As we draw closer to the end of another year, many people are taking the time to reflect on how everything has gone. For most, it’s been a tough year. The economy has been unstable, the cost of living crisis has hit us all, and overall business has been slow for a lot of people. You’re not alone! But you shouldn’t just be going on gut. An essential part of your year-end review should be looking at your numbers and working out how much money came into your business, and how much money went out. If, when you do this, your expenses seem to be piling up, don’t panic! It just means you need to review all those costs and see where you can make some cuts. Not sure where to start? Here are a few suggestions.
Check Your Regular Payments
The first step should be going through your bank statements and looking at your regular payments. You want to know two things from doing this. First – do you know what they’re all for? Second, do you still need those services? For example, if you’re paying for a Dropbox subscription at £9.99 a month, do you still need that much space, or could you downgrade to the free version? If you signed up for a free trial of something, did you remember to stop it, or do you now pay monthly for something you aren’t using? Set yourself a rule – use it or cancel it.
Update Your Mobile Contract
Mobile networks rely on the fact that you will be too busy to switch providers or find a new contract once your old one is up. That’s why so many of the initial offerings are great, but once you’re out of contract you can easily end up paying £30 a month or more. If your business mobile contract has either expired or is up for renewal, make sure you look for a new deal or even switch to a sim-only plan.
Do a Reality Check on the Networking
Networking is a fantastic tool and a great way to grow your business. I do plenty of it myself! But ask yourself if you’re really making use of the fees you’re paying. Some groups might be cheap or pay-as-you-go, while others can be upwards of £50 per month. If you’re not going regularly, or you’re not following up and maximising your time there, then you need to either commit to engaging further with the group or stop paying for it.
Review Your Energy Contracts
There’s been a lot of talk about energy prices and availability – it’s been the main topic of conversation for some people! But despite the rising energy costs it’s still possible that you’re paying above the odds for your gas and electricity. Do some research and see if you can find a better price.
Consolidate Your Systems
Technology is wonderful, but in a world of subscriptions, it’s really easy to lose track of what you’re spending and why. Lots of systems can do multiple things now, so have a quick run-through of everything you’re paying for and see if there’s any overlap. If there is, choose the one that makes the most sense and cancel the ones you don’t need anymore. Instant savings!
Identify Energy Savings
Are there areas in your business where you waste energy? We hate to sound like your mum, but could you reduce the number of hours the heating is on by wearing another jumper? Or maybe you leave your computer on all the time, and you could start turning it off at the end of each day? These things might seem small, but they really can add up and save you money.
Reduce Your Bank Fees
If you’ve been with the same bank for a long time, then you’re likely paying their top rate fees. Most banks don’t give any rewards for loyalty, so there’s no harm in looking around. There are loads of business bank account options out there, some of which are completely free with no monthly fees. So if you’re paying a monthly fee when you don’t need to be, it might be time to look at the market and see if you could save some money by switching. Again, it may seem small, but all of those £8.50s add up to over £100 a year for the privilege having a bank account.
Shop Around For Suppliers
Yes, we know that everything has gone up in price, so here you’re not looking for the cheapest deal ever. You’re looking for the deal that is most cost-effective for your business. If you sell stock or use raw materials, look for wholesale suppliers where you can buy in bulk, as this will often save you money.
Stop Printing
Believe it or not, printing is pretty expensive. One of the biggest benefits of going paperless is the cost savings it can bring your business, as well as the environmental impacts. If you don’t need to be printing, then get rid of the printer. If you absolutely need to print, try to minimise it to make sure your resources last longer. For general expenses, make sure you’re comparing prices with other suppliers to get the best deal. And for things like software, keep an eye out for offers or discounts that could lower the price.
Set A Budget
This one might not save you money right away, but it will help you in the long run. Setting yourself a budget for your business will help you to reduce spending in the long term. Think about what you need to spend to make your business work, what you’re spending now and what areas they fall into. You can use this information to put together a budget for the year ahead and plan how much you want to spend on each element of your business. If you work with a bookkeeper, they can help you do this and then manage it on an ongoing basis.
Does that all sound like a lot? That’s where a bookkeeper (like me) can help you! My job isn’t just to make sure everything lines up in your accounting software. It’s to make sure you understand your numbers and what they mean for your business. I’m always happy to go through your cashflow with you so that you know exactly what’s coming in and going out, and where you could be making some savings. So if you’d like to be a bit more organised and save some money in 2026, give me a call, I’d love to help!