When you’re running a business, there are always going to be costs.
What those costs are will vary depending on your business. Whether it’s energy bills, software subscriptions, wages, or something else, your expenses are never going to be absolutely nothing.
But when you consider that 80% of all businesses fail because their costs are too high, it makes you realise the importance of keeping on top of your business’s costs.
While you may never be able to avoid all of your business costs, there are probably going to be some that you can be reduced, and others that can be cut altogether.
With prices on the rise all around, we wanted to take a minute and give an accountant’s perspective on how you could cut your business costs.
Embrace technology
These days, there’s a software of program that you can buy that will simplify virtually any process you have. And usually, when something is simplified, it means less time spent doing it.
For example, we encourage clients to use cloud based accounting, as it automates a lot of processes and means less work all round.
By cutting the workload on necessary but time-consuming tasks, you’ll have more time in your day to focus on the things that you do well and will help you being in more business.
Outsource
Another way to give yourself more time to focus on what you’re good at is to outsource. There are thousands of agencies and freelancers out there who are chomping at the bit to do those tasks that you absolutely dread.
So if you’re a website designer, outsource your billing so that you can focus on building websites.
And if you’re a PT, outsource your social media management and focus on providing a personal training service.
Take advantage of outsourcing and you won’t have to waste time on those tasks that aren’t directly a part of you providing your service.
Consider remote working
While there are some businesses that just can’t function if they let their employees work from home, there are many out there that can. And thanks to the ol’ pandemic, we’ve seen proof that remote working can make workers even more productive.
By getting rid of or downsizing your office space, your business could save a large amount of money every month on rent and utility bills.
Conduct regular expense audits
One of the main issues with a business’s costs is that often, a business isn’t actually aware what its costs are.
Similar to when you realise that you’re still paying for Netflix when you haven’t actually used it for 6 months, a business can easily forget to cancel payments on things that it no longer needs.
By conducting regular expense audits of your business, you’ll be more aware of what your costs are, and hopefully, you’ll start noticing which costs can be reduced or cut out altogether.
Optimise tax planning and incentives
There are so many ways that a business can take advantage of tax allowances and incentives to save money on their tax bill.
But many business owners aren’t aware of how to do this, which is unsurprising. Why should a baker or a dentist know the ins and outs of tax legislation?
That’s why it’s worth talking to an accountant about how you can optimise your business’s tax allowances.
Getting professional assistance
If you’re serious about cutting your business’s costs, but aren’t really sure where to start, we highly recommend seeking an accountant’s advice.
They can carry out your audits, make you aware of any tax allowances that you can take advantage of, and help you find costs that can be cut.
Want to find out how we can help you cut your business costs?
