Many businesses still find themselves in murky waters following the pandemic, and with rising wages, skill shortages and higher inflation – many SME’s are still struggling to get back on their feet.
Cutting costs to help maximise profits is something to take into consideration if your business needs a boost in cashflow, so we have listed a few things that you could do to help reduce your expenditure and increase your profits.
Re-assess your workspace
If your business was office based pre-COVID, your employees may have switched to working from home or hybrid working since. If this is something that hasn’t had a negative effect on your business and is actually working quite well – consider implementing this permanently or only have your office open on certain days.
Carry out a review of your suppliers
If you’ve been with your current suppliers for a while, you may not be getting the best value for your money. Research alternative suppliers to see if they have better deals, or if you’d rather stick with your current supplier, consider asking them to review their prices.
Stop always buying brand-new
It may be appealing to buy shiny new equipment, but there are often refurbished alternatives that will perform just as good – saving you a lot of money! However do bear in mind that some capital allowance schemes won’t allow you to make claims on preowned machinery/equipment.
As the saying goes, sometimes you have to spend a little to save a lot. As technology continues to advance, the last thing you want is for your business to get left behind. If you’re using older systems or software, they could be slowing you down and increasing your administration costs. Think about upgrading your software, not only will this save you money in the long run – but it will save you a lot of time too!
Last but not least, use an accountant!
You may already think you’re saving a bit of cash by doing your accounts yourself, however using an accountant will help reduce your costs overall even more. Accountants are there to help your business be as tax efficient as possible, being able to spot any money-saving opportunities you may not see and helping you find reliefs and allowances to help you save on tax.
AIT Accountants are here to help you get the most out of your business, if you need further advice and support, get in touch with us at email@example.com.