09 Jan Confused about exporting? An accountant could help
According to the Institute of Chartered Accountants in England and Wales (ICAEW), many British businesses could be missing out on huge financial gains because they have either yet to consider exporting abroad, or because the idea of doing so causes concerns.
Research recently carried out by the ICAEW discovered that only 53 percent of UK businesses exported a product or service of some description in 2016 – a figure that remains the same as it was in 2014 – but also discovered that, quite worryingly, a massive 96 percent of non-exporters have ‘no plans’ to seek overseas customers in the coming year.
The ICAEW believes that this is because business owners either do not have the expertise necessary to seek foreign audiences or because they simply lack the ambition to do so. Even in the wake of the sterling’s significant dip following the Brexit vote – something that was arguably a huge boost to UK companies looking to be competitive against European rivals – and the fact that an increased level of inflation in the next 18 months is likely to hamper domestic spend, hundreds of thousands of businesses are still failing to look beyond the UK’s borders.
These findings come despite the government currently campaigning to raise awareness of the benefits of exporting, both to SMEs and to the economy as a whole, and despite the Office for Budget Responsibility (OBR) stating that net trade will be the biggest driver of growth over the next 12 months.
And, while exporting may not be a viable option for every small business, it is undoubtedly one that is not being utilised by many that should be viewing it as a means of increasing revenue.
Some of this reluctance around exporting is likely to arise because of a lack of understanding about financial costs – tax implications, for example – but this is just one of the many elements that an accountant can help you understand.
Making significant business changes can indeed be a daunting task, but if you do it right, you could well be onto a winner. If you’d like to learn more about how we can help you take your business overseas, do not hesitate to get in touch.