How to Save for Common Business Expenses
If you are an entrepreneur that is looking to save money on business costs, you are not alone. Around 82% of all business owners experience cash-flow problems from time to time, and such experiences are routine parts of the business cycle for many industries. Perhaps you had an unexpected expense this month, or sales have been disappointing.
Whatever the reason, now could be the time to economize so that you can meet your common business expenses. The last thing you want is for an emergency expense to result in you being unable to cover the general day-to-day costs of running your business. Read on to find out exactly how you can quickly start saving for common expenses in your business.
1. Be Pro-Active with Repairs
In order to make the most of every penny of business revenue, you should be proactive with repairs and maintenance. The longer you leave problems such as broken plumbing, corrosion problems, or machinery repairs, the more expensive they become. To save money in the longer term, you should perform preventative maintenance and be on top of repairs as and when they arise. This will save you serious cash over the years.
2. Tax-Deductible Maintenance
Did you know that your business maintenance and repairs are tax-deductible? In order to determine whether your routine maintenance costs can be taken from your bill, simply conduct the so-called BRA test. This stands for Betterments, Repairs, and Adaptions, and refers to the types of maintenance and repair expenses that are tax-deductible. If a repair is necessary for the functioning of your business, you can nearly always use it to offset your taxes with the IRS.
3. Audit & Budget
In order to save money in business, you need to know exactly how you spend money in business. Probably the most impactful way to boost your bottom line is to conduct a thorough audit of all of your outgoings. From here, you will be able to see where every penny is going and where you can shave down unnecessary costs. Once you audit your finances, you can budget accordingly.
4. Negotiate with Suppliers
No matter the shape and size of your business, you will likely have an extensive roster of relationships with a variety of suppliers and contractors. Those suppliers are valuable business partners. Therefore, you should hit them up to see if you can re-negotiate any prices to see if you can save some money. If they value your regular custom, they will be more than happy to open discussions. You can sweeten the deal by offering something in return, such as a longer contract term.
5. Trim Your Common Business Expenses
Once you have followed all of the above steps, you can start to trim the fat. There are many, many ways that you can save money in your business. You could go paperless, switch to energy-efficient lightbulbs, or switch out your coffee supply to save hundreds of dollars a year right off the bat. Look for signs of bloat in your business model to see where you could cut costs with minimal impact.
Affordable, Pro-Active Business Maintenance
To save for common business expenses, pro-active maintenance can make the world of difference. If you need an affordable, efficient contractor for your repair, maintenance, and safety needs, we have got you covered. Give us a call today to find out how we can save you money in the long term.