Small business often means small budget so when it comes to balancing your books, things can sometimes get a little tight. Even though you’ve got less money to play with as the owner of a micro enterprise, you’re still working towards the same goals as big international firms with colossal budgets: to grow your brand and win more business. So while you’re working on earning your first million, here’s a few tips on how you can be more creative with your cash to get the most out of your capital.
Just last week we discussed the top 5 benefits of outsourcing over on the Pandle blog, which included insider knowledge, improved time management and increased flexibility. We also discussed how outsourcing work to external bodies or companies can be extremely cost effective and a great way to save money in the long run.
Outsourcing means you can avoid being tied to the lengthy contracts and expensive obligation of monthly wages that come with hiring your own in-house team. Commissioning work to a specialist company, outside agency or expert freelancer as and when you need it means you can keep tighter control on what and when you’re spending. Plus, you won’t need to worry about buying or maintaining the expensive hardware and software needed to undergo specific processes.
Take advantage of free advertising
We would hate to sound like a broken record after highlighting the various forms of free advertising you should be taking advantage of already last week but it really is an invaluable way to save cash.
Marketing plays a gargantuan role in the success of any enterprise, be it large or small, and business owners often recoil in horror at the prospect of a marketing budget, presuming it has be equally monstrous. However by capitalising on free to use marketing methods like cost-free social media platforms such as Twitter and Facebook, regular networking events, press releases and active business blogs, advertising and promotion doesn’t have to cost you a single penny!
Stay on top of your accounts
Accurate accounting is paramount when running your own business as it will not only keep the tax man off your back every month but also ensure that you are running a tight ship when it comes to your finances. Staying up to date with your accounts and keeping on top of the business books will enable to you to establish a clear insight into where you’re overspending and where you can afford to be a little more lenient with cash flow.
This is the perfect opportunity to plug our very own cloud bookkeeping software, so we’re going to! Now we may be a little biased but as a free-to-use service, Pandle is perfect for keeping your financial records in order. Using cloud software, all of your valuable data is stored securely on a central server and can be accessed from anywhere with a Wi-Fi connection so there’s no need for expensive hardware or costly maintenance. Our 1500+ clients think it’s pretty nifty too. Want more info? All you need to do is ask!
Do your research
If you are going to outsource jobs or recruit an external body such as a great, low-cost, online accountant like us (sorry!) then make sure you do your research first. If you’ve landed on our website after searching for an accountant then you’ve done your research right as we can make sure you’re accounts are up to date and tax efficient for next to nothing.
However, if you choose not to do some preliminary exploration of the marketplace then you could end up paying well over the odds and wasting valuable cash every month. We’re not just talking about accountants here either. Anything from graphic designers and copywriters to insurance companies and solicitors – make sure you’ve read all of the small print before sealing any deals to avoid throwing away valuable capital.
Know what you can claim for
As an SME owner, there are plenty of expenses that you could be claiming for so make sure you’re aware of what they all are. For example if you work from home and use a room for work half of the time and for leisure for the remainder, then you could be claiming 5% of the rent. Similarly, you could also be claiming for things like mileage and consumables (such as ink and paper) because let’s face it, when it comes to small business, every little really does help!
Want to learn more?
Subscribe to our newsletter to get accounting tips like this right to your inbox
About The Author
We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!