With the cost of living crisis hitting businesses hard on the bottom line, it is a good time to be looking at ways to save money. The following tips will help you reduce costs, without compromising on service quality or client care.
Before we begin, it’s a good exercise to note all your business expenses, so that you can see at a glance where the particularly high costs lie, and where you might be able to cut back.
All done? Great, let’s get started.
Run a review
Take a look at your subscriptions. Is there anything you’re paying for that you’re not using? Is there a cheaper version you could switch to that would give you better value for money?
Many businesses are surprised when they discover how much they are spending on things they are not using.
Try to renegotiate
There is merit in trying to negotiate better rates with your suppliers. Utilities, stationery, equipment, software and support services are all areas for potential savings, all you need to do is ask.
Before you make those calls, take a look at what alternative suppliers are offering price wise for the same level of service. If you see better deals, you’ll have a solid foundation on which to base your requests.
Even if you can negotiate a short term discount, it will help.
Sell what you’re not using
You may have equipment that you just don’t use any more, or old machines or furniture sitting in the basement that you replaced ages ago. All these items have potential to earn you money.
So gather together anything you don’t need any more, photograph it, and list it on an online marketplace. With the current economic pressures, other businesses will be on the lookout for pre-used items to save themselves money.
Downsize or switch to remote working
Do you have excess, unused space in your office that you’re just not using? Moving to smaller premises, or relocating to an area with a lower real estate or rental price per square metre, could land you considerable savings.
If some of your team could work remotely, you could reduce your need for office space. If all of your team could work remotely, it may even be possible to cut out the need for office space altogether.
Remote working setups are very sophisticated these days. IT and communications offer seamless integration, keeping teams together via the cloud, and allowing calls to be made and received via your regular office number.
The right expertise has the potential to grow your business. If you can’t afford to fund it in-house on a permanent basis, why not outsource ad-hoc?
Outsourcing via freelancers means you can pay for what you need, when you need it. No recruitment or employment costs, and no long term commitment.
From marketing and event management to IT and bookkeeping, there is plenty of expertise you can bring in on an outsourced basis.
Switch it off, or smart control it
Energy costs are probably the biggest issue for any business currently, so now is the time to take control and make sure you do what you can to reduce waste.
For example, does the printer or coffee machine need to be switched on all day? Are there lights on during the day when there is plenty of natural light, or no one in a room? Is the air conditioning or heating being left on when everyone’s out at lunch?
Get everyone into the habit of switching things off that aren’t in use. Better still, investing in smart controls will automate all of this for you. Using sensors and other connected devices, smart controls will automatically switch off lights, heating and air conditioning when it’s detected that a room is unoccupied, or reaches a certain temperature or light level.
Make sure you’re taking advantage of all available tax saving strategies
A review of your accounts and tax position by a qualified accountant or bookkeeper may well flag up where you could be making savings from a tax perspective.
For example, are you making use of all available tax breaks and allowances? There are various initiatives that could help, such as employing a family member, making use of Research and Development Relief, and taking advantage of trivial benefits. We have more tax saving tips here in our small business guide to tax saving strategies.
Using the services of an accountant or bookkeeper will also make sure you meet all your filing and payment deadlines, so that you are not wasting money on fines and late payment interest.
Need help with tax saving strategies?
Whilst there are plenty of ways to make savings for your business, it is important that you take advice before you go ahead with any tax related strategies to ensure you are doing things the right way, and that your actions will be beneficial to you.
If you are looking for help in streamlining your bookkeeping processes, we are here to help. Please get in touch to discuss how we can assist.