There’s something deeply satisfying about picking through your accounts and considering where you might be able to save a dollar or two. In your personal life, this might mean canceling subscriptions or avoiding that morning coffee in your local shop. But in the business world, these decisions carry more weight: they’re about contracts and fees that amount to thousands of dollars per year – dollars you could instead be pocketing in profit. In this guide, we’ll take you on a whistle-stop tour of your accounts, showing you where money can be saved across your business.
Opening the Books
Let’s get started then, by diving into your accounts. If you cover your accounts yourself, you’ll already know them in some detail; if you have an accountant or a financial department managing your funds, this is the time to bring them into a room and to set out your objectives. They are, broadly, there to find out what your overheads are each month, and to find ways to keep generating the same productivity while reducing costs. It’s not eye-of-the-needle stuff – you’ll quickly unearth ways that you can scrimp and save in most areas of your business.
One of the quickest group of costs to locate are those that relate to monthly bills. You’ll pay monthly for instance, for your:
- Rent for your office or retail space
- Bills for your utilities, such as electricity and water
- Subscriptions to technology products that keep your business ticking over
- Wages for your staff
All of these costs can be reduced. Your commercial rent can be renegotiated – and you could look into relocating if you’re unable to secure a better deal. Your bills can be reduced by leasing with firms such as Business Water Quotes, which help you secure the best deal on your monthly utilities. Software packages can be deselected where they’re not productive, and you’re always able to make ruthless cuts to your staff if you feel they’re necessary for your firm.
Then there are the costs that are less predictable. Here, you can think of business trips that happen once every three or four months, or those costs associated with restocking on essential materials like business stationery and laptops. These might fall into miscellaneous items as far as your accounting is concerned, but they actually constitute a very real, very reducible source of financial loss. Pay attention to these costs, and break them down, in order to work out if value for money is being delivered – or if you’re losing money hand over fist in these transactions.
Finally, there’s something to be said for taking another look at your contractual obligations and what you’re paying clients, suppliers and other business partners for their services. You can never be completely sure that you’re getting the best deal in these partnerships, and the truth is it’s likely that you’re not. Feel free to shop around for cheaper, better-value options in order to save cash on your contracts this winter.
Use these tips to carefully adjust your payments to make your firm more efficient to run.