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Money management for SMEs: How to stay cost effective

Starting a business is hard. Managing a budget for an SME is harder. Here are fast and easy ways to make sure your bottom line doesn't hit rock bottom.

July 8, 2019

Startups and small businesses have a lot of work to do when it comes to finding funding. Half of the battle is raising capital to get your venture off the ground, but keeping above water once you’re up and running is really hard. All entrepreneurs need to keep a keen eye on the bottom line and make sure they’re staying cost effective.

Money management for any small business should be a top priority. Managing cash flow is the single-most important part of running a small to medium sized enterprise: without cash you can’t pay staff, create and develop products or do any business at all - so that establishes just how important your accounting is. A simple Google search for money management for SMEs will throw up over 54 million money-saving hacks articles that aim to give your business a boost.

 

Small business advice to save money

So how do you make sure your SME is cost effective? Here are some quick money-saving tips and cash-flow management hacks.

 

Take advantage of automation and robotics

Today’s business world is very, very different from just a few decades ago. Thanks to automation, artificial intelligence and other rapidly developing technologies, things run a lot smoother for companies around the world. Why pay a product assembly team if a robot can manage the workload, and produce products quickly and more efficiently? It makes sense for small businesses to invest in automated platforms and robotics to streamline workflows and cut out extra costs.

 

Plan, plan, plan

You might think having a budget doesn’t need a mention, but you’d be surprised at the amount of businesses that don’t take budgeting seriously. You need to plan your spending on at least a yearly basis to know how much money is coming through the doors, and most importantly how much you’re paying out. A strict plan and a competent accountant will go a long way towards keeping you in the black.

 

Planning is a necessary step for SMEs to save money

 

Streamline your workflows

Business workflows are essential to the everyday running of your SME. Ensuring your workflows are aligned with your ultimate business goals and that they’re optimized to boost the productivity and efficiency of your team is one of the most important ways to keep costs down. By removing extra steps from your business workflows, you’ll streamline the time, resources and ultimately money invested, keeping the bank balance in check.

 

Go electric

Paying out to run a fleet of business vehicles? Or a few company cars? Either cutting this out of your budget altogether or switching to electric cars is good business sense. Transportation companies can save a fortune by switching to electric and do their part to help the environment while they’re at it.

 

Seek advice

For an SME and a first-time entrepreneur, being financially literate might not be your strongest suit. Remember: you can’t be an expert in every area of your business. You have to take advantage of professional resources to get the most from your money and make more. Invest time into looking for the best person for the job and you’ll reap the benefits.

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Making economic decisions on the everyday running of your business is key to keeping the budget in line. Any organization that hopes to run efficiently with plans for growth needs to take their money management seriously - with a little planning and effort, and some coupon-cutting where it matters, you’ll see great benefits.

Automation is a business’ best friend. Whether it’s robotic product development and creation or workflow management, automation will guide your business into the black and keep it there. Trint’s intelligent platform gives your team the gift of time - by streamlining your transcription workflow it boosts productivity and efficiency. Keep the budget in check with a little helping hand from automated transcription.