Whether you are in the start-up phase of your business or already enjoying success, proper financial management is an essential part of any entrepreneurial endeavor. Every financial decision, spending cut or expense can have a drastic impact on the success of the business. These five tips are simple ways that any entrepreneur can cut business costs while improving their business.
1. Optimize Your Document Management System
From invoices and purchase orders to client contracts and employee handbooks, the amount of paper and ink used by a business can be substantial. Combine these costs with document storage solutions, the amount of time spent searching through paperwork and other daily operational concerns and the expenses will surprise you. By utilizing digital document storage and creating a standard process for handling documents, you can reduce the amount of time it takes to find documents, speed up the communication process and eliminate the need for massive banks of filing cabinets and other storage space.
2. Switch to a Digital Signature Platform
The Internet has changed the way many businesses process orders, manage clients and distribute products or services. Online signature services make it easy to eliminate the hassle of physical documents, contracts and other business-related forms while providing security and reliability. Most services offer multi-step authentication, transmission encryption and other services to ensure that all transactions and customer information are secure. What once took dedicated fax equipment or costly shipping fees can now be accomplished in just seconds with a computer or smartphone. Best of all, many countries have established laws to govern the acceptance of digitally signed documents in court to provide protection for your business as well.
3. Utilize the Cloud
Cloud-based services are revolutionizing the way that businesses access tools, store files and communicate. Software-as-a-service solutions allow you to avoid the upfront costs of many professional business tools by paying smaller access fees and expanding your features as your business grows. Cloud storage provides essential data backup and document transmission services for a fraction of the cost of maintaining your own servers. Internet collaboration tools make it easy to manage your workforce and coordinate projects and proposals without the need for conference rooms, meetings or travel expenses. From the smallest business to global corporations, these solutions offer easy money-saving opportunities.
4. Outsource for Savings
Whether you are designing a mobile website for your business or just looking for a way to reduce the burdens of daily tasks, outsourcing is a great way to save both time and money. Common tasks, such as data entry, customer callbacks or appointment management can be outsourced for affordable prices. One-time tasks, such as logo design or mailing list creation, are ideal for outsourcing as well. By outsourcing these tasks, you can free up your schedule for important business events. This also helps to keep your staff size small and payroll costs low while ensuring quality results.
5. Consult with a Tax Professional
Tax laws are complicated and change often. From missed deductions and expenses to the latest tax credits and incentives for business owners, any mistake on your tax forms often results in losing money. In many cases, a consultation takes less than an hour and can potentially save you thousands of dollars. While hiring a tax professional does involve additional upfront costs, many of these fees are deductible on your taxes at the end of the year. Most tax professionals receive regular updates on changes to tax laws and potential changes for the coming year. This allows them to advise you on the best times to make large business purchases or start the next phase in your business process. Should you ever run into problems, most consultants offer help with audits and other inquiries as well. Most importantly, a tax professional allows you to invest the hours you might spend filling out tax paperwork into improving and growing your business.