How to reduce wasting of money at your business after coronavirus: tips and techniques

Reducing your overall business running cost is a major action you must take if your business must survive and thrive after the coronavirus pandemic.  According to experts from the Harvard Business School and MoneyFarm Services, an average small and medium scale business has enough cash to last for only about 1 month. Regular cash flow is needed for maintaining solvency especially when demand and sales fall. However cutting down overall business running cost and seeking financial business help can help position the business for productivity.

In this post we’ll discuss about some of the tips to help you reduce cost after the coronavirus pandemic.

MoneyFarm Services

1.    Bill deferment

Many utility companies, lenders and banks are currently offering small scale businesses affected by the pandemic bill deferments. You can apply to see if your business qualify for such opportunities.

Examples include

  • Loans- you can contact your lenders and other credit unions you’re indebted to, to see if they can defer al mortgage loans for 12 months. You can also reach out to your bankers to see if they can suspend monthly auto loan repayments for a temporary period until business activities resumes fully.
  • Rent- businesses and companies that rent out open spaces can talk with their landlords to see if there is a way they can suspend rent payments for a temporary time
  • Utilities- small scale business can reach out to utility companies to negotiate their accrued unpaid bills.

2.    Eliminate all non-essential costs

As much as possible business must learn to cut down overall costs in this coronavirus season. Also you must eliminate all non-essential spending. This means cutting down all costs that are not directly essential to the business operations like

Travels

Although the social distance and lockdown has limited travels, some companies still cover the travel allowance of some employees. It’ll be wise to investigate if the task can be done remotely or virtually. This will help save cost and increase maximum productivity.

Reduce payroll expenses

Payroll mostly constitute the largest expenses of most companies, and it’s rather unfortunate that many companies are forced to terminate the employment of some of their staffs to save the businesses. Some have to cut down the salary of their employees by 50-70%. Some others have been able to cater for their employees through the crisis.  Whatever be the case, employers should look for the best possible ways to still support the employees the best way they can

Part-time or limited days

instead of terminating their employment, companies can reduce the pay of the employees by reducing the working hours making them to work part time.

Layoff or terminate employees

in case scenarios where the company or business cannot afford to pay salaries, then they would be left with no other option than to terminate lay off some employees.

3.    Seek cheaper options

It is a known fact that businesses must spend money to make money, the coronavirus period is a time to exercise some level of frugality. It’s also a time to seek for more cheaper and money-saving alternatives.

Move sales online- cutting down costs does not mean total shutdown of business. You must invest in digital marketing and ecommerce. This way you’ll save a lot of money associated with the physical day-to-day running of the business.

The Importance of Getting Financial and Tax Advice When Starting A New Business

If you are embarking on a new business venture, then it is critical that you start right.

Most importantly, you need to get off on the right foot financially, and choose the best financial solutions or your business will never succeed.

You Need A Financial Adviser

As a new business owner, you will need a financial adviser to negotiate the financial landscape.

Someone who is accustomed to the kinds of financial problems that plague new business owners is going to be invaluable to you.

A financial adviser can perform many functions for your business that are far more than just accounting services.

A financial adviser can advise on wealth management, risk exposure, cash flow and much more. For example, read about RT Investments and discover what is available to you.

tax law in the UK

Take Control and Focus on Your Business

Employing a financial adviser is going to help you focus on what is important.

So many other aspects of your business are going to be outsourced, and there is really no need for money management to be any different.

When you use the services of a good financial adviser, then you are buying time. Your time is limited, so focus on your business.

Invest your money wisely so that you can use your adviser’s time to leverage your business.

The Importance of Tax Advice

Deborah Fowles at The Balance Small Business recommends that you take expert tax advice.

If you have been filing your won tax returns up to now, then it’s time to switch over to a qualified CPA.

The depth and complexity of tax law in the UK means that you can’t just hope to get things right on your own. The situation is similar in all western countries.

As well as the chance of getting your taxes wrong and incurring a fine, there are benefits and tax breaks available to new businesses that you may not be aware of.

Thinking Ahead

You obviously want your business to grow.

But what is going to happen in 1 years’ time. What about 5 years? Have you thought further down the line?

Planning ahead is vital for any new business.

Making contingency for your business to grow is something that you need to consider.

So many times, businesses have failed to take advantage of opportunities that were available to them because they were unable to scale at the right time.

Having the right financial guide on-board will mean you are always better prepared for times when you need your business to be as agile as the markets are.

More Than an Accountant

Getting financial advice for your new business is much more than simply hiring an accountant.

Having said that though, you do still need a good accountant!

You need to be prepared to cope with problems that only an expert can foresee and have the ability to navigate those problems.

Sound financial advice is essential to a healthy, thriving business.