Every cent is vital especially when you are starting up or still trying to establish your SME. It is best to know these tips early to give your company a head-start in saving money, but it is never too late to begin as well. Look through and see how many of these business money-saving tips that you are aware of or have been implementing at your company:
- Record every expense
This not only helps you to pinpoint the ‘little’ expenses that can actually add up, but you could also stand to maximize your company’s tax reliefs by identifying what’s deductible. Make tracking easier by using your business credit card for company expenses if you have one, refer to your accounting software that should already have records of invoices paid, and store scanned copies of receipts for expenses paid by cash.
- Check your payroll
Review if your staff’s pay, including your own, are in line with the market rate. Note if there are frequent claims that should have been one-off, such as overtime, as these expenses are at risk of busting your budget. Also, ensure that payroll taxes and employee social security protection benefits are paid diligently to avoid possible penalties.
- Record income accurately
This might be a no-brainer, but it is easy for cash injections such as loans to slip pass. A good accounting software would be able to help you to track all incoming money, which not only gives you a clear overview of your company’s financial health but also assists your company in being tax-compliant.
- Use an accounting software
This is the final tip, if it isn’t obvious enough by now how accounting software help businesses. Most small companies attempt to reduce operating expenses by delaying getting an accounting software until the business grows bigger with more intricate accounting. While you could possibly manage your own accounts manually as a micro business, you may not realize that you actually lose in time cost. The time spent struggling maintaining expenses and income records would cause you to lose time on other activities such as business development, marketing and the actual sales.
- Stick to maintenance schedules
Machines, hardware, even systems will break down someday. Pay attention to maintenance records and take note of signs of deteriorating. By sticking to your maintenance schedule, you will pay less for repairs compared to replacing the entire equipment or system.
- Offer employee benefits
There are many staff benefits that are tax deductible such as mobile phone allowances and purchase of mobile devices. These help your company to save on taxes, while boosting productivity at the same time. Happier employees is another perk.
- Keep your expenses lean and trim
Sometimes, things don’t go as planned. No one had any inkling of the Covid-19 disease, let alone such a devastating pandemic that killed people and businesses worldwide. Figure out what’s the bare minimum that your company would need to stay afloat, and try to use that as a benchmark for your operating expenses.
Accounting and finance are never easy especially for small company owners who’d have every other aspect of the business to manage. From the list above, do what you personally can, and enlist the help of an accounting software and/or even a short term professional accountant or bookkeeper to review and advise on your company’s financial records.