Hidden actions to control your business expenses

If ever there was any truth to the old saying that the devil is in the details, it was never truer than when it comes to business expenses.

Everyone who’s worth their salt in business is already doing the obvious, or so you’d expect. But once you have one cost control measure in the bag, it’s time to look for another. Here are five that you may not have thought of, but that will pay off in the long run. Take a look at the theme running through them; is that getting help from experts pays dividends.

1. Too much cash? Nobody wants their business to live by the letter when it comes to paying bills, but how much money is too much? Having substantial non-profitable sums in the bank is a waste of resources. Talk to a good accountant or independent financial advisor to see if those funds can be used as a source of income (in a tax efficient way).

2. The cost of cozy. It’s okay to have a good working relationship with suppliers, but don’t get involved in contracts that could cost you too much in the long run. Give yourself the leeway to renegotiate annually. And never, ever, automatically renew anything. Start over every year. Insurance and energy are tricky areas, and a trusted broker can guide you through the minefield. (On the other hand, be prepared for clients to do the same for you. Don’t expect them to sign up for another year without giving them good reasons to show that you are their best option.)

3. Talk about technology. If the technology you are using is old, it is likely to use more power than the latest models. For example, laptops use less than conventional desktops, so you may be paying more for power than you need. But have you looked? Now might be a good time to do your research. And if slow IT means employees have to wait for technology to catch up, why would you pay them for not working, even if it’s 15 seconds every two minutes?

4. Goodbye, phone bill. Ditching everything you thought you knew about phones and adopting new technology instead can lead to significant cost savings. Using the latest in VOIP, or Voice Over Internet Protocol, you can make phone calls over your computer network, as long as the broadband link is up to the task (which is more and more these days). Renewable phone contracts are available and you can link your smartphone to the company phone system, so you can be in when you are out. Also consider your increasing use of Skype and Facetime. Find someone who knows about VOIP to advise you.

5. Don’t DIY. Would you remove one of your own teeth or ask a dentist for it? Thought like this. So why create your own accounts or write your own blogs and websites? Those activities may reduce your overall spending, but they consume your time budget and generate no income. Hire people and focus on generating income.

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