by Bo, February 25, 2013
Saving money is something that everyone tries to do, whether it’s in their personal finances or as a company trying to make ends meet. There are some things that you can do to start saving more money and really making a long-term difference. In a difficult economy, you need to account for all your revenue and spending, and it really only takes a few simple changes to save large amounts of money.
1. Track Your Expenses
Many companies keep track of everything that they spend but have a difficult time controlling the spending. One tip that helps with personal finances that also works in the business world is using checks instead of credit cards. This leaves a paper trail that is easier to track as well as limits the amounts you can spend to money you actually have. You will have to pay close attention to your expenditures to avoid overdrafts on your accounts.
2. Don’t Always Buy New
There are a lot of things that many people just buy new because they don’t realize there is a less expensive option. For instance, buying recycled or refilled ink cartridges can save a lot of money. Cartridges that usually cost over $50 can be bought at a significant discount through other channels. There are several companies out there that provide these types of services, and with a little research you can easily find them. This is a good option for office equipment, too, because you can buy used printers, furniture and a range of other important items while still saving a lot of money.
3. Hold Regular Budgeting Meetings
One of the major differences between personal and business finances is that in the latter there will be a number of people with very strong opinions on how the money should be used/invested/saved/etc. If you hold regular budgeting meetings you will be able to involve more people in the company and make sure that those opinions are heard. Pay close attention to the people who have special training in finances, and then make sure your budget is aligned with your goals.
4. Set Financial Goals
Once you know where all your expenditures are going, you will find it much easier to determine where you can start saving money or where it can be spent more effectively. Once again, this is much like personal finances. When you see how much you are personally spending on, for example, eating out five times a week, you may be motivated to change that habit. As a business, when you see how much you are spending with suppliers or partners for little or no return, you will be able to set some better goals and start streamlining your financial processes.