If you're reading this, I'm earning money. Thanks for helping to feed my family. Please see our disclosure for more information. Also, any advice provided is for informational purposes only. I'm not a CPA, lawyer, or doctor, although my parents wanted me to be all three. So, talk to a professional before acting on anything you read below.
We have a great guest post today on money hacks that will help your small business from the folks at Rate City. Love to hear what you think in the comments.
As a small business owner, your budget is probably more on the smaller side so it’s always good news when you can find ways to save a bit of money. The way to be profitable as a small business isn’t only to increase your sales but also to keep your costs down and your spending under control.
Here are 8 hacks that can help you save some money for your small business.
Many small businesses are overpaying on their taxes simply because they haven’t taken the time to properly check what taxes they should be paying. By being on top of your taxes and your tax strategy you can save your business money.
The best way to do this is to make sure that you’re taking advantage of every deduction that you are eligible for and that you are doing everything correctly from a legal perspective. If taxes and finances aren’t your forte, consider hiring a professional to give you advice on the matter and to make sure that you’re complying with tax law.
Another tip when it comes to taxes is to use tax filing software that can help you prepare and file your tax return. These platforms help to ensure the accuracy of your claim and can help you in securing the reimbursement you’re entitled to.
Keep track of all the business’ expenses so you can quickly and easily figure out how much you are spending each month and on what. One way to do this is to use an app that can help you keep track of your receipts.
Keeping hold of paper receipts can be difficult with many receipts ending up in the rubbish. Using a digital platform to hold onto your receipts means that you can keep them all in one place without any hassle. Make sure to also review your credit card statements every month and be vigilant with checking for any suspicious costs or potentially fraudulent activity.
Regardless of how insignificant they seem, track all your expenses – even if it’s coffee for everyone in the office or a pack of post-it notes. This will also help you when it comes to doing your taxes as many purchases for small businesses are tax-deductible.
By tracking your spending and knowing what the majority of your money is being spent on, it makes it easier for you to evaluate where you should cut costs. Doing research and finding the best value option pays off and if you realize that you’re spending an exorbitant amount a month on something like phone utilities, the internet or paper supplies then it could be time to change your provider or supplier.
For example, you may realize as time goes on that you don’t need a landline telephone because everybody contacts you via mobile. If you’re frequently using your mobile, check that you are on the best plan. Are you subscribed to any costly services that you rarely use? Try and cut unnecessary costs wherever possible and examine your spending as often as possible.
Smart use of your business credit card is one way that you can potentially save money in your small business, especially if you do your research and learn how to take advantage of the rewards that you could be earning.
Firstly, make sure that you have the credit card that is right for your business. This is dependent on the type of company, how much money you’re spending and the type of expenses you have.
Maybe a card with a low interest rate is better for your business if you’re likely to have unpaid balances at the end of the month, or perhaps you want to avoid annual fees. The most efficient way to find the best credit card is using a financial comparison website where you can search for cards that suit your criteria.
Building up good credit is also an important part of running a small business as it can help your finances in the long-term. With good credit, you can reward responsible spending by getting a return in the form of cashback, airline miles or reward points.
These can be used to help your business, whether that be in paying for travel or by using points to buy gift cards that help reduce business expenses. Make sure to use your credit card responsibly and keep an eye on what you’re spending. Having good credit also helps should you ever want to take out a business loan as your company grows.
Storage of documents and data protection can be an expensive cost and if you have in-house servers these can involve unnecessary maintenance costs. The beauty of living in the digital era is that you can now use the cloud to your benefit.
Cloud-based solutions mean that you can avoid the cost of expensive hardware and having to constantly update your storage needs. Cloud storage means that you only ever have to pay for as much as you need so you can constantly tailor your storage solution to suit your business’ needs as it grows.
One way you can save money in your small business is by cutting down on bills, particularly your electricity and energy bills. Choosing environmentally friendly options when it comes to office supplies or the way your workplace uses energy isn’t only a good initiative for the planet, it is also a smart financial move.
For example, leaving computers and lights on overnight in your office is not only a huge amount of unnecessary energy consumption but it is also costly for your business. Avoid this by making sure all employees properly shut down their computers when leaving the office for the day. Try and reduce your paper use by using more digital platforms and printing on both sides of the paper when you can.
You can usually find better rates or discounts when you buy supplies in bulk online or directly from warehouses rather than buying supplies as you need them. By tracking your spending and finding out what supplies you are frequently buying, you can reconsider where you’re getting your supplies from. Buy in bulk those items that you will always need around the office, such as printer cartridges, paper and other stationery, bottled water, whiteboard markers or tissues.
For a small business one of the biggest expenses is usually the workplace itself and the commercial rent that you’re paying. If possible, try and negotiate your rent with the landlord if you have a long-term lease.
If you’re a good tenant it’s likely your landlord will be open to negotiation rather than having to go through the hassle of finding a new tenant. Other ways to reduce the cost of your rent is to consider the location of your office.
If you’re in an expensive area and it’s not necessary for the business that you be there, consider moving into a space in a different location. If your staff can work from anywhere, it might be worth having some staff work from home so you can rent a small workspace for those who need to come in every day. Alternatively, you could consider renting an area within a co-working space, which means cheaper rent for you and a fun office environment for your employees.