Accounts software can help firms weather credit crunch

News Article - Wednesday, April 30, 2008

filed under: Business

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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.

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