Top 7 Ways To Reduce Your Lockdown Expenses
Many businesses are either under or over-exposed to the effects of the current lockdown period. While most businesses struggle with the costs of lockdowns, some seem to manage it more successfully than others. We gathered some of the insights by thoroughly researching & analysing some of our client’s lockdown strategies, below are some expenses that our clients have reduced in the current lockdown period.
1. Downgrade your xero subscription
If you have stood down staff, then you need to downgrade your xero subscription to the lowest level. There’s no point paying for a premium subscription for 10 staff if you have only 5 staff at the moment.
2. Archive staff in Deputy
All our clients use deputy for their rostering and payroll. As deputy pricing is based on active staff in any given month, we have archived all staff that are currently not working. This will ensure that you only pay the subscription fee for staff that are currently working.
3. Review your rubbish collection fees
This is another area where you should be able to make some savings. Due to reduced operations, the volume of waste should be substantially lower than pre-lockdown levels. Make sure you are getting the best pricing possible on this
4. Review your terminal fees
A few of our clients have got a waiver on their terminal rental fees for the lockdown period. Why pay for terminal fees if you don’t have customers walking through your doors?
5. Review your electricity and gas bills
An amazing utility broker we work with has recently been able to save $3200 for one of our clients. We are constantly reviewing all our energy bills to make sure we are on the best possible deals.
6. Review your bookkeeping fees
Are your bookkeeping fees fixed per month or do you pay hourly rates? Either way, your bookkeeping fees should reduce by at least 25% given the current situation.
7. Negotiate your rent with your landlord
I am sure most of you have already done this but if you haven’t, then please get started on this asap. The recent rulings by the Government state that landlords will have no choice but to grant rent relief to those businesses that have suffered a decline in turnover.
In summary, this is the perfect time to review all your expenses in detail. This means being proactive, if you don’t ask you don’t get it. At the end of the day, in hospitality the margins are tight and every dollar counts.