With UK inflation reported last month at 10.4%, increasingly small businesses are finding things increasingly difficult. Here are some tips to help!
Small business money saving tips
1 Reduce your printing and postage
Most people nowadays prefer an email to a letter, it gets there quicker and is more efficient. Evaluate what exactly needs to be printed and or posted and reduce where possible. It may be worthwhile investing in technology that given time will reduce your costs such as secure document exchange portals and online approval of documents.
2 Utilise technology for meetings
Few people had heard of Zoom and Teams meetings before the pandemic but now they are part of everyday business life. Whilst often nothing can beat a face to face meeting, many shorter less important meeting can be arranged electronically. Not only does this save travel time but also reduces the escalating cost associated with travel.
3 Shop around for suppliers
When was the last time that you compared prices? Whilst cheaper is not always better, have you recently reviewed suppliers to make sure that you are getting the best value for money?
4 Review subscriptions
Many small business owners sign up for subscriptions and never review them or consider if they still value them. Check your regular bank payments, do you know what they are all for and do you really need them?
5 Switch to a sim only mobile phone deal
Do you need the latest handset? Or once you phone contract has ended are you happy to keep your phone? By switching to a sim only deal you can save lots of money with the majority of many monthly phone charges going on purchasing the most up to date handset. Whilst you are at it, check that you are actually using all the bundled data allowance, again by reducing it you may be surprised at how much you will save.
6 Make sure that you are paying the correct amount of tax
Have you claimed all the correct allowances? Are there other expenses that you could claim for? Is your current business structure right for you? What is the most tax efficient way you should be extracting profit form your business? If you can’t answer these questions, a good accountant will be able to help you!
7 Buy local
Are you strengthening your local economy by buying local? A strong local economy could help your business. Also, by supporting local businesses they in turn may support you!
8 Use budgets and forecasts
Business plans and forecasts should not just be produced when you want the bank to support you! Regular and up to date planning will help you navigate the current environment of increasing costs. It helps you really understand your business and makes you consider the impact of spending. There are many approaches to small business budgeting and forecast this is something an accountant can help with.
9 Go green
Not just for the sake of the environment but to save money too! Is your business burning money with poor office insulation? Can you save money by moving to green technologies? What about an electric car or van? Often there can be grants and tax incentives to adopt green technologies.
10 Review your banking options
Bank charges and interest can be a significant cost for small business. Especially with increasing interest rates. Can you get a better deal? Which is best for your business an overdraft or loan? What affects your bank charges? Also, don’t forget credit/debit card charges. Most people pay by card nowadays and machine provider costs can vary substantially.
Looking to discuss any of the above tips on saving money for small business, then we would be pleased to arrange a chat.