Stop Overpaying: Key Areas Your Business Could Save Money

Overpaying is the enemy of growth. This isn’t exactly a revelation, but when you’re a busy small business owner wearing multiple hats, it’s difficult to know whether the deals you’re getting on key expenses are the most financially favourable.

It pays to regularly audit your expenses and get specialised advice across your major outgoings because you could be saving thousands of pounds annually. Here are a handful of common areas that businesses like yours could be paying over the odds for.

Office space

Renting more square footage than you need is one of the most common causes of overpayment. Maybe you once needed that space for operational reasons, but is that still the case? Unused phone lines, printers or equipment can also contribute to passive outgoings and are often overlooked.

Consider: Hybrid working, co-working spaces, renegotiating lease renewal, ditching contracts for unused equipment, and moving away from city centres where rent is higher.

Insurance

Although it’s essential to ensure your business is covered against risk, sky-high premiums can get in the way of growth. But it’s not just about getting the cheapest price. It’s worth checking whether your current cover is appropriate and tailored for your needs. Not keeping on top of compliance changes or upcoming renewals can also prove costly. 

Consider: Engaging a broker, switching to a more specialised broker for your industry, and exploring whether you’re entitled to discounts for your ESG credentials or other risk-limiting factors.

Software

We’re all under pressure to embrace the latest technologies to boost performance. But this can often lead to knee-jerk decisions or adopting ‘tech for tech’s sake’. Overpayments commonly come from tools that aren’t utilised in the right way or used at all. Providers could also be selling you a premium product when you might only need basic features.

Consider: Auditing your software expenses, identifying and removing tools that do the same job, and analysing the features of your software and stripping back what you don’t need.

Payment processing

If you take regular payments by card, you’ll be all too familiar with the payment processing fees that come with it. Providers often charge confusing or inflated rates, meaning you could be overpaying for things like non-negotiated interchange-plus fees, monthly gateway fees, or unnecessary add-ons. But that doesn’t mean you have to settle for this.

Consider: Shopping around for the best deal tailored to your specific needs, and renegotiating your current deal.

Taxes

And finally, the dreaded T-word. Paying taxes is inevitable and there’s no room for shopping around or negotiation here, but overpayment is still common. Some businesses make major errors, like not selecting the right business structure and overpaying for things like self-employment tax. Others don’t take advantage of deductions or credits.

Consider: Checking the latest legislation or Budget updates for new credits and grants (e.g. R&D), assessing your daily expenses that may be deductible (e.g. home office), and employing an accountant to assist with tax-efficient planning. 

Streamline your expenses with Nabarro Poole

Every single unnecessary payment you make is hard work wasted and could instead be reinvested in your growth. That’s where Nabarro Poole can help. We’re more than just accountants – we’re an owner-managed team that understands small business challenges and offers targeted advice and key services all geared towards helping you grow and succeed.

Get in touch for a friendly chat – we’d love to hear about your business.