Dollars and Sense: Practical Budgeting Ideas

By Staff Writer There isn’t any small business owner that doesn’t want to cut costs. Only the successful owners understand, however, that the key is smart budgeting: Even the smallest savings add up over time. You don’t have to make grand, sweeping changes; you just have to pay attention to the details. Use these easy-to-implement ideas to comfortably tighten the belt on your business budget.

Financial Monitoring

The best way to start saving is to know where your funds are being spent. The first step to savings is to examine your balance sheets. Closely check your expenses and income, making sure that your records are up to date and balanced. Then, for the next eight weeks, keep close tabs on your cash flow, taking note of how—and how much—you’re spending. After those two months, it’s crucial that you go over your expenses and budget at least on a monthly basis.

Keep Your Budget Limber

Don’t let your budget become too rigid! Your business should run on a set of flexible guidelines that grow and change with your needs. To prevent your financial plan from getting stiff, shape it to your needs when necessary. It’s not set in stone, and keeping it current to your situation will actually help you to adhere to it.

The first step to savings is to examine your balance sheets. Closely check your expenses and income, making sure that your records are up to date and balanced.

Flip the Switch for Lower Bills

You get enough bills to know just how quickly utilities costs add up. What you may not realize is just how many utility savings opportunities there are in every day of the week. Some easy ones:

• Put in fluorescent lights to lower your electric bill and to conserve energy.
• Shop around for the best long-distance phone service plan. Compare, barter—and be sure to get a deal.
• Use toll-free numbers whenever possible when calling vendors, clients or suppliers.
• Use email and save on fax, postal and courier costs.
• Have to fax? Skip the cover sheet.
• Always double-check your cell phone bill; errors are surprisingly common.
• Don’t forget to shut off the lights and turn down the heat at night! Install auto-shut-offs and timers where possible.

Employee Savings

Payroll is often the biggest and most important slice of the budgeting pie chart. Regardless, there are still ways to save money—without even considering the possibility of reducing your staff or their salaries.

• Hire a college student as an intern or bring in a recent grad as low-cost help.
• If work loads ebb and flow, hire temporary employees during the busy times and save on permanent employees who may be unnecessary during slow times.
• Cross-train your staff so any shortages or gaps are easily covered in-house.
• Use independent contractors to avoid withholding or paying taxes on their services.

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