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Time to Spring Clean your Business Finances

Spring has definitely sprung, although it may not seem so when you take the weather into consideration!  While delaying a home spring clean until the weather is warmer may be a sensible idea, delaying spring cleaning your finances could lead to trouble or even debt.  Here are some of the ways you can spring clean your business finances ready for the next fiscal year to make sure you’re on top of your finances and heading off to a good start.

  • Gather up all of your paperwork, especially those unopened envelopes, and give it all a thorough check.  Look for payments you don’t recognise and check that any direct debits that you’ve cancelled are not still being paid.  Check out anything that seems wrong, make sure all payments due to you are up to date and that your business doesn’t have any payments owing (for example if you’ve switched energy providers and haven’t yet made the final payment).
  • If you have any business loans, make sure payments are up to date and that you’ve accounted for any more payments due in the coming financial year.  Make sure you have good rates on repayment plans and, if not, make inquiries about changing the terms of the repayments or consolidating loans if possible.
  • Take a look at your energy and utility bills to see if switching providers would result in a better deal.  Look for better deals in other areas of your business too. 
  • Contact suppliers (if you have them) and see if you can negotiate a better price on supplies as one of their regular customers.   Alternatively, check the offerings of other suppliers who may be able to provide you with a more cost-effective deal.
  • Check that your tax code is correct and that all your relevant paperwork is up to date.
  • If you employ staff, consider asking if they are able to identify any areas in which you could make savings – you may be pleasantly surprised by their initiative and their input.  For instance, the person responsible for purchasing may have some great ideas on where you could be making a saving, especially when it comes to office/breakroom supplies.
  • If you ship products in the UK or overseas, take a look at your shipping methods.  You may find that it’s more cost-efficient to use one company’s services for shipping in the UK whilst using a different company for shipping overseas.
  • Take a look at your packaging when shipping goods and try to cut down where possible.  Obviously, you need to ensure that the goods are packaged well enough to prevent damage in transit but using smaller boxes with a different type of protective filling may make enough difference in the long term to result in a considerably lower overall cost to your business.  The less packaging you use, the lower your carbon-footprint so it’s an environment-friendly initiative too.
  • Consider investing in motion activated light sensors in some parts of your premises – areas such as corridors, storerooms, toilets and washing areas don’t need to be illuminated all of the time.

While some of the ideas above may seem hardly worth doing, a combination of just a few of them could save your business quite a bit of money over a year which may make a big difference to your business.