Top 5 Cost Saving Tips for Small/Medium Sized Businesses & Companies

Top 5 Cost Saving Tips for Small/Medium Sized Businesses & Companies

SME’s are truly the heartbeat of the economy. In 2018, tech platforms can increasingly allow these MiniMultinationals to operate as efficiently as possible, allowing maximum efficiency and bottom line benefits. Check out our top tips to help small to medium sized businesses save money.

1. Keep Payment Costs Contained

It’s common for SMEs to outsource work to employees overseas, where labor and talent is high quality and low cost. Companies with branches overseas must also figure out how to handle salaries for their workers abroad or even just pay suppliers. This long-distance relationship comes with some extra expenses, namely the price for transferring money across borders. Banks will commonly layer on processing and transfer charges that cut into the bottom line, so savvy SMEs will choose hi-tech payment services instead. Using a platform like CurrencyTransfer.com saves up to 85% on these fees.

2. Lean on Technology

Buying new tech for the office might not seem like a money-saving tactic, but integrating the right solutions will defray costs immediately and over time as well. Voice over Internet Protocol (VoIP), for example, represents pennies on the dollar compared to traditional phone lines, and allows employees to be more effective even if they aren’t in the office. Customer Relationship Management (CRM) software can also add to the bottom line by optimizing your communication and management of clients, while reducing employee inputs. This is one of the most effective cost saving ideas for companies.

easy to forget about taxes

3. Factor in Taxes

It takes an immense amount of concentration and focus to continually move the needle in the right direction, so it’s easy to forget about taxes. Many small businesses are surprised by a tax bill at the end of the year, or one that is heftier than they’d expected. It’s a terrible feeling to work hard and earn money, and just when you think that you’ve got this entrepreneurship thing down pat, to get hit with a giant tax bill that devastates your bottom line.

Planning ahead to make sure that you’re able to pay your taxes is crucial to avoid late payment penalties, but just as important is not being surprised by them. Set out time each month to understand your tax burden based on that month’s numbers, so when the taxman comes knocking, you can give him the check and get on with growing your business.

4. Employee Credit Cards

A small business owner might find it difficult to shoulder the entire administrative burden, while also working to grow the business. He or she likely has responsible underlings that can handle buying new supplies and taking out clients on the company’s dime, and instead of billing the boss, it’s easier to give them a credit card. Supplementary credit cards are attached to the business and make accounting and oversight much easier, while also earning multiplied rewards like miles or cash back, if applicable.

smarter to hire contractors or freelancers

5. Use Contractors

Instead of taking on the liability and overhead that a new employee imposes on your firm, it’s smarter to hire contractors or freelancers. Outsourced employees are typically 30% less expensive than on-site full-timers, and going overseas often means getting comparable talent for significantly less. You’ll avoid a large tax burden, paying for healthcare and sick leave, and still get a quality result (if you’ve vetted them thoroughly). Some businesses choose to work with contractors exclusively, to minimize their exposure to taxes and other state-mandated employer obligations.

Mean, But Also Lean

Running a successful small business requires more than the ability to simply generate revenues. It’s also crucial to save money where possible and neglecting to cut costs will come at the expense of a business’s bottom line. As a business owner, you should seek to reduce unnecessary overheads and streamline your operations wherever possible, but by following the tips mentioned above, you’re already on the right track. Incorporate the other tips to reduce your costs further, and see how much you’ll save by using CurrencyTransfer.com by Requesting a Quote.

Devorah Goldson, Social Media Manager & Content Editor of CurrencyTransfer.com, the world’s first global payments marketplace for business and private clients.