January is always a good time to take a detailed look through for your finances and that is true of your business finances too. Ultimately we want to be making the largest profit and this isn’t just achieved through increasing sales. Are there any areas that you can cut your existing costs?
- Insurance – You need to know when your insurance is due. How much your yearly premium is and what your monthly payments were. Are you able to decrease these? Check out comparison sites. Also remember you can normally get a discount if you pay the fee in a lump sum so think about putting money aside so you can do this.
- Phones – when you work from home it can easy to just use the house phone and then forget to take business calls into consideration. Consider either having a dedicated business line, mobile or keeping a details document.
- Broadband and internet – this can echo your phone issues. Using your family broadband for business uses you can forget this is a business expense. Keep a timetable of how many hours a week you are online for work purposes. Using a comparison site is a useful way to see where you stand, you might just be able to shave a few pennies off here.
- Postage and Shipping – I always have this a separate column in my expenses and every year I’m shocked by how much money I spend sending orders. Have a ring round and see if using a courier could be cheaper. If Royal Mail is your best option ensure you print off all the size/shape/weight details so you aren’t stuck with any nasty surprises at the post office.
- Know what you are entitled too – before you submit your tax return ensure you have claimed everything you are entitled too. Rosie from One Man Band Accounting is a font of useful information.
What other areas do you plan to reduce your costs?
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