As a bookkeeping practice that supports ambitious small and medium businesses, we understand how every penny counts when you’re striving to grow your business.
With the new year approaching, it’s the perfect time to take stock of your finances and identify those sneaky expenses that might be draining your hard-earned cash!
Here are some of the most common areas where we’ve seen businesses overspend — and a few tips to help you make 2025 a leaner, more profitable year.
1. The Daily Coffee Habit
Let’s be honest: we all love a good latte or flat white. But did you know that grabbing a £3.50 coffee every weekday adds up to £910 a year? That’s almost a thousand pounds that could be invested back into your business or saved for a rainy day. We’re not saying you should quit coffee (we’re bookkeepers, not monsters), but why not invest in a quality coffee machine for the office? It’ll pay for itself in no time and keep your team caffeinated and happy. I have invested in an office kettle and fridge to support my hot chocolate habit for 2025!
2. Subscriptions You Don’t Use
Fitness memberships, software tools, streaming services — subscription-based pricing is everywhere, and it’s all too easy to let these costs creep up. Take some time to review your monthly outgoings. Are you still using that premium project management tool, or has it been collecting digital dust? Cancel anything that doesn’t add value, and don’t be afraid to shop around for alternatives if you can get the same functionality for less. We've changed a few software subscriptions over Christmas saving a whopping £40 per month!
3. Impulse Purchases on Amazon and eBay
Online shopping makes it dangerously easy to buy now and (never) return later. A shiny new gadget or must-have office supply might seem like a good idea at the time, but how many of those purchases end up unused in a cupboard? Keep a wishlist instead of adding items straight to your cart. After a week, if you still want it, go for it. If not, you’ve saved yourself some cash. Amazon Prime is lethal for buying something at a higher cost for the convenience of quick delivery, better planning may give you the option to shop around and save money.
4. Utilities and Insurance
When did you last shop around for your business utilities or insurance? Many business owners stick with the same providers year after year, often at a premium. Comparison sites make it easier than ever to find competitive rates, so set yourself a reminder to review these contracts annually. A little effort could possibly save you hundreds. There are even companies that plug into Xero and automatically review these for you!
5. Convenience Lunches
Grabbing a quick sandwich, salad, or hot meal might feel like a time-saver, but it’s costing more than you think. Spending £7 a day on lunch five times a week adds up to £1,820 a year! By prepping your own lunches, you could cut this cost by at least half. You’ll not only save money but likely enjoy healthier meals too. Consider batch-cooking or keeping simple ingredients on hand at the office to make this transition easier. My go-to's are wraps or pasta salads.
6. Neglected Assets
Do you have equipment, software, or resources you’re not fully utilising? For example, if you’ve invested in accounting software like Xero (good choice!), make sure you’re using it to its full potential. Tools like our Xero Power Hour can help you unlock features you didn’t even know existed, maximising the value of your subscription.
7. Inefficient Processes
Time is money, especially for a growing business. Are you spending hours on manual tasks that could be automated? Investing in streamlined processes and training might feel like an upfront cost, but it can save you significant time and money in the long run.
The Bottom Line
Running a business means making smart choices with your resources. By trimming unnecessary spend, you’re not just saving money — you’re creating opportunities to reinvest in the areas that truly matter, like growing your team, marketing your services, or upgrading your equipment.
Need help identifying where your money’s going? At Eden Bookkeeping Solutions, we’re here to help you make sense of your finances and ensure every pound is working hard for your business goals. Let’s turn 2025 your most profitable year yet!
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