Seven tips to reduce costs for small and mid-sized businesses

Has your small business been struggling to keep up? Did the sudden closure of businesses and steep fall in the global economy affect you as well? The pandemic has been the worst crisis humanity has ever experienced, and its impact on the economy has been enormous. Small and mid-sized businesses experienced the greatest losses, with revenues dropping by 20 percent in the first quarter of 2020, forcing many to turn to creditors. With the financial crisis finally hitting SMEs hard, you must be now seeking alternative revenue streams. Here are some great financial solutions for you!

Using the seven best tips offered in the article, you can revitalize your revenue and reduce costs by going paperless, utilizing virtual accounting firms, and embracing remote work. You must, however, take care not to compromise your values and service quality.

Seven cost-cutting strategies for small and mid-sized businesses

Remote working and its incredible benefits

Remote working has been a great revelation during the pandemic. Not only does remote working enable employees to work from home, but its efficiency in facilitating productivity is also laudable. However, remote working’s greatest advantage is its ability to eliminate office facilities. By working remotely, you can drastically reduce the cost of rent, utilities, taxes, and insurance associated with the building.

But make sure that the best technologies are implemented to facilitate smooth and seamless connectivity. As far as remote working is concerned, accounting firms have experienced a significant shift. Accounting and bookkeeping services online have made remote accounting work easier and more reliable.

If your work requires employees to work from the office, you can also consider implementing flexible work schedules which combine both remote and on site work on an alternative basis. You can also save a lot by renting a smaller office for this purpose.

Go paperless and save the expense.

In one of its survey reports, Gartner.Inc, a leading industry research firm, had revealed that about 3 % of the company’s expenses are made on office utilities like paper, copiers, printers, toners, file cabinets and fax machines. Small businesses can adopt paperless documentation and save a lot of money. Software like Office 365 has fabulous documentation support, where it is easier to create, store and share documents easily and faster, all at an affordable cost.

Manage your inventory with effective tracking applications

In inventory-based businesses, tracking inventories will be an effective way to reduce costs. Employ inventory management tools to track down obsolete items or excess stocks. Set discounted pricing for these products or bundle them with profitable products. You must be careful with stock orders and ensure placing small orders to avoid excess stock issues.

Invest in inventory management tools like Dynamics 365 Business Central to optimize your inventory and supply chain management.

Automate your business processes

Often, smaller businesses end up spending more because they avoid technology and rely on manual processes. The faster you handle a task, the more you can save. Hence, instead of relying on traditional paperwork, spreadsheets, and sales orders, use automated applications to get your work done faster. Regularly auditing your business processes and adding efficient technology will be beneficial.

Revamp your marketing strategy

It is high time that your business adopts easier and more efficient digital marketing techniques instead of relying on conventional marketing techniques. Social media marketing, email and SEO marketing are revolutionizing the marketing industry with efficient and organic ways of acquiring business. These methods not only give you stunning results but foraying into the online space can boost your brand reputation as well.

Audit your expenses

Auditing expenses is crucial for your small business because small cuts can add big savings over time. Ensure that your monthly and annual subscriptions are reviewed periodically. Cut down on the services which you rarely seek.

Embrace the benefits of cloud technology

Do you still use your on-premises ERP system? Are you aware that legacy systems can be expensive due to frequent maintenance and IT requirements? In that case, moving to cloud-based systems would be a better decision. Cloud applications eliminate all sorts of direct maintenance and upgrade expenses, saving you significant amounts of money in the end. You can also choose only the features you need. Read More