7 Smart Ways to Manage Your Finances and Save on Fees

High inflation and rising operating costs are just two of the main reasons why many businesses in Australia are doing it tough right now.

So, facing these challenges, it is no surprise that many are looking for ways to tighten their financial belts as much as they can by reducing their expenditure.

One way they can do this is to save on fees, which collectively cost Australian companies millions of dollars every year.

But what kind of fees can you save money on?

Here are seven smart ways you can improve your bottom line and, therefore, better manage your finances.

1. Reduce Payment Processing Fees

Sales are the lifeblood of any business, but if you are accepting disbursements via electronic payment processors, it will literally come at a cost – thanks to processing fees, which could add up to a significant amount over a 12-month period.

Depending on who is providing you with the service, it could cost you as a merchant anywhere between 0.5% and 1.5% of the total transaction cost to process an EFTPOS or credit card payment, respectively.

Subsequently, the more money you generate from sales, the more you’ll end up having to pay in processing fees. Thankfully, you can minimise transaction costs using a Smartpay EFTPOS machine, as it offers businesses no transaction or monthly terminal rental fees if certain conditions are met. For instance, if you process more than $10,000 of sales every month.

So, you could save yourself a significant sum of money if you decide to switch to them.

2. Change Credit Card Provider

If your business has a company credit card, there could well be a wide range of fees associated with it that you take for granted.

These can include annual fees, foreign transaction fees, late payment fees, over-the-limit fees, and even chargeback fees, not to mention interest on the owed balance.

Many of these can be reduced or avoided by paying your balance off in full before the due date of payment. Additionally, you should consider changing your allegiances to another provider who either won’t charge you these fees or offers lower rates for all of them.

3. Reduce Bank Fees

Bank accounts are something we tend to set up and then forget about. However, if we don’t monitor them properly, they could end up costing us a significant amount of money in various fees, such as account-keeping fees, transactional fees, overdraft fees, statement fees and even dormancy fees.

For this reason, choosing the right business bank account is very important. However, you should not be afraid to change to one that offers accounts with minimal or no fees for these activities. Many even incentivise companies to do so with attractive introductory offers.

4. Review your Software Packages

Throughout your business operation there is a good chance that you are paying for several different software packages that are designed to improve the efficiency of your business.

But are they actually being used?

You’ll be amazed at the fees you are accruing for programmes that are no longer being used for reasons such as the person who requested them has since left the company, or the software has been usurped by other more efficient platforms, which you are also paying for. 

Moreover, some of these fees might be on auto-renewal, so you will automatically get charged for them if you don’t take the opportunity to evaluate how necessary they are to your business as it currently operates.

 5. Accountancy Fees

Every business needs a good accountant. But is yours providing you with value for money for the work they do?

There are plenty of accountants out there who might offer just as good a service but at a much-reduced cost than the fees your existing service is charging you.

When evaluating the financial viability of retaining your existing accountant, you should also ask yourself if your tax returns are reflecting the full range of cuts, incentives and deductions that you are entitled too. This includes the instant asset write-off and research and development (R&D) Tax Incentive.

6. Review Your Insurance Policies

It is unwise for a business to not have insurance, but many Australian companies are paying more in fees than they actually need to be covered.

For this reason, you should review your policies on at least an annual basis to ensure you’re not over-insured.

It is also a good idea to bundle policies, such as combining public liability, workers’ compensation, and business interruption insurance with a single provider. That way, you might find yourself benefiting from lower premiums.

You might even want to employ the services of an insurance broker to help you find a provider that offers a better rate than you are currently paying.

7. Utilities

Energy costs can be a significant expense for any business. However, the fees you incur will vary from different providers depending on usage.

Again, utility providers are often someone businesses stay loyal to, and as they regularly put their costs up, it could be something that goes unnoticed.

Like with insurance, you should consider reviewing your utility providers on a yearly basis.

Additionally, here are some energy-efficiency lighting strategies you should implement to lower your bills.