COVID-19 has become a factor that controls mostly all of the processes happening in the current world. In the view of businesses, it has become a major hurdle in their history for the future. This hurdle can be changed into a milestone if correctly utilized with a few techniques suitable for times like these. One important factor is the lack of investments and/or the cost of managing the daily expenses for the sustenance of startups, small and medium businesses. Thus cutting the expenses and optimizing the available finance becomes an important way to deal with this scenario. Few simple ways to do this include the following:
1. Review all expenses even the little ones.
2. Check for unnecessary expenses.
3. Track dues closely and send followups.
4. Stay on top of your taxes and use ways to reduce taxes.
5. Cut down the cost which is not generating any revenue for you.
All the above five points are critical for a business in reducing expenses. So how will you do these things effectively? For that, you need proper tracking and other proper processes in place for your accounting. Now, this can be achieved in two ways one you can keep a physical person who can handle all the processes and you can pay him a handsome salary. But there is one another better option which is far more used in the industry nowadays, more reliable, that is outsourcing your accountancy.
What happened here is you outsource your accounting task to a third party company they will take care of all your accounting needs tax filing and all other processes. So basically all your headache related to accounting is gone. It will be handled by their experts. Outsourcing the accountancy to a different company will cost you lesser up to 60 to 80%. If you have to pay an accountant around 30k per month for an Outsourcing company you need to pay just 5 to 10k per month.
The other pros of outsourcing accountancy are you get many other addon services with accounting like tax filing balance sheet, monthly accommodations for reducing expenses and how to improve your cash flow, monthly reminders for your dues, automated invoice generation and many other accounting methods with the help of current Technological tools. In a nutshell, you can save a lot by Outsourcing your accounting, bookkeeping, and payroll services. Now next let’s move on to how to reduce expenses in marketing.
Cost Optimization in Marketing:
In marketing, we can reduce costs by cutting down traditional Advertising and Marketing techniques and moving on to digital marketing services which are more effective and targeted. Also, the other way to reduce marketing expenses is by sharing the marketing cost with other same domain or local businesses whose target audiences are the same. For example, consider you are targeting a specific audience. If another of your friends in the same business or different business targets the same audience, you can share the marketing cost and the audience data with each other. In that way, you can make savings in your marketing expenses.
Cost cutting in Office:
Office space expenses can be cut to a great extent by making it into a work from a home model. Here most of your employees can work from home and will save money for no office space is required. You can go green and save money on a lot many things and further save on office expenses by avoiding meetings physically but rather doing virtual meetings which are through Skype, Zoom, Teams, or other meeting applications which can help you reduce traveling expenses and office spaces. You can cut down the landline connections and get into mobile phones. Using that you can just route your calls to each other you can get your work done. Another way to reduce expenses is by using used equipment for your business needs.
And the most important way to reduce expenses is to sell online and in market places as it reduces a lot of other expenses.
Know more about How to go Online or Digital here.
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