Overspending is bad news for any business, but if you’re still getting off the ground and already low on cash, it could be the difference between success and failure. There are many areas where businesses have a tendency to overspend, but here are a few you might have overlooked.
Not Checking If You’re Eligible For Rebated Fuel
If you run a business in agriculture, construction or any other industry which uses heavy vehicles (which aren’t designed to be used on the road) you may be eligible to use rebated heavy oils. These are cheaper to use and can save you big money on your business. Red diesel fuel is one example, it’s exactly the same as regular automotive, white diesel fuel but has red dye added, to show that it’s to be used with vehicles eligible to use rebated fuel. Since this is illegal to use in road vehicles (unless permission has been granted by HMRC and you have paid the difference) the red dye makes it easy to identify if it is being misused. If you’re still paying full price to fuel your off road vehicles, you could be paying well over the odds. So something to look into to cut costs and maximise profits.
Not Doing Your Tax Return Correctly
Tax returns can be incredibly tricky if you’re unsure it’s always best to hire a professional to tackle things for you. If you under estimate your tax, you could end up with penalties, fines, even a prison sentence. If you overestimate it, or don’t put in for the correct expenses, then you could be paying too much. Work out exactly what you can claim expenses for in your business since you won’t have to pay tax on some things. Then keep good business records, so when you do go to an accountant at the end of the year they can put through everything accurately for you.
Not Considering Outsourcing
These days, outsourcing certain areas of your business to other specialist companies is easy and can save you money. It gives you peace of mind that everything is done correctly, accurately and according to the law. If you outsource areas of your business you need to hire fewer employees, therefore you can hire a smaller and cheaper work premises. If you outsource things like shipping and fulfillment, you don’t have to hire your own warehouse, equipment, machines and everything else. While there is a cost involved, it can work out far cheaper than trying to do everything yourself.
Not Shopping Around For Suppliers
Every business needs great, reliable vendors to supply them with the materials or products they need to keep ticking over. But are you paying yours too much? Maybe you’ve been using the same suppliers for years, and it isn’t something you’ve paid much thought to. But shopping around to see if you can get the same service and products elsewhere for a better price, will of course mean more profits for you.