You’re a small business operator, managing your business by the bootstraps -- literally! Money is tight, your expenses are on the rise and your competition is nipping at your boots.
Maintaining a thriving business is challenging enough but advancing it may seem downright impossible. One important way you can conserve your resources is by employing multiple money-saving strategies. We’re serving up seven, each designed to help you come to grips with your bottom line.
That 13.4 percent rate you’re paying on your business credit card has you losing sleep. Get some sleep after you contact your credit card issuer and ask for a lower rate. You just might get it. You can do the same with your telecommunications company and with any other business that offers rate flexibility.
Perhaps you have more space for your business than needed. You may not be able to get out from underneath a lease, but your landlord might allow you to sublease part of your office to someone who can share some of your expenses. An empty cubicle or back office might be desirable to a freelancer who works at home.
When things are tough, cut back on what you pay yourself. Then tell your team what you did. Don’t expect your team to offer to do likewise, but they might step up their game in appreciation for you taking a hit on behalf of the team.
You’re paying high fees and had to buy or lease equipment for your merchant account. Get rid of that account and use online PayPal instead. Avoid statements and monthly fees, paying a flat rate for each transaction instead.
Shopping online can yield big savings, but you need to carefully find the right suppliers to serve your needs. Online shopping typically offers two other advantages: no payment of sales tax and free shipping.
Before you consider hiring an employee, use independent contractors to do the work for you. Keep you overhead costs low by outsourcing your accounting, advertising, website and marketing needs to people who charge a flat rate or by the hour.
Exchange goods and services with a company without exchanging cash. Find a business that needs your service and likewise, developing an even plan to exchange services. Read CRA Interpretation Bulletin 490(even though it’s archived it still has good information in it) to stay within the good graces of the tax man.
There are other ways for you to cut expenses including joining a business association where members offer each other discounts, reducing your insurance costs, making use of open source software and sharing your advertising costs with another business; though stay away from ‘free’ accounting software as it’s just not worth it. With a mind to save, you’ll find savings in virtually every area of your business, money that will benefit your financial statements.
Common Income Tax Business Deduction Myths
How to Keep a Mileage Log for Business Vehicle Expenses
Don’t Miss These Six Home Business Tax Deductions
How to Maximize Tax Deductions for Your Small Business
Should you Claim Business Expenses without a Receipt?
Common Tax Mistakes that Small Businesses Make
Best Business Opportunities for Retirees
How to Protect your Small Business Data