When it comes to business expenses, there are some items which are simply necessary. Items such as the rent for your store or for your warehouse and employees, or the materials that you need to produce your product. And while it is true that you may be able to claim these large expenses on your business tax return, this doesn’t happen until the end of the year.
Unfortunately, for many businesses, making it through the year without these deductions isn’t possible, resulting in them closing.
To help you maximise your monthly cash flow and keep your business running tight, below are three ways to implement ways to reduce your monthly ongoing operations costs.
Reduce Your Providers
The quickest way to see a hefty reducing in your monthly overheads is by consolidating as many services as possible under one provider. This means that you a provider such as your phone service can likely provide you with the following services:
- Fixed phone services
- Employee cell services
- Fixed Internet
- Mobile Internet
- Computers and Laptops
- Manage your phone system
By rolling all of these services up into one monthly invoice, you can benefit from the bundle discounts offered to businesses by providers.
Of course, it doesn’t have to be your phone provider. You will likely find that many of the providers you currently use can also provide you with a range of services. Be sure to speak with all of your providers and let them know your business needs, to see which provider is able to offer you the best rate.
Discounts and Coupons
Do you know what the difference is between a flight which was booked through a business-focused travel agency and a flight which was booked using the Groupon Coupons page for Booking.com? Nothing but the price that was paid. While it may seem more convenient to simply send an email to a business travel agency with the details of what you need, for the extra two minutes that it takes to browse a site like the one mentioned above you can see a serious reduction in your business travel expenses.
Does the Brand Matter?
Unless you are buying stationery as presents for your clients then you don’t need anything fancy. This means that each employee doesn’t need to have a specific pen with a fancy gimmick attached to it.
Instead, speak with your stationery provider and you will likely find that they also offer their own generic brand of products at a heavily reduced rate compared to what you are currently paying. Install a rule with your employees stipulating that only orders of this brand will be approved and you will see an immediate decrease in your office monthly spending.
When it comes to ongoing monthly expenses, the trick really is to keep track of them each month, lest they are allowed to grow out of control until you reach a breaking point and have to perform other expenses cull.