Making business profit shouldn’t be the only goal. You must have more to set aside as savings. You can do more if you have funds to work around with. For instance, you can use them for expansion or franchise. If you’re looking for ways to increase savings, these ideas will help.
Be diligent in collecting outstanding invoices.
You don’t seem to have enough profit and savings since you still have many collectables. Make sure you work hard to get what people owe your company. You should also improve the process of collecting such amounts. Your business depends on it, so you can’t give anyone a free pass. Work with debt collection agencies and attorneys if you still can’t get the amounts back.
Allow payments to go directly to your bank account.
Make sure you don’t let any checks sit in the office. You will use it even if you don’t need it yet. You should go to your bank account and deposit whatever amount you have. You will resist the temptation of using it. It also helps if you set up a direct deposit for all transactions.
Be wise in using the company credit card.
Your company credit card is like your personal credit card. You could be in trouble if you’re not smart about using it for its intended purpose. Understand the interest rates, charges, and other penalties for not paying on time. Of course, you should try to pay everything as scheduled to avoid these charges.
Work with an accountant.
If you run a small business, hiring a full-time accountant is impractical. Considering the salary and other benefits, you can’t afford to pay an entire department. However, you should still have an accountant. Consider working with Central London accountants like those from www.gsmaccountants.co.uk for quality services. You might think that you only need help during tax season. The truth is you need financial advice, and these tax experts can give you what you need. You will have someone analyse your current financial status and make the best decision. You will also spot recurring or unnecessary expenses you must let go of.
Find better suppliers.
You can’t work with the same suppliers if you can’t afford the terms anymore. So, perhaps, it’s time to find a better supplier. As long as quality doesn’t get sacrificed, there’s no harm in finding another supplier. You can also discuss a better repayment scheme to ensure you have money to keep the business rolling and not fall into a debt trap.
Examine your current expenses and see how you can reduce them. Your business might spend a lot on things you don’t need. Remove services that are no longer doing what they’re supposed to. Talk to your employees and find advice about having sufficient savings based on daily operations.
Hopefully, you can save for your company and grow the business. It might take time, but you will get there. Be smart, and don’t let anything prevent you from maximizing the opportunities available.
Source: Finance Girl