Brought to you by Capital on Tap:
Small business owners are constantly inundated with regular requests for money. Whether it’s a new piece of equipment, inventory, or simply office supplies, there is always something that needs to be purchased. To avoid overspending, you must keep track of all expenses and ensure your business is spending its money wisely.
With the rising cost of goods and services and so many demands on your limited resources, it’s more important than ever to keep a close eye on your business spending. Here are five unique ways to do just that:
1. Get a Business Credit Card
A business credit card can be very useful for your business as it helps you track your business spending and keep it separate from your personal finances. You can also get some great rewards and perks with a business credit card, such as cash back on purchases, which can save you money in the long run or earn travel points.
Just be sure to use your business credit card wisely and only spend what you can afford to pay back. Otherwise, you’ll quickly find yourself in debt and struggling to keep up with payments. If you decide to get a business credit card, do your research and compare different cards to find one with:
- Low interest rates
- Up to 60 days of interest-free use on card purchases
- Easy integration with your accounting tools
- Redeemable rewards points
2. Use a Budget Template
Creating and sticking to a budget is essential for any business. A budget template can help you track your income and expenses and ensure you’re staying on track. Find one online that works for your type of small business, update it regularly, and use it as a guide for your business-related income and spending analysis.
If you’re not good at sticking to budgets, consider using expense tracking software/apps which can help you track your spending, create a budget, and stick to it. Also, review your business expenses regularly to catch any wasteful spending and make adjustments accordingly.
3. Keep Receipts and Invoices
Keeping all of your physical business receipts and invoices organized can help you keep tabs on your spending and identify areas where you may be able to save money. You can keep them organized in a filing system, scan them and save digital copies, or take photos of them with your smartphone.
Even if you already have expense tracking software, this can be a helpful way to catch any expenses that may have been missed. Plus, it can help you keep track of how much you’re spending on individual items or services over time, which can be helpful information to have when negotiating prices with vendors.
4. Conduct Regular Financial Audits
If you want to get a handle on your business spending, consider conducting regular financial audits. This will give you an honest look at where your money is going and help you find areas where you can cut back. You can have an accountant or bookkeeper do this for you or do it yourself if you have the time and knowledge.
If you decide to do a financial audit yourself, be sure to review all of your business records, including bank statements, credit card statements, invoices, receipts, and tax returns. Conducting a financial audit may seem like a daunting task, but doing it annually (or even semi-annually) can be immensely helpful in identifying:
- Fraudulent employee activity
- Inventory shrinkage
- Errors in your bookkeeping
- Opportunities for improvement
Plus, it can give you some much-needed peace of mind knowing that you’re doing all you can to help your business thrive.
5. Make Use of Coupons and Discounts
Whenever possible, make use of coupons and discounts to save money on business expenses. From redeeming business credit card reward points for gift cards that you can spend on your favorite brands, including AirBnB, Amazon, Apple, Uber, or airlines, to taking advantage of office supply store sales, there are different ways to save more, such as:
- Asking vendors if they offer any discounts
- Searching online for coupons or promo codes
- Signing up for email newsletters from businesses you frequent
- Attending trade shows or conventions related to your industry
- Joining business membership organizations like the Chamber of Commerce
You may not be able to get discounts on everything, but it’s definitely worth trying when you can. It could end up saving you a significant amount of money over time.
Streamline Your Spending for a Healthier Business
As a small business owner, you want to save money without skimping on quality or sacrificing your company’s growth potential. By streamlining your spending, getting organized, and recording all income and expenses, you can keep more cash in your pocket and reinvest in your business to achieve long-term success.