July 23, 2020 3 Cost-Cutting Methods Small Businesses Can Implement

You’re saving on travel by working remotely, holding virtual meetings and selling online. But, what else can you do for your small business.

It’s hard to believe we are already halfway through 2020 and even more difficult to fully comprehend the impact of our “new normal” on small businesses. Like never before, business owners are working to bring more certainty to these uncertain times.

Operating with a fully-remote workforce has been one of the biggest adjustments for companies in 2020 and this trend is likely to continue. In fact, a recent survey by Gartner found that 41% of employees are more likely to work remotely—at least some of the time—post-pandemic. Business owners have responded to this new reality by investing in better technology that connects them more effectively with their remote teams and they are seeing the benefits of these new digital platforms. Here are three other digital options small businesses are taking advantage of now, to cut costs and improve efficiencies in payroll, workers’ compensation and project management.

1. Save Big with Free Payroll Software

No single business activity provides a greater sense of security for your workforce than getting them paid accurately and on-time. That said, this critical process does not have to cost a fortune. Increasingly, small business owners are looking to free online payroll software, to ease the burden on their balance sheets. New services are available today that provide a cost-effective way to enable staff to access and update payroll information.

These turn-key solutions free up resources and streamline workflows, allowing employees to use their time more effectively. By utilizing free payroll software, you can reduce payroll management costs to next to nothing. Some online payroll companies also partner with insurance companies to offer additional ways to streamline and cut costs, such as pay-as-you-go pricing models for workman’s comp insurance.

2. Pay Only for What You Need with New Workers’ Comp Model

Companies have also found better ways to manage their accounts to allow for more flexibility, as their organizational needs change. Businesses with a fluctuating employee roster are using a new workers’ comp insurance model to ensure they are paying only for the actual number of staff on their payroll.

In addition to state laws that must be considered, your payroll determines your premium. The more people you employ who require coverage, the higher the risk and the higher the premium. The Cerity PayGo™pay-as-you-go plan adjusts with each payroll cycle and helps businesses lower premiums. Flexible services that accommodate your company’s business model will protect you and your staff as you weather these uncertain times.

3. Streamline Your Evaluation and Purchasing of New Software

With so many digital platforms to choose from these days, searching for new software can be overwhelming and time-intensive. Capterra is a website dedicated to comparing office software (complete with user reviews and comments) that you can use to determine the right digital tools you should use to cut costs and boost productivity. Capterra can be used to help find a tool to assist with Project Management. Rather than relying on a dedicated staff member or business leader to manage your team, many businesses now lean on online productivity software. If you are using a hosted business service account like G Suite or Windows365, you may have a project management application included in your service. Simply research some of the best apps for business and productivity that can be a useful part of your team’s software solution set.

Many leading companies have used free and low-cost online solutions to manage their businesses long before it became a necessity. The success of lean business practices—and the increased profit margins incurred as a result—demonstrate that online tools can give you a lead from the start. Thanks to these early adopters, many resources have been thoroughly tested and reviewed, allowing you to pick and choose which online software best fits your company. Every organization is different, and you know best where your company could stand to reduce costs.

No matter what happens, small businesses will no doubt take some sort of hit to their bottom line. While the government may step in to help — business owners must be proactive and do what they need to do to keep their lights on and doors open. Act now to make the business decisions that will help ensure the health of your business and provide your employees with greater certainty in these uncertain times.

About the Author
Dennis Dix is Chief Operating Officer at Cerity. Dix Dennis is charged with reimagining how workers’ compensation insurance is priced, purchased, and maintained. Cerity is a data and analytics start-up that empowers small business owners with PayGo™ pay-as-you-go plan and the knowledge and tools they need to confidently purchase workers’ compensation insurance directly from an insurance company. For more information, visit: https://cerity.com/.

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