5 Ways to Save Money in Business UK

In today’s market, businesses need to save money wherever possible, and there are many ways to do so. For example, switching from a high street bank to an online bank can save you money. High street banks are expensive and not always flexible, and finding an alternative financial service provider could mean big savings in the long run. The recent pandemic and other events have put pressure on UK businesses and their finances, and the signs are that things will continue to get worse before they improve.

Cost-saving ideas

Running a business is not cheap, but there are ways to cut costs. There are many hidden costs that can affect the bottom line of your company. With cost-saving ideas in mind, you can cut back on these expenses without sacrificing your business’s integrity. Below are five of the most common areas where your business can save money.

First, try to cut down on your energy usage. The amount of electricity you use every month can quickly add up. By reducing your electricity consumption, you can save a lot of money by cutting down on your company’s energy bills. You can do this by switching off some unnecessary equipment and devices.

Another cost-saving idea is to reorganize your office space. For example, instead of having two separate desks, move them together instead. You can also consider subletting extra office space.

Interest rates on business savings accounts

When it comes to choosing an interest rate on a business savings account, there are several factors to consider. The APY, or annual percentage yield, is the rate at which a particular account earns interest. The higher the APY, the higher the annual percentage yield will be. However, you should also take into account any fees that come with the account. For example, some business savings accounts have monthly maintenance fees that are as high as $10. Other accounts charge for transactions, including checks or wires.

Another thing to consider when choosing a business savings account is whether it offers unlimited access and whether it comes with a debit card and check writing. Business savings accounts are typically intended for extra capital, and their higher rates are designed to help money grow. Some of them don’t offer unlimited transactions, but most allow up to six free transactions each month.

Some business savings accounts require a minimum balance. While the minimum balance amount varies, many of the best accounts have no minimum balance requirements. However, some have monthly service fees and/or ATM fees. If the monthly fees are too high, you might want to choose an account with lower fees.

FSCS cover for business deposits

A business that needs to deposit money in a bank is protected by the Financial Services Compensation Scheme (FSCS). This scheme covers firms that are regulated by the UK’s financial regulators. For example, Santander UK plc, which runs under the cahoot trading name, and Santander Corporate Bank, are members of the scheme.

Businesses should make sure that their bank has FSCS cover, especially if the deposits are held in a business account. This scheme helps businesses that are unable to pay back their customers in the event of a financial institution’s failure. In the event that a bank fails to cover the deposits of their customers, FSCS will help them get compensation.

A business may not need to worry about the protection of cash deposits as they can get up to PS85,000 through the FSCS. In the case of joint accounts, FSCS protection will be up to PS170,000, and if the business has two or more partners, the maximum amount protected will be PS85,000 per partner. A business may choose to divide its deposits between several PRA-authorised banks. However, the FSCS will treat the group as if it were a single bank.

Moving to a digital platform to save money

Moving to a digital platform is a great way to streamline your business processes and save money. Many businesses are built on inefficient silo-based infrastructure. For example, marketing campaigns are often coordinated by different departments, instead of collaborating. Digital platforms help organisations share services, allowing staff to spend their time more productively.

Digital Britain is the UK government’s program to encourage more businesses to adopt cutting-edge technology. In 2019, the digital sector contributed PS151 billion to the UK economy and employed 9% of the UK workforce. Its growth has been accelerating in recent years, with growth rates three times faster than the overall economy.

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