As any small business owner knows, small costs can soon mount up to become big expenses. Thankfully, there are several ways in which you can cut costs. Here are seven suggestions that could end up saving you a lot of money in the long-term.
Lots of small business expenses can be written off for tax purposes, making your end-of-year tax payment much more affordable. Get to grips with knowing what things are tax-deductible and keep track of each tax-deductible expense throughout the year.
2. Cut the Costs of Banking
Different banks offer different business interest rates, services, and benefits. So, it is most definitely worth shopping around to find the best banking deal for your small business and cut costs. But you can also look outside of the traditional banking industry to cut costs on specific financial actions.
For example, banks are not the most cost-effective way of ordering checks. Reordering checks through banks can be surprisingly expensive, but you can buy checks much less expensively online. Cheap checks are not always of lesser quality and you will discover more options online. Compare various online platforms to find the best place to order checks and cut costs.
3. Use Free Online Tools
Online tools like software, apps, and the cloud have certainly made many small business operations easier and more manageable. However, some small businesses spend thousands of dollars every year buying outdated license applications or additional tools they do not need. For instance, you could spend a lot of money on office applications and data entry software when free platforms like Google Docs are just as good. There are tons of free online tools for different purposes, and many are just as reliable, effective, and efficient as pay-for services.
4. Go Paperless
As mentioned earlier, small costs can add up over time to create large business expenses. That includes things like paper, ink, and postage. If you are still printing out and sending invoices and the like, it is time to go paperless. Only print and send documents through the mail when absolutely necessary. Otherwise, stick to sending documents and other data electronically. Having everything on computers instead of in filing cabinets will also allow you to gain more office space. That means you could potentially move to smaller premises and cut costs that way too.
5. Purchase Refurbished Equipment
If your small business uses a lot of equipment, be it photocopiers or 3D printers, you can reduce initial costs by buying refurbished equipment instead. Often, refurbished second-hand equipment is just as good as brand-new equipment. You can also save costs by buying used furniture for your premises.
6. Purchase Energy-efficient Appliances
While it is true that energy-efficient appliances often cost more than standard appliances, it can make financial sense to invest in them because you can save money in the long run. Energy-efficient appliances, such as air conditioners, use a lot less power than standard ones. So, after four or five years, you will discover just how much money you have saved on electricity. Even small items like energy-efficient light bulbs can save you power costs. Furthermore, by investing in energy-efficient items, you will be doing your bit for the environment.
7. Pay Invoices Early
If you pay your invoices early, you may be able to get a meaningful discount. It is quite common practice for vendors to knock off around 2% of invoice totals when clients pay in full within 10 days, rather than the standard 30 days. As long as paying invoices early does not negatively affect your cash flow, it usually makes financial sense to pay invoices quickly and grab that discount.