A contractor has to assume a wide range of costs, including insurance, materials, payroll, tools, and equipment. In this situation, any sort of cost reduction is the equivalent of having more money in the bank. A successful contractor must be constantly on the lookout for new ways to reduce costs.
Here are some proven money-saving tips for contractors:
1) Set Up A Limited Company
It can simplify tax reporting, banking, and insurance, as well as reducing your taxes. There are chartered accountants that can help set up the company and handle the VAT, Corporation Tax, VAT Flat Rate, and NIC at the same time.
2) Hire a Chartered Accountant
Have a professional chartered accountant take care of your books. Improper management of books can increase your tax bill and get you into trouble with the HMRC. Paying a professional upfront is always cheaper than hiring one to clean up your mess.
3) Hire Professionals Online
Use online services such as www.elance.com to find professionals, such as writers, editors and web designers. The services you’ll find online are just as good as those you can find in your community, and they are often cheaper.
4) Hire a Virtual Assistant
A virtual personal assistant will cost a fraction of what a traditional secretary will, and they are just as professional. Online services, such as www.Odesk.com and www.elance.com, can help you find the right one for you.
5) Digitise Records
Keep all of your records on computer to eliminate the costs of paper. Simply eliminating paper and ink can save a contractor £20-£50 a month. To avoid data loss, make sure that you take advantage of a backup service such as Google Drive or iDrive.
6) Get Rid Of Your Fax Line
You’ll eliminate the second phone bill and save on ink and paper costs. Remember, you can always plug your fax machine into the phone line if you really need to fax.
7) Get Rid Of Your Landline
If you do most of your business on your mobile phone, there’s no need to pay for a permanent phone line for your business.
8) Take Advantage Of Free Services
Free banking with no charges and no minimum balance requirements is the perfect example. If your bank doesn’t offer it, ask for it or move to a bank that does.
9) Home Office
If possible, operate from a home office and eliminate the cost of renting a shop or office. This can eliminate an extra rental payment and save you several hundred pounds a month. If you need a place to meet clients, you can always go to a coffee shop.
There are hundreds of ways that contractors can save money if they just use their imagination. Every time you perform a task, think about it and ask if there is a cheaper way to do it.
If you are interested in hiring a chartered accountant, Nixon Williams’ contractor accountants are the best in the industry.