Now that the January tax deadline has passed, LWA are helping clients to focus on some of the key trends that businesses will have to navigate this year including economic volatility, the continued importance of environmental sustainability, geopolitical uncertainty and AI moving into the mainstream. In their latest blog below, they provide advice on how to navigate the predicted trends and how to implement business objectives for a successful year ahead.
Economic volatility will remain a risk in 2024
The higher interest rate environment will continue to make borrowing expensive for businesses in the short to medium term. Rate cuts are on the horizon but a significant reduction in interest rates in 2024 is unlikely. The global economy faces the prospect of slow growth this year as businesses and consumers continue to grapple with ongoing cost pressures. Business cashflow will also likely be affected this year following HMRC’s decision to change how business profits are taxed.
Geopolitical uncertainty will remain a key challenge this year due to the upcoming UK general election and the US presidential election. This, combined with the continued war in Ukraine, tension in the Middle East and a slowdown in the Chinese Economy could make for a challenging year.
Environmental sustainability is very much on the radar
At the COP28 meeting last December, progress was made on the new collective quantified goal (NCQG), which builds on the $100 billion pledged by developed nations to finance climate mitigation and adaptation initiatives in developing nations. Global targets to increase the capacity of renewable energy sources such as wind and solar power were also agreed. Businesses across the world will need to play their part – read our blog on how you can become a more eco-friendly business.
Businesses can easily implement AI tools
As AI moves into the mainstream, it will drive efficiencies across various different business sectors and has the potential to turbocharge the digital economy. As AI technology is deployed into real-world uses, it will drive considerable change. Tech companies will benefit hugely from this but the potential for businesses to benefit is very significant in that they can utilise this technology to drive efficiency and increase profit margins. New tools are already coming on stream, and this is likely to accelerate as the year progresses.
To find out how AI can have a massive positive impact on your business including helping to improve cashflow and to make informed business decisions using easy-to-implement accountancy tools, take a look at our blog: Can AI chatbots do my accounts?
Setting business objectives for a successful 2024
The beginning of the year is a natural point in time to take a step back from the day-to-day aspects of running your business and spend some time thinking about what success looks like in 12 months’ time. What do you want your business to achieve and how are you going to get there?
Start by reaffirming your business's core values and mission
Strategic objectives should seamlessly align with your firm's overarching vision, creating a roadmap that resonates with both your team and your customers. This alignment fosters a sense of unity and clarity, ensuring that every step taken is a purposeful stride towards your business goals.
Conduct a thorough analysis
The business landscape is ever-changing, and staying ahead requires a keen understanding of market trends, consumer behaviour, and emerging technologies. Conduct a thorough analysis to identify opportunities and threats, allowing your strategic objectives to better align to key market trends.
Engage with your stakeholders
When setting objectives for the year, its best to engage with your key stakeholders including the management team and your employees (in larger firms, it’s more practical to take soundings from a few employees, or perhaps conduct a firmwide survey to gather feedback). Taking a more collaborative approach will help you to get buy-in to the objectives from across the firm as your team of people will have a sense of ownership of the firm’s strategy. In addition, inviting people from across your business to contribute their ideas taps into a more diverse pool of perspectives which can offer valuable insights that may shape the strategic direction of the firm’s objectives.
Set realistic goals
When creating the firm’s objectives for the new year, it’s important to set realistic and measurable objectives, complete with key performance indicators (KPIs). Tangible metrics keep your team focused and motivated, providing a clear framework for assessing progress. This data-driven approach ensures that your strategic objectives are not just lofty aspirations but achievable targets that propel your business forward.
Involve your employees
Once you have set out your objectives for the year, think about how to communicate these to the wider business. It can be helpful to run a kick-off meeting where you take the team through the new objectives, delegate tasks and ask the team for feedback. It’s important to maintain communication throughout the year, in order to keep everyone focused on the firm’s objectives, so create a plan to deliver monthly progress updates to your team.
LWA are here to help your business succeed
Whether you are looking to maximise tax reliefs or implement AI tools to more effectively manage your accounts, the LWA team are able to assist with our widely acclaimed expertise. Contact them by email to mail@lwaltd.com or give them a call on 0161 905 1801 in their South Manchester office or 01925 830 830 in Warrington. To receive monthly advice sign up to their newsletter and follow them on social media from their website here, where you will also find lots of useful information on their blog page, and, where you can also use their AI Chat feature!