Business finance software: 5 money saving tips for small businesses

Are you struggling to get your small business off the ground? Are your debts starting to pile up before you have even started making a profit? Starting a small business is not easy, as the many failed entrepreneurs will attest to. But this does not mean you should give up.

Business finance software can help you keep track of where your company is spending the most money and if that spending is necessary or not. If your expenditure surpasses your income, then it is time to take a look at your business and make some changes. Quickbooks’ business finance software, for example, is specifically designed to take the confusion out of your small business’s finances.

The following five money-saving tips, when combined with a professional accounting package, will help a good business to stay afloat until finances are no longer a problem - although in the long run, continued frugal practices will help to increase your profits.

1.    Improve your debt collection

The fastest way to get money back into your business is by improving your debt collection tactics. The money owed to you by your customers is rightfully yours and the sooner it is in your possession, the sooner you can put it back into your business. Consider shortening the payment period. If you usually allow your customers 45 days to pay you, reduce it to 30 days or shorter. At the very minimum, you can earn an extra 15 days’ worth of interest on your money.

Business finance software is an excellent way to stay up to date with money that is owed to you. It is important to know when payments are due in order for you to start the collection process.

If you are struggling to get some of your customers to make their overdue payments, perhaps it is time to get some outside help in the form of debt collectors. Just make sure that you understand and agree on a debt collector’s methods before employing one, as you do not want to alienate your customers unnecessarily.

2.    Spread out your payments

Speak to your suppliers and negotiate a more manageable payment plan. Ask if perhaps you can pay them in monthly instalments rather than in one lump sum. But make sure that you keep up with your payments. It is not worth losing suppliers because you are behind on payments.

Another option to save money is to ask your vendors if they will offer you a discount for early payments. Just as you want to get your money as fast as possible, so do your suppliers. Often they will be willing to give you a discount in order to get their money before it is actually due.

3.    Reduce costs wherever you can

It may be an old saying, but remember that every little bit helps, particularly in a young business. Do not spend any money when it is not absolutely essential. If possible, start by running your company from home or a modest office rather than from an expensive, state-of-the-art property. If you are already operating out of a large office, perhaps there is some unused floor space that you can lease to another company.

Buying used equipment is a great way to keep you costs down. Purchase as much of your office furniture and computers from second-hand suppliers as possible.

Switch off any equipment that is not being used and make sure that lights are turned off when no one is in a room. Air-conditioners drain energy and cost a lot of money. Try to use one only when absolutely necessary and make sure that it is switched off every evening before the last person goes home. Leaving an air-conditioner on overnight is one of the best ways to waste money for no good reason.

4.    Save on stationary

Use your business finance software to see a breakdown of what stationary is costing you the most money. Though stationary is essential to the running of a business, there are ways of cutting down costs. Focus on the top 20 percent of the most-used stationary items, because these are the essentials that you need to have in the office. Speak to your suppliers and try to get a better deal by buying in bulk. Let them know you are shopping around; it might convince them to give you a better deal.

5.    Monitor your telephone usage

Phone call costs can end up being very expensive, even if your employees are only making essential business calls. Contact your service provider to find a package that only charges you for the actual time spent on the phone and does not round up to the nearest minute. If you spend only 18 seconds on a quick phone call, there is no reason that you should pay for a full minute.

Reduce the number of phone lines in your office to save on rental costs and encourage your staff to use e-mail and instant messaging programs instead of the phone. These are free to download and are much more cost-effective forms of communication. Telephones should only be used when other forms of communication are inadequate.

Quichbooks business finance software can help you save money

All too often good businesses fail along with the bad. Not keeping track of your finances is the most fundamental error an entrepreneur can make when starting his or her own company. Quickbooks offers a variety of comprehensive business software packages, including both accounting software and payroll software, which allow you to see the complete picture of your company’s finances at any moment, giving you enough time to implement the above tips to save your business money.