How to Successfully Decrease Business Overhead Expenses

Every new entrepreneur is looking for smart ways to decrease their business’ overhead expenses. During the beginning stages, it is important to get creative and think of modern ways to do so. With today’s economic climate and how quickly it can change, small businesses are primarily at risk.

Before making any quick decisions, take some time to discuss these tips with your current team or your business mentor.

1. Finance and Accounting Software

One of the most efficient ways to reduce accounting costs is to use an expense management software to track spending. It simplifies the act of outsourcing accounting work to a firm that will typically charge an hourly rate between $65 to $420 per hour.

According to the 2016 Robert Half Salary Guide, senior accountants can earn approximately $69,500 to $88,750 per year. As a small business owner, a third-party accountant completing your expenses during tax season or throughout the year can add up.

2. Outsource your work

Outsourcing your work can be very simple. You use a free website that connects you with freelancers and independent contractors that can complete work, which reduces some of the HR cost of hiring a full-time employee. A few outsourcing websites include:

• Upwork
• Guru
• Freelancer

Think of it as the Facebook for companies and freelancers. You can review a graphic designer’s portfolio and the feedback from organizations that hired them. Often, a skype/phone call or an in person interview, if they live nearby, is recommended. It will help you make the right choice while saving time and money.

3. A less expensive location for your office

One of the gifts the internet offers is a place to do business. If your business relies on administrative work, think about hiring remote. The cost of furniture, purchasing computers, coffee and employee benefits can decrease by offering telecommute positions.

It can potentially increase productivity because workers will be happier with the flexibility to work from home. Our tips on how to recruit your first remote team can help.

Another strategy is to lease an office space further from the city.  Shop around for office locations in warehouse districts or in rural areas.

Final Thoughts

The decision to operate your business the easy or difficult way includes making sacrifices. If at the end of the year your company can save money on hiring, travel, and leasing costs, it will offer opportunities to potentially invest in marketing or other areas of the business.

Written by: Makeda Waterman, Professional Writer, Guest Contributor