Managing your own business is an expensive affair. You have to pay for office space, utilities, supplies, insurance, employee wages, and other expenses. You may feel like you are doing nothing but paying bills!
The good news is that there are ways to find savings and even earn a little cash back on what you spend. You can, in turn, put this value back into your business or use it to reward yourself. New equipment or a nice holiday – the choice is yours.
Check out our top three ways to leverage your expenses below.
In addition to cash back, you can also save money by using free online tools, such as this website that allows you to create a CV.
Deduct Your Expenses
In many parts of the world, you can deduct business expenses from your income taxes. This is true in the UK.
In the UK, examples of deductible expenses include:
- Office expenses, such as paper, stationery, or telephone bills.
- Travel expenses, including bus fares, fuel, and parking fees.
- Clothing expenses, as for work uniforms.
- Staffing costs, including employee salaries and subcontractors.
- Products you plan to sell or raw materials you use to make products.
- Financial costs, such as bank charges or insurance.
- Costs related to your business premises, such as lighting or heating.
- Advertising and marketing costs.
- Training courses for yourself or your employees.
In order to claim a deduction, it is important to keep good records of your expenses, such as spreadsheets, receipts, and packing slips. You should also check with a tax professional to ensure you are following all taxpayer guidelines. You may be pleasantly surprised if they discover deductible expenses that you missed!
Use a Cashback Business Credit Card
Many credit cards offer a percentage back on your purchases, either in the form of a billing credit or deposited funds. You can shop around to find cards that best suit your needs.
For example, retailers such as Amazon and various hardware stores offer branded credit cards that give generous cash back on purchases at their stores – often up to five percent cash back.
Other cards offer rotating selections of cash back deals. For example, a card might offer one percent back on all purchases but five percent back on specific categories. Fuel costs might be given precedence – a higher cash back rate – during the first quarter while materials are given a higher rate during the second quarter.
If your business requires a lot of travel, you might opt for a travel rewards card. These cards offer higher user benefits, often in the form of points, on purchases such as airline tickets and hotel stays. The points, in turn, can be redeemed against future travel expenses.
Install Trusted Cashback Apps and Plugins
There are many smartphone applications and internet browser plugins that allow you to apply coupon codes or that offer cash back on certain purchases. Here are a few of our favorites.
- Ibotta is a smartphone app that allows you to claim cash back offers on products before shopping. After purchase, use the app to scan the UPC code and upload your receipt.
- Fetch Rewards is a smartphone app that allows you to earn rewards points for ANY receipt. The points can then be redeemed for gift cards.
- BeFrugal is a browser extension that applies coupon codes and cash back on select websites.
- RetailMeNot Dealfinder is a browser extension that applies coupon codes and cash back opportunities to select websites.
- Rakuten is also a brower extension that allows you to claim cash back on select online purchases – up to 15 percent cash back.
Generally, these programs are simple to use. The apps require a bit more work on your part – you have to scan in your receipts. But the browser extensions couldn’t be simpler. When you are shopping on a supported website, you will see a popup near the top of the screen. Click “Activate,” and your refund will be processed after the sale is completed.
Should you worry about scams? The apps and plugins listed above have been tested and proven safe. Always exercise caution when approaching an unfamiliar program.
True, the cash back from each purchase may be mere pence, but they add up over time.
- You can leverage the money you spend on your business in several unique ways.
- Keep good records of your business expenses, and deduct these from your annual income taxes in accordance with government regulations.
- Utilize a business credit card that offers cash back on purchases. Select a card that aligns well with your purchasing patterns – be they item categories, travel expenses, or specific stores..
- Use apps and browser plugins that offer cash back on your purchases. Many offer cash back automatically. Be careful to use only applications that are from trusted sources in order to avoid scams.
Susan Noel is an experienced content writer. She is associated with many renowned business and technology blogs as a guest author where she shares her valuable articles with the audience.