How to reduce your company's expenses in 2021?
Beyond good budget planning, here are 7 tips to help you do just that.
Are you looking to reduce your company's expenses to increase cash flow and profits? It’s always a good time to get your finances in order and save money. Beyond good budget planning, here are 7 tips to help you do just that.
There are many free tools on the market today to help you. For example, Skype and Google Meet can help you avoid paying for a landline to your workspace and save on long-distance calls. With the free version of Trello, you can efficiently manage projects visually. Just like the free version of Asana, which allows you to manage a team assigned to various mandates and promotes collaborative work without email. You don't have any graphic design software? Canva can help you create attractive visuals for social networks.
In other words, opt for free whenever possible before purchasing new software or using external resources. Also, take advantage of free trials over a period of time. Especially if your budget is limited. In addition to saving money on the start-up of your new projects, you will have a better understanding of your real needs.
Once you are convinced by a solution, and certain to use it for the coming months, consider subscribing to the annual plan to save a couple of months.
Most of the time, software providers offer two months for free, which is a direct saving. There are indirect savings also. Think about the 11 invoices you - or your accountant - will not record. And you will have only one payment to plan. Time is money.
Keep in mind that the purpose consists of saving money, not spending more in the coming months.
At least once a year, clean up your invoices and compare prices with other suppliers. Also, check to see if you can select only one company for similar services. That way, you can negotiate discounts. Especially if you have been doing business with the same company for several years.
When you buy a product or software, make sure, whenever possible, that you deal directly with the company that developed it rather than with an intermediary. This will avoid additional costs. This also applies to all other services offered.
Admittedly, manual administrative tasks such as sorting accounts payable take extra time, effort, and expense when there are input errors. With kopilot, the control center and automated aged balance can help you reduce expenses and make better management decisions. So can having quick follow-up at all times from your computer, tablet, or phone.
And that's with one of the dashboards specific to your industry. For example, by choosing to automate your invoicing, you will plan your punctual bill payments and thus avoid late payment fees.
Planning your expenses brings the benefit of re-considering each of them. Is it core to your company? Keep it. Is it non-core to your company? Put it in the list for cost cutting.
Managing several salaries at the same time can be enormous. Both morally and administratively. Especially if your company is in its early years of operation. You need to make sure you have work for everyone. To give you a chance to breathe, but especially to help you reduce your company's expenses, consider hiring outside collaborators for specific mandates. By doing so, you will have a more flexible and affordable compensation model.
As you know, recruitment is expensive. High-performing employees who share your corporate culture is a great asset. To retain them, talk to them regularly to find out their personal and professional goals. Listen to what they are looking for in terms of career paths and growth opportunities. They can save you money.