Interest rates rise doesn’t concern SME owners

accounting and tax management manchesterThe predicted mid-2015 interest rate rise doesn’t concern 78% of the small business owners that took part in research by ICAEW (The Institute of Chartered Accountants in England and Wales).

The report produced by ICAEW found that SME owners are confident their businesses stand in good stead, 40% of small business owners expect their turnover to increase during 2015 and only 15% are expecting a decrease in their profits.

A further 86% of SME owners say that they have no intentions of borrowing money for their businesses either as they have cash reserves which they hope will shield them from the rates rise.

The report also raised some worries of SMEs around the UK, 46% of owners see the current economic climate as a challenge for their business. Despite confidence over surviving the interest rates rise SMEs have concerns over other areas of their expenditure and how they will effect the future of their businesses.

Over a third of the 500 SME owners that took part in the survey think that the priority is to reduce the rate of Tax in order to help their businesses grow, which they say is a priority of the next government in 2015.

Research also found that 74% of small company owners aren’t expecting to increase their headcount in 2015, this suggests that only a small percentage of owners are anticipating that their business will expand leading to an increase in number of employees.

Overall the findings from the survey were positive, showing growing confidence for SMEs however business owners still feel that there are areas for improvement for their companies to work at their best.

If you need advice about the future interest rate rise or any financial problem for your business MCC Accountants can help you, we work with sole-traders, partnership and limited companies delivering services tailored to their specific needs such as accounting and tax management. For more information call us on 0161 707 1500.

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