Five ways your small business can save money
Posted: Jun 10, 2016
Let’s face it; all businesses want to reduce the amount of money they spend so that they can invest this cash in other areas of their business or simply improve the level of profit they are making. However, this can often be a lot easier said than done. You don’t want to compromise the success of your business by making cuts in areas that are going to be detrimental to the way you work and the service or products you provide, or worse still, making a fundamental mistake that leads to debt, such as using the wrong tax code. With that being said, read on to discover five ways your small business can start saving some money.
Consider outsourcing – If you don’t already, you should consider outsourcing certain parts of your business. There is no need to run everything in-house. This is especially the case when it comes to parts of your business that are not core to the service you provide. For example, one area where outsourcing is definitely worth its weight in gold is in regards to marketing. You may also want to outsource the likes of IT and data entry or research.
Hire a chartered accountant – One of the best ways to grow your business
- maximising its profit levels and reducing expenditure is to hire a top quality accountant. Look for a company that provides advisory services. You want them to go above and beyond the standard bookkeeping and tax services. They should be able to analyse your financial data to spot opportunities for growth while they should also provide you with cash flow reports, budgeting reports, and such like that will help you to get a clearer view regarding the financial health of your business and where changes need to be. Please note, you should look for a fixed fee accountancy service, as this will help you to budget better.
Improve your energy efficiency levels – If you improve your level of energy efficiency, not only can you expect to make substantial cost savings, but also you will boost your reputation too by enhancing your environmental policy. This is something a lot of customers are conscious about nowadays. The Carbon trust has revealed that there is about £300 million in terms of savings to be made by embracing new measures to cut down enormous energy costs. This can certainly be one of the biggest overheads.
Reduce the amount of money spent on hiring – You should consider lessening the amount of money you spend on hiring personnel, as this can be exorbitant for small companies. So, how do you reduce the amount of money spent on this area? You need to think outside of the box. First, assess the need for the position you are considering hiring for. If you deem it to be imperative, why not employ from within instead?
Assess how much tax you pay – Last but not least, you need to make sure you are not paying too much tax. This is something your chartered accountant in London will be able to assist you with. You would be shocked by how many business owners are paying way too much tax.
The author has written and published articles on a wide range of topics including Small Business Advice, Tax and Accounting, Interior Design, House Renovation and Project Management.