What can I put in place to cut business costs?
No matter what the size of the business, or how well established it is, looking for ways to control and minimise costs is good practice. Even if your company is thriving, looking for ways to reduce costs can mean extra cash to fund new projects, expand your business and increase profitability.
Taking a more environmentally friendly approach to running your business can reduce costs in the long term. Since energy consumption is among the largest costs for most companies, reducing it even a little can make a big difference.
Small-scale modifications such as using LED lightbulbs or managing your heating and air conditioning through programmable thermostats can help to reduce the amount of energy your business uses. It’s worth having an energy audit to find out what you can do to save on your heating and lighting costs.
Another way to cut down on costs is by reducing paper. A paperless environment has been the goal of many businesses for years, and many have succeeded in bringing paper usage down to zero through digitising documents. But going paperless can extend beyond the office space. Do away with disposable cups and encourage your employees to use reusable mugs. Compare the cost of your regular supplies and see where you can make savings.
Any reduction in energy use and improvements in the business’ eco-credentials also contributes to corporate responsibility, an area of increasing importance to clients and consumers and thus an opportunity for improved client retention and engagement.
Save on office space
Employees need a good environment to be productive, but it need not necessarily be expensive. Choosing a site with lower rent offers greater flexibility in providing employees with improved facilities than paying premium prices for office space in a more prestigious area.
A longer-term option may be to buy office space or share space with another company. If your employees are working from home or job-sharing, consider a hot-desking policy. This can also save space and ultimately, costs.
Reduce travel expenses
Cutting down on travel to reduce employee expenses can have an immediate impact on your business’s finances. There are alternative methods to meeting clients face to face. Applications such as GoToMeeting, Skype or FaceTime provide an inexpensive means of group communication and training that can save not only the cost of travel but the time it takes to travel, too.
However, there are times when meeting with your clients, or your colleagues face-to-face is more important than communicating by phone or video conferencing. While a successful business will be selective about when travel is essential, there are some other ways of controlling and reducing business expenses as well.
Our solution is to manage employee expenses with a Soldo prepaid business card and dashboard for the finance team and an app that staff can use while out and about. Your business can have complete control over employee expenses in real time, by controlling spending limits and other factors such as where and when the card can be used.
You can monitor and approve transactions as they occur. The employee can even photograph and send back receipts while they’re travelling, eliminating the need to compile travel and expenses claim on their return. These features don’t just save time for the employee; it means they’ll not be left out of pocket while costs are being processed.
Compatible with significant business management platforms such as Xero, Expensify and Concur, expenses can be viewed as part of the bigger picture, which in turn helps to save on costs.
Get in touch today to learn more about how our smart spending solution can save time and money.