8 Cost Saving Ideas For Companies
There comes a time in every business when there really isn’t much cash left after paying your bills, employee wages and operational costs. So, how can you ensure that you have a substantial amount left in your account at the end of the month? Cost-cutting! But we’re not talking about cutting corners from an already tight budget or laying off your employees. We’re talking about practical ways like the ones below to save your business a substantial sum of money!
Technology is your Best Friend: Is that document submission process taking too long? Is accounting taking away your finance team’s valuable time? Let technology help! Use optimization products to solve your problems. Many companies feel that investing in such products is a waste of money but very few realize that time is money. Using products and services saves time for all the employees and remove the chances of manual error, making work smooth and thereby, giving space to creativity.
Always Test Before you Buy: Go to any window shopper and they will say that “one needs to shop around before buying.” Well, now is the time to take up this advice! Don’t just go head on and buy a product or tool for the entire team. Such products often offer free trials or discount offers for the first month; test it out and then buy it. Even if such tools don’t have free trials, buy it for an individual before purchasing for the entire team. If you are still confused, remember that the internet is your friend! Compare and look for more choices over the internet and read reviews by peers.
Buy in Bulk: Buying in bulk is a general principle of saving money in any kind of business, whether it is the retail shop owner you see on the corner of the street or designers who bulk buy fabrics to make profits. It is always cheaper and better to buy office supplies, like paper, printer cartridges, etc or products for break room like napkins, coffee, etc. in bulk. You may be able to save thousands this way.
Track Miscellaneous Expenses: Have your Finance Department to keep a record or buy tools that track every kind of expense no matter how small or insignificant they look. Track all of them!
These can quickly add up and will be valuable while claiming taxes. The best way to track these expenses is to save all the receipts and review credit card settlements at the end of the month. There are many apps and service products that can aid in this.
Do an ‘expense optimization’ every quarter: Purchased a SaaS tool last quarter for better tax filing at financial year closing? Don’t forget to stop the subscription after you are done using it. If you forget, you will find that your business is burdened by services you never use and simply weigh down the balance sheet.
Find creative alternatives to traditional vendors: Some services are required by every business irrespective of their size. So, if you are looking for HR and Recruitment services don’t just rely on conventional options but explore as much as you can and then select the agency or services based on your requirements.
Apply credit card rewards points for gift card purchases: Use your credit card reward points for buying gift cards to minimize business expenses like employee gifts or office supplies or travel. You will be saving thousands with these points.
Renegotiate your payment terms and timelines with clients: If yours is a B2B Business and your clients always ask for payment terms of 30, 45 or 60 days offer them a discount on their next purchase in exchange for timely payment. Alternatively, you could also give a discount on current invoices in return for early payment. This will boost your business and maintain a healthy cash flow.
Despite your best efforts, if you still face trouble, consider availing the facilities of Invoice Discounting. There are many such Financial Service Providers all over the world that cater to this. Click to here know more about KredX’s Invoice Discounting Service.
Have you used any of these tips in your business before? We would love to hear from you if you have some other money-saving tips than the ones mentioned here. Do let us know in the comments section below! Till then, happy saving!