If your monthly expenses are running higher than expected, it might be time to look at ways to lower your overhead. In the internet age, digitising has proven to be an effective way to reduce costs in many areas of operation. Spending less money on your business is a great way to increase your profit margin, which can only help your company be more efficient and grow.
Use Online Accounting Software
Cloud-based software lives on the internet, and you pay the vendor a small monthly subscription fee to use it. Gone are the days when you had to pay a lot of money for software on disk and buy an expensive computer to make it work.
For example, QuickBooks, a cloud-based accounting software, helps you do everything from creating Goods & Services Tax (GST) invoices and paying bills to tracking expenses and collecting payments from customers online for a low monthly cost. The software is easy to use and you can access it 24/7 from any smart device or laptop connected to the internet. Depending on the size of your business, cloud accounting software may eliminate the need for a full-time accountant or bookkeeper. You may still need the services of such professionals, but you can save money by hiring them on an as-needed basis.
Reduce Paper to Zero
Paper can be expensive to track and store. Some of the expenses involved in tracking and storing paper include employee salaries, filing cabinets and entire rooms for some businesses. Today, you can use low-cost, high-security applications to store all of your documents online. Microsoft OneDrive and DropBox are examples of reputable apps you can use to store and access large numbers of documents. The only other equipment you need to reduce the paper in your office to zero is a scanner and a paper shredder.
Lease Less Office Space
For some types of businesses, such as retail, renting space is unavoidable. If all of your work happens on a computer, as might be the case if you run a software development company, you might allow your team to telecommute. Coworking spaces, which cost significantly less than year-long leases, make it possible for you to meet with your employees only when necessary. If having office space is necessary for your company’s image, you can save money renting a smaller space and still allow your team to work from their location of choice. Some software that makes renting less space possible includes:
- Project management software: Products such as Asana and Trello let you set up and oversee projects from start to finish. Employees or contractors based in any location across the country or worldwide can log in to one platform to collaborate, submit work and communicate with one another.
- Communications software: Apps like Skype and GoToMeeting provide a low-cost way to communicate with your team and clients via voice calls, one-on-one video calls and videoconferencing. You only need an internet connection, no wires or complicated setups, to use the software.
In addition to increasing the amount of cash you have on hand, lowering your overhead may allow you to lower the price of your goods and services, which makes customers happy and may inspire them to purchase more from you.