The financial news feels pretty bleak right now. Rising energy prices, increasing fuel prices, inflation, tax rises, increased salary demands by teams facing pressure on their finances – the list goes on. All of which means you need to make some tough decisions about business spending.
This article looks at 10 money-saving tips to help you save money and protect your bottom line in 2022.
1. Review your direct debits
This tip applies to your business and personal finances. Check your direct debits and recurring card transactions. You’d be surprised how much you could save by stopping payments for services or subscriptions you don’t need or use. Even the little ones soon add up to a tidy sum.
NB. Don’t forget you may need to contact the company to cancel a subscription or service to avoid recovery action. T&Cs often state that simply stopping payments does not cancel the service entirely.
2. Protect your bank balance
There’s a saying about not keeping all your eggs in one basket and that certainly applies to bank accounts. If you hold high balances in your bank account, it could be worth spreading the risk by moving some money to other financial institutions. Doing this will ensure that all of your money is protected by the Financial Services Compensation Scheme. Click the link to find out more.
If you don’t need easy access to all the money, it could be worth speaking to a financial advisor about investment options.
3. Quarterly or monthly VAT?
If you’re VAT registered, speak to your accountant about the benefits of moving to monthly returns. Doing this means you’ll benefit from receiving VAT refunds more quickly, easing cash flow pressures.
4. Plan your spending
Depending on the time of year, delaying spending can mean you wait an extra 12 months to benefit from any associated tax relief. Some payments, such as pension contributions, must happen by a specific date for you to benefit from the tax relief. As ever, the best advice here is to speak to your accountant. They are the best qualified to give advice based on your business.
5. Work smarter
You can apply this advice to lots of activities in your business. For example, cloud-based SAAS (software as a service) systems are available for almost every business activity. You’ll save money by using cloud-hosted systems, making it easier for your staff to work from anywhere, helping your offer flexible working for your state.
Similarly, video conferencing exploded in popularity during the pandemic and remains a savvy choice to reduce travel and venue costs for routine meetings.
6. Outsource specialist tasks
Outsourcing is often far more cost-effective than employing someone if you need a specialist service. Indeed the Chorus Accounting team frequently acts as a client’s outsourced accounts department as a more cost-effective alternative to hiring a qualified in-house accounts team.
7. Look after your team
Looking after your team may sound obvious, but here’s the thing. Salary alone is rarely the deciding factor between a staff member staying or pursuing a new opportunity. There are many ways to reward your teams that don’t cost a fortune.
And let’s remember that hiring a new member of staff is more expensive than retaining great people who already know how your organisation works.
8. Check your suppliers
If you have autonomy over the utility supplier for your business premises, rising energy costs mean it’s common sense to check your utility contracts and start shopping around for a better deal.
9. Shop around
Whether it’s postage costs, office supplies or your internet provider, it pays to shop around to ensure you’re getting the best deal. If you’re happy with a supplier but can get the same thing cheaper elsewhere, chat with your incumbent supplier to see if they’ll negotiate to retain your business.
However, don’t confuse cost with value. There could be critical business reasons for not choosing the cheapest provider at every opportunity.
10. Embrace collaboration
When trying to reduce costs, it can be easy to become insular in your perspective. But creative collaborations will be mutually beneficial whilst cutting costs for all parties. E.g. If you’re planning an event, find a partner to sponsor it in exchange for free publicity.
Find out more about managing business expenditure
Let’s talk to find out how Chorus Accounting can help you create robust financial plans for your business. Call 01202 332500, and one of the team will be happy to help.