In order for any small business to start or continue making a profit keeping on top of their financial situation is vitally important. Part of this involves looking after the company’s savings or back-up funds to ensure it is well prepared in case of a lull in business or any other kind of disaster strikes.
There are a number of saving strategies out there, with at least one which will prove effective whatever your financial aims, habits and current situation. Consider each of these and then make a start at one of them to hopefully see your company savings start to gradually increase.
Advancements in technology have had a huge impact on the financial world in many ways. You can now access personal or business finances with a few taps on your smartphone, whether to make a couple of purchases or transfer money to a client. Automating all your incomings and expenditure is a great way to take advantage of such technology. As well as setting all your overhead bills to go out on time each month, have a direct debit that places a certain amount into the company savings account every month.
Make energy savings
Many utility companies will offer a free audit for your business’ energy use. The number of places that leave lights and more on overnight is alarming and costs can be significantly cut by making such changes. Replace with energy efficient bulbs, ensure the heating is on a timer and that all computers and other appliances which can be turned off are in an evening.
Make the most of ISAs
One of the main incentives for opening up an ISA is the fixed rate and often higher amounts of interest they provide. Any company serious about saving should set aside some money for a year or two in an ISA. This is a good step towards looking after the business’ financial future, although money in the ISA can’t be accessed during this time (or can be withdrawn but without interest). In an emergency this may not be as helpful.
Conduct a self-audit and respond
When you know you need to cut back somewhere but are unsure where to start, a good idea is to conduct a self-audit. Make a note of all the company outgoings and compare with its income. Work out how much you want to be saving each month and it should show the amount that needs shaving off your expenditure. Pick out where this can be done and act on it, whether that is reducing overheads such as an unnecessary fish tank or cutting down on expenses.