15 Best Ways to Control Your Business Expenses
Established or under-establishing; whichever business you own; keeping an eye on the expenses is a must-non-avoidable task. It is through the investment that we put-in and income that we generate; the further functioning of the business is processed. Thus, controlling business expenses is the measure that is adopted by all businesspersons. Here are 15 ways to manage the day-to-day business expenses.
1. Accurate Knowledge of Cost: Company should hold precise information about the value of their products. The company must also identify their sources of revenue. They must also know about the prospective and probable customers.
2. Avoid Much of Paper Work: Save the cost to be expended on papers by making most out of PowerPoint presentations and e-mails. Use the paper to the max. Reduce margins to accommodate most of the words of a letter. Taking prints on both sides of the paper is also recommended.
3. Communication with Customers: You can get a better idea about your business by having a conversation with your customers. Asking them about your products will let you understand the productive and unproductive features of it. This would enable you decided what to produce and what not. Ultimately, controlling the expenses of a sterile product.
4. Contacting Sellers: Once you are done with the evaluation of the products/services; contact sellers especially those offering you reasonable discount rates. Having the productive business relationship with the sellers can be a better business deal. Negotiation of payment terms with the proper discount thus made.
5. Create Reports: Weekly you can create the report to examine your costs and revenues. The report will let you know if your spendingis more than your budget. You should understand and track monthly expenses as well. Production and market-related costs can be among the last items to cut.
6. Cut-Off the Phone Bills: Using free services like G-Talk, Skype, Facebook Messenger, Yahoo! Chat, WhatsApp would save the cost of your phone bills. You can keep track of their working hours as well. The communication is fast and authentic as well. The freelancers can also be reached by these ways. Traveling cost can also be reduced by meeting your clients, investors, debtors, creditors through web conferencing tools, such as GoToMeeting or WebEx.
7. Draw up a basic flow chart: By drawing the basic flow chart of your company’s workflow, you will understand how each department is affected by other.
8. Energy Cut-Off: The other way of reducing expenses is to turn lights and other pieces of equipment off when not in need. It’s better to use automatic timers for lighting or adjusting settings of systems like computer or ACs. Using natural sunlight will save electricity bill and would give employees health benefits as well.
9. Hire Freelancer: Similarly, hiring people on the freelance basis like freelance HR Executives, Business Development Managers, Marketing Executives and others would save the cost of accommodating them in the workplace. They can hire on task basis of business generation base. Paying them according to work profile would save the value of their non-productive hours.
10. Offer Part-Time Job: Hiring college interns by offering them an internship for 1, 3 or 6 months would save your investments in full-time employees. This would also show the less cost of your business.
11. Quantity Purchase: Make the purchase of the raw material for products in bulk at a discount rate. This would allow you to save more of the cost and less of transporting charge.
12. Reviewing Expenses: You can start by looking at finances to determine either you are incurring loses or barely making a profit. Highlight company’s regularly selling products/services and select the ones with the weak market. The items with slow turnover can be sold at discounted rates to cover up manufacturing charges and lessen down the marketing expenses, thus saving the shelf space for profitable products/services.
13. Revisit Your Tax Strategies: Perhaps the most challenging task of handling business is tax planning. How much of the tax you will be paid depends on the type of business you are into. Hiring an expert financial advisor who can advise you about the investments will help you in tax savings.
14. Use of Internet Banking: You can better control most of your company’s expenses by using internet banking tools and controls. By this, you can keep track of your staffs’ monthly pay and other office related expenses. You can set the authority to approve all expenditures.
15. Use Online Tools: Ask your bank to set alerts and reminders related to all transactions made with internet banking like bill payments, premium payments, tax filing, refund amounts and lot more. This will enable you to take a note of what’s going out and what’s coming in?
Yes, cost saving is a crucial thing in itself. But controlling expenses is a must to make most out of the profits earned. The more you manage the expenses, the more you start saving, and more would be the earnings as well.
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