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Top money saving tips for small businesses

Saving money and reducing expenditure is a priority for small companies, especially when experiencing a struggling economy. With some careful planning, it is possible to cut costs, reduce overheads, and still build your business.

Marketing costs

Your marketing budget is probably one of the main expenses of your business, especially if you are not an expert. Rather than using paid advertising, outsourcing to a SEO company may be a more cost-effective solution. Incorporate social networking sites, YouTube, and other SEO techniques to attract clients.

Outsourcing

Small business owners often have a relatively limited budget and, as a result, find themselves being responsible for all the administration of the company. Although outsourcing may seem to be an unnecessary expense, it can be the cheaper option long term. Once you have outsourced payroll, accounting, IT and other duties, you will know that the essential duties are in the hands of professionals and you can concentrate on building the company.

Charitable donations

Depending on the type of business you have, you may find that you receive a number of requests for charitable donations. Rather than distribute food, clothing or anything else you deal with, you could make regular donations to the charity of your choice through Gift Aid. If you are a sole trader or a partner in a partnership, you can complete a Gift Aid declaration form for each charitable organisation you wish to support. If you pay tax at the higher rate, you will be able to claim some tax back.

If you donate trading stock to a charity, you may deduct the value of the goods from your business profits, minimising the tax you will pay. There are rules to be adhered to, so you may want to consult an advisor before making charitable donations.

Claim expenses

Make sure that you claim all eligible expenses for your business. Keep accurate business records, which may require outsourcing to an experienced bookkeeper, so that you have evidence of all legitimate expenses. These can be deducted from the company profits to reduce your tax bill. Capital allowances, mileage expenditure, and some tax reliefs are complex and may require professional assistance to ensure that you claim everything you are entitled to.

Purchases

Buy as much as possible in bulk so that you save money. If possible, negotiate a deal with suppliers, perhaps in return for prompt payment. Look at other ways to reduce costs around the company, like introducing a paper free environment to save on costs of paper, ink, and storage.

Meetings

All companies will need to hold meetings at some point to discuss various aspects of the business, but try to limit the time spent on them, especially if you have to travel to attend. Teleconferencing or video conferencing is becoming increasingly popular, to save travel costs and keep time spent at the meetings to a minimum.

There are many ways to reduce expenditure and overheads in a small business, and taking time out to examine every aspect of your company could contribute to the future success of your enterprise.

Posted by Louise
May 2, 2014
Features

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