Every small business owner is looking for ways to increase profits, save money and improve efficiency. There are automated treasury software that allow us to make financial forecasts to control our expenses. Use our cost saving tips and recommendations for SMEs.
The good news is that there are many ideas and tips we can follow to keep our finances in order. That’s why in this article we’ll dig into new and creative ways to save.
Consider the following cost-saving ideas for your small business.
Cost saving tips and recommendations for SMEs
1. Stop using paper
You can reduce storage costs, printing costs and improve overall efficiency by managing a paperless office. By scanning documents, you can send and share information effortlessly, saving your company time and money.
To avoid the large upfront costs you would face when purchasing equipment, consider renting or leasing. Not only do you conserve your company’s cash, but you can also save a substantial amount of money on repairs, upgrades and maintenance, as many leases cover these expenses.
3. Collect cash in advance
When extending credit to customers, you should consider charging a percentage of cash up front with each purchase. This will help your company reduce risk, improve cash flow and save money on invoice collection efforts. For example, you can request a 25% down payment on all future purchases made from your 30 net account holders.
4. Ask for the discount
The suppliers you work with may have quantity discounts of 50% or more depending on the conditions. You may be able to meet these requirements and qualify for a lower price. To find out, ask about discounts and what you need to do to get them.
You may be able to get anything from an interest-free loan in the form of vendor credit to a nice discount for paying early.
5. Consider combined services
Some companies offer bundled services that include telephone, cable, Internet and web hosting. Combining two or more services from the same company can save your company hundreds of euros per year.
6. Manage employee expenses
Misuse or abuse of company-issued credit cards can be a problem. By setting guidelines, activating pre-set alerts and limits, and monitoring your monthly expense reports, you can save money and avoid costly mistakes.
7. Offers electronic invoices
The electronic invoicing is the issuance of invoices by e-mail directly to your customer. You can reduce your company’s printing and postage costs if you start sending invoices electronically.
Start saving with these cost-saving tips and recommendations for SMBs
Whether you are a new or existing business, it is important in this economic environment to do everything you can to look for ways to save money. Start by implementing a cost savings plan for your company and hire a suitable tool for cash flow forecasting, such as Orama.