As the COVID-19 pandemic stretches on, many companies are doing what they can to keep afloat and mitigate the economic impact of this disease. With no end in sight, making a long-term financial plan can seem impossible. Many individuals and business owners are turning to cost-cutting measures to make each penny count in these uncertain times. Here are a few ways that businesses can cut expenses and improve their outlook during the COVID-19 pandemic.
Cut Expenses for Non-Essential Line Items
Companies should seek to operate as inexpensively as possible and scale down operations where they can. If trucks, machines, or other leased equipment are sitting unused in a warehouse, consider returning the equipment or renegotiating the terms of the lease. Most non-essential travel has been restricted in many states, and your business can save money by following suit and curtailing travel that does not serve a critical function. Audit your office’s routine expenses and see where cuts can be made. Unused software subscriptions, unnecessary business services, and even excessive amounts of office supplies and snacks can be cut to help your company save jobs and last through the pandemic.
Look Into Bill Deferment
Some expenses just cannot be cut, but you may be able to suspend some payments until business picks back up. Suppliers, credit card companies, and utility companies may be willing to negotiate with you during this crisis. Reach out to any organization to which your business owes money to discuss the possibility of setting up a payment plan or temporary deferment. While you may not be successful in negotiating with everyone, every cost-saving measure helps. Before you sign anything related to a deferment or payment plan, be sure to familiarize yourself with the particulars of these arrangements and how they can impact your finances in the long term.
Make Money-Saving Personnel Changes
Laying off employees is often a last resort, but there are other ways to cut expenses associated with payroll. Cutting hours for employees can help you avoid layoffs, and having your staff work remotely can help you reduce in-office expenses like heating, cooling, and electricity. As a more drastic measure, some companies ask their staff to accept a reduction in wages for a limited time to prevent layoffs. However, some businesses must still resort to terminating or laying off their employees to cope with economic hardship.
Become More Financially Proficient With EveryIncome
EveryIncome is dedicated to providing our clients with career and finance management tools to help them create a stable financial future. Whether you are an individual, a small business owner, or part of a multinational corporation, our system of tools and guided learning is tailored to fit your specific needs. Our solutions for businesses allow employers to give their staff the financial planning tools that they need to stay in control of their finances. Contact the team at EveryIncome online or give us a call at (571)370-5400 to learn more about our offerings. For more valuable tips for business owners, follow EveryIncome on Facebook, Twitter, and LinkedIn.