For a small- or medium-sized business to succeed, it is vital that it has the right advice for boosting its profits. Let’s take a look at some of the best ways for SMEs to save money.
Count your beans
If you don’t already have an accountant, it is worth investing in a professional or software to sort out your finances. While you may think you are on top of things, a financial expert can give you the best advice on tax relief and any allowances you can claim for the business. There is obviously a cost involved, but you are more than likely to recoup this and more.
According to the Federation of Small Businesses nine out of ten companies saw a rise in their operating costs in 2022. Inflation has still not come down, so it is essential to make savings where you can.
Look at your team
You may think you need new staff to cover work; however, before you start recruiting, check the skills of your existing employees, as they may have hidden talents you don’t know about. Talk to them about how they want to develop and what they can offer on top of what they already do.
Change banks
It can seem like a lot of hassle and stress to move banks, but it is worth taking time to check you have an account that works for your business. Compare business banking fees and see which accounts suit your business best. If taking out new financing, you may need to sign a director guarantee to secure it. This means you, as a company director, will be liable for any of the company’s debt; therefore, it is vital to get advice on doing this correctly. There are many legal firms, such as
https://www.parachutelaw.co.uk/director-guarantee, that can ensure this process runs smoothly.
Cut your energy costs
Just as many households are currently doing, a small business should be looking to reduce its energy bills. It is a good idea to do an audit of your electrical products and think about turning them off when you are not using them. If you are not using a whole office, consider turning some of the lights off; don’t leave the printer on standby; and only leave the coffee machine on when it is being used. Doing this regularly should ensure your bills start to come down.