3 Ways to Reduce Spending in Your Business (without Losing Your Quality)

The times are changing, and our economy is too, more than we’d like.

Simple things like groceries are now becoming unaffordable, which is a “need” spend, not a want.

So what happens to our businesses during these ebbs and flows? Well, for one, we get creative.

And then, we re-evaluate. There are a few things to review that are low-effort but make a massive impact on our businesses, and I’ve put together a short list of the essentials.

Tech & Subscriptions

How much software are you subscribed to? Do you have a different software for each task? 

These are key questions to ask yourself when reviewing your expenses.

If one task requires using multiple software for different stages of completion, it’s time to reconsider your tech stack. You want software that works for you, both in time, and money, and overall helping you create profit. Subscriptions add up and it’s a very simple thing that many people get wrong when incorporating into their business.

The best thing you can do for your business is to routinely review your subscriptions and the effectiveness of your technology. A good rule of thumb is to utilize software that can do multiple things at once. For example, for simple graphic creation and video editing, Canva works for us, especially right now. Another feature Canva has is content scheduling and management, which means you can create, edit, and schedule all from one platform. Again, you want your software choice to be methodical and practical, so the more functions it has (and does well enough to your preference) the better!

Switch from Paper to Cloud

Your paper use costs you (and the planet, but let’s focus on you)! 

Buying paper costs money. Buying ink (whether for a printer or to write with) costs money. Like every business, you have sensitive documents that need discretion and privacy. Shredding those documents costs money.

Now the amount it costs is unique to your business, but the bottom line…it’s impacting your bottom line! Using cloud-based software, document storage and digital document protection is a great alternative to the ghost of business past. 

Cloud computing is more collaborative, accessible, and flexible, three things every business is striving for. Not to mention, it saves you money comparatively, both in the long and short term.

Find out what your paper use is costing you!

Keep An Eye on Things

Not suggesting an “Eye of Sauron” type deal (hey fellow LOTR fans), but frequent reviews of your budget and tracking your spending will help you understand your financial habits, both spending and saving. 

The more you track your spending and progress with your budget, the easier it will be to notice and predict the trends in your business, quarterly, monthly, and even weekly. 

Perhaps you hit that neighbourhood coffee shop a bit too frequently, or you’re buying a lot of “new” items for your office. These insights can help you adjust, which could mean you decide to make coffee yourself 3 days a week and visit the coffee shop only 2 days instead of the 5 times you did before. Alternatively, you may choose to make your purchasing more sustainable, by seeking our used or refurbished furniture, maybe even DIYing with your current furniture for a new look.

Whatever the case, it’s important to be in sync with your spending, because financial surprises are only fun when there’s a surplus.

Start with those and see how they impact your business. Depending on your P&L report, you may need to make more drastic changes, but that is not an answer you’ll be able to find in a blog. 

And if that’s the type of question you’re facing, “Do I need to do more”, let’s talk about it in an Ask a Bookkeeper Session.

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