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Top Ways to Save on Business Finances
If youíre like most small-business owners, you are constantly looking at ways to increase revenue, as well as cut major investments in areas such as advertising, human resources, inventory management, production, sales, and more.
However, itís also important to be aware that often you can find ways to save time and money in smaller amounts that end up adding up significantly over the long term, and can make a marked impact on your bottom line.
One area of business in particular that you should look at reducing costs in, is your organizationís finances. Read on for some top ways that you can go about saving when it comes to your ventureís accounts today.
Chase Up Late Accounts
Firstly, if you operate the type of business where you provide accounts for customers so that they donít have to pay for goods or services at the time they acquire them, you probably find yourself having to outlay a lot of time and money to cover outstanding bills and chase late payments. If you want to cut back some costs then, itís important to keep an eagle eye on all accounts and not let clients take as long as they like to pay.
You will save time and money if you are very strict about your payment terms, and make it clear to customers exactly how long they have to pay. As well, make sure that you send reminders religiously, so that each client learns quickly that you expect to receive funds on time, every time. Implementing an overdue fee for late payments will help to teach your customers too.
You can also reduce costs if you stop offering terms to customers who pay well over due dates on a regular basis. Furthermore, donít let yourself be pressured into offering terms to every new client. Instead, put strict policies in place that you always adhere to about who can go on an account and when. You might decide to have a policy, for instance, that clients can only receive account terms once they have bought from you upfront for at least five to ten times, and submitted credit references for you to check.
Cut Costs on Payments
Another area where you can save is in payment processing. For example, if you use a merchant services account to transact payments for a shopfront, keep in mind that you might be able to find a better deal for your business that can save you significant funds over the long run.
Whether you already have a company youíre using, or need to set up a merchant account soon, you should compare a wide variety of payment processing firms in order to take advantage of the lowest overall rate. If you have a plan in place already, you might find that your sales volumes have risen since you signed up to the provider, and that you can qualify for a lower merchant fee per transaction as a result.
If, on the other hand, youíre looking for a new company to use, keep an eye out for special offers that payment processing firms advertise to attract new customers. You could find that you save on set-up fees, processing costs and more if you choose the right provider.
When comparing merchant services firms though, make sure you have a thorough read over the fine print before you sign on the dotted line. Some companies have a raft of ďhiddenĒ fees that you may not be aware of straight away. Look out, for instance, for cancellation fees, extra charges to access customer support, or additional costs to accept certain credit cards or other payment methods.
Keep Computer Systems Secure
Next, make sure that all of the computer systems you use for your business are secure. Unfortunately far too many ventures have to face unexpected costs each year because hackers get into their systems and steal business or customer information.
There are a number of things you can do to keep your networks and devices safe from prying eyes. For starters, remember that it is always worthwhile outlaying a small amount of money to purchase maximum security software that you can upload on all of your computers.
Anti-spam, antivirus, and anti-spyware software work to prevent people from illegally gaining remote access to your information. The aids protect systems from malicious software and various types of viruses that can run codes in the background of computer systems without you knowing it.
Compare Fees on Bank Accounts, Cards and Loans
Lastly, another great way to save some money in the area of finance is to compare fees on your business bank accounts, credit cards, and loans. While a lot of these expenses may be quite small each month, they can add up to significant value over months and years. You should therefore calculate how much you are paying in account-keeping fees and interest annually for each account, card, or loan you have, and then shop around for better deals. Ask your current providers if they can reduce their fees or interest rates, and if not, simply move to a different institution.
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