Minimising inefficiencies when you’re operating a SME is paramount for your businesses success – both for the long and short term. We understand that many small businesses work on tight margins, too. As a result, small business owners are always looking for ways to reduce their operating costs such as implementing accounting software as it doesn’t sacrifice the quality of the business offering – instead, quality accounting software enhances it and makes life less difficult for SME owners and employees.
Let’s take a closer look at how you can be more accountable for the success of your SME, mitigating inefficiencies.
Below are five ideas that may assist you in reducing operating costs and ineptitudes for your SME, enabling you to generate more revenue and reduce overheads, ensuring you’re more accountable.
1. Reduce Unwanted Operating Costs by Incorporating Accounting Software
Tier one accounting software programs will empower you to keep on top of your BAS and GST. It’s the basics done impeccably, that will make the most improvements to you and your SME. The basics of quality accounting software permit you to gain immediate clarity over your net business. You can also keep track of receipts, payments and GST; watch your net position change in real-time; generate multiple reports enabling you to gain valuable insights such as comparing net results quarterly; reconcile bank transactions; forecast with conviction, and of course, you can share controlled files with key stakeholders such as your accountant, bookkeeper or accounts team as a whole. All this can be done thanks to intelligent automated systems, allowing you to concentrate on other areas of the business that require your expertise.
2. Lessen Inefficiencies With Outsourcing
Technology may not be able to assist you with all of your operations, such as being experts proficient in SEO, digital marketing or advertising. Therefore, these areas benefit SMEs greatly when subcontracted out. For many SMEs, marketing is a headache. Being inexperienced, many SMEs if trying to manage the advertising themselves, feel the time spent on advertising and marketing does not correlate to a return on investment.
Whilst employing a contractor in this space may be an additional expense, truth is, in the long run, marketing gurus will save you money by implementing campaigns that are successful and meeting your objectives. This will allow you to achieve better results than if you were trying to do it yourself.
3. Do Your Homework, Shop Around. Work With Partners That Are Credible And Affordable.
If you work with suppliers or vendors on a consistent basis, set up a quoting system for projects and work. If you ask three different suppliers to provide costs to you, then you will easily ascertain fair and competitive prices quickly and transparently whilst providing you with additional negotiating insights to negotiate harder and smarter, saving you more money. This practice also removes the most expensive suppliers out of the equation fast; again minimising inefficiencies and helping you build trusted relationships with vendors who are eager to provide quality work for you, at affordable prices.
It’s important when asking for quotes though, that you provide a clear and concise brief as to what the scope of work involves. This will enable you to compare apples for apples. Holes in briefs or missing information will greatly affect the quoted rate.
4. Pay Your Bills On Time. Or Early!
Be accountable for your expenses and see that all invoices are paid on time – or earlier. Suppliers will often offer a discount if invoices are settled early. A saving of three or four percent adds up. Plus, if you’re paying invoices early or on time, you will avoid unnecessary late fees or penalties.
5. Unsubscribe Or Cancel Unused Services
It’s so, so easy for unused services to continue to be deducted from bank accounts or charged to credit cards automatically as they’re easily forgotten about when you’re not being sent an invoice to pay for a service before you can access it. Look over all of your expenses quarterly and if you’re not using a service in 90 days, cancel it.
We hope these ideas that will assist you in being more accountable for your SMEs operations, by mitigating unnecessary inefficiencies.