As a business, it’s always good to be able to save money. You never know what might be around the corner and as history has shown us, the often unpredictable can happen – like the pandemic as a prime example.
Events such as the pandemic sent businesses into a spiral and it has still caused a significant fallout for many businesses that are still feeling the after-effects of COVID-19 on their finances.
There are plenty of ways in which you can save money and the benefits are that you provide more stability for your business moving forward. With that in mind, here are some top tips if you’re looking to save some money in 2023.
Cut unnecessary costs
There are likely many costs that you’re spending as a company right now that you either don’t realize are being spent or perhaps for a time were necessary but now no longer serve any purpose.
It’s always good to take a look at your finances on a regular basis and to do a review of your spending in general. For example, there might be certain subscriptions that your business has that are no longer needed and you’re spending money for the sake of it.
During tough times, it might be worth finding the expenditures that you will need to cut as a priority to save money for your business. Work with your finance team and departments to understand what expenditures are simply not needed for your business anymore.
Consider remote working
Remote working is a great way to help you save money, especially for businesses that perhaps have a lot of overhead costs in the way of utility bills, leasing buildings, etc.
It’s been proven throughout the course of the pandemic that many businesses can cope with having staff working from home. While it might not be a completely full-time move to remote working for businesses, many have already made a switch to hybrid working where staff do so many days in the office and so many days at home.
With remote working, it saves more money as you’ve not got those overheads to worry about or you can certainly cut the costs of them to some degree.
Go paperless
Going paperless is definitely a worthwhile option for both saving money but also being more eco-conscious as a business. Sustainability nowadays is something that many people have become more aware of and anything that can be done to reduce the amount of wastage on the environment is helpful.
As a business, going paperless has its financial benefits. You’re not paying out an obscene amount of money over the financial year when it comes to printing costs, as well as all the supplies and filing storage you’ll need to house it all in.
With the digital world being very much dominant right now, going paperless has never been so appealing.
Be wary of overspending on credit cards
Spending on credit cards is a slippery slope and one that you definitely want to be mindful of when it comes to running a business.
It’s very easy to allow expenditures to accrue on credit cards and if you’re not paying them off completely on a monthly basis, you could find yourself in a difficult position.
For new businesses, credit cards might be essential to helping with growth, especially when you might not immediately have the funds available. With that being said, make sure you’re mindful of how many credit cards your business has and how often you spend on them.
Buy used equipment
To help save your business money, you don’t always need brand-spanking-new equipment. For some businesses, buying equipment new might not even be a possibility. With that being said, it’s worth considering used equipment where it’s necessary.
From used medical equipment to used office equipment, you’ll be able to find anything you’re after at a discounted rate if you’re willing to look for it.
Outsource and automate where possible
Outsourcing is something that’s definitely worthwhile when it comes to saving money, particularly for small businesses and startups who are lacking internal resources. Instead of having to take on the responsibility of a full-time employee, it’s well worth considering the option of outsourcing instead.
Automation is also something to take advantage of as a business and outsourcing can be seen as a type of automation that you set up and leave to others to handle.
Look at reducing the department’s budgets
When it comes to your department’s budgets, each one is likely to be different from the next. With that being said, it’s definitely worth taking a look at each department on a regular basis to see if the budgets can be reduced without compromising the productivity of the department itself.
This means sitting down with your department heads and strategizing budgets to help reduce them where and when it’s necessary.
Limit monthly employee expenses
Monthly employee expenses can make a big financial impact on your business. You must be wary of how much your employees are spending and then claiming back to the company. It might be worth introducing a cap to some credit cards where possible, especially when it comes to new starters and those who perhaps have no need to rack up thousands of dollars.
Consider limiting monthly employee expenses when necessary and review these regularly.
Invest in a good finance team or accountant
Finally, the best way to help your business save money in 2023 is by investing in a good finance team or accountant. If that’s not something you have currently, then you might be cutting yourself off from a good way of saving money.
With the best accountants or finance team available, you’ll be able to find ways of saving money that you probably couldn’t find on your own. Consider bulking out your finance team or hiring an accountant if you’re still in the early days of your business.
With these tips, you’ll ensure your business thrives, despite the financial hardships it goes through over the course of its existence.