Small business owners have to save every dollar. Even when sales are on the rise, it’s important to stretch every dollar in the event of a surprise expense or an unexpected slump. It’s important to cut costs whenever possible even when your business is increasing sales and revenue. As your bills get higher, you’ll feel better knowing that you can pay them. Here are five ways that small business owners can save money in Salt Lake City.
Split Costs Whenever You Can
There may be small businesses in Salt Lake City that are also looking for financial help. This is a good time to collaborate with them so you can both save money. For example, if you and another business are having a sidewalk sale at the same time then you could join forces to share the cost for materials and space. Or, you can choose to share distribution channels or suppliers. Both of these methods are ideal for collaborating and cross-promoting each other’s brands.
Budget Costs for Taxes
Any small business owner knows how stressful tax season can be. Most business owners are scrambling to get the extra money they need to pay their taxes. But those late or missing tax payments can cost you. You can find financial help and seek professional advice through the IRS website.
This costly mistake is easy to prevent. Come up with a budget for tax time and set aside a fixed monthly amount. You’ll avoid paying the late fees, penalties, and lump sum at the end of the year. Small businesses in Salt Lake City can also get their hands on major tax breaks. Some of these savings include home office deductions, office supplies, and taxes and licenses.
Consider Telecommuting
You may also want to consider telecommuting if you want to cut costs. Most small business owners are required to pay equipment, rent, and utilities on a monthly basis when running a brick and mortar operation. Thanks to the latest advancements in technology, it’s easier than ever to allow your employees to telecommute. You can use a virtual work environment to collaborate and meet on a regular basis.
If you have to impress a big client for a day with a luxury office, most companies will rent out their office space for a daily or hourly rate.
Save Money With An Accountant
Another cost-effective measure is using business management software. This allows you to run your entire business on one software application. Your small business will save money by using one system and ditching the ones that have an annual or monthly fee. There are plenty of business management software systems and experts to help you with them that will fit your needs.
Using accounting software program can also help you cut costs but you might actually be losing money by doing this. You might want to use software instead of hiring an accountant in Salt Lake City but that might not be the best idea. Accountants are experts and can move your money around in ways you could never think of. While software may at first seem appealing, a human tax expert will definitely be more equipt to help your specific circumstances.
Go Green & Paperless
Going green will not only save you money, but it’ll also help the environment. It may seem time-consuming to transition to a paperless method, but this can save you time and money. Most banks, credit unions, point-of-sale systems, and utility companies already provide the option to go paperless. Going green can also save you money on buying paper, especially if you use e-mail receipts rather than physical copies.
You should also scan documents whenever you can. This method can dramatically reduce ink and paper costs, and allows you to share and send information.
Take Time to Research Banks
Since most banks have expensive fees, it’s time to research the various banks and credit unions that work with small business owners. While most small business owners prefer to use the big banks, a local institution will work harder to earn your loyalty. Common bank fees include ATM usage, monthly maintenance fees, overdraft fees, and paper statements. That list could exceed at some locations.
When finding the right bank for your needs, you should determine if it meets all of your requirements. Do you want paperless statements? Are you looking for a minimum required balance? It should also included important benefits such as fraud protection and interest rates.
It can be easy to find ways to cut costs for your small business. It may seem like more things to do, but it’ll pay off in the end. There’s no better time than now to get started on these methods. It’ll reflect positively on you and your bottom line.