How to Lower Your Business’ Operating Expenses for 2016

With the new year in full swing, we’re sure you’ve already started your business’ financial planning for the first quarter of 2016 and beyond. Finding ways to reduce costs without cutting into the core of your business is essential and doable. Taking small steps now can have a significant impact over time. 

To help you along, we’ve compiled a list of small techniques to reduce your company’s business expenses in 2016: 

Save on Energy Expenses
Energy efficiency is at an all-time high and will only continue to improve. Two simple ways to reduce energy costs include switching to compact fluorescent lighting and making sure your insulation and windows are still holding up, as they should be.

Go Virtual
If your business is one that has the capability to allow employees to work from home, do it! This can reduce your office space costs and can even save your employees some money. If you are operating a fleet, utilize GPS systems to boost mileage and reduce fuel costs. 

Travel Lightly
Consider cutting trips that don’t generate revenue, such as conferences. Opting for less expensive flights and hotels is also a smart way to reduce travel expenses.

Leave Your Options Open
Take advantage when the economy tilts in the tenant’s favour. Look to renegotiate your current deal, or look for new office space when it is the right option. 

Second-hand Furniture
When shopping for office furniture, new isn’t always better. Many times, you can find great deals during a business liquidation sale, or when a business decides to unload some of their assets. Capitalize on these opportunities, especially if the furniture is still in good condition. 

Keep Your Inventory Up To Date
As you know, storage isn’t free – but the right inventory management strategy can help reduce operating expenses. Keeping supplies as just the right level can reduce your overhead costs and the burden of excess ‘stuff’ in the office.

Look For Potential Tax Breaks
Tax deductions for new equipment purchases, hybrid cars, and other expenditures may be able to save you some money come tax season.

Audit, Audit, Audit
Periodic cash flow analysis is always a great idea. Go back and clear your books of assets you no longer have. This will also help reduce your insurance bills and taxes.

By using some of these tactics in 2016 to reduce costs here and there, you can see a significant reduction in your business’ operating expenses down the road. 

Written by Expense Reduction Analysts USA

Published by Expense Reduction Analysts Europe