Cutting Costs: Big Savings for Small Businesses

Is your business facing cash flow problems?

Are you looking for ways to bring down your operational costs?

Here are 4 tips to help you get there:

Track Your Inventory

Stocking inventory ( more than is actually needed) is a common mistake almost all small businesses make. Hoarding inventory ties up your working capital in addition to increasing your storage and holding costs.   The results of this? Cash flow crisis and an ever increasing amount of operational costs.

What do you do about it? Exercise the principles of Economic Order Quantity (EOQ) to minimize your inventory costs. Also, keep an eye on the slow moving and/or dead stock. It is often better to sell them off at discounted or scrap prices rather have them dumped in the warehouse for nothing. As they say: Something is better than nothing!

Think Green

Yes the environment needs your business to be friendly with it, but it’s your business that benefits more when you go green. Using recycled products, energy efficient lights and fixtures, and turning off all equipment at the end of the workday can save your business a lot of money in a year’s time. Also, try creating a paperless work environment. It will give the trees another day to live and help you streamline your cost-cutting process better.

Make the Most of Your Credit

Most small businesses use corporate credit cards for business transactions. This is where choosing the right type of business card can cut down major costs by a margin. For example if you have to travel frequently for your business, a corporate credit card that offers frequent flyer miles will save you airfare costs. Pick a credit card that offers reward points for cash back or discounts relevant to your business to save money.

Keep an Eye on the Accounts Receivables

If you allow credit sales, there’s a fair chance that a good amount of your working capital is tied up in unpaid invoices. This may lead to cash flow problems if you do not devise a system that helps you collect timely payments from customers against your outstanding invoices. The ideal situation would be not to offer credit sales, but if you do, you need to make sure you have a proper debt collection process that keeps the cash coming in. This will save you the need to apply for working capital credit or loans, which bring additional finance costs along with them.

Even if you choose only a couple of methods out of these, you can give a substantial money makeover to your small business. These tips can help you make your business more profitable and efficient in the long run.

For professional help with handling accounts and taxation, get in touch.

If you found this information useful, let us know! Feel free to share it so others can benefit too.

Click the video link below to meet Les Wells of AK Book-Keeping

Video of Les

 Email: les@akbook-keeping.co.uk

 

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Testimonials for AK book-keeping

Electronics online retailer

Our decision to choose the services AK Book-keeping and Payroll Services has turned out to be a really important enabler to the growth of our business and has delivered us fantastic value for money. Their accuracy and efficiency in compiling our accounts and payroll documents has allowed us to focus on the things which we do well and add real value whilst removing the distraction of unwanted and complex administration work. I would recommend them without hesitation.

Chris

AK Book-keeping
5.0
2015-10-23T16:25:46+00:00

Chris

Our decision to choose the services AK Book-keeping and Payroll Services has turned out to be a really important enabler to the growth of our business and has delivered us fantastic value for money. Their accuracy and efficiency in compiling our accounts and payroll documents has allowed us to focus on the things which we do well and add real value whilst removing the distraction of unwanted and complex administration work. I would recommend them without hesitation.

Carpet & Lighting retailer

Now that we have AK Book-keeping doing all our tax returns, wages but to name a few, we have more time to focus on the business and a lot more leisure time

Simon & Cathy

AK Book-keeping
2015-10-23T16:26:07+00:00

Simon & Cathy

Now that we have AK Book-keeping doing all our tax returns, wages but to name a few, we have more time to focus on the business and a lot more leisure time

Multiple Franchise Owner

I Periodically review my resources (like any business should) and on each and every occasion I have decided to retain AK Bookkeeping’s services. It’s one of those business I know I can depend on.

Bob

AK Book-keeping
2015-10-23T16:44:40+00:00

Bob

I Periodically review my resources (like any business should) and on each and every occasion I have decided to retain AK Bookkeeping’s services. It’s one of those business I know I can depend on.

John – Building Company owner

We engaged AK Book-keeping some two and a half years ago, from the outset their communication has been excellent. We were provided with a schedule of monthly costs and a clear indication of what was included. To date we have had no reason to consider changing from AK Book-keeping as their service has been reliable, efficient and cost effective.

AK Book-keeping introduced us to Xero accounting system from the outset and for a reasonable monthly fee we benefit from all the Xero facilities available and have access to view our account, use data and monitor our performance and it is all relatively simple. We would recommend AK Book-keeping and the Xero system.

John

AK Book-keeping
2016-02-05T16:33:23+00:00

John

We engaged AK Book-keeping some two and a half years ago, from the outset their communication has been excellent. We were provided with a schedule of monthly costs and a clear indication of what was included. To date we have had no reason to consider changing from AK Book-keeping as their service has been reliable, efficient and cost effective. AK Book-keeping introduced us to Xero accounting system from the outset and for a reasonable monthly fee we benefit from all the Xero facilities available and have access to view our account, use data and monitor our performance and it is all relatively simple. We would recommend AK Book-keeping and the Xero system.

Online Retailer

Les has worked with us for 12 years now and supported our Bookkeeping and Payroll needs. Always helpful, cheerful and gets the job done efficiently. When required has helped us with other business related issues outside of Bookkeeping.

Online retailer

AK Book-keeping
5.0
2018-07-02T22:05:34+00:00

Online retailer

Les has worked with us for 12 years now and supported our Bookkeeping and Payroll needs. Always helpful, cheerful and gets the job done efficiently. When required has helped us with other business related issues outside of Bookkeeping.

Peterborough online retailer

Les has worked with us for 12 years now and supported our bookkeeping and payroll needs. Always helpful and cheerful and gets the job done efficiently. When required has helped us with other business related issues outside of bookkeeping.
AK Book-keeping
5.0
2018-09-19T18:24:06+00:00
Les has worked with us for 12 years now and supported our bookkeeping and payroll needs. Always helpful and cheerful and gets the job done efficiently. When required has helped us with other business related issues outside of bookkeeping.
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