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Finance & Accounting, Financial Management

5 Ways to Successfully Decrease Business Overhead Expenses

You determine the success of your small business from the top talent you hire, the technology you implement and the direction of your company culture. One of the top ideas on most entrepreneur’s minds is lowering expenses for the New Year.

Fortunately, you don’t have to figure this decision on your own. We researched the most efficient ways to help you decrease your overhead to improve 2018 budget.

  1. Invest in the right software.

Your sales team and employees that can deduct work-related expenses to human resources need to keep track of their expenses and receipts tracking. Also, the cost of hiring an accountant to track your annual fees can cost $65 to $420 per hour. Imagine the amount of money your business can save if you depend on internal resources to complete your work.

One way to avoid purchasing a product you don’t like is by requesting a free trial and an account manager to help you throughout the software selection process.

  1. Work with outsourced talent.

It is said that you can save 20-30 percent hiring a freelancer versus a full-time employee. At least 50 percent of employees are less likely to quit with work from home options available.

The cost savings are in no furniture, employee benefits, vacation and on-site software. According to the Huffington Post, “The Society for Human Resources Management is more conservative and estimates that the average cost of hiring and training a salaried employee is about 6 to 9 months of salary.” Here are a few sites you can use to find top freelancers in graphic design, writing, graphic design, and consulting:

These sites are a Facebook for business owners and the freelance world with online resumes, a portfolio and an effective form of communication to stay connected for the hiring process.

  1. Move to an inexpensive side of town.

In business, location is about being close to your customers and consumers for easy access to your goods and services. This point can apply to opening a new location or relocating to an area where office/retail space is inexpensive, parking is accessible, and taxes are low. If you own a small business, there are tax advantages to work from home that includes deducting the cost of parking, rent, office space and office supplies.

  1. Depend on your employees.

Your employees are more valuable than you think. The first step is to schedule quarterly brainstorming sessions to hear their ideas on how to use high quality but less expensive materials for products. Your team is customer facing, often sparking different conversations with customers on how to change elements of extended customer service wait times, how to improve around your retail store for easy access to products or insider productivity secrets of your competitors.

We recommend you reward employees for ideas that are implemented that are fiscally responsible to your business. Employees will feel valued and work harder to create cost-saving efficiencies while at work.

  1. Cut phone bills with online communication.

The VoIP telephone was a technology of the past you could save money on telephone bills. Now, your team can take advantage of free services such as Google Voice and Join Me to conduct meetings with clients. Human resources specialists can use these tools to have online pre-screening interviews with candidates or send text messages to contact applicants before inviting them in for an interview.

Hopefully, these ideas help you turn saved money into implementing new technology, investing in your employee engagement programs or recognize employees for hard work. With 2018 quickly approaching, you have time to speak with your executive team and management to determine which ideas work best for your small business, implementing these ideas sometime in the first quarter.

Makeda Waterman is an online media journalist with a passion for helping people succeed in life. Outside of writing for The Huffington Post, has writing clips on CNBC Make It., Yahoo Finance News, FastCompany.com, among others.

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