There is no doubt that rising costs are affecting all businesses. Sky-high energy bills, interest rates and ever-growing material costs mean it’s never been more important to make savings wherever possible. In this article, we’re sharing our money-saving tips for tradespeople. So, you can start the year with a clear plan to reduce expenses and stay competitive and profitable.
Money-Saving Tips for Tradespeople:
1: Start at the beginning. A is for Audit:
Spring is not the only time of year for a clearout—the New Year is also a great time for fresh beginnings. So, review all your recurring subscriptions (such as software, rental tools, or magazines) and cancel or downgrade any unused services.
2: Double-up for Discounts
If you haven’t done so, check whether your trade or industry associations offer member discounts on tools, materials, insurance or training. If you’re not a member of a local trade group, it might be worth joining to get significant discounts elsewhere.
Remember, joining trade groups or industry associations also pays dividends in referrals. You can network with other tradespeople and tap into their customer base.
3. Drive Down Costs with Vehicle Management
We work as bookkeepers for tradespeople throughout Chichester and beyond, so we know only too well that fuel and vehicle maintenance are significant costs for you.
Fuel cards are a great option to track and reduce spending. Many fuel card providers negotiate discounted rates with fuel stations, offering prices lower than those on the forecourt.
Keeping your vehicle in tip-top shape might seem like a significant financial outlay at the time, but if regular servicing helps you avoid costly breakdowns or lost work… Well, you do the sums!
4. Trim the Tool Kit
It’s vital to regularly review your tools and stock to avoid overspending on unnecessary items.
If your business has evolved and you’ve invested in new tools, sell the old ones on the second-hand market. If there are tools you only use occasionally, consider renting rather than have money tied up in assets you don’t use.
5: Track Expenses with Technology
Did we tell you how much we love Xero?! Xero can help you track expenses efficiently. The mobile app allows you to upload receipts on the go, reducing paperwork and the chances of things going missing in the back of your glove box. It tracks VAT for tax compliance and provides detailed reports to analyse spending trends and monitor job profitability. Above all, it gives you clear insights into cash flow, helping you make informed decisions about where to save on expenses.
6: Work with a Bookkeeper
We can help you identify areas where your business can improve. We’ll suggest ways to increase revenue, reduce overheads, and build an easy-to-understand cashflow forecast.
But don’t take our word for it! Here’s what our client says:
“I needed to understand why my business wasn’t performing as well as it previously had, and whilst I had a good idea why, felt I required help in finding the best way to move forward.
It was an easy decision to reach out to Claire and I took the first steps in the process with a complimentary chat before committing to work with her. Claire is very patient and understanding and was able to show me in an easy-to-understand way what needed the most urgent attention and suggested ways to increase revenue, reducing overheads and built a Cashflow Forecast that is easy to understand.
I wouldn’t hesitate to recommend Claire for the professional service that Tradermate provide. Thank you for your advice and for being there to help me make some tough decisions.” Alan Kemish – PLUMBING HEATING AND FIRES
Talk to us if you want to start the New Year with a clear plan!