Review your business expenses
Running a business costs money. There are always costs, overheads and supplier bills that mount up and these expenses will gradually chip away at your cash position, making it more difficult to grow and make a profit. Now is an ideal time to review your business expenses
What can you do to reduce your spend levels and slim down your company expenses? And what impact will this have on your overall margins, profits, and ability to fund the next stage in your business journey?
Here are some ways to reduce Business expenses and build your business:
- Reduce your overheads – your overheads are the unavoidable costs of running your business, producing your products or supplying your services. Look closely into the numbers and see where there are opportunities to reduce these overhead costs.
- Train your staff in good spend management techniques – if your employees can claim expenses or buy raw materials and equipment with the company’s money, these costs can soon start to rack up. Having a clear expense policy will help so each staff member can only spend up to an agreed amount.
- Look for alternative suppliers – if you can reduce your supplier costs, this will go a long way to bringing down your overall spend. Look around for alternative suppliers, look at current market prices and see if you can negotiate better deals.
- Make your operations leaner – the bigger your operational costs are, the less margin you’ll make on your end products and services. By making the business as lean as possible, whilst still delivering the same output, you can keep your revenue stable, but reduce the spend level that’s eating into your profits.
- Explore tax reliefs and tax planning – you might assume that tax costs are an unavoidable expense when running your business, but it’s worth exploring which tax reliefs, grants or other business benefits you may benefit from. Proper planning can help reduce the effective rate of tax in some cases.
If you’d like to get in control of your expenses, we’d love to chat. We’ll review your current costs and will highlight the key areas where expenses can be cut. Then we’ll help you formulate a proactive spend management programme, to reduce your unnecessary spending.
Get in touch today to find out more about how we can help.
