What are the 4 costs every small business should review at the start of the financial year?

The 4 costs every small business should review at the start of the financial year

April is the month when every business owner takes stock of their finances.

It’s the start of the new financial year, so it’s the time to plan new strategies and campaigns, look at your best income streams, and help your business to grow.

Every small business needs to watch the bottom line too, so the start a financial year is also an excellent time to look for costs you can cut.

Taking at look at four key costs could help your finances no end. Here are our recommendations:

1. Banking costs – The cost of banking can add up to hundreds or thousands of pounds a year, depending on your account type and whether you have a cash-heavy business. It’s always worth checking the latest business banking deals out there. Some organisations, such as the Federation of Small Businesses, offer free banking as a perk of membership. It’s worth checking these deals out too, as you will get other benefits at the same time.
2. Accountancy & book keeping – There are many accountants out there who offer great value-for-money monthly deals where they will prepare your management accounts and personal tax self-assessment for HMRC. Take a look at what’s on offer with each price and see if you need all the services they provide. When it comes to book keeping, would you be better off with a cloud system such as Xero and a virtual assistant instead of the services of a book keeper? How much could you save by checking?
3. Administration costs –Would you be better off if you outsourced your administration such as chasing invoices, preparing marketing lists, and compiling your newsletter? If you’re doing all this yourself, the answer is probably yes – because your time is far more valuable spent securing new business and delivering for your clients. Are you very busy? It may be time to hire someone in-house.
4. Insurance cover – How much are you paying for your insurance, and does it give you the cover you need? Sometimes, businesses buy into packages which have things included which aren’t appropriate for their industry or products. It’s always better to get a bespoke quote which reflects all the things you need for your business – from insurance against fire and theft to cyber insurance or professional indemnity cover. If you talk to an independent broker with access to all the deals out there, like Severn Bay, you’ll be a step closer to getting the right fit for your business.

What’s our other piece of great advice?

Choose a broker who understands the needs of small businesses – just like Severn Bay.

Any brokerage which works regularly with small businesses understand your need to be cost-conscious and get the exact level of cover you need.

Do you need advice on the right insurance for your small business? Call our experienced brokers on 02920 470375.