If doing expenses feels about as fun as cutting onions, then you're not alone, it's probably one of the least fun things about running a business.
That said, like it or not, expenses are an essential part of business life.
It's also something you can't afford to avoid, with 4 in 10 of small businesses folding within 5 years. So no matter how brilliant your idea might be, you need to be as prepared as possible to ensure that you’re in it for the long haul. And with ineffective budgeting one of the main causes of failure, these top tips should help give you a head start in 2018.
Having a clear, concise budget plan is a surefire way to ensure that you don’t get any nasty surprises. By sticking to it – and checking it rigorously against your real figures every month – you can catch overspending as it happens, instead of ending up in unmanageable debt six months down the line.
Good news! The business of hiring freelancers isn’t just reserved for big, successful companies. Whether you need a website designing, some copywriting or a set of professional photographs taking, it’s cheaper and easier to engage the services of a freelancer than to hire a dedicated employee.
Never forget that you are a customer to your suppliers, and it’s worth shopping around to get the best rates. Whether it’s raw materials or services, they need you just as much as you need them. With that in mind, try negotiating rates and checking out the competition – you could make some big savings.
Training employees is a lengthy and costly process, and having a high staff turnover can work out expensive for your business. So it’s not only good for company morale to be a good boss and look after your staff – it’s great for your budget too!
If something is working out too expensive, don’t be afraid to reassess your priorities. For example, it’s worth regularly checking things like telephone and internet contracts, travel expenses and office rental to see what your usage is really like – and work out if there are any cheaper alternatives.
Need help keeping track of all the ups and downs of budgeting a small business? Our expenses solution is a fantastic tool for keeping everything in check. With its integrated payment card, app and dashboard, it’s a simple way to log all your company and employee expenses in one easy to manage place. Want to try it out? New users receive 30 days free, because we know you'll love it.