Top five tips to save on costs
In today’s tough economic climate, unnecessary company costs are always top of mind, especially for small to medium enterprises (SMEs) that face many challenges pertaining to their growth, such as sufficient cash flow.
According to Michael Barr, Chairman of SureTransact, an innovative mass electronic payment provider, in order to manage cash flow effectively, it is important to always be fully aware of the various monthly company costs, as well as the unnecessary expenses which could be cut in order to save money.
Gerrie van Biljon, Executive Director of Business Partners Limited, “Cash flow difficulties are generally one of the most devastating challenges for small businesses...says that a common downfall for companies, from small enterprises to large entities, is poor cash flow management. “Cash flow management is a key challenge and companies need to manage their cash flow according to the sector they operate in by taking into account the challenges they could, and are likely to, experience.”
Businesses are often unaware of smaller, less significant costs which they may routinely pay each month, such as additional electronic transactional banking fees. “While these costs may be minimal, they accumulate to large sums of money over long periods of time, and could be put to better use, such as reinvesting into the business,” says Barr.
Barr refers to a recent independent survey commissioned by SureTransact, which revealed that 51% of businesses do not know whether they are being charged additional electronic transactional banking fees for EFTs such as batch upload fees, beneficiary amendment fees, or viewing fees for online platforms.
He says that this is just one example which highlights how additional, and often unnecessary expenses, can slip through the cracks. “Cash flow difficulties are generally one of the most devastating challenges for small businesses, and ultimately affect a business’ bottom line. By eliminating unnecessary costs, businesses may be able to ensure higher profits.”
Barr offers five tips, which may assist businesses to save on their financial costs:
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