How To Stop Modern Technology From Draining Your Business Finances

Team of employees working at their desks with computers

As a general rule, modern technology is seen as beneficial for businesses of all sizes.

New software applications or hardware inventions have allowed companies to improve many aspects of their work. Technology speeds processes up and can provide you with cost-effective solutions to many of your problems. 

Unfortunately, too many businesses spend far too much money on technology. While it can still be a profitable investment, issues arise when modern tech starts draining your finances. There are various reasons this can be the case. Ultimately, you want to stop technology from doing this! Below, we will discuss some of the ways in which technology might drain your finances and what you can do to prevent this from happening. 

Extortionate bills

To begin with, technology can lead to extortionate bills that your business must pay. A common example is your monthly internet bill. If you’re not careful, you can end up with a bill that’s stupidly high and drains money away from your business. Granted, it might be possible to claim this as a tax expense, but money is still leaving your account throughout the year. This can cause cash flow problems that make it hard for you to run your business. 

This is why it’s crucial to always keep a lookout for new internet bills and deals. Don’t be afraid to switch providers to take advantage of new customer offers. A more frugal approach can help your business save hundreds of pounds every year on internet bills. 

Similarly, using a lot of technology in your business will lead to high energy costs. Thus, you need to be wary of this. Ensure that devices are turned off when they’re not being used. Likewise, try to use devices on energy-saving settings. Instead of turning the brightness up on your screen, set it to an eco-mode that consumes less power. Or, forget about desktop PCs and use laptops instead, giving you hours per day without being plugged into a socket and consuming energy. 

Tech faults

Technology can be amazing, but it can also be a big issue for your business if you’re not careful. That’s a big IF, but it’s incredible how many companies are riddled with tech faults and issues. Not only will these problems cause downtime, but they will also cost money to fix. We’re talking about software problems, hardware problems – you can even throw cybersecurity issues in here as well. A lot of these cybersecurity issues can be helped with cyber security awareness training.

Why do some businesses suffer from more tech problems than others? For starters, it comes down to the tech infrastructure of a business. Some companies try to handle it all themselves in a bid to save money, but it ironically does the opposite. You download and pay for software applications that constantly have bugs and errors. You purchase bad hardware that always seems to break. In the end, you spend way too much money calling in someone to come and help fix the problems. 

The more successful companies will use an IT provider to reduce the chances of technological faults. A good IT service provider will work to keep your business afloat behind the scenes. In essence, they watch for potential problems and do what they can to stop them from occurring. Instead of calling someone to fix things that are broken, you have a team that prevents them from breaking in the first place. 

Naturally, this reduces the cost of tech faults by reducing the repairs required. However, it also saves money by limiting downtime in your business. There’s no hiding from the fact that tech problems will have a direct impact on your bottom line. If you’re unable to work because your system is down, it means you miss out on a lot of money. You can’t make sales and you also might make existing customers unhappy. As a result, they may choose to leave. It’s harsh, but this is how the world works. So, limiting tech faults will help your business by plugging the financial leaks these faults cause. 

Employee training

Another reason for tech issues in your business is that employees don’t know how to use the technology correctly. Therefore, avoidable issues continue to arise, meaning lots of money is forked out on tech repairs. This is why employee training can be extremely crucial to help you save money. If your employees are adequately trained, you should see a dramatic decrease in tech errors. 

Furthermore, you can actually waste a lot of money on training. This tends to happen when hiring new employees. You hire someone to work for you, but then you have to spend extra money training them to use your systems. Instead, you could save money by looking for candidates that already know how to use what you’re using. 

Make it an essential skill in the job application. Let’s say you use Quickbooks or another common software application. Only hire candidates that already use this software and know its ins and outs. They can start sooner and you avoid needing to pay for employee training. 

In truth, this is a strange topic as employee training is both necessary and unnecessary. Yes, you should give your employees basic training in things like cybersecurity to ensure they don’t fall victim to tech crimes that drain your finances. However, you should also try to save money on training by making smarter hires. The most important thing is that you have a team of highly competent individuals who all know how to use the technology your business implements. This should ensure that you spend less money on both training and tech repairs. 

In conclusion, technology can drain your business finances if you’re not careful. It can cause extortionate bills, expensive fixes, etc. But, if you stay on top of the situation, you can reduce the money your business spends on technology. At the same time, you continue to see the benefits that tech brings to your company. It’s all about finding the perfect balance. You need technology to thrive, but you don’t want it to cost a fortune.

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