Recently, Taxify announced they were coming to Australia to compete with
In this post, our Financial Mentors show you how to cut expenses.
1. Sense Check - Do I really need this?
Gadgets, new software, swag, all business expenses that are fun to have but aren't always needed to drive value to your business. This is such a simple question, but before you get out your phone to swipe at the till, ask yourself, Do I really need this?
2. Review your aged payables report
Ask these simple questions
- Are invoices entered twice?
- Are invoices listed that I think I have paid?
- Are invoices showing you think you declined?
3. Change your negotiation style - don't let suppliers dictate to you
Odds are your suppliers want your business, yet so often we accept their terms. We accept their price, their payment terms, their features and benefits. everything in business is a negotiation, so make sure your suppliers aren't pushing you around. Your
4. Review your debt
So many businesses have debt but with
1. Find a great broker to help refinance your debt
2. If the property securing your business debt has gone up in value, considering restructuring your loans
3. If you have loans from
5. Pay Suppliers on Time
Many suppliers will give you a discount if you pay on time. Have you asked? Do you pay on time? If so, do you ask for a discount?
6. Prepare budgets and find a financial mentor to hold you accountable to them
Every department in your business should have a budget so they know what they are authorised to spend. But let’s be honest, so often we prepare budgets that get put in the proverbial bottom drawer and are never looked at.
When was the last time you actually took your business to the market to see what things cost? Major expenses like
Drop slow moving stock and product lines
8.Have an accounts payable process
How many things happen in your business that takes time and doesn’t add value. Accounts Payable is one of those things. Paper invoices get handled, 2,3, even 4 times before it’s even paid! What a waste of time. So start with this process, review, it and look for ways that stop the chances of invoices that are more than what has been ordered or approved being paid.
Ok, this sounds like a big task, but given how big of
10. Review SAAS expenses
This is a new problem for business. How many times have we just given our credit number online to try a piece of software that we end up barely using but getting charged for?
Make sure all SAAS subscriptions are coded to a control account in your P&L so you can easily review them and cancel what isn’t being used or lower your subscription level if you aren’t using all the features.
If you want more information on how our financial mentors can help you cut costs click below.