How small businesses can save money

Business, Finance - 20/10/2022

With huge energy bill increases and overall economic uncertainty, most of us are looking for ways to tighten our purse strings. For many businesses, profits are put straight back into operating costs. 

As the cost of running your business increases, what can you do to save some money?

Do you need an office? 

How did your business manage during the Covid-19 lockdowns? Did your business move to remote working? Was productivity impacted positively or negatively? Maybe it wasn’t impacted at all. 

78% of people who worked from home during the pandemic said they enjoyed a better work life balance. Studies have also shown that workers are around 10% more productive when working from home. That said, home working isn’t for everyone. People need human interaction and collaborative work is normally always more effective in person. 

Whether or not you need an office, or could look at reducing the amount of office space you have, depends on your business and the individuals that work with you. Long term remote working or hot desking at a coworking space could be alternative options for your business. 

Whichever way you choose, reducing your office space or not having one at all is a fast way to save your business some much needed funds. 

Cut down on travel expenses

If you do need a physical space to work from, could a hybrid approach work better for you? If you and your employees are spending a small fortune on your daily commute, would it work better if you adopted a hybrid working arrangement? 

There’s no doubt your employees will be feeling the pinch as the cost of living increases. Your people may appreciate the option of working from home for a fixed number of days in the working week. 

The same goes for meetings. Is your business spending more money than it should on travel to and from meetings with clients and business partners? Could some of these meetings be done on a virtual tool like Zoom or Google Meets? We know the importance and the value of being in the same room as people, but there are savings to be made if you were able to cut back on travel expenses. 

Outsource

Bringing services in house can be expensive. The real cost of an employee goes beyond their annual salary. You need to consider the cost of pensions, national insurance, training and more. 

While some things will inevitably need to stay in house, you could consider outsourcing your marketing, payroll, HR and, of course, bookkeeping. If you want to know more about the benefits of outsourcing your accounts, we’ve got you covered.  

Review your expenses

There’s never been a more important time to keep a close eye on the books. Go through your expenses with a fine-toothed comb. Maybe you’re paying a subscription for software that you no longer use for example. Even small outgoings can quickly add up. By examining your expenses, you could find surprising ways to cut down on your outgoings. 

While bringing in new business is essential to your business growth, saving money where you can will prevent problems and keep you afloat during leaner times. 

At Numero, we’ve got flexible and affordable options for businesses of all sizes. Our bookkeeping services will help you get a clear picture of your financial situation and help you keep on top of your cash flow. Talk to us today about how we can help you.