Finance and accounting feature – South East Business

Author: Matthew Sutton CGO 

Company: Burgess Hodgson 

About your organisation 

Burgess Hodgson LLP is a firm of Chartered Accountants which was founded in London in 1938 before moving down to Canterbury, Kent in 1976 where we remain to this day. The firm provides a full range of accounting services, including statutory compliance, corporate finance and restructuring, business advisory and complex tax planning.  We have experts across the field in our team consisting of 18 Partners and around 180 staff 

The firm specialises in advising owner-managed businesses across all sectors, focusing on delivering personalised, expert advice that helps business owners make informed decisions for their business. 

At Burgess Hodgson, we recognise that whilst business owners are deeply passionate about their chosen business, they are often frustrated with the complexities of managing a business, such as navigating tax laws, regulations, and financial planning. That’s where Burgess Hodgson steps in, taking care of the practicalities so that business owners can focus on their passions. 

By combining decades of experience with a deep understanding of business ownership challenges, Burgess Hodgson helps clients thrive while ensuring compliance, financial security, and long-term success. We believe that developing strong relationships is key in delivering tailored solutions for businesses and hope that our Partner led approach makes us a trusted ally for businesses looking to grow and succeed in a dynamic environment. 

  

How would you describe the current economic landscape for UK SMEs? Are there any particular financial pressures businesses in the South East are facing? 

The current economic climate is a difficult one for SMEs in the UK, with businesses facing multiple challenges as they try to navigate a turbulent landscape. Recent changes to the National Minimum Wage, National Insurance, and the Employment Rights Bill are forcing many businesses to reassess their operations.  

At the same time, consumers are feeling the pinch. With rising living costs, many people are cutting back on discretionary spending and becoming more price-conscious, making it harder for businesses to maintain revenue. 

The Southeast is home to approximately 40% of the UK’s SMEs, and so is particularly affected by these macro factors.  For many businesses, this means making tough decisions, such as price increases, redundancies or restructuring, just to stay afloat. 

More specifically in Kent, the Garden of England, our agriculture sector faces significant challenges. With farming being a major local employer, changes to employment laws and regulations are creating problems for both growers and packers. In addition, the widely discussed changes to Inheritance Tax are prompting farmers and business owners to reassess succession and intergenerational planning.  This is not an issue that can be avoided by burying your head in the sand. 

In the Southeast, we are lucky to have a thriving tourism and hospitality sector, but these economic and fiscal changes are being sharply felt despite year-on-year growth in visitor numbers.  Footfall on the High Street is not translating to cash through the till. 

On an even more local level, in Canterbury, the rules around Nutrient Neutrality are causing significant delays in planning and construction, impacting the housing market. These delays are not only affecting the construction industry but are also hurting local businesses in town and city centres, further exacerbating the economic strain on SMEs. 

  

What is your top piece of financial or accounting advice for SME owners in 2025? 

In the current economic landscape, forecasting and reporting are more critical than ever for UK SMEs. The key is to forecast and report quickly against expectations for profit and loss, balance sheets, and cash flow. Accuracy is important, but it’s about being materially correct—precise enough for management to make informed decisions. 

While predicting the future with certainty is impossible, you should be able to know that reaching a certain sales target at a given price will ensure profitability. From there, consider the impact of fluctuations and what decisions must follow, such as reinvesting in growth or paying down debt if profits exceed expectations. 

When results deviate from forecasts, quick reporting allows for timely actions. If forecasts are exceeded, consider bonuses for exceptional performance or reinvesting in the business. If results fall short, evaluate whether you have enough funds to continue, whether refinancing is needed, or if headcount needs to be adjusted. 

Ultimately, swift decision-making is essential in today’s fast-paced environment. It’s not about complicated strategies-it’s about making the right calls quickly, even when those decisions aren’t easy. And remember, this is a team effort, and we are here to support you every step of the way. 

What’s one common financial mistake you see businesses making – and how can it be avoided? 

One of the most common financial mistakes businesses make is relying on “feels” rather than hard data. It is easy to assume that if there’s money in the bank, everything must be going well. However, this approach often overlooks or ignores future liabilities that may be looming—most commonly, tax obligations. While a positive cash balance may feel reassuring, it doesn’t provide the full picture. Businesses can become complacent, not accounting for upcoming cash outflows such as VAT, corporation tax, or payroll liabilities. These liabilities, if not properly planned for, can create financial strain when they inevitably fall due. 

To avoid this pitfall, businesses must focus on accurate forecasting and reporting. While investing time in planning and getting organised may feel like time away from the core business, by using data to track cash flow, upcoming liabilities, and profit forecasts, you can make informed decisions and avoid unpleasant surprises. Relying solely on “feels” can lead to costly mistakes, whereas data-driven decisions help ensure long-term financial stability, ultimately saving time and finding you that extra productive hour in the day. 

Please feel free to include anything else you think may be of interest to our readers 

To follow the cliche – knowledge is power. It is easy for small businesses to fall into the trap of setting statutory compliance requirements as the goal for recording and reporting information. Data and the analysis of it is extremely valuable and crucial for making informed decisions.   

Production of good information is much cheaper than it used to be, with automated bank feeds being standard for most banks and accounting software.  There is still a cost of production of this information, but it is much cheaper than making wrong or slow business decisions.