How to Save Money in Business
Do you want to know how to save money in business? We have put together a short guide for our 20 best tips, look at the ones that fit in best for your business and see if you can save any money.
How to save money in business – Banking
Bank charges
Bank charges vary from bank to bank. Look in detail at your bank charges and compare them to different banks. Even banks that advertise free
banking may charge for certain items, like cashing a foreign cheque. An account which is best for one business may not be suitable for another.
Deposit account
Open a deposit account and transfer any surplus cash, so it can earn you some interest. Online banking makes it easy to move money from one account to another
and can be instant with the same bank.
Credit card
If you use a credit card, look around for the best deal available. Some cards will offer interest-free for a certain length of time.
This may be a good way to cut interest payments. It is normally cheaper to have a loan rather than an overdraft or credit card for a long period of time.
How to save money in business – Telephone
Skype
Try cutting your telephone bills by using Skype over the internet. Calls to other Skype users are free and lots of businesses are registered.
If you regularly phone someone, suggest it to them as well. It is a good way to keep in touch with colleagues who work at home. Using Skype
may even reduce your amount of travel and give you more time.
Telephone
Check your telephone bill and that you are on the correct tariff. Look at both your landline and mobile phones. Mobile phones are normally
cheaper if you are on the same network and even using combined phone plans can work better. There are different landline plans available from different
suppliers; shop around for the best deal that suits your telephone requirements.
Telephone answering services
If you are missing phone calls or need to employ someone to answer phones, look into call answering services, this can work out cheaper than employing someone full time. They can answer a call
with your business name and the caller may not even know they are speaking to a third party. This may save losing business as well.
Look into the prices before you go ahead.
How to save money in business – reducing overheads
Gas and Electricity
Shop around for the best deal you can get. Normally, a dual fuel bill is cheaper than two separate bills. Check the temperature in the
building and turn the thermostat down a degree if it is too hot. If you have a timer, check that the heating is not on at times when
the building is empty unless it is for a long period of time.
Turn off Equipment
When equipment and lights are not in use – turn them off it is surprising how much energy can be saved by just simply turning off equipment.
It may be worth investing in energy-saving stand-by sockets. Some work with a remote control so you can switch everything off at the
touch of a button as you leave the office.
Office space
If you have a few members of staff and are struggling for space, consider hot desking. Leave a desk or two which can be shared by whoever is in the office.
If you are short on space on an occasional basis, it may be worth hiring an office or room for a few days rather than moving into new premises.
How to save money in business – reducing expenses
Open source software
Some software packages are very expensive to buy. Have a look at some of the Open Source software which is free to download. There is even Open Office which
will do most of the tasks of Microsoft Office.
Advertising
Look at the best way you can advertise your business. There are very cheap and free advertising options. Ensure that your logo and details are on
all your paperwork, emails, letterheads and any advertising. The more people see your details, the more they are likely to remember your
business. Social Networking can work well as an advertising tool, set up your business on Facebook or Twitter and keep posting products,
services, information and offers. It is surprising what business you may get.
Post and Couriers
Post can now be very expensive. If possible, use email and cut down the amount of posts you send out. If your business sends lots of letters, either buy in bulk or look at alternative companies. Shop around for the best courier prices, and where possible, do not do timed deliveries, as they can be much more expensive.
Car fuel
It is easy to save fuel by using eco driving techniques. Even just slowing down
a few miles per hour will reduce your petrol bill. It may even be worth looking into electric vehicles and cutting your fuel bill completely.
There are tax incentives for electric cars and vans for business use; it is worth checking with your accountant first to see if an electric vehicle will save you money.
Get the best price
Shop around for the best prices, not just on insurance and telephone but all your supplies. Even stationery and products for resale can be
found cheaper elsewhere. See if you can negotiate a discount or even an early payment discount. It is surprising sometimes what you can get if you ask.
Inkjet cartridges
Refill empty cartridges; this can work out to half the price of buying a new one. Only print the pages that you need to; this can help
save money and space.
How to save money in business – Accounting
Cash Forecasting
Keep your cash flow forecast up to date and take a regular look at it. You may find ways of saving money and reducing your bank charges.
Credit control
If you offer payment terms, ensure you chase for money before the terms are up and send out regular statements. Receiving money late may cost you bank charges. Make sure you put time aside to do your credit control.
Tax Returns
File and pay Tax returns on time. Whether you are self employed or a limited company, file and pay your tax on time. A hefty fine and interest charges can be avoided.
HMRC are introducing making tax digital. Businesses have to submit their tax returns using 3rd party software. MTD for VAT started in 2019. Self-assessment and corporation tax will start in 2026.
How to save money in business- other ideas
Barter services
It is worth asking companies if they would barter the services they offer. For example, you may be a web designer and can design a website
for someone in exchange for the repair of equipment.
Meet other businesses
Business Link and The Chamber of Commerce offer business networks. It is a good place to meet other businesses, get tips on saving money,
finding new suppliers and share business experiences.
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