Cost-saving will be key for many businesses struggling to get back up to speed after the pandemic.
Many small and medium-sized enterprises (SMEs) were hit hard and now face higher inflation, skills shortages and rising wages.
The Bank of England says the inflation figure could even hit four per cent by December. So, cutting costs can help get thousands of UK firms through these challenging times.
There are many options for businesses to cut costs, including:
Review your suppliers
Make sure you are getting the best value for money. Get a minimum of three quotes for your supplies, particularly in areas like communication, where there are often better deals to be had.
You should also give existing suppliers the chance to review their prices.
Your business is important to them, but don’t be afraid to walk away for a better deal.
Sometimes you need to spend a little to save a lot. If you are operating on older systems or software, it may make sense to upgrade now so that you are more efficient as a business.
An example of this is digital invoicing and bill payments. These techniques could help to reduce administration costs and postage, while also helping you to avoid piles of paperwork – saving you time and money.
Many of the latest cloud accounting platforms allow you to digitise these processes, while also offering you many other benefits, including the option to go paperless.
Assess your workspaces
The requirements for your business premises may have changed during the last year, especially if many of your staff have moved to hybrid or remote working.
Assess whether your current commercial property still meets your needs or whether there could be cheaper alternatives elsewhere.
If you have moved entirely to remote working, you could do away with business premises altogether.
Quite often refurbished equipment can perform just as well as new and allow for considerable savings. This does not just apply to office furniture.
Properly refurbished computer equipment can also result in big savings as can equipment like copiers.
Be aware, some capital allowance tax schemes won’t allow claims made on second-hand machinery or equipment.
Use an accountant
It may seem obvious, but using our expertise could help you cut your costs considerably.
We can look through your books and spot cost-saving opportunities that you may have missed and make a detailed analysis of the day-to-day running costs of your business.
We can also help you find reliefs and allowances that help you reduce the costs you already have by offsetting them against tax.
If you are struggling with a cost crisis, act now. Cash flow issues are one of the most common reasons for business failure.