One of the biggest challenges for any business is knowing how much money you have coming in and going out. Keeping on top of your overheads can be a tough task, but it's essential to ensure that your business stays afloat. Below are some ways that a business can keep their overheads under control.
Consider an accountant
One of the most common overheads faced by small businesses is accounting. Keeping on top of your expenditure, income, and VAT can be a challenge even for an experienced accountant. For those whose experience isn't quite as broad, it can prove to be something of a nightmare.
To avoid this problem many business owners choose to hire an accountant who will paper file all of their invoices and receipts, as well as file all their tax returns. This can prove to be very expensive though, costing upwards of a couple of hundred dollars a month for a limited company.
Use online software to manage bills
Many people are using online software to manage bills and make payments, software like Deferit. It allows you to budget bill payments and pay bills online. They even have a BNPL service (buy now pay later) which can help you out if your business needs a little help that month. This online software is really useful because it can help you to decide when bills can be paid in advance in order to avoid late payment fees.
Be environmentally friendly
One of the most expensive overheads you'll face is when something goes wrong with your heating or electricity. It's essential to ensure that the space you spend most of your day in is at least comfortable. That means you need to be warm when it's cold, and cool when it's hot.
This can prove to be expensive, especially if your business is based in a location with harsh weather. To keep these costs down it's essential to keep on top of your energy consumption. If you have an electric heater or fan, make sure it is turned off when it's not needed.
Rent rather than buy
Look into renting equipment rather than buying. This works especially well for things like photocopiers, office printers, and laptops. When you buy something, it is yours forever. With leasing, there are always options for upgrading in order to get more use out of them.
One of the main benefits of renting is that it can prove to be much cheaper than buying. It's up for debate on which one is better, but there are certainly some strong points to both!
Outsource for cheaper options
It can be tempting to try and do everything yourself, but sometimes this just isn't possible. For example, if you're struggling to keep on top of your monthly accounts then it may be worth trying an outsourced accounting service rather than hiring an accountant who will need weeks (and possibly months) learning about your business. In short, if you can't do it yourself then try and find someone who can!