How To Reduce The Running Costs Of Your Business
Making savings to reduce the running costs of your business could be ‘make or break’. Figures suggest that the number of companies going bust this year could be the highest since the financial crisis of 2009. Statistics also show that insolvencies rose 10% from a year ago in the three months to the end of September and there has also been a sharp increase in the number of firms at risk of going bust. Before your company falls into this category, it’s worth considering how you can save monies. In this latest article from team4 bookkeepers, based in Sussex with worldwide clients, we look at eight things you can do that could dramatically reduce your overheads.
- Explore alternative business premises
Could there be an alternative to the long-term commitment of renting office space? If you are not fully utilising all the space you have at your disposal, you might consider downsizing. You may not need that large office anymore as you are now outsourcing your marketing and bookkeeping, so maybe a space half that size would suffice. Perhaps a co-working arrangement might work for you or could employees work from home? In the latter scenario, you could save rental fees and the associated costs of a physical building, saving you a packet.
- Check regular outgoing payments
Do you know what you are paying for every month? And if so, do you need everything that is going out of your business? To reduce the running costs of your business, it’s time to pull the plug on unused services. These could include subscriptions or networking fees or software apps that are never used. You can check with your team to see if services are still necessary. With software, consider downgrading to a free version. It really is easy to lose track of payments particularly if made by recurring payments such as on your credit card or direct debits. Here at team4, we think you will be surprised about what you are paying for that you don’t need.
- Are you getting the best energy tariff?
If you are not tied into a contract, find out if you can get a better deal. It’s worth checking a few companies to see the best contract terms available. On top of this, you may be able to make savings on the energy you use to reduce the running costs of your business. Turning the thermostat down by a degree or two can save a lot and your office does not need to be heated when you are not using it.
- Could you get a better deal on your mobile telephone and Internet?
When your mobile and Internet services are due for renewal, check out other deals, as there are some really good ones out there. Some suppliers have deals on the number of phones that you use. We recommend that you don’t automatically renew services including mobile phones, business insurance and broadband contracts. Renegotiate every year to make sure you are getting the best price.
- Shop around for the best price on supplies
You could be making savings on software and general office stationery. Buying in bulk can be a good option if you know you will use/sell the stock. You may find that there are some good deals around traditional sale times including Black Friday later this month (24 November) and Cyber Monday (27 November). Also be on the look out after Boxing Day and New Year.
- Go paperless to save oodles on printing costs
To reduce the running costs of your business, consider moving completely away from any paper documentation and go completely digital. Going paperless can really save you money and so encourage your team to only print out documents only when essential.
- Draw up a budget and stick with it
This will help to identify areas where you can make savings. Your budget can be based on your average income per month and our tip is underestimate income and overestimate spending. This is applicable irrespective of the size of your business, from start-ups to growing businesses.
- Get the best professional advice
Make sure you are getting the best advice from your bookkeeper and/or accountant. Tax relief is available for small to medium sized businesses. And don’t miss out on tax-deductible expenses across a wide range of categories including office supplies, uniforms and vehicle fuel.
How can team4 help you to reduce the running costs of your business?
In these tough times, we hope you have found our latest article about how to reduce the running costs of your business helpful so that you can lower some of the expenses and overheads associated with running your business. Here at team4 our aim is to support you by optimising your expenses, keeping close tabs on your spending and helping you set budgets. If you are looking to work with a bookkeeping team with a proactive approach and your interests at heart, please get in touch. We can help you with ways to improve your cash flow and ways to get your clients to pay on time. Call us on +44 1825 763378 or +44 1903 442511 or email info@team4bookkeeping.co.uk
