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Managing your expenses is always an important consideration for small business, and especially so in today's tough economic climate. Here are a few useful ways to reduce the financial and administrative expenses associated with your business.

Reduce Your Banking Fees:

Choosing the mix of banking services that most closely matches your business needs can help you benefit from lower costs. One approach is to consider a flat-fee business banking plan, which typically costs less than purchasing the same services (such as overdraft protection, business deposits, full-service deposits) separately.

You have a number of options, so picking the right banking plan is important. We suggest you track the number and type of transactions you make every month, along with the typical payment volumes. Use this information to review your needs with your small business advisor, who can help select the banking package that is best for your business.

Know What You Want:

The Canada Mortgage and Housing Corporation distinguishes between lifestyle renovations (which improve the enjoyment of your home), maintenance renovations (which help protect your investment), and retrofit projects (which focus on your home’s shell or mechanical systems).

Generally speaking, renovations that improve the aesthetics of your home (such as adding a skylight) contribute less to its resale value, while upgrades to the necessities provide the best payback potential.

The Self-Service Route:

If you're not already doing so, take advantage of online banking, automated banking machines (ABMs), and telephone banking. Using these options can help save you money. Indeed, a self-service monthly banking package can help you save 30% to 35% off full-service packages.

Plus, online banking is fast and convenient to use. It's easy to move money between your different accounts, and you always know where your business finances stand.

Get More From Your Business Credit Card:

Your business credit card can be a tool to help you manage your expenses. Not only is your card a convenient choice for smaller purchases, business credit cards come with a variety of benefits - including cash-back rewards and web-based reporting.

The reporting feature allows you to check and reconcile expenses securely online and easily export detailed information into your financial software for fast analytics.

You can also use your business credit card to better manage your cash flow and reduce your costs by taking advantage of the interest free grace period of up to 21 days when you pay your account balance in full by the payment due date.

Outsource Administrative Functions:

If your business has grown and the paperwork is becoming too time-consuming, consider outsourcing functions such as accounting and payroll. This will give you more time to focus on building your business. Your small business advisor can help you identify outsourcing options and determine how your business might benefit by freeing up a few hours of extra time each week.

Review Your Accounts:

During a busy week, it can be tempting to toss your business receipts in the glove compartment or a file folder and deal with them later. By doing so, you may be missing out on opportunities to see patterns and reduce costs.

Get into the habit of reviewing the money coming in and going out of your business on a weekly basis. Accounting software packages can help organize record keeping and provide informative reporting that makes it easier to spot areas that may require attention early on. They are relatively inexpensive and some can be pre-customized for specific industries.

Negotiate With Suppliers:

Do you buy all of your supplies at the same outlet? If so, you may be able to negotiate a better price. At the very least, shop around for lower prices and any loyalty programs offered by potential suppliers.

Insure Your Business Income:

It's impossible to avoid risk in small business, but there are things you can do to minimize the impact of risk and achieve peace of mind. Reviewing your insurance coverage with a professional is a good place to start, as the appropriate coverage can save money in the long run.

Your insurance needs will depend on the type of business you have, the types of risks your business faces, and the assets you want to protect.

Disability insurance, for example, can provide protection to your family should you suffer a serious injury that prevents you from running the business. Your insurance professional can help you review other types of insurance coverage for your business, such as business interruption insurance, key person, and liability coverage.

Taking steps to reduce your day-to-day financial and administrative expenses can save you money and time, and allow you to focus more of your efforts on building your business. Talk to your small business advisor today.

Regards,

Nino Pasquariello.

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