It All Adds Up: Simple Tips to Effectively Reduce Business Expenses
The trends, insights, and solutions you need to grow your business.
By signing up, you’re subscribing to our monthly email newsletter, The
Wire. You may unsubscribe at any time.
Are you ready to cut costs where it counts and give your bottom line a boost? Here are some helpful tips that can save you in the long run.
Go From Paper to Pixels
Regularly printing out memos, invoices, and other paperwork may not seem costly, but it can all add up to a sizeable expense. Going paperless by storing more documents in the cloud or on your network or hard drive is a simple way to reduce this. And you can always print a paper copy if you need to.
Additionally, storing your documents digitally reduces the need for large filing cabinets. Fewer cabinets could lessen the need for square feet, allowing you to move to a smaller, less expensive space.
Buy Refurbished and Energy-Efficient Equipment
If your business relies on task-specific pieces of equipment, consider purchasing refurbished items before paying top dollar for something brand new.
According to entrepreneur.com, you could save up to 50% off the selling price of new equipment. In some cases, refurbished purchases will also come with a warranty that protects you should the piece have any defects.
If you occasionally use big-ticket items or machinery, you can cut costs dramatically by renting. Not sure if you should? Associated Training Services thoroughly outlines the pros and cons of renting here.
On the other hand, sometimes buying brand new can save you money in the long run. Appliances such as air conditioners and refrigerators significantly impact your electric bill more than you think, but not all items are created equally.
Buying a new, energy-efficient model may cost you more upfront, but the savings add up year after year. When shopping, remember to read the energy guide label and compare the annual energy consumption of several different models to make sure you find the appliance that fits your budget and business. Even energy-efficient light bulbs can reduce costs over time.
By carefully choosing to spend your resources on refurbished items and energy-efficient ones, you can cut costs where it counts and watch your savings add up.
Shop for Financial Services, Like Banking and Taxes
Shop around for a business bank that fits your needs. If all you need is a business checking and savings account, don’t pay extra for treasury management services you won’t use.
When it comes to financing, consider your bank’s offers but don’t rule out alternative financing methods, like crowdfunding, if your bank can’t deliver favorable rates or terms.
The same shop around rule applies when it comes to tax help. Find a resource that fits your business and budget, even if it’s an online software package like Turbotax or H&R Block, and keep a keen eye out for potential tax write-offs. The range of tax-deductible business expenses is considerable, and taking advantage of as many of them as possible can make your taxes more affordable.
Downsize Your Office Hours
Depending on the type of business you run, you may be able to save money just by staying out of the office. Consider reducing office hours and opt for a hybrid work-from-home option instead.
You may even find you don’t need an office, and cutting this cost can significantly impact your bottom line.
If this isn’t an option, small reminders to turn off lights and appliances when not in use are a great way to keep utility costs at a minimum. Simply reducing personal waste and maintaining a clean space may allow you to change your cleaning schedule to every other day.
The Bottom Line
Cutting costs where it counts is a gradual process. It may take time to see the benefits to your bottom line, but don’t let that discourage you from making changes. Whether you run a new or established business, the tips recapped here can help you start saving money now:
• Reduce paper, ink, and storage needs by storing documents digitally.
• Buy refurbished or used equipment from reputable sources.
• Consider energy-efficient appliances that save you money in the long run.
• Shop around to find the best bank and tax help and be open to alternatives.
• Make the most of tax-deductible business expenses.
• Downsize your office hours and go hybrid or completely remote