a must… We have already reduced our greenhouse gas emissions by 35 per cent, but we need to do more."

Tesco has announced this week that it is trialling new carbon labels across 20 of its products, detailing greenhouse gas emissions throughout the production and supply chain.

Firms keen to reduce their impact on the environment and improve their carbon footprints can invest in carbon accounting software in order to meet goals.

Accounts software can help firms weather credit crunch

Wed, 30 Apr 2008 10:08:02 GMT

As the effects of the credit crunch continue to affect Britain's economy, businesses are advised to invest in accounts software to weather the storm.

The governor of the Bank of England, Mervyn King, has warned that spending could drop, while businesses are advised that investing in accounts software can help them to manage finances more effectively during a period of economic slowdown.

According to Mr King, the Bank of England will find it harder to slow down inflation this year, with rates potentially rising above three per cent. The bank's monetary policy committee has reduced the base rate of interest from 5.75 per cent to five per cent since December 2007.

Commenting on data showing that lenders are now reporting year-on-year falls in house prices, he warned that energy and food prices are also continuing to rise, pushing down consumer spending.

A fall in consumer spending, caused by a dip in house prices, will further weaken the economy and businesses can use accounts software packages to keep track of costs and spending as the UK economy continues to slow down.

Consumer spending in Britain has slipped to its lowest level in nearly six years, mortgage approvals have fallen and retail sales are down.

Tax 'should be main focus of next government'

Tue, 29 Apr 2008 17:01:29 GMT

A recent poll by the British Chambers of Commerce (BCC) has found that 34 per cent of businesses in the UK believe the issue of tax should be the number one priority for the next government.

The poll also found 85 per cent of businesses believe the government does not understand the needs of businesses and only 19 per cent feel that the government would prioritise these needs.

David Frost, director general of the BCC, said: "If we are to remain competitive then the government must cut taxes for both large and small firms and look at reducing other damaging taxes such as fuel duty."

More than a quarter of businesses (26 per cent) said the credit crunch has affected their business' ability to access fresh funds, something that could be monitored using accounting software.

The BCC has 55 local Chambers of Commerce around the UK and provides advice and support to businesses both in Britain and overseas.

FPB calls for minimum wage rethink

Tue, 29 Apr 2008 10:21:37 GMT

The Forum of Private Businesses (FPB) has urged the government to rethink plans to increase the national minimum wage to recover the money lost by the scrapping of the 10p income tax rate.

According to the organisation, the increased minimum wage could cause problems for small firms' financial plans, leading to higher prices and greater unemployment.

"This is not even a stealth tax; it is a blatant attempt to retain revenues generated by the removal of the 10p personal taxation rate by forcing businesses to bear the financial burden through increases in the minimum wage," said the FPB chief executive, Phil Orford.

The Low Pay Commission is to consider proposals from chancellor Alistair Darling and enterprise secretary John Hutton to benefit lower-paid workers who it is believed could struggle following the removal of the 10p tax.

According to the FSB, any changes to the national minimum wage should be based on "sound economic calculations", so as not to as greatly impact the accounts of small firms.

Established in 1977, the FPB represents 25,000 UK-based private firms.

FSB: Numerous reasons for London business closures

Tue, 29 Apr 2008 10:19:33 GMT

The Federation of Small Businesses (FSB) has said that there are a number of reasons why London has the highest rate of business closures of any area in the UK.

Nick Winch, London policy manager for the FSB, said that the city makes a number of things "difficult for itself" when it comes to running a business in the capital.

"Housing, transport [and] premises costs are all high. The cost of labour is also high compared to other parts of the country. There is a shortage of affordable commercial premises," Mr Winch said.

He added that "access to finance is not easy", suggesting that the credit crunch will make this more difficult, something that could make accounting software even more useful and important for small firms.

Research released last month by Barclays showed that over the past 20 years, an average of 393,000 businesses have started up each year, some 12 start-ups for every 1,000 members of the UK workforce.

Small businesses 'start to feel credit crunch'

Mon, 28 Apr 2008 10:20:20 GMT

Small business owners and entrepreneurs in the UK are starting to feel the effects of the recent credit squeeze, according to a new report.

A study by a social entrepreneur networking website indicates that almost 40 per cent of small business owners and social entrepreneurs have had problems with cash flow within the past few months as a result of the economic slowdown.

The research from UnLtdWorld.com reveals that, as the UK's economic situation worsens, 68 per cent of small business owners applying for a business loan or credit card were being turned down.

According to the figures, 34 per cent of business owners surveyed stated that they had turned to personal loans and credit cards to pay for expansion and start up costs.

One in five of almost 1,000 people polled (21 per cent) said that the recent financial difficulties for Britain had badly affected their business.

Alberto Nardelli, UnLtdWorld chief strategist, said: "To some extent, the outlook seems quite bleak for now. We had noticed an increase in discussions relating to financial difficulties across our social networking site and the research has presented us with a really clear picture of the extent of the issues."

Figures from the British Bankers' Association (BBA) recently showed that small business sector borrowing rose ten per cent to almost £42 billion in 2007, despite the credit crunch and difficult economic conditions.

Small businesses feeling the effects of the credit crunch could consider investing in accounting software in order to cut costs and manage finances more effectively.

UK economy weakens in first quarter

Mon, 28 Apr 2008 10:18:54 GMT

The British economy slowed over the first quarter of 2008 to just 0.4 per cent compared with the previous three months.

Slowing between January and March to its weakest rate in the past three years, economic growth fell from 0.6 per cent the previous quarter.

Data from the Office for National Statistics (ONS) suggests that total production fell by 0.1 per cent during the first quarter of the year, down from growth of 0.2 per cent in the fourth quarter of 2007.

Growth slowed particularly in the production and service industries and the business services and finance sector. However, growth strengthened in the manufacturing industry and construction sector.

Britain's economic growth is now below trend and pressure is growing on the Bank of England to continue to reduce interest rates.

Slowing economic growth makes it more important than ever for firms to keep track of their finances and accounting software can help to make this possible.

Sharp economic slowdown forecast for UK

Fri, 25 Apr 2008 17:00:00 GMT

Britain's economy is likely to face a "rough ride" over the next two years, a new report claims.

According to Ernst & Young's Item Club, the UK economy will witness a "rapid, painful adjustment" between now and 2010, with GDP growth falling from 3.1 per cent in 2007 to 1.8 per cent this year alone.

The economic forecasting group predicts that economic growth will moderate, as the full effects of the global credit crunch are experienced, with growth dropping to 1.5 per cent in 2009 unless the government takes decisive action to prevent it.

Peter Spencer, Ernst & Young economic adviser, said: "With no solution for the credit market crisis in sight, the UK is in line for two years of sub-trend growth. Consumption growth will now throttle back in response to the fall in house prices, while export growth will perk up in response to the fall in sterling."

Chancellor Alistair Darling announced this week that he is providing a £50 billion rescue package for the banking industry in a bid to prevent a sharp economic downturn.

Effective accounting software is more important than ever during a period of economic slowdown, allowing companies to effectively and accurately monitor their operations.

Sharp economic slowdown forecast for UK

Fri, 25 Apr 2008 17:00:00 GMT

Online selling 'can boost revenues'

Fri, 25 Apr 2008 09:50:04 GMT

Selling products online can be a cost-effective way for businesses to raise their revenue.

According to John de Groot, managing director of StartupCo, having a strong web presence can increase a business's customer base and increase sales "without taking up too much of the owners' time".

The small business expert suggests that e-tailing can offer business owners a "low investment growth opportunity" with potentially high returns.

"The absolute key is the ability to generate enough traffic to the website to get the best sales end result," Mr De Groot added.

Accounting software can help businesses to keep track of both online and offline sales, accurately tracking revenue and spending.

Despite cuts in consumer spending in the US this year, online sales are still expected to grow by 17 per cent, figures from Forrester Research reveal.

The latest IMRG Capgemini e-Retail Sales Index reveals that UK online sales recorded growth over the first quarter of 2008, rising by 50 per cent compared with 2006 to £13 billion.

Online selling 'can boost revenues'

Fri, 25 Apr 2008 09:50:04 GMT

Firms urged to do more to combat climate change

Thu, 24 Apr 2008 10:12:19 GMT

Businesses in Britain need to do more to reduce their energy consumption and help to combat climate change, an expert claims.

According to the managing director of the Green Consultancy, firms are becoming more concerned about the environment, but are not doing enough to reduce their impact on it.

John Treble suggests that it only takes small changes for companies to reduce their carbon emissions, with measures such as turning off computer screens when they are not in use making a big difference to energy consumption.

"There's a limit to how much you can do that automatically," he explained. "A lot of it is down to individuals doing the right thing."

The Johnson Controls Energy Efficiency Indicator survey found recently that almost three-quarters (72 per cent) of companies in the US are paying more attention to energy efficiency than they were a year ago.

Businesses planning to reduce their carbon footprints can invest in carbon accounting software to make the process easier.

Firms urged to do more to combat climate change

Thu, 24 Apr 2008 10:12:19 GMT

Firms urged to do more to combat climate change

Thu, 24 Apr 2008 10:10:41 GMT

The head of unified communications specialist Nortel has stated that concentrating on environmentally sound practices is good for business.

According to Mike Zafirovski, energy efficient and green technologies provide companies with a "competitive advantage" and "the integration of environmental responsibility into corporate business models is not only the right thing to do but a necessity for business success".

Delivering a speech in Pasadena, California, he told delegates that it is important for firms to realise that environmentally sound behaviour can co-exist with good business practice.

Addressing the first-ever Fortune Brainstorm: Green Conference, the Nortel president and CEO explained: "Nortel and its partners are leveraging innovation to deliver solutions that can provide tangible benefits to the environment, reduce energy consumption and provide real business benefits to our customers. It's the right thing to do for the planet and for the business."

Nortel products and services can help businesses to improve energy efficiency and reduce their carbon footprints. Elements of the company's portfolio have been acknowledged by the Tolly Group as some of the greenest in the industry, reducing energy consumption by up to 50 per cent.

A number of major global technology companies have announced plans recently to improve their green credentials, including Apple, which has launched a 'Green Apple' initiative, and Microsoft.

As businesses increasingly look for ways to reduce the environmental impact of their IT and communications systems many are adopting carbon accounting software to calculate their carbon footprint.

Firms urged to do more to combat climate change

Thu, 24 Apr 2008 10:10:41 GMT

Warning issued over business continuity

Wed, 23 Apr 2008 14:57:32 GMT

Firms in Britain are being warned that many employees are not aware about the importance of business continuity.

A new study by BT discovered that three-quarters of staff do not know whether their company has a business continuity plan in place or what such a plan would involve.

The report reveals that almost one in four employees do not think that losing their mobile phone would be a disaster and 38 per cent of workers who had lost a mobile device admitted that it had not been secured.

According to the research, companies must do more to educate staff about potential risks facing their business and the importance of protecting corporate data.

Ray Stanton, BT global head of business continuity, security and governance practice, said: "As the profile of information security has increased in recent years, so businesses have become more adept at addressing strategic issues like risk management, outsourcing and security auditing. The worry is that at the same time they have been forgetting about the fundamentals."

San Disk recently carried out a survey that found employees are placing companies at risk by bringing personal flash drives into the office with them.

Business accounting software can help businesses keep data secure and maintain continuity in the event of an emergency.

Government plans to boost pension scheme protection

Wed, 23 Apr 2008 13:46:36 GMT

The government has unveiled new plans to boost protection for pension scheme members in Britain.

Under the new changes to the Pensions Regulator from the Department for Work and Pensions, powers requiring employers to provide contributions to a pension scheme if their actions could threaten the security of members' pensions will be strengthened.

The Pensions Regulator will be able to use the stronger powers to reduce the risk to members' interests by changes to schemes or corporate transactions.

Mike O'Brien, minister for pensions reform, stated: "We need to ensure members' interests are protected. I want to guard against pension schemes simply being treated as a commodity to be bought or sold."

The minister added that it was important for the powers of the Pensions Regulator to "keep pace with developments in the pensions market", with the planned changes aimed primarily at risky situations in a bid to avoid new costs being placed on the Pension Protection Fund.

Most pension schemes will not be affected by the changes, but businesses are advised that payroll and accounting software can help them to keep track of their pension contributions and responsibilities more effectively.

The pension system reforms will apply to all employers and their associates, including any investors in the employer who might seek to profit from the scheme. An eight week consultation will be held on the proposed changes before they are instituted.

Start-ups 'shunning traditional offices'

Tue, 22 Apr 2008 10:33:45 GMT

A number of new business start-ups are doing so without the use of a traditional office, making the most of technology to run their venture, according to the National Federation of Enterprise Agencies (NFEA).

The organisation has said that many of the new businesses it sees starting can be run using a mobile phone and email, suggesting the need for such traditional premises is not apparent. However, this is not just restricted to new firms, the NFEA suggests.

"It should also be said that working away from a traditional office is not just an option limited to start-up businesses; many established and successful businesses are operating in this way," George Derbyshire, chief executive of the NFEA, said.

Mr Derbyshire also pointed to the trend that has seen a number of firms making the most of virtualised offices, technology that can "provide the appearance of a much larger organisation".

Firms embracing the latest technology in this way will no doubt want to ensure that they have the relevant accounting software in place, to ensure their home-based operation works successfully.

According to the website Flexibility, the number of homeworkers in the UK increased by 11 per cent in 2005, following growth of nine per cent and ten per cent in 1997 and 2001 respectively.

MPs launch inquiry into carbon emissions

Mon, 21 Apr 2008 10:23:30 GMT

A new inquiry has been launched by an influential committee of MPs into carbon emissions from businesses in the UK.

The inquiry by MPs will examine ways of reducing greenhouse gas emissions from offices, factories and shops in Britain.

Britain currently has no targets in place to limit CO2 emissions from commercial buildings and concerns have been raised that more needs to be done by companies to improve their carbon footprints, though incentives are in place to encourage firms to embrace environmentally-friendly policies.

The All Party Urban Development Group is calling for submissions from stakeholders and will be ready to report to government by the summer, according to the BBC.

Labour MP Clive Betts, chairman of the group, stated that the inquiry would help look at the way that "cities can work with property owners and their occupiers to help 'green' commercial buildings".

All commercial buildings in England and Wales will be required to have an Energy Performance Certificate and display it prominently from October this year.

Companies looking to cut their carbon emissions in order to control costs and boost their green credentials should invest in carbon accounting software.

Bank of England prepares plan to boost banking system

Mon, 21 Apr 2008 10:20:51 GMT

The Bank of England is reported to be preparing a new plan that would enable UK banks to swap risky mortgage debts for government bonds.

In a bid to boost struggling UK lending markets, the bank is planning to provide £50 billion worth of secure bonds to the banking industry to enable them to continue to lend money to customers.

The unprecedented move by the usually conservative Bank of England is also expected to be followed by further help for struggling banks if it is required in the future.

Details of the central bank plans will be announced today and economists predict that the scheme could be in place by the end of this week.

Loans provided to banks will have to be paid back, but the scheme will leave UK taxpayers exposed to potentially risky debt, while banks will keep any profits they make.

Chancellor Alistair Darling warned over the weekend that the current economic downturn looks set to continue, while the Royal Bank of Scotland announced last week that it is seeking cash from shareholders in order to improve its capital base.

Vince Cable, Liberal Democrat Treasury spokesman, wants lenders to provide the Bank of England with guarantees in return for help during the credit crunch.

Businesses are advised to invest in accounting software in order to track their finances more effectively during the current uncertain economic conditions.

Businesses 'embracing carbon offsetting'

Fri, 18 Apr 2008 09:08:45 GMT

Businesses and consumers are increasingly offsetting carbon emissions when they travel overseas, experts claim.

According to Carbon Footprint, the practice has become popular among small businesses who feel "a bit guilty" when flying abroad and some see flying as "a bit of a luxury".

Smaller firms are becoming more aware of green issues and the importance of reducing their impact on the environment, with many using carbon accounting software to identify areas where savings could be made.

John Buckley, who founded Carbon Footprint, explained: "Tree planting is still very popular. I think people understand the mechanisms of how trees grow and take carbon dioxide out of the atmosphere."

He claims that his company has received a growing number of enquiries from small businesses about ways that they can reduce their carbon emissions.

Government department Defra states on its website: "Government acknowledges that carbon offsetting is not a cure for climate change but it can help raise awareness and reduce the impact of our actions. The most appropriate action to take is to reduce emissions."

Small firms 'boosted by CRM technology'

Fri, 18 Apr 2008 09:06:25 GMT

Small businesses can substantially enhance their operations and boost sales by implementing customer relationship management (CRM) processes and technologies, a new report claims.

Technology analyst Aberdeen Group suggests that CRM solutions are benefiting smaller firms who can suffer from problems relating to fragmented customer data.

CRM applications can help businesses to obtain and retain market share and customers by providing employees with an accurate picture of customers.

The report states that CRM software and processes can improve productivity, enhance business performance and control costs.

Peter Ostrow, Aberdeen vice president, said: "Best-in-Class companies must conduct win-loss analysis on a regular basis. They need to know why proposals are or are not accepted in order to identify areas for improvement in pricing strategy, marketing messaging, and sales processes."

A poll of over 120 enterprises in February this year revealed that best-in-class firms used CRM to improve the performance of their sales forces and develop an idea of future prospects.

The study, CRM in SME: Sized to Fit, identified a 27 per cent rise in the size of average deals by best-in-class small enterprises and a 16 per cent decrease in sales cycle time, year on year.

New plan to boost credit market

Thu, 17 Apr 2008 10:26:42 GMT

The government has unveiled a new proposal that could strengthen UK financial markets and help them weather the current credit crunch.

Under the plans, the Bank of England would provide banks with a new lending programme that would enable them to start lending again by granting government bonds in exchange for securities backed by UK mortgages.

The proposal has won the backing of the Treasury and has been welcomed by economists, who believe that it could rejuvenate Britain's lending market.

Similar moves have been made in the US to boost productivity, increase the liquidity of money markets and ensure that consumers and businesses can access finance more easily.

Prime minister Gordon Brown is meeting with the chairman of the US Federal Reserve, Ben Bernanke, this week to discuss current economic uncertainty.

Companies concerned about the impacts of the credit squeeze on their business should invest in financial analysis software in order to manage their accounts more effectively.

Technology 'aids remote working'

Thu, 17 Apr 2008 10:26:08 GMT

Wireless technology is increasingly helping to facilitate remote working, enabling entrepreneurs and workers to do business outside the office.

According to an article in Business Zone, the growing trend for mobile devices allows business executives to communicate and access information on the move.

When implementing mobile or remote technologies, companies are advised to consider cost and security, choose providers carefully and ensure that critical or confidential issues are not discussed in public.

Ian McGurk, head of security consulting at IT firm Plan-Net, stated: "Awareness starts with common sense. It's easy to do, doesn't cost much and can be a very effective way of controlling things."

Accounting software tools can be used to control costs and analyse spending on technology such as unified communications or Wi-Fi capabilities.

New EU laws will allow passengers on flights within Europe to use mobile phones and IP technology in the air, making remote working easier for executives who have to travel widely.

Online accounting software can enable companies to institute more flexible working arrangements by providing remote access to data at all times. Good enterprise resource planning and efficient systems can significantly enhance business operations.

Government launches enhanced business support

Thu, 17 Apr 2008 10:24:53 GMT

The government has appointed an expert to the position of chair of the transition management board for the Business Support Simplification Programme (BSSP).

Martin Temple, current chair of the manufacturers' organisation EEF, will assume his new role this week, overseeing attempts by the government to simplify the current system of support for businesses.

The BSSP aims to reduce the number of government-funded support schemes for businesses from 3,000 to less than 100 by 2010 under a series of measures delivered through Business Link.

Ministers claim that reducing the number of government-backed business support schemes will enhance their effectiveness, control costs and produce more impact with the same resources.

Announcing the appointment, UK business minister Shriti Vadera said: "This is an important appointment to ensure delivery of our commitment to simplify and ease the access of our support for growing businesses. I am confident Martin's long experience and perspective from businesses using business support will be invaluable."

Business secretary John Hutton has insisted in a speech to the Confederation of British Industry that the government supports business and will be implementing a range of measures aimed at helping small firms to weather the credit crunch, including an extra £60 million for the Small Firms Loan Guarantee scheme this year.

Small businesses trying to make the most of their resources and funding should invest in accounting software in order to manage their operations more effectively and enhance business productivity.

Credit crisis starts to affect small businesses

Wed, 16 Apr 2008 17:00:00 GMT

Small business cashflows are being affected by the recent credit crunch and experts suggest that the problem is worsening.

According to both the British Chambers of Commerce (BCC) and the Federation of Small Businesses, the credit crisis is spreading and "late payments are becoming a growing problem" for members.

"Larger companies have a responsibility in a slowing economy to pay suppliers promptly," a statement from the BCC said. "Smaller firms need to know when they will be paid and should not be mucked around by having payment schedules arbitrarily changed."

Small business leaders are due to meet with government officials to look at ways of tackling the growing problem of late payment, with many smaller firms crippled by customers failing to pay on time.

The Forum of Private Business has placed the issue on the agenda for its next meeting on May 9th 2008 and small businesses are advised that SME accounting software can ensure they monitor late payments closely.

A recent report from Ernst & Young revealed that a total of 114 profit warnings have been issued by British companies during the first quarter of this year, the Times reports.

Businesses 'more aware of green concerns'

Wed, 16 Apr 2008 10:15:36 GMT

Businesses in Britain are increasingly concerned with green issues and are adjusting workplace practices in order to reduce their impact on the environment, according to an expert.

Smaller firms are attempting to reduce their impact on the environment to control costs and improve their green credentials, with more people adopting homeworking strategies in order to do so.

Phil Flaxton, chief executive of non-profit initiative Work Wise UK, suggests that many employees are embracing homeworking and are choosing to work remotely one or two days a week.

Mr Flaxton claims that green concerns are changing the ways in which people work, as awareness increases.

He explained: "Increasingly the green agenda continues to become part of our everyday lives in terms of its media coverage and the importance of it and the cost of fuel and travelling continues to rise, be it on a train or in a car."

A recent study by the Department for Business, Enterprise & Regulatory Reform into flexible working practices found that just 52 per cent of UK employees are aware of the right to request flexible working hours since legislation was introduced in 2003.

Small businesses can reduce their carbon footprint by adopting carbon accounting software.

Small businesses 'setting money aside for a rainy day'

Tue, 15 Apr 2008 10:10:31 GMT

Some 45 per cent of small businesses have a so-called rainy day fund to ensure they are financially prepared for any eventuality.

These statistics have been released by Alliance & Leicester, with 28 per cent of those surveyed claiming they would use the money to cover late payments and 27 per cent to fund business growth.

Almost six in ten (57 per cent) would use the finances to cover any loss of business, something that could be monitored using SME accounting software.

Steve Jennings, director of business banking at Alliance & Leicester Commercial Bank, said it was good that such business owners are setting aside money to protect their firm in uncertain times.

"From environmental disasters to an unexpected loss of business, a well-thought out contingency fund is an important business tool and can prove invaluable in helping a company to maintain control in a crisis," he added.

Firms looking to ensure their finances are in place could make good use of SME accounting software.

Alliance & Leicester Commercial Bank was formed in 2003 when Alliance & Leicester Business Banking, Sovereign Finance and Girobank all joined together under one name.

Tories criticise Labour economic policy

Mon, 14 Apr 2008 15:57:52 GMT

The Conservative party shadow chancellor will hit out at Labour management of the economy during a high profile speech today, criticising prime minister Gordon Brown for his actions as chancellor.

George Osborne will address the Policy Exchange thinktank, blaming Mr Brown for current economic uncertainty and calling for better handling of the national finances.

A recent poll by the Financial Times/Harris indicated that over two-thirds (68 per cent) of voters are not confident in the abilities of the Labour government to handle the current credit crisis.

Mr Osborne will pledge during his speech that a Tory government would give Britain greater economic stability and challenge claims that Mr Brown has been one of the steadiest chancellors in history.

"Gordon Brown rested his claim to competence on three pillars - stability, prudence and competitiveness," he will declare.

"Instead, after a decade of worldwide growth, we have ended up with housing boom followed by bust, spending followed by debt, and a country finding it more and more difficult to compete."

Current chancellor Alistair Darling has called on mortgage lenders in Britain to pass on recent interest rate cuts to borrowers after the Bank of England provided £15 billion to help markets weather the current credit crunch.

As the effects of the US subprime lending crisis continue to affect the UK economy, online accounting software can provide businesses with an invaluable way of monitoring productivity, checking business health and streamlining processes.

Greener company cars 'could save firms millions'

Mon, 14 Apr 2008 11:35:16 GMT

Switching to greener company cars could save businesses as much as £3 billion a year, a new report claims.

A poll of 400 board-level executives discovered that 55 per cent of those surveyed were encouraged by employers to take measures that reduced the impact on the environment of business travel.

The research by the Energy Saving Trust (EST) suggests that switching to vehicles emitting less than 120g/km CO2 could save an organisation with 50 cars as much as £45,000 every year.

Nigel Underdown, head of transport advice at the EST, points out that cars producing lower levels of CO2 attract tax breaks for employees and reduce the carbon footprint of firms, in addition to saving them money.

According to the EST, 51 per cent of companies providing cars to workers do not currently have an environmental or corporate social responsibility policy relating to them.

Less polluting cars both reduce national insurance bills and fuel costs for businesses and could reduce UK transport emissions by 1.9 million tonnes per year.

Carbon accounting software can help firms to assess areas in which savings can be made, helping them to control costs and improve their green credentials.

Pension system changes 'to affect company schemes'

Mon, 14 Apr 2008 11:34:14 GMT

Changes to the UK's pensions system will lead to the closure of a significant proportion of company pension schemes in favour of personal accounts.

The government is introducing the new personal accounts in 2012 and a new poll indicates that seven per cent of company pension directors are planning to close existing pension schemes.

According to financial services firm Fidelity International, 300,000 pension scheme members could lose their private sector occupational pension as a result of the changes, aimed at encouraging more Britons to save for retirement.

Simon Fraser, president of the Fidelity International investment solutions group, stated: "We recognise that everyone is striving for the same goal but action needs to be taken now to mitigate the risk of the pension crisis deepening."

Fidelity estimates that at least 300,000 people will be stripped of existing pension benefits as a result of the introduction of personal accounts and is calling on the government to demonstrate greater flexibility in its pensions model.

Ministers have called on employers to operate personal accounts alongside existing pensions, but many companies are choosing instead to look into closing company schemes instead.

The survey of 100 finance directors by Fidelity also found that one in ten respondents were not aware of personal accounts. SME accounting software can help smaller businesses to monitor their pensions schemes and comply with changes to the current system.

Making businesses greener 'saves money'

Fri, 11 Apr 2008 11:50:51 GMT

There are a number of ways of reducing costs while improving the environmental credentials of a company.

According to a report in the New York Times, companies can save themselves cash by reducing energy use and recycling office supplies, among other strategies.

Demand among customers and clients for businesses to be environmentally-friendly is growing and green initiatives can also save firms large sums.

As the credit crunch squeezes margins, the NY Times recommends that companies look at their business travel as one way of reducing carbon footprints, offsetting pollution caused by air travel and using rental car companies that offer hybrids.

Developing a green strategy is key to cutting consumption, with carbon accounting software providing a simple way to assess and monitor emissions production.

Reducing waste can improve business health and help to control costs by reducing bills for disposal, while providing training for employees and business associates can enhance productivity and reduce energy consumption.

A recent poll by the Tenon Forum discovered that many businesses are put off going green by the perceived cost of adopting environmentally-friendly measures.

Bank of England lowers base rate

Fri, 11 Apr 2008 10:57:35 GMT

The Bank of England has opted to cut the base rate of interest by a quarter point to five per cent this week.

At its monthly rate-setting meeting, the Bank's monetary policy committee (MPC) responded to calls for an interest rate reduction in order to boost the UK economy.

The MPC last voted to reduce interest rates in February and the latest cut is the third since December 2007.

A global credit squeeze is negatively affecting the UK economy, causing a housing market slowdown and reducing consumer spending.

The Bank of England is attempting to stave off the threat of recession by cutting the cost of borrowing, as food and energy bills continue to rise.

As the current economic slowdown looks set to continue, businesses are advised to invest in accounting software in order to monitor their finances effectively.

Call to axe income shifting plans

Fri, 11 Apr 2008 10:55:36 GMT

The Federation of Small Businesses (FSB) has stated that it does not believe that there is a need to redefine the status of SMEs, but has called on the government to scrap new legislation against income shifting.

According to the organisation, an early day motion in the House of Commons proposes both redefining the legal status of small businesses and dropping new legislation against income shifting.

Simon Briault of the FSB explained: "This is a tool by which the changes to income splitting can be opposed, or the situation can be resolved."

He added that the FSB would support any move that "is to the benefit of small businesses", including redefining the legal status of limited liability companies.

The term income shifting refers to a situation in which couples who jointly own a firm split the dividends between them in order to minimise tax liabilities.

An early day motion calls for the creation of a new legal entity to represent small businesses in the 21st century.

Smaller firms can use SME accounting software to meet regulatory requirements and keep track of income shifting.

New government code to cut red tape

Thu, 10 Apr 2008 10:51:01 GMT

The government has launched a new code of practice aimed at reducing the burden of red tape on small businesses in Britain.

Part of recent government attempts to cut the amount of red tape in the UK, the new Department for Business, Enterprise and Regulatory Reform code requires regulators to adopt a new risk-based approach to inspection and enforcement.

Ministers have created the new Regulators' Compliance Code to "help save businesses time and money by improving the way regulators work with them", introducing fewer inspections and a lighter regulatory burden for compliant firms.

Shriti Vadera, business and competitiveness minister, explained: "The government understands that regulation is one of the top concerns for business. The Compliance Code requires regulators to work better with business and ease the burdens placed on those who operate within the rules."

Businesses will be provided with clearer advice on how to adhere to the law from national regulators such as the Environment Agency and the Health and Safety Executive (HSE) and firms will be given the chance to challenge regulators failing to follow the code.

Chancellor Alistair Darling pledged to do more to reduce the burden of red tape on small businesses in his 2008 Budget.

SME accounting software can provide smaller firms with systems that help them to meet their regulatory obligations.

Strong growth in SaaS market forecast

Thu, 10 Apr 2008 10:44:40 GMT

The European market for software-as-a-service (SaaS) is predicted to witness strong growth over the next couple of years, a new report claims.

A study by analyst IDC reveals that one third of organisations in western Europe expect to adopt some form of SaaS to replace current enterprise planning systems within 24 months.

The research forecasts "positive and ambitious" spending indicators for Europe on SaaS technology, with companies planning to replace customer relationship management (CRM) and supply chain management systems to enhance their business health, according to IT Pro.

Bo Lykkegard, research director of the IDC European Enterprise Applications and Services programme, explained: "European organisations seek to leverage the SaaS delivery model to reduce risk, complexity, and upfront costs of new IT initiatives."

A technology firm recently predicted that the credit crunch and current climate of global uncertainty could provide a boost for SaaS markets because of the low upfront costs and reduced risks associated with the software.

Management reporting and online accounting software can help companies to boost productivity and control costs.

Firms advised to back up data

Wed, 09 Apr 2008 10:20:00 GMT

Companies are advised to "keep everything backed up" in order to ensure that they survive an emergency, an expert claims.

According to Kelly Ostler-Coyle of the Association of British Insurers (ABI), businesses should back up all important files and documents to ensure that they "can get [their] business up and running again quickly" if an emergency occurs.

Keeping information "backed up and kept at a different site" can protect productivity as "any event could have a huge impact". Online accounting software can help businesses to protect their data in the event of an emergency.

Ms Ostler-Coyle pointed out that it is impossible to pinpoint the worst case scenario for businesses, citing recent flooding and the Buncefield explosion as two events that disrupted firms.

She recommended: "Keep everything backed up and at a different site - whether that means someone takes them home every night or there is a separate server elsewhere, it means you can get your business up and running again quickly if something happens."

The ABI launched a new campaign in April this year to help small businesses cope in the event of a major emergency after research by AXA Insurance revealed that seven out of ten firms would be unable to survive in the event of a major incident affecting their operations.

Call for global intervention to combat credit crunch

Tue, 08 Apr 2008 11:28:12 GMT

The head of the International Monetary Fund (IMF) has called on world leaders to act now to combat the effects of the recent credit crunch.

According to Dominique Strauss-Khan, it is "becoming more evident" that intervention is needed to prevent market turmoil worldwide and the credit squeeze is not limited to the US alone.

Mr Strauss-Khan told the Financial Times that world growth was threatened by the current credit crisis and global action was needed to support the international securities market and housing sectors.

Speaking ahead of a meeting of world financial leaders in Washington DC, the former French finance minister echoed calls from the Institute of International Finance, which states last week that the case for government intervention is "growing".

Global productivity could be threatened by the recent economic slowdown in many markets and Mr Strauss-Kahn predicts that the crises could spread to developing nations such as India and China unless international action is forthcoming.

As the credit squeeze continues and companies face tighter budgets, firms are advised to invest in online accounting software to control costs and keep track of their business health.

Hutton rejects calls for climbdown on new income tax rate

Tue, 08 Apr 2008 11:22:22 GMT

Britain's business secretary has rejected widespread calls for him to back down on plans to abolish the 10p rate for the UK's lowest paid workers.

According to John Hutton, it is not possible to go back on the decision, which is part of a broader programme of tax cuts, including a reduction in standard income tax from 22 per cent to 20 per cent.

Mr Hutton noted in a BBC interview that there are significant concerns about the new rate, but insisted that the measures had been voted on and debated in parliament.

Labour is now facing accusations that it has taken an anti-socialist decision on income tax by abolishing the lowest tax band for workers and campaigners have warned that it will penalise low earners without children.

MPs have hit out at the move, with Lib Dem leader Nick Clegg telling the BBC that it was a "cheap political stunt" that will negatively affect more than five million of Britain's poorest people.

The decision to axe the 10p tax rate was unveiled in the 2007 Budget by then-chancellor Gordon Brown as part of attempts to simplify the tax system. It has been criticised by the Treasury select committee, which claims that anyone earning below £18,500 a year will be worse off as a result of the decision, particularly childless people.

Businesses struggling to adapt to changes in tax legislation should invest in payroll software in order to ensure that their responsibilities are met.

Climate change poses 'major threat to businesses'

Tue, 08 Apr 2008 11:20:53 GMT

Climate change is posing a major risk for businesses over the next ten years, a new survey suggests.

The Business Continuity Expo 2008 survey highlights climate change as an "emerging risk" and reveals that 87 per cent of firms perceive climate change as the single biggest threat to future growth.

Sponsored by insurance broker March, the study examines threats in terms of risk assessment to companies.

Green issues were higher up the list of major global threats to businesses, ahead of terrorism, pandemic flu, the credit crunch and flooding, for the 150 major UK and European companies quizzed.

Martin Caddick, Marsh business continuity management team leader, stated: "While the majority of firms surveyed have accurately identified the major risks that could affect their businesses, fewer seem to be successful in tackling them head on. This lack of preparedness continues to be a major issue for European firms in today’s turbulent times."

The Emerging Risks survey found that 83 per cent of respondents were worried about shortages of traditional sources of energy, such as oil and gas.

Businesses can use carbon accounting software to assess their own impact on the environment, helping to enhance their green credentials and combat global warming.