The rising costs of living is not just affecting individuals. It’s also affecting businesses and making you think of new ways to keep your costs down. In this blog, we’ve come up with 5 tips to help your business keep up with rising costs of living.

 

Technology concepts to reduce costs

 

The use of technology has completely transformed our world over the past few decades. Most businesses will have social media channels, YouTube, a website and more. Lots of businesses operate on a digital only system now. If you’re still using traditional methods in your business, here’s how you can reduce costs with technology.

 

Automation is just one of the ways you can reduce costs in your business. Using automation software can reduce human error and subsequent spending to correct it. Having digital software for your business accounts, like quickbooks, can reduce your time spent on your books. Quickbooks, and other accounting softwares have lots of automation tools to streamline your accounts, making it easier for you and your accountant. In turn, this will save your business money.

 

Cloud accounting is another way to save time and money in your business. With a digital system you save costs in printing and other office supplies. It’s a brilliant way to boost productivity and minimise stress.

 

Digital software does come with its own costs, there’s usually monthly fees to pay. However, if you compare the traditional costs against digital costs, digital costs are lower and more time efficient for you in the long run.

 

Do you need that big office/work space?

Renting an office/workshop for your business can be a huge expense. It can also be a long term commitment. If you need work space for your business, consider downsizing. This can decrease your expenses and possibly decrease your long term commitment.

 

If your business model suits, look at converting your business so that you and your employees permanently work from home. This can massively save on overheads. You can also look at renting desk space, this has become increasingly more popular in recent years. Renting desk space or meeting rooms means you can still get together as a team and make for flexible working arrangements.

 

You could possibly look at sharing a space with another business. This needs to be looked at with great detail, however, it could be beneficial, meaning you could half your costs of office/workshop space.

 

In any case, given the current economic climate, you may be in a strong position when negotiating with your landlord. So don’t be afraid to!

 

Have a budget and stick to it

 

Having a budget for your expenses can be really beneficial. Even if you’re an established business, it’s worth going through your expenses to see where you could possibly cut down on spending. Keeping to a budget will help you keep some financial discipline, which can be beneficial for the future. 

 

Learn from your bank

 

Lots of banks these days offer so much more than just a bank account. Most of the big banks have insights and tips which can help you with your cash flow. After all, they have thousands of customers in different sectors.

 

It’s worth building a good relationship with your bank, particularly if you are having cash flow issues.

 

Move your marketing online

 

If you haven’t already, you should set up social media channels for your business. Not all channels are going to work for your business and you also don’t need all of them either. But, they can be a valuable tool to marketing your business. Having social media channels such as Facebook and Instagram are relatively low in costs, or free to use. So make the most of it!

 

You can also create blogs and vlogs (video blogs) for your business marketing. These alternatives are usually far cheaper than traditional marketing methods and usually a lot more effective.

 

These are our 5 tips to help your business keep up with rising costs of living. If you need any help with your accounts or getting your business onto accounting software get in touch with us today!