Thanks to technology, you can save on business expenses with a small initial investment. Whether you want to save on business travel or keep office supply costs low, these quick tips can help you meet your goals.
1. Create a Budget
Reducing business expenses starts with creating a budget. Make a budget for everyone to follow, and stick to it. Let workers know how you expect them to spend money on office supplies, mailing expenses, hotel bookings or new technology purchases. Set strict standards, and then have a discussion with your team on how best to proceed.
2. Know What's Tax Deductible
Understand that some business expenses are tax deductible. The IRS offers deductions for companies that hire new staff, purchase raw materials or need brand-new office equipment. Rent and office supplies are also deductible, as are travel expenses. Your firm's accountant is the specialist in these matters, and he can let you know what's deductible and what's not.
3. Incentivize Savings
Try to make the act of saving money around the office a fun process. Keep track of the amount of money each department saves each quarter, and reward winning teams with extra time off, gift cards or some other perk. Track of each team's savings in a visible way, such as in the break room on a whiteboard or with weekly email updates.
4. Plan Ahead
Planning ahead means preparing for lean times and prosperous times in advance. Having a plan keeps you on budget and helps you reduce business expenses when it's appropriate. It's also a good idea to have a Plan B in case of an emergency.
5. Share Expenses
Share expenses among employees when you can. This is very important when it comes to traveling, which is typically expensive. During business travel, consider having staff members share hotel rooms and rented vehicles, and use group discounts as much as possible.
6. Use Technology
Utilize apps to find discounts and help you keep track of business expenses in real time. When your team travels, keep several travel apps handy to find inexpensive lodging choices, deals and discounts.
7. Budget Honestly
Be honest when calculating meal expenses while traveling. Yes, some meals are tax deductible. That doesn't mean it's okay to spend too much money on food. If you want to treat your team to a five-star meal, go for it. Just be sure to plan your budget for this meal in advance.
8. Save on Gas
Walk to your business meetings whenever you can, or have things delivered to your place of business when you're on the road. Use online meeting technology or videoconferencing to cut down on unnecessary travel expenses.
Use these quick tips to reduce business expenses and increase your bottom line. Make these tips part of your company's culture to ensure everyone in your organization is on the same page.
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