With everyone beginning to feel the full effects of the cost-of-living crisis, business owners are constantly looking for ways to reduce their spending whilst continuing to operate at full capacity. Reducing your outgoings will depend largely upon the industry you operate in, and how essential your operating costs are, but there are multiple different ways you can make changes to your business to cut your spending. Supply expenses and production costs are two of the most significant outgoings for most businesses, so reducing these can help you take steps in the right direction. Allow us to offer you some ideas.
Utilising alternative technology
Your business will most likely use multiple different types of software or programmes to help you to operate in the most efficient way possible. However, this is likely to be accompanied by costly annual subscription fees, which can make up a large amount of your outgoings. It is worth carrying out research to find out if the software you use is still justified or if there are better value alternatives.
If you are considering using a computer-based accounting system for the first time, we recommend using Xero online accounting software. You can also book bespoke Xero training sessions with us for all skill levels to learn everything you need to know. As gold partners of Xero we can offer clients a small discount on this software too, which will help you operate your business efficiently, by automating invoicing, minimising errors and ensuring both you and your accountant can see up to date financial information. Working smarter will free up your time. Time that will be better spent looking for opportunities and increasing profits!
Take your meetings online
Another common outgoing of many businesses is the travel costs involved in meeting clients, partners, or suppliers to discuss important matters. Whilst these meetings will be an essential part of running your business, it may be the case that they can be held online instead. There are a wide range of free online platforms that will allow you to host video calls, with screen sharing capabilities so that you can review important information collaboratively. Not only can this save you on fuel or train ticket expenses, but you can save the time of travelling between meetings.
Make your business more energy efficient
One of the most noticeable features of the cost-of-living crisis has been the increase in energy bills that homeowners and businesses have had to deal with. Looking at ways to reduce energy consumption at your business premises could help you prevent your outgoings from increasing. Why not consider installing energy-efficient LED lightbulbs or making sure you properly switch off any equipment when it is not in use to make sure that no energy is wasted. Many of us are guilty of shutting down our laptops but leaving them plugged in, which means they will keep on drawing electricity even when you turn them off.
Cut your supply expenses
Depending on the industry in which your business operates, supply expenses can be essential to delivering a high-quality product or service to clients. You may have trusted suppliers for important office supplies, or for high quality materials that help you to maintain a premium product or service. It is worth constantly shopping around to see if you can find a better deal for a cheaper supplier for these important supplies, whilst not sacrificing the quality of your service.
Train your workforce
Diversifying the skills of your workforce can help you to reduce your future outgoings. Possessing this in-house expertise will mean you will not have to recruit another employee to do this specific job, and your employees will be able to adapt to these circumstances in future. Despite this initial cost, it can be a worthwhile investment to reduce your outgoings as you plan to grow your business.
These simple tips can help you to reduce your business outgoings in both the short-term and long-term. If you require assistance with managing your cash flow and reducing your expenses, our team at Bells Accountants can help. We provide our support to start-ups and small businesses to help them manage the early stages and grow. To discuss how we can help your business, give us a call today on 020 8468 1087 or email .