The control of expenses for SME is one of the main objectives of any small or medium company.
The resources of any organization are limited, and focusing on them correctly is the main difference between success and failure. As entrepreneurs, knowing how to apply them correctly is one of the first lessons we must learn.
Knowing what to invest in and in which fields you can achieve perfect results while saving money is one of the keys to turning SMEs into large companies globally.
Each business is different, and some characteristics depend on its market, product, and service. However, there are many other familiar places where all SMEs can apply their expense control and improve their accounts at the end of each fiscal year.
Analyze The Situation With A Purchasing Consultant
The first step to applying any savings policy is to have a diagnosis.
This is also important for those more specific aspects of the business, in which general solutions do not have to apply. Depending on what we do and the organization’s size, there will be solutions that we may or may not implement.
After doing an in-depth analysis by experts of the company’s situation, it will be easier to calculate how much we can control our expenses and clean up our accounts in the future.
Group Purchases In A Purchasing Center
Joining a purchasing center is another of the most thoughtful decisions we can make to reduce our expenses.
These independent companies buy wholesale materials, supplies, and service contracts, achieving a more significant negotiation margin with the supplier companies. This translates into much lower prices for the SME.
The purchasing center offers all its members much more advantageous conditions, achieving savings that can reach 25 or 30% on some products.
From cellulose and office supplies to defibrillators for companies or insurance and telephone contracts, there are different fields to join forces and achieve much lower prices in the short and long term.
Review Taxes With An Advisor
Taxes are increasingly complex. There are a series of bonuses and deductions that, in many cases, can go unnoticed.
Local and regional aid for the payment of the same. Having an expert tax advisor explain the different options available to you and prevent you from overpaying can be very profitable in the long run.
We need a professional who is up to date with the different changes in the legislation and who does not miss out on help or bonuses that we cannot accept to pay only what corresponds to us.
With good tax planning, we can save a lot of money each year.
Renegotiate The Occupational Risk Prevention Contract
The occupational risk prevention contract is mandatory for all SMEs and even for some self-employed. Not having an occupational risk prevention plan can lead to fines and even criminal liability in the most extreme cases.
A well-negotiated contract can mean an average of 13% annual savings with an External Prevention Service.
In addition, having concrete and effective PRL measures means savings in other fields by promoting employees’ health and reducing sick leave for these reasons.
In this regard, changing employees’ chairs or computer screens can be an investment with a higher return than we initially thought.
Take Advantage Of The Rewarded Training
Companies have at least a € 420 credit to train their employees through Bonus Training.
Although larger companies have to co-finance these courses between 5% and 40% of their cost, organizations with less than five employees are exempt from paying for it.
Therefore, subsidized training is an ideal opportunity to achieve new skills for workers, making them perform their work more effectively and achieve greater productivity.
It can also allow an employee to gain new skills and not need to hire an additional person for any task.
Facilitating training tasks is also a way to retain talent and make the employee more comfortable.
Help The Environment With Energy Optimization
Optimizing energy costs and generating less waste is another way to control spending that, incidentally, makes us more environmentally responsible.
Using energy-efficient light bulbs, appliances, and other electronics with greater energy efficiency will lower your energy bill every time. At the same time, we will be promoting the fight against climate change and consolidating a new policy of corporate social responsibility.
The environment wins, our accounts win, and our employees are proud of the organization. The average saving in this section stands at 10% per year.
In addition, it is advisable to encourage recycling and optimize the use of all our raw materials, from the folios to the most specific materials of our business. You will have to buy less and, therefore, spend less.
Use White Marks
The use of private labels for companies can mean an average saving of 7% per year. We have known for a long time that quality is not incompatible with whether the product is from a private or commercial brand.
The commercial brands make the private labels, and using them allows us to have a product of the same quality at a lower price.
Some companies indeed prefer to use prestigious trademarks for a corporate image issue.
In that case, you can also play with purchases and have this type of mark in the departments or meeting areas with clients or suppliers and leave the white ones in those places intended for internal use.
Some departments of the SME can be perfectly outsourced, especially in smaller companies. Outsourcing purchases or other departments such as legal services or payroll management can help us control expenses.
In this way, we could have better professionals who we could pay if we had them on the payroll.
Legal or human resources consultancies that will make our work much more accessible, allowing us to focus on what matters: offering the client the best value for money for our product or service.
Of course, the role of the purchasing consultancy or the purchasing and services center also comes in here, allowing us to meet our spending targets and improve our forecasts.
Use Expense Tracking Apps
The applications cost control and CRM have become critical allies of SMEs who want to record the status of their accounts correctly.
As important as the initial diagnosis and analysis are to have a follow-up of the operation of the company’s accounts.
Thanks to the new computer applications, this control can be carried out efficiently and continues, being able to analyze the data and reach conclusions to improve the company’s situation.
Currently, there are a wide variety of applications and programs that we can contract. Most of them have a first free trial period, in which we can use them at no cost until we find the one that best suits our specific needs.
10 Betting on teleworking
Another way to save on company expenses is to bet on telecommuting.
Different studies have shown that combining telework days with office days improves employee productivity and satisfies them.
However, beyond the increase in productivity and the satisfaction of our human capital, another aspect represents a more direct benefit in the control of expenses and subsequent savings.
Closing the office on certain days, such as Fridays, means a direct saving in electricity, office supplies, water, air conditioning, or other supplies such as cellulose in the bathroom.
In this sense, you must always apply common sense. Not all offices can be closed. A legal or administrative consultancy, for example, can ideally opt for this solution. However, this does not apply in an office open to the public.
If they are compatible, the expenses of having the office open will be reduced. If we bet on flexibility policies, we will always have the option of opening one of those days if it is necessary to meet with a client or supplier.
In this case, the same thing happens as with teleworking. It cannot be applied in all businesses. For example, in any store, having fixed customer service hours is not optional. The customer must know what hours they can be attended.
More and more large companies are opting for telecommuting, and SMEs have here another excellent opportunity to control their expenses on supplies and save significantly.
EXTRA: Check insurance
Finally, one of the great specialties of Smart Buys, the review of the company’s insurance. In our experience, it is possible to save significant amounts of money in this game.
Usually, the insurances contracted are maintained at first and, however, either with our insurer or with the competition, an improvement of the conditions can be achieved.
If you want to save a lot of money and control the expenses of your SME, remember that we can help you. You can contact us without obligation here.
And if you want to know other tricks to save in your company, take advantage of our free consulting:
Also Read: Five Basics Of Warehouse Management