Benjamin Franklin once said “If you would be wealthy, think of saving as well as getting.”

So, with your wealth in mind, let’s look at five really practical tips for saving your business money.

  1.   Have a Payments Purge

Are there are direct debits or subscriptions being paid for services or organisations that you don't really need? When we join an organisation or arrange to pay for something on a monthly basis, it seems like a good idea at the time. And then, once we sign up, we forget about it, and just keep on paying! You should regularly review your bank statements to make sure that you're not paying something that you no longer want or need.

2. Act upon deals

Have you made sure that the price reduction or credit note that you arranged with a supplier has actually taken effect? Many organisations make a verbal or e-mail deal and fail to notify their accounts department or to check that the paperwork necessary to get back the cost saving has really happened. Make sure that if you are promised a credit note that you actually got it, and that it has been processed in your books. Make sure if you are promised a price reduction, that the invoices actually reflect this. These verbal agreements are often overlooked!

3. Early Payments Discount

If you are in the happy position of having cash in the bank, see if your main suppliers will offer you an early payment discount. You might be surprised to discover that this is possible, and you might as well avail of a payment discount rather than just merely having money lying in your current account.

4. Employees on Long Term Disability

If you have an employee on Long Term Disability, then the Employer’s PRSI cost should be zero. You are allowed to recover previous overpayments for the past four years.

5. R & D tax credit

If your company engages in R & D you can apply for a tax refund known as the “R & D credit”. R & D is quite widely defined, so having white-coated laboratory assistants is not necessary to qualify! The legislation is fairly complicated, and the paperwork is not for the faint-hearted (!) so ask your accountant if you might qualify. There are firms who specialise in R & D tax credit claims, and although they charge a fee, they will only do so if you have a valid claim.

And finally…

There are lots of little clauses in Irish tax legislation that can save you money. If you have a good accountant, they can help you with finding out which clauses apply to your business. The last two tips are courtesy of the Wexford branch of the Chartered Accountants Business Networking Group.

So, let’s all apply a common sense approach to keeping our costs down, be vigilant for where we may be leaving money on the table and use the expertise of any professionals we employ to do the same. Happy savings!