Using an accounting system to beat the credit crunch
In a credit crunch, consumers tend to be more frugal and spend less money on non-essential items. In times like these, businesses could be in danger of their expenses exceeding their income. While it is wise to implement strategies to increase income, business owners should also focus on reducing expenses as much as possible.
An efficient accounting system can give you an overview of your cash-flow and provide you with the information necessary to reduce your expenses. Peruse QuickBooks’ selection ofsmall business software to find an accounting system to help your company survive during a credit crunch.
5 ways to reduce expenses
- Monitor monthly expensesAn accounting system can help you to keep an eye on how much money is being spent on consumables such as stationery. If you lower the allocated budget, you will encourage your employees to use less stationery than before.Electricity is also a large expense for most businesses. However, there are several easy things you can do to reduce your electricity expenses:
- Unplug equipment such as printers when they are not being used
- Use natural light instead of electric lighting if possible
- Switch your computers to their most economical settings
- Reduce your air conditioners’ outputs. By switching your air conditioner to a warmer setting – even by only one degree – you can save a lot of energy, and therefore money
- Use free servicesThe Internet offers many free services that can be utilised by business owners. There is no need to pay for services such as email, telephone and fax when they are freely available online.
- Do your accounts yourself
How much money do you pay your accountant each month to do your finances? By implementing an accounting system, you can do your own accounting and save the money you would be paying a professional to do it.
- Reconsider your marketing tacticsIf you communicate with your customers via pamphlets or newsletters, consider sending an electronic version via email instead. You will save money on envelopes, paper and postage. Using the Internet is not only an effective method of communicating with your customers, but also an eco-friendly one. Reducing the amount of paper that your business consumes is excellent for the environment.
- Shop around for new suppliers and service providersA credit crunch is the ideal time to look for new suppliers or service providers. Do some research to see if there are other companies offering the same services for less money. If there are, consider switching your supplier or service provider to a cheaper one.However, if you don’t want to burn bridges with your current suppliers, be frank with them. Explain to them that you cannot afford their services any longer and are looking elsewhere. Perhaps they can reduce their prices to keep you on as a customer.
Survive the credit crunch with a QuickBooks’ accounting system
A small business can be successful in tough economic times. By tightening your belt and reducing unnecessary expenditure, your business can thrive during a credit crunch.
Choose an accounting system from QuickBooks’ range of small business software to find one that will best meet the needs of your enterprise.