How to save money as a business: Top 9 smart cash management strategies

Ever looked at your business account and thought there’s got to be a smarter way to manage this cash? 

You’re not alone. With rising costs and tighter margins, learning how to save money as a business has never been more important. Good cash management helps you stay competitive and prepared for what’s next. 

Here are some practical tips, let’s get into it. 

Here are the top 9 ways to save money as a business 

1. Review your spending habits regularly

One of the easiest ways to start saving money is to track where it’s going in the first place. Set aside time every few weeks to check your bank statements and spot patterns. 

Many businesses spend more than they realise on non-essential items, duplicate services, or old subscriptions that never get used. 

One business we spoke to cut hundreds from their monthly outgoings after realising they were paying for five different pieces of software doing the same job. 

By reviewing spending habits regularly, you’ll get a clearer idea of where your money goes and how much you could save by trimming the fat. 

2. Consolidate your business debts 

Managing several debts at once can be stressful and expensive, especially if you’re dealing with different lenders and interest rates. 

A debt consolidation loan could combine everything into a single monthly repayment, often at a better rate. This not only saves money over time but also simplifies your budgeting and frees up headspace. 

Businesses that consolidate usually find they’ve got more money to work with each month and can plan with more confidence. It’s also worth checking whether refinancing is an option if your current repayment terms are eating into your cash flow. 

3. Make better use of a savings account 

Leaving spare cash sitting in a current account doesn’t do your business any favours. A dedicated savings pot or savings account can help you build a financial cushion and earn interest on money you’re not using. 

Try these steps to make your savings work harder: 

• Set a clear savings goal using a calculator so you know what you're working towards. You could try Allica’s own Rewards Calculator if you like.  
• Move lump sums from stronger months into your savings pot so they don’t get spent by accident 

Whether it's to help you pay tax, reinvest, or simply save money for unexpected costs, your savings account should be a tool that supports your financial strategy. 

4. Compare providers to get the best price 

It’s easy to stick with the same insurance provider, energy company, or telecoms supplier just because it’s familiar. 

But shopping online and doing regular comparisons can reveal better deals that save you more money across the year. 

One business we spoke to switched energy providers and cut their bills by nearly twenty percent. The best price is rarely the one you’re already paying. 

It’s worth checking at least once a year to see where you could switch and save. Use online research to your advantage and don’t be afraid to negotiate. 

5. Keep operational costs under control 

Running a business means balancing your time, your team, and your money. But over time, it’s easy for costs to creep in unnoticed. From food waste in the kitchen to software licences no one is using, overheads can build up fast. 

To get back on top of your spending, look at: 

• Second-hand equipment instead of buying new where possible
• Cleaning and maintaining contracts to ensure you’re not overpaying 
• Training your team to be more conscious of food waste or unused resources 
• Renegotiating supplier deals to get better value from existing partners 

Even small changes can unlock big savings and improve your bottom line. 

6. Automate the small stuff 

Time is money and if you’re spending hours manually entering expenses, chasing invoices, or working out payroll, it might be time to upgrade. 

Good accounting software can automate most of your financial admin and keep everything connected to your bank account. 

It helps track spending, spot unusual activity, and avoid mistakes that cost money to fix. 

One business owner told us they reclaimed nearly five hours a week after switching to a digital system, which they now use for customer work. 

It might cost a bit upfront, but the time and money it saves long-term is worth it. 

7. Use forecasting to stay ahead 

Cashflow forecasting isn’t just for big businesses. Even small teams benefit from knowing what’s coming in and going out over the next few weeks. 

It helps you plan for tax, make smarter spending decisions, and avoid last-minute scrambles to cover bills. 

Forecasting also shows where you’ll have extra cash, so you can move it into savings or use it for one-off purchases. 

One good forecast can give you the confidence to hire, invest, or just breathe a little easier. Update it regularly with real figures so it stays accurate and useful. 

8. Treat budgeting as a living process 

Many businesses create a budget at the start of the year and then never look at it again. 

But things change, prices go up, plans shift, priorities evolve. 

Revisiting your budget every month helps you adjust to those changes, track your savings goal, and make sure your spending still matches your current strategy. 

When food costs rise or a new hire joins the team, your budget should reflect it. 

Budgeting regularly makes everything else easier because you know where you stand and can make decisions without guesswork. 

9. Encourage mindful spending in your team 

Saving money isn’t just a finance job, it’s a team effort. If your staff understand the value of mindful spending, the whole business benefits. 

Encourage smarter habits by: 

• Celebrating wins when someone finds a cheaper deal or avoids unnecessary spend 
• Choosing reusable supplies where possible to cut costs and reduce waste 
• Shopping second-hand for tools or furniture when it makes sense
• Being open about targets so the whole team knows why saving matters 

When people feel part of the solution, they tend to spend with more care and that can save you serious money over time. 

Final thoughts 

Smart money management doesn’t have to be complicated. With a few small changes, you can reduce costs, build financial resilience, and create a more stable foundation for growth.  

It’s about staying proactive, planning ahead, and using the right tools to keep your cash working as hard as you do. 

Future-proof your finances with a smarter savings setup 

With competitive interest rates up to 4.33% AER (variable)* and the flexibility of instant access, Allica’s Savings Pot, linked to our Business Rewards Account is designed to support your goals without tying up your funds. 

It also comes with the added reassurance of a dedicated relationship manager, helping you make smart moves with confidence. 

Start saving in a way that works for your business. Open a Savings Pot linked to Allica’s Business Rewards Account to start making your money work harder for you. 

*Rate includes standard rate of 3.33% AER (minimum balance applies) plus a 0.5% boost each month if you make 15 bank transfers out of the account in the previous month, and a 0.5% boost for six months if you complete a switch with CASS. Rates correct as of 9th May 2025. ‘AER’ stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. Subject to eligibility – see Savings Pot Key Product Information for more details.

Links were live and information was correct at the time of writing the article.

Disclaimer: This is information – not financial advice or recommendation

The content and materials featured in this article are for your information and education only, and are not intended to take into consideration any particular recipients’ financial situation. The product details and interest rates referred to are correct at the time of writing.

The information does not constitute financial advice or recommendation and should not be considered as such. Allica Bank will not accept any liability for any loss, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.