Firms may be eager to cut costs with specialist software

Many companies are under particular pressure at the moment to operate efficiently. Economic conditions remain tough, with credit hard to access and consumers reluctant to spend their cash. This means it is crucial for bosses to concentrate on running their operations as cost-effectively as possible. To help them achieve this, they may benefit from using specialist time recording and data collection technology.

Figures released recently by insolvency trade body R3 drew attention to the pressures facing enterprises. It revealed that signs of distress among companies were up during the last quarter.

According to the organisation, 30 per cent of businesses admitted to regularly using their maximum overdraft facility during the three-month period. This was up from the 17 per cent recorded during the previous quarter.

Meanwhile, 37 per cent of firms reported they were experiencing reduced sales volumes.

The retail sector was particularly hard hit, with half of firms in the industry reporting reduced sales volumes and decreased profits. Also, when R3 members were asked to choose which sector they thought would see the greatest number of insolvencies this year, half chose wholesale and retail.

Commenting on the findings, R3 president Lee Manning said: “Consumers’ disposable income has shrunk, confidence is at rock bottom and the impact of this is bound to be felt. Suppliers and investors are also reluctant to take the plunge and support businesses perceived to be struggling so we are seeing more and more suffering.”

By being proactive and making the most of sophisticated and efficient time recording and data collection technology , for example, managers may be able to boost the chances that their firms will make it through these difficult times.

Of course, it is important for bosses to think carefully about what exactly their organisations need and what improvements they would most benefit from.