Small businesses become very good at watching their balance sheets and figuring out how to make their dollars stretch. A small business owner must become very aware of how his company is spending money if he wants to be able to fund important aspects of operations such as payroll. A good organization and payment program will help keep administrative costs down, and increase sales as well. There are other spending tips that a small business owner needs to be aware of when it comes to spending his company’s money wisely.
Buy In Bulk
If you know that your company will need to buy several ink cartridges for your office printer over the course of the year, then buy them all at once, and save money on bulk pricing. Work with your suppliers to find out just how much money you can save by purchasing in bulk.
Utilize Independent Contractors
Instead of hiring someone as an employee to work on a company project, you should utilize an independent contractor and save a lot of company cash. Independent contractor’s work for a flat rate and they must supply all of their own equipment, office space, and office supplies. You will get the job done without paying for all of the extra costs that go with hiring employees.
Use A Credit Card Wisely
A merchant credit card processing service can save your company money and the wise use of a corporate credit card can save you money as well. If your company travels a lot, then utilize a corporate credit card that gets you travel discounts and allows you to accumulate bonus miles towards free tickets. If you do not travel a lot, then find a credit card that gives you a healthy cash back incentive that you can use to apply towards future purchases.
Consider Buying Refurbished Equipment
Instead of buying a brand new copier for the office, consider buying a refurbished one and save money. A refurbished copier will still have a limited warranty attached to it and you can still write it off as a capital purchase. The money you will save by purchasing refurbished equipment can go towards the company’s bottom line.
Spending money wisely is something that all small business owners attempt to do each and every day. By learning practical spending skills, a small business owner can get maximum value out of each dollar that his company generates.