Whether your small business remained open during the COVID-19 pandemic, if it’s just now re-opening, or somewhere in-between, it seems all are trying to find ways to save some money. Believe it or not, there are some simple yet effective ways small businesses can save. It’s important to have up-to-date and accurate bookkeeping records so you know where you can make changes and then notice the impact of their savings.
Rather than onboarding a new employee, offering benefits, and training, consider outsourcing when possible. This cuts out payroll costs, which accounts for roughly 70% of a business’ expenses. By keeping your payroll costs low, you’re saving money. Outsourcing will typically be a lower cost than hiring a part-time or full-time employee.
Cut out rent entirely by either staying remote (if you already are) or going remote (if you haven’t). Rent is a consistent expense that could be crossed out entirely. Many businesses have gone remote during the COVID-19 pandemic and have even sold their physical locations, thus cutting monthly costs instantly.
Don’t be afraid to ask for vendors for a discount. If you don’t ask, the answer will always be no. It may not be a drastic discount, but the little savings will add up overtime and help save some dollars along the way.
Many companies now offer a paperless billing “green” option, which typically comes with a monthly discount. Once again, this may seem like a small savings, but it’s an easy and free way to make a difference. Plus, you’re helping the environment!
Cut extraneous costs.
Take some time to sit down and look at your expenses for the last several months - in detail. If the expense is not absolutely necessary, see if it’s feasible to scrap it entirely. Spend smart to save - if it’s not vital, go without it. You’d be surprised how many extraneous costs businesses can have.
Consider making any of the above changes in the coming weeks and months. Be sure to continue keeping up with your books so the next time you sit down, you can see exactly how your changes are making a difference. Good luck saving!