There is a well-known saying that’s proven to be true time and time again: “You need to spend money to make money.”
But it gets to the point when expenses far outweigh your income—and that’s a recipe for disaster. While you can’t eliminate expenses, there are many ways you can reduce your overheads.
Invest in an accountant
While an accountant might seem like an unnecessary expense in addition to your overhead costs, hiring a professional to handle your finances is one of the best ways to cut costs in the long run.
Not only will you improve accuracy and avoid costly financial mistakes, but your accountant can offer independent, external advice from his wide experience with other businesses, and can help you identify potential tax deductions that could increase your after-tax profit.
Review Your Contracts
If you’ve been in business for a while, reviewing your contracts and renegotiating the terms can be a great way to save money.
Your company has likely changed/grown, and the same is likely with your relationship with your suppliers/third-party providers. So renegotiate the necessary ones to get more favourable deals that are beneficial to both parties.
Control employment costs
Employee wages are another contributing factor to your overall overhead costs, probably one of the largest cost headings. Of course, downsizing is always an option. But the best way to trim the cost of employees is by making smarter hiring decisions in the first place—find employees who have a variety of skills and backgrounds, or invest in training and development so that you can fill gaps internally.
Want a financial controllers’ help?
Burton Sweet provide a financial controller service that helps companies analyse their numbers with greater clarity and strategise effectively for the future.
Some smaller businesses do not have the resources or infrastructure to employ someone full-time in this role; therefore, Burton Sweet offer an alternative with an outsourced person/group working part-time and giving support when needed.
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