No company wants to have to lay people off, but it is often necessary due to budget issues. Especially during this difficult time, almost every business in the country has been impacted. COVID-19 brought the world to a halt including millions of businesses. Many lost their employees, and some of the biggest names in business had to let go of thousands of staff members.
However, there are some steps you can take to prevent staff layoffs. If you take steps to save money, then you may be able to prevent losing staff members further down the line. There are several budgeting tips below that will help you trim down your business expenses, as told by Bento for Business.
Cut unnecessary expenses
Your equipment is likely to be one of your business’s biggest expenses. You can save money by buying used equipment. In fact, used equipment is often 50 percent cheaper than new equipment. You should look for used computers, furniture and copiers. Travelling is another necessary expense. However, many business budgets suffer under unnecessary travel costs, such as sending people on first or business class flights unnecessarily or sending out personal reps when a virtual conference would be more appropriate.
Do cloud-based accounting
If you are still using paper checks, then you can save money by switching over to direct deposit. Not only is direct deposit more convenient, but many accounting and payroll errors occur when companies are doing their accounting offline. When you move to cloud-based accounting and payroll, you can use tools like Bento for Business to better track your spending, keep payroll records, and manage other accounting data.
If it is possible for your employees to work from home, then it is a good idea to give them that option. Telecommuting can be a huge money saver. It helps cut down on operating costs, office maintenance, equipment care, and so on. Telecommuting can also benefit your employees, as many people find themselves to be more productive when working in a home environment. When working from home, employees are better able to maintain healthy eating habits, manage mental health, and create an office environment catered to their particular needs.
Put money where it matters
Many companies have a problem with wasting money on parties and events that benefit no one. Your employees would much rather get a 50 pound gift card than a twenty-thousand dollar company appreciation conference. Yet another company mug for every employee, as well, would not be as well taken as an extra five pounds in their paycheck. Your employees are there to make money for their home and families, and spending money on extravagant gestures can feel empty and even insensitive when the company has to make budget cuts. Instead of getting overly creative to show your employees your appreciation, show them that you are budgeting with their financial benefit in mind.
While many companies feel that layoffs are the only way to stay ahead of company financial strains, the truth is that inefficient company money management is rife in even the smallest of companies. Before you look at cutting down your staff, track your spending and find places where money could be put to better use.