12 Money-Saving Ideas for Small Business Owners

Running a small business has its own perks and losses. Your every decision has a major impact on the overall finance of your business. Many small businesses fail due to inefficient management of their finances or insufficient knowledge of the industry. It is extremely hard to survive alone with all the accounting, taxation, marketing and execution responsibilities. Money saving is a life saver for every small business because you need to save as much as you can so that the profits are more and expenses are in the budget.

There are plenty of ways to save money by being a small business owner. If you are also one of them, give a read to this article and start to save more money than ever.

1. Take Help of Tax-Filling Software

This is no big reveal many small businesses do their tax filling through the software. Such software is intended to save businesses from professional fees. Also, it offers excellent protection. You need to prepare yourself for taxation accurately and efficiently to save money. Software like TaxSlayer and TurboTax can help you gear up and file your tax return through online more accurately. At the same time it back-up the tax filling with accuracy and maximum-refund guaranty. Moreover, this kind of software has a protective shield against any penalties and, it confirms accuracy for returns. Every business owners dream to have such a system.

2. Opt for retirement plans

One good thing that you should do as a business owner is to start your retirement savings early. According to law, if you have a retirement account, your taxable income can be reduced. If your age is under 50, you can contribute up to $5,500 and, for the owner who is above 50 years, they can contribute up to $6,500 towards their retirement savings. Isn’t that great?

3. Work from home

Follow the footprints of giant companies like Amazon and eBay. They started from a small home office to save more money and, today they are at extensive heights. Working from home, you can save money on huge rents, maintenance cost, and taxes. Yes, you read right working from home can help you save on tax. Just determine the portion of your house that is being used for office work and, deduct it from your taxable amount. You can include insurance, mortgage interest payments, repairs, utilities like internet service and other sorts of office usage.

4. Save tax by filling form 4562

You will be surprised to know how your day-to-day business needs can help you in the deduction of the taxable amount. As per section 179, you can calculate office equipment purchase in the business expense of that year while filling for returns. This business equipment can be anything from furniture to industrial machines. So if you have made any big office equipment expense this year, fill form 4562 and save money on the tax.

5. Employ interns than the employee

Hiring smart interns is much more efficient instead of permanent experience employee. You can save money on employees benefits and high pay salaries. Moreover, interns perform much better as they are keen to learn and has fresh ideas to turn things around at many affordable stipends. In any case, they are going to benefit your business and increase its profits.

6. Count the family members

If you hire a family member to help you with your business, you can save money by paying reasonable compensation to the person. Besides, it is a more reliable option to hire a known family member than an unknown person. Moreover, you can save money on reducing the taxable income by taking business deduction benefits.

7. Watch over carry-forwards

Often business owners are too busy to keep watch on their carryovers. Hence forget to file the carryover deductions in the next tax returns. If you want to save money, make sure you are not losing such tracks. Some deductions or credits might not completely use one tax year. Therefore, they are qualified to be carried over the next years. For instance, net operating losses; capital losses; home office deductions; and charitable contribution deductions get carry forward to next year for some of their portions.

8. Stick to the cloud-based  system

Thanks to technology, you don’t need to have everything stored everywhere. You can access your data from anywhere in the world. Cloud-based system is convenient and economical options for most businesses irrespective of their sizes. Move your data to cloud-based services rather than expensive hardware storage. There is a nominal fee for cloud services which comes along with several hidden benefits like 24/7 access from anywhere in the world, data security and many others.

9. Save on the energy

Saving money is not enough to survive in this era, you need to conserve energy as well so that the future generation can utilize it too. Small business owners can reduce their energy cost greatly by practicing the right behavior. Make optimum use of the devices and equipment like printers, air conditioners and many more. Moreover, keep the equipment on energy saving modes while using and unplug them to reduce wastage of energy after use.

10. Find cheaper options for every expense

Depending on your business type, try to find some affordable ways to get the things done. For example, if you are a shop owner, buy in bulk from the local vendors to get much cheaper rates on raw materials. Also, you can save on shipping by comparing the cost from different vendors and then, picking the most reasonable option. Similarly, you can negotiate through your vendors for saving money on the services or products. Moreover, you create a habit of buying all the office supplies in bulk from stores which offer huge discounts. Add coupons to save even more and check offers from coupons site like CouponoBox to stay updated with the latest deals on your favorite stores or retailers.

11. Use free soft-wares or tools

Free software is a favorite money-saving hack. Avoid buying software unless it is very crucial. There are many online free tools and software that offers you high-quality services in their free versions. Hence, take advantage of such facilities. One of the well-known examples of such software is Grammarly unless you want the premium version for extensive usage its services are free for everybody.

12. Try bartering system

Bartering is an old school tradition that is still a superhero in the business world. Avoid using cash while buying the service and look if you can barter the services. For example, if you are an accounting firm and you are looking for content marking services, you can offer your accounting service to the market firm in exchange for their services. Hence, bartering is a great way to get your work done with spending much.

Conclusion

In the business world, every penny counts when you own a small business. Playing smart with your decision and finances can help you save a lot of money. At the same time, you can build more opportunities for your future growth. You can start to save money by keeping a strict eye on the invoices and other expenses incurring to your business. Here written tips will help you to boost your saving in a much efficient and productive way. Try implementing these ideas and find out how your business is being profited.

Mark Thomasson
Mark is a biz-dev hero at Invoicebus - a simple invoicing service that gets your invoices paid faster. He passionately blogs on topics that help small biz owners succeed in their business. He is also a lifelong learner who practices mindfulness and enjoys long walks in nature more than anything else.
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