By: Kristen Gramigna
For the small business, saving money is about more than increasing profits; it’s about survival. That’s why finding ways to cut costs and reduce inefficiencies is such an important part of your job as an accountant—helping your business save money means helping your business succeed. So with that in mind, consider these 10 strategies designed to save your company important cash flow!
- Track Everything: Nobody knows better than accountants how important detailed records can be. So make sure your company is tracking all money that goes in and out of its accounts. Keep track of who’s spending what and why—This will allow you to prevent unnecessary spending quickly and easily.
- Go Paperless: Even a small business goes through a great deal of paper from month to month—and that’s an expense not just to your pocketbook, but also to the planet. Take a step that is eco-friendly and will also save you money—go paperless! Offer emailed receipts, invoices, online statements, etc. Taking your company digital can add up to a great deal of savings over time.
- Outsource Where You Can: For most companies, employee costs (salary, office space, insurance, etc.) are their biggest expenses, which means finding ways to reduce the costs of staffing is one of the fastest and most powerful ways to cut overhead. Before taking on new employees, ask yourself where your business could outsource work to save money.
- Carefully Manage Employee Spending: Giving your staff members a free pass to charge anything they like to their expense accounts is a recipe for disaster. Instead, set clear guidelines and limits on how much your employees can spend, and keep track of charges in order to catch abuse early.
- Eliminate Time Wasters: You know what they say: “Time is money.” Find ways to reduce the amount of wasted time at your company, and you find will ways to cut costs. Some ways to do this include eliminating unnecessary meetings and implementing task management software, in which employees log their work hours and projects accomplished.
- Choose the Right Credit Card Processor: Any company that accepts credit cards has an opportunity to reduce expenses by shopping around for credit card providers. There are many different processing options on the market, each with different features and costs. Look for one that offers high security, high convenience, and affordable rates.
- Choose the Right Business Insurance: Another product worth shopping around for is business insurance. Rather than picking the first one you come across, take time to research options, and avoid buying more insurance than you need, as this will increase your costs.
- Lease Instead of Buy Equipment: Rather than putting up hefty cash for company equipment, consider leasing. By leasing, your company saves upfront costs, as well as any associated repairs and upgrades that come up over time. What’s more, leasing makes it easier to switch equipment, and/or rethink processes for greater efficiency in the future.
- Take Advantage of Social Media: Marketing is a big expense for companies, but it is an important one. Yet, not all marketing efforts are costly ones. While it does take a time investment, social media is free to use, and it offers a great deal of potential for building an audience. Talk to your CEO about finding ways to make the most of this online marketing opportunity to promote your business!
- Maximize Your Write-Offs: Every business looks to its accountant to find the best ways to reduce hefty taxes. One big way is through write-offs: encourage your company to donate old computers or office equipment, give to charities, and so on.
When it comes to saving your business money, every little bit helps. So put the above steps into action, and help your company reap the rewards!
Kristen Gramigna is Chief Marketing Officer for BluePay (www.bluepay.com), a credit card processing firm offering different options for credit card machines. She brings more than 15 years of experience in the bankcard industry in direct sales, sales management, and marketing to the company and also serves on its Board of Directors.