Business expenses can quickly spin out of control and cause you, the proprietor, quite a bit of undue stress. So, how do you prevent it and more importantly how do you get back the monetary control that you need in order to keep your business healthy?
Pay Attention to Even the Smallest Business Expenses
The important thing, when cutting business expenses, is to go over thems with a fine-tooth comb. Begin by taking a look at your available funds and your overall expenses. Scour your accounting information and pay attention to all of the details.
Plug the leaks
#1 Check your records for exactly where your cash is going, who you are paying, etc. Make sure all of the expenses are vital (and legitimate), and see if there can be changes made in order to increase revenue. Plug the leaks, whether it is employee theft of office supplies or wasted electricity. These things might seem small but they add up and create an environment where bigger problems are more likely.
#2 Check how much you are paying for interest, and if you’ve been with the same supplier for a long time are they still giving you the best deal or are they taking your business for granted?
#3 Don’t forget to check for unnecessary money being spent on things like executive lunches or travel expenses. Will Skype or a Conference call work as well as a visit? If the executive staff is being extravagant it’s hard to get clerical staff to pinch pennies.
#4 Are there other delivery options that you can consider, which might be inexpensive and just as dependable?
#5 Are there recurring expenses like telephone service where you can save money? Can you save by bundling services together through the same company? For instance, some companies, like, Reserve Telecommunications have nationwide calling options available that cover the continental U.S. for a flat fee.
#6 Is your business swamped with bank card debt? If so, get this under control right away. Communicate with the credit card company and create a plan that will allow you to get back on track. Begin reducing these debts so that the interest rates aren’t draining your available resources.
#7 Choose the right Bank. It is vitally important to remember that just because a bank may handle a manager’s personal finances, there is no reason that the same bank has to look after business finances as well. It is also worth remembering that banks are businesses themselves and ultimately are there to make money, hence it is important to understand the objectives of the bank, as well as those of the business that you are running.
One of the most important things that you can do, in order to cut down on business expenses, is to make sure that you have a business manager who knows what they are doing. The best advice, when it comes to saving money on business expenses, is to ensure that you have the best minds working for you.
