All costs, from health insurance to taxes, fall on your shoulders as a business owner. That means you need to grab any opportunity to save money. Luckily, there are small ways of cutting back, staying on top of the cash flow and having everything you need with a smaller budget. Apply these simple tips even during your slow seasons to become a cash-savvy entrepreneur with staying power.
Setting a Budget
A budget forms the basis for any sound financial planning, both individually and as an owner. It’s particularly essential to keep track of when and where your money goes to your company every month, and how your necessary expenditures impact revenue and cash flow.
Be Careful with Credit Cards
Credit cards can be a tempting option, particularly if you’re having a bit of a financial challenge, but using your personal credit card for business purposes will easily result in expensive fines. If you need a business expenses credit card, rather get one solely for that purpose. And if you need financial assistance to start your company, consider looking into available business loans. You could also look at the current account of your bank and see if you still get the best possible service.
Check your Phone and Internet Plan
This applies to both business and personal use, but if there are better deals available, particularly if you’ve been with the same company for a long time, it is worth reassessing and finding out if the type of plan you have is suitable for your needs. If, for example, you find that you often go over your call or data allowance, but never get through all your messages, it will cost more than if you were opting for a plan with more data and minutes but fewer texts.
Make Use of Referral Schemes
These days, several companies will offer you rewards if you refer other customers to them, be it money off your next order, free gifts or just some cashback to say thanks. It is an excellent way to get something out of something that you already use and love. If you have found a product or service that you like, it can work out for you both to spread the word.
Plan your Travel
Whether you’re driving or taking public transport, travel can be costly for a business as well as for personal leisure purposes. If you are traveling by train, check if a season ticket is right for your needs, or if you are eligible for a railcard. These are open to older and younger business owners as well as disabled business owners. If you don’t take the train often, planning ahead would allow you to book advance tickets, which often turn out much more cost-effective than purchasing on the day. Alternatively, if you drive a lot and your car or van chugs gas or needs ongoing servicing, it may be time to get a new one. You should keep track of your mileage as well, as this can be reported against your tax return.
Be creative with Taxation
A lot of people struggle to understand taxes and how to make a saving on this front. It’s always sensible to choose a good accountant to see if there are any adjustments that you can make to help you pay less. If that is not an option for you, there is plenty of help in various online guides. When searching, be on the lookout for ways in which you can avoid some taxes, or example by claiming back your self-employed allowable expenses.
These tips will help you save money which you can then use to further expand your business.
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