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How to cut your business costs in 2015

POSTED: 28th January 2015
IN: Guides
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With the right approach, your firm could save money this year. Is widening your profit margin by cutting costs one of your business goals this year? If so, you should already be planning the changes you are going to make to reduce your outgoings.

undefinedHere are a few steps companies of all sizes could take to save money in 2015.

Get flexible with staffing

Flexibility is becoming an increasingly important concept in 21st-century workplaces and it could prove equally beneficial for employers and workers. Allowing homeworking or 'hot-desking' – whereby multiple employees share a single workstation – could reduce your overheads and boost staff morale and productivity.

Lower your tax bill

Taxes represent a huge cost for businesses. There's no way of avoiding them, but it may be possible to reduce your tax bill.

Firstly, make absolutely sure you are taking full advantage of any breaks and benefits available from the government, such as the Employment Allowance. This allows employers to reduce their national insurance contributions by up to £2,000 every financial year.

Dedicate some time to researching taxable expenses to make sure you are claiming as much as you can, and also look into capital allowances for business assets.

Are you in the best location?

The location of your company could be having an impact on your business rates, so it's worth seeing if you are paying more than necessary because of where you are based.

Business rate relief is available to firms in rural regions and enterprise zones, as well as small companies that use only one property with a rateable value below £12,000.

Rent is another key consideration. If the surrounding area has no real impact on the performance of your enterprise, don't pay over the odds to lease a property in an expensive district.

Don't overspend on utilities

There are some simple things you can do to reduce your utility bills. Make sure your heating is being efficiently managed so you're not heating empty areas and you don't have a hot office on weekends or public holidays.

It's easy to become complacent about habits like turning off lights, powering down PCs overnight and switching off any non-essential electrical equipment, but encouraging such practices across the whole of your business could help you make big savings.

You should also be vigilant about how much you are paying for your energy. If your bills start creeping up, ask why, and see if you could save by comparing and switching.

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