5 Ways to Lower Your Business Expenses

5 Ways to Lower Your Business Expenses
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For small businesses, worrying about expenses becomes second nature. After all, it can take just one client paying a few weeks late and accounts payable mounting to cause some serious cash flow issues.

But if you pay attention, there are a few places where it’s fairly easy to cut your costs and increase your profits.

1. Cut the (Telephone) Cord

Think about it: how often do you or anyone in your office actually use the landline? I’m betting you prefer your cell phone. Your contacts are already stored there, and it’s portable. That landline phone is just taking up valuable desk space and costing money you don’t have to spend.

Cancel your costly phone plan. Even paying for your staff’s cell phone subscriptions will likely be cheaper, and you can offset more of those costs by using Skype for free or low-cost calls around the world.

2. Save a Stamp

Writing physical checks and sending them in the mail is so last century. With online billpay and electronic payments, there’s no reason that stamp should come out of your bank account. Many banks offer payment processing within days, so your vendors can get paid faster than if you sent a paper check. And electronic payments mean you can pay anyone in the world digitally.

Don’t forget all the stamps you waste mailing invoices too! At InvoiceSharing, we figure we’ve rescued a forest or two from destruction with our e-invoicing services, and we’re pretty proud of that!

3. Look for Small Business Pricing

Not every software platform is designed for small business. Some, like Salesforce, are geared more for enterprises, and are priced for them too. When shopping for software — be it accounting, CRM, email, whatever — look for brands that cater to small businesses. You’ll often find free or very low-priced options. For example, email marketing platform MailChimp has a totally free account that’s more than adequate for most small businesses. Put the money you save toward something else.

4. See What You’re Spending

If it’s been a while since you paid attention to your expenses, you might be shocked to see where your money is going. Plan to review your P&L a few times a year, and identify areas where you might be able to cut costs. For example, your Internet service provider might be able to reduce your rate if you call and plead your case, or you might save on office supplies if you buy larger quantities at once. At InvoiceSharing we offer easy to use spend analytics apps that help you to analyse your invoice-data in detail. Understand where the money goes in detail!

5. Shop Around

Remember: you’re not tied to a vendor for life. It’s always a good idea to see what other vendors or stores charge for the things you buy. And if you have increased your order of an item, you can also negotiate with your existing vendors for a lower bulk rate. Everything is negotiable, and if it isn’t, start shopping somewhere else.

Having a handle on your finances is the first step to cutting your expenses. There are other places you can save too: allowing your staff to work from home rather than renting expensive office space, or cutting out the gourmet coffee in the break room. A few snips here and there, and your small business will be floating high again.

Drs Jeoren Volk RA

CEO

InvoiceSharing


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