The new year is a great time to look at your business’s finances to determine what has served you well in the past year, and where you may want to pare down your spending. With last year’s financial reports at the ready and another year of business under your belt, taking stock of where your money is being spent is a great way to start off the new fiscal year, and these five ways to save on overhead are a great place to start!
Outsource your Accounting
While doing your own accounting may seem like a way to decrease your operational costs, hiring an accounting professional is likely to save you money in the long run. From reconciling your financial accounts and statements to ensure there are no mistakes, and preparing you for tax season, outsourcing your bookkeeping is much less stressful than attempting to do your own books. On top of the increased accuracy of your business’s finances, you will also have more time to spend on the aspects at which you love and excel, which is likely far more important to the long-term growth of your company. Please don’t hesitate to contact Affordable Bookkeeping and Payroll if you have any questions about which services might be beneficial to you!
Consolidate Costs and Expenses
Analyze your current overhead costs to see if there are any places where you can “double dip” and perform two functions for the price of one. For example, if you outsource your accounting work and also outsource your CFO, you may be able to combine these positions into one role, thereby saving money and streamlining your operations.
Purchase in Bulk
Take a look at any purchases you make for your company on a regular basis. Whether you’re buying office supplies for your staff or materials to make your product, purchasing supplies in bulk is a great way to save money. As an added bonus, you’ll also likely save time by placing one large order, rather than several smaller ones over the course of the year!
There are many advantages to going paperless that stretch far beyond simply being ecologically friendly. Transitioning to digital communication, bills, statements, and checks will reduce your company’s carbon footprint while also eliminating or greatly reducing your paper-related expenses.
Maximize Your Staff’s Value
As Accounting Web points out, many people hear the word “overhead” and immediately think of cutting down on staff. Rather than firing employees only to replace them down the line, Accounting Web recommends reshaping their positions and investing in training to make them useful to your business in new ways. This will save you time and energy on restructuring while keeping your staff happy and productive.
In decreasing your operational costs, you’ll have more money in your budget to take on new, exciting projects that will help you grow your company. What a great way to start the new year on the right foot!