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How to cut costs and save money as a small business
21 Mar

Saving money mazumaAs you probably already know, running a small business can be pretty expensive. So, to help make your business as lean as possible, we’ve gathered some money-saving tips to ensure you’re not shelling out on needless expenses!

Compare and switch your services regularly

Utilities and services are also a source of seemingly unending debits, and companies rely on people not looking for better deals to make tidy sums of money - very cheeky of them! It’s very rare that service providers move their customers onto best deals automatically, and so bill payers who just let their payments run usually find themselves lumped with the worst rates.

This is why it pays to make sure you’re constantly on top of your utilities and services, getting the best deals and tariffs as and when they become available. Using comparison sites is one of the best ways to do this, and you can usually switch to better deals quickly and painlessly!

Gas and electricity bills fluctuate frequently, so the smart money is on switching regularly. This doesn’t necessarily mean switching supplier. According to commercial energy comparison site Love Energy Savings, 55% of customers stay with their supplier, but still save money by switching tariffs. There’s no break in service when you switch, so the only noticeable change should be that your bills drop.

Broadband is obviously another big one. And if you have employees sharing the same building, it’s important to get the speeds you need for everyone’s work requirements. So it’s a good idea to test broadband speeds to see what you can get for your workplace before comparing deals.

If you’ve opened a business bank account, it’s worth comparing accounts now and again too, as banks occasionally offer incentives for switching. And it’s less of a manual task as it might sound, because the target bank will usually switch over all your direct debits and standing orders for you. How very kind of them!

Use free software

Paying for software and getting licences for your staff can become very costly, very quickly. But common software packages frequently have free alternatives that work just as well, and will still allow you to export the same file types as you would with the paid version. For instance, rather than paying for Microsoft Office, downloading open-source software like OpenOffice could save you a bundle.

Likewise, if you need to create images for your marketing, GNU Image Manipulation Program (GIMP) can do more-or-less everything that Photoshop does, which should be more than sufficient for your business needs.

It’s also worth looking into cloud-based software, as then you’ll be able to access the programs and your files from anywhere. Google Docs is another worthy alternative to MS Office, requires nothing to be installed other than your browser, and saves your work automatically. No more throwing your monitor out of the window when your computer crashes with an hour’s unsaved work lost!

Be tax smart

When you pay corporation tax, it’s possible to reduce your tax bill without straying onto the wrong side of the law. For instance, it’s well worth knowing exactly what business expenses offset your tax. Read our tips on how to reduce your corporation tax legitimately to find out all the good stuff.

If you have employees who get benefits for working for your company, then you’ll know all about the P11D form. It’s well worth looking into what falls outside the scope of this form, as these non-taxable benefits will save you money and make your finances more efficient. And, of course, staying on top of your tax means you can avoid any penalties, and any adverse effect that may have on your cash flow.

If your company’s VAT registered, it’s really worth knowing which business purchases you can reclaim VAT on. Being thorough here could potentially save your company an arm and a leg! However, it’s also a massive faff. Because your time is valuable too, you may decide it’s a better use of your resources to get someone to do it for you.

And on that note, one of the best ways to be as efficient as possible with your taxes is to hire a reputable accountancy firm to do them for you. Although this obviously involves spending a bit of money, the savings usually outweigh the costs. And not to mention your peace of mind at knowing it’s all sorted for you - can you really put a price on that?!

Hire a firm that cares about your money

Enlisting a simple, easy-to-use accountancy service could also ultimately save you a lot of time and money. And, as luck would have it, that’s exactly what we are! To find out how Mazuma can help you - and hopefully reduce your outgoings - feel free to contact us with no obligation whatsoever.

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