5 Ways to Save Money on Business Expenses
Running a business isn’t easy. You want to break even, but also make more money. At the same time, you can’t forget your first priority — keeping the business running. This is why there are ways to save money on your business expenses without necessarily sacrificing the way you operate. In this blog, we will show you a variety of different tips and tricks that you can use to effectively cut costs.
Review costs in every department
A good place to start is to assess every aspect of your business that is expensed and see where costs can be cut. There is a range of ‘fixed’ expenses that you can find cheaper alternatives for — this includes your utilities, such as your electricity, water, gas, and broadband. Market comparison websites are exceptionally helpful for this, and some utility suppliers may even provide deals specifically for small businesses. As well as utilities, you may also find cheaper offerings for broadband and waste disposal.
It’s also good to consider how efficiently you are using your business’s property and the space available to you. Rather than investing in more operational solutions, the answer may just require you to simplify complex systems. Additionally, you can reduce your costs for physical supplies and stationery in a multitude of ways. You may research cheaper alternatives, such as large discount suppliers, or consider moving information online. This way, not only are you saving money but also physical space as well.
Budget and strategy
Establishing a strict budget will help you pinpoint areas where expenses could be cut, providing very important financial insight. You should practice financial discipline and track expenses diligently. Benchmark expenses on an ongoing basis and be strict about fixed costs. Accurately collecting historical data will prove exceptionally useful when forecasting and planning for financial growth. It is important to be vigilant with your bookkeeping — tracking your costs shouldn’t be an afterthought, it needs to be an integral part of your ongoing operations.
Working alongside deadlines can be overwhelming so it’s critical that you are proactive with your financial management. When it comes to tax planning, there are several deadlines you have to be aware of during the tax year and it’s important to not be late with paying taxes.
Seek tax relief
In a bid to keep the market competitive, the government provides tax relief to aid businesses with their expenses and support growth. If your business fits the criteria, you may be eligible for tax relief. If you own a small business, there is a range of tax reliefs you can apply for. For example, your business can claim capital allowances when you buy assets that you keep to use for your business, this includes equipment, machinery and business vehicles like vans or lorries.
Additionally, you may also be eligible for Creative industry tax reliefs (CITR) for Corporation Tax. This is particularly for companies that are involved in the creative industry, such as television, theatrical productions, video games or film. From office suppliers to vehicle fuel, there is a range of tax-deductible expenses you can seek relief for — some that may surprise you. There are many other tax reliefs that are designed to support businesses and, with a reliable bookkeeper, you’ll be able to pinpoint which ones work best for your business.
Switch to digital
Documenting information physically can be expensive in the long run as you need to maintain supplies of paper, ink, and other stationery. By switching to digital methods, not only are you saving on business expenses but you are also setting up your business for the future.
You can cut costs by investing in virtual technology, such as utilising cloud systems or accounting software. However, it requires a high level of skill to set up online operational systems so you may want to consider outsourcing software development.
At Wilkinson Accounting Solutions, we offer a professional virtual CFO service that provides expert financial advice for your business. We specialise in scaling businesses for growth and ensuring they are future-proof. Your business will work alongside one of our professional accountants and, with their years of experience and sharp insight, will guide you through the setup of automated accounting software and cloud technology. Through outsourced accounting, you’ll be able to cut costs on regular business expenses while paying less than you would for in-house staff.
Hire professional support (Outsourcing Your Bookkeeping and Accounting)
Sometimes just looking through your financial accounts isn’t enough. When searching for ways to cut costs, it’s helpful to find a professional accountant who has the knowledge and experience to provide financial insight that you wouldn’t be able to notice yourself.
At Wilkinson Accounting Solutions, we are an accounting firm that specialises in business accounting and we have provided dependable advice to hundreds of businesses across the UK and internationally. We offer our services to all types and sizes of companies, from small start-ups to large firms. If you are interested in saving on your business expenses, learn more about our bookkeeping services by getting in touch with us today.
Strategising your budget, seeking tax relief, investing in virtual accounting technology, and outsourcing a bookkeeper are all ways you can save money on business expenses. A great way to start cutting costs is to set up a proper accounting and financial strategy, which can help you save money on business expenses in the long term.
To hit the ground running with your financial strategy, contact us at Wilkinson Accounting Solutions for expert business advice you can rely on.
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