Expenses have a significant impact on businesses. According to statistics, 80 percent of small businesses fail in the first 18 months. But, you don't need to sacrifice services or strip the office of equipment to run a profitable and efficient operation. Here are some simple techniques to reduce common office expenses.
Does your business really require everything in hard copy? Reliance on this format harks back to the days of analogue record keeping. Nowadays, digital systems such as those hosted in the cloud, are far more reliable.
By keeping digital copies, documents can be easily sent, stored and accessed at any time. Critical documents such as insurance documents, employee records and safety reports should be kept on file, but identifying what clutter can be disposed of can reduce costs.
To save on energy costs, consider powering down equipment when it is not needed, such as printers, copiers, computers and even coffee machines. Remembering to completely shut off appliances when not in use can save around a third on electricity expenses.
Compact fluorescent or LED bulbs can also save money and decrease electricity usage, while also being more durable. To ensure lights are switched off when not in use, consider installing sensor motion switches, an investment which can pay for itself in saved bills in a matter of months.
Educating employees as to the effect of spending and expenses and how it affects the business' success is vital while ensuring that they understand how this relates to their salaries. Cost-cutting efforts can be directly reinvested into the office and your employees. You could also ask for their input as to how they believe the office could be more financially responsible.
A prepaid card distributed to employees can encourage responsible spending. Soldo has created a comprehensive solution to runaway employee expenses. Prepaid business cards are distributed with limits and rules, set by a web console that your financial team has access to. Each card has its own unique rules and restrictions, such as purpose-based or time-based business expenses.
Cooling and heating bills are a significant expense for businesses. Air conditioning and heating are vital to customer and employee comfort and productivity. Smart and programmable thermostats can reduce climate control costs while keeping the office comfortable. Overnight the controls can ensure that appliances are switched off or run in low energy mode, saving hundreds in energy bills.
Limiting employee travel costs reduces company expenses. Any essential travel, such as team-building, conventions or annual parties can continue, but consider reducing the need for employees to travel to all client meetings and considering web-based conferencing instead.
Encourage telecommuting for employees, and other flexible working arrangements which can not only save the company money but can improve job satisfaction and morale for employees while increasing productivity.
This also reduces water and electricity usage by employees, together with the space required in the office. Commuting and travel costs are reduced, with a great deal of commuting time saved for employees.
Consider utilising Soldo to control company spending on travel. When employees pay for a transaction using the Soldo prepaid card, your admin team has full control over which transactions are to be approved. The Soldo web console allows spending to be viewed in real-time.
There are plenty of innovative solutions that can increase energy efficiency.
Double-glazed windows are more efficient insulators than single-glazed and last for many years. Also ensure that there are effective seals at common energy loss points such as door frames, utility line entries, air vents and exterior windows. This is a very cheap investment that can have a considerable impact on energy bills. Light-blocking curtains and blinds minimise passive heating, and therefore air conditioning costs.
A solar water heater is worth the investment, as it uses energy from the sun to warm the fresh water supply, providing massive potential savings in energy bills. There are also smaller energy saving projects that can be considered, such as upgrading older energy-draining appliances and installing good quality insulation.
Our online software supports tracking company expenses and revenue, giving valuable insight into the business' profitability, with actionable insights available through the comprehensive spending data provided by our web console.
So, in addition to exploiting the benefits of accounting software, it is worth considering expense management software. Integrating with accounting software such as Sage, the Soldo web console works in unison with major expense software, allowing you to control and analyse employee expenses thoroughly.
Visit us here or contact us for further information as to how Soldo can transform your business' expense management.