Many business expenses may be free from tax but they’re still an outlay that can cut into your profits. We’ve asked around and found some great ways you could save money on your business expenses.
Clock your mileage. — The tax you can claim back for fuel may only be a few pennies a mile but it soon adds up. Many business owners look forward to this little rebate at the end of the year as it can be a nice welcome bonus. Make sure you keep your receipts and keep an eye on your mileage. If you use your vehicle for business you can also claim tax back on the hire purchase, insurance, MOT and road tax.
Set a system in place. — Receipts are the Holy Grail when running a business and it can be hard to keep them all in one place. Many people leave the organisation until the last minute, enduring an unenviable day of sorting receipts by date. To avoid this headache, set a system in place early on. The simplest idea is to use a block of wood with a spike sticking up. Every time you have a new receipt, place it on the spike. Then, at the end of the month, or the year, you’ll know they’re all in date order and none will have flown away.
Share and share alike. — There are many areas of business you can share with other business owners to cut the cost. We’re all looking for ways to reduce our monthly outgoings and so there are incentives to facilitate this. You can share an office, a shop, a personal assistant or even a vehicle. Simply Google for shared business incentives in your local area.
Look for business only benefits. — There are a lot of companies that value B2B (business to business) customers over B2C (business to customer) relationships. This is because a business customer is generally loyal, will spend more in a single transaction and will spread the word with their own customers or clients. Companies such as hardware stores offer business benefits such as trade cards that give a good discount and special trade events. You can even save money on your telephone and broadband by registering as a business with price business utilities comparison websites such as Make It Cheaper.
Take advantage of promotions and referrals. — Many B2B companies and marketplaces offer promotions and discounts for first time sign-ups. Here at Bidvine, we have a referral scheme for our service professionals that you can take advantage of to save on your marketing expenses. If you refer a friend who offers services in one of our categories, we will match the number of credits your contact purchases within their first month, and apply it to your account! So what do you have to lose? Just make sure they shoot us an email to firstname.lastname@example.org on the day that they sign up and mentioning that you referred them. Click here to find out more.
There are many other ways to save money when you take advantage of your status as a business and not just on your overhead expenses. Local communities especially, welcome new business owners and have their own groups and meetings that you can become part of. When you become familiar with other product or service providers in your area you can suggest a trade-off, you can swap skills or products or ask other businesses to promote you promising you’ll do the same in return. Starting a business for the first time opens up a whole new world that you can now be a part of.
When you’re a business owner, saving money can really impact your revenues but it’s equally important to make sure you aren’t making any costly mistakes. Check out this excellent blog post by our friends at Money Nomad on five money mistakes you don’t want to make.
Do you have any tips on how to save money on your business expenses?