Many of us are beginning to feel the impact of the cost-of-living crisis, which can affect all aspects of life, especially if you have a business to run. Small changes to the way you operate, such as identifying alternate suppliers, and putting energy saving measures in place can have a significant impact on your overall costs. Our business experts can suggest some ways you can streamline your business and reduce your costs to help you navigate this difficult period.
1. SHOP AROUND FOR SUPPLIES AND SERVICES
If your business operates within a competitive industry, there will be no shortage of suppliers for important resources. There will also be numerous companies offering key services such as insurance or business bank accounts. It is worthwhile to shop around for your most essential supplies and services, as you can enjoy numerous savings and benefit because of switching. Why not check monthly to make savings where you can? Some companies will even offer a discount or bonus if you switch from a competitor, so it is important to keep up to date.
2. REDUCE ENERGY USAGE
For business owners that have their own workplace, the costs that come with this can be high. Powering your workplace can use a lot of energy, so it is particularly important to save on these costs where you can due to the ongoing energy crisis. A thermostat can allow you to closely control the temperature, turning it off and on when necessary, so that no energy is wasted. You can also use energy saving light bulbs to use less electricity, or tighter window seals to keep heat in your building for longer. These changes require little effort but can be highly effective.
3. SAVE ON EQUIPMENT
Not only is saving energy important for reducing your costs, but you can also save on equipment too. You may find paper waste is a problem with your business, but simple measures such as printing double sided or reusing wastepaper for notes can make a big difference to your costs, as well as your carbon footprint. If you need to replace any tech or equipment in your workplace, consider buying lightly used items instead. They can cost significantly less than new whilst still serving the same purpose.
4. AVOID LATE PAYMENT PENALTIES
Depending on the industry you operate in, it is often the case that you can incur penalties on invoices paid later than agreed. If you have numerous creditors, it is worthwhile to organise these invoices and ensure that you pay them on time, or even earlier than usual to avoid any penalties. This can also help to improve your relationship with your creditors for the future.
5. ENSURE YOU ARE TIME-EFFICIENT
At times like these, it is essential that you and your employees are as productive as possible, and procrastination is minimized. Look into different strategies or software that you can implement to ensure that you can increase productivity throughout your company. Organizing your diary effectively or monitoring employee activity can help you to discover ways of being as efficient as possible and maximize margins.
TOP TIPS FROM OUR ACCOUNTANTS
- Pay all your business expenses on one business card so you are sure to include them – odd expenses often get missed in the day-to-day running of your business.
- Keep a record of cash expenses and receipts either electronically or as a hardcopy, as these are usually tax deductible.
- Take the time to shop around and review/compare all insurances and try to get a better quote – you can often save money this way.
If you would like assistance with cost-cutting measures to help you streamline your business, speak to the experts. Our team at TT Accountancy can offer their advice and expertise to you, helping your small business navigate these challenging times. Our wide range of accountancy services can help you to reduce costs and effectively plan for the future. To discuss your requirements with us, give us a call today on 020 3974 1266 or email email@example.com to find out more about how we can help you.