Running a business isn’t cheap, but quite often it can be hard to keep track of what you are paying out for each month. This is especially the case when it comes to administration. Unlike production costs, administrative costs are usually the same month on month, so they are an ideal thing to try and cut if your company needs to try and save some money. Need some ideas on how to trim these expenses to improve your cash flow? Read on.
Eliminate Subscriptions and Memberships
Many companies join up for subscriptions and memberships due to the small fee involved. However, the more subscriptions you sign up to, the more the cost can build up. If you are not making use of these subscriptions, you can save the money that you are spending by cancelling them altogether. Review all of the subscriptions you are signed up for and determine whether they are actually benefiting your company. If they’re not, get rid of them.
Technology has made it extremely easy for anyone to work from home now. And you can do anything from talking to clients, to submitting work from your home office. Companies like Director Point have even invented a secure board of directors software which enable you to reduce administrative tasks from your PC or laptop. Employees who work from home can also save money on commuting costs and office expenses. If you don’t need to be based in a brick and mortar office, save yourself the cash and work from home.
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Refinance Your Debt
Interest rates are currently at the lowest rate they have been in a few years, so if you have any debts outstanding, now would be a good time to refinance them. Aim to reduce your monthly payments by consolidating them altogether under an interest free plan if possible. This will give you more cash at hand, which could be vital in an emergency situation.
Stop Relying on Paper
Sorting and filing takes up many man hours, and it’s a time consuming job that really could be eliminated if you choose to go digital. Spend some money on a scanner and then scan in any important documents to your hard drive. Make sure to back up any files, and ensure they are secure, especially if they contain confidential information. You will not only save money on man hours, but you’ll also save yourself the cost of the printer ink and paper.
Cut Travel Expenses
Finally, you can also save your business a lot of money by cutting travel expenses. If you don’t absolutely have to travel across the country to see a client, why not see if you could do a video meeting instead. Typically, you will get a lot more work done when you set aside an hour for a meeting, than you would if you had travelled to meet them in person. You will also be saving your business the cost of travel expenses such as transport and hotels. If you absolutely have to travel, look into staying in budget hotels and hiring a car as opposed to taking taxis.
Administrative costs can add up, so if your business is struggling for cash flow, these could be a good thing to eliminate.