When you own a small business, you’re always on the lookout for ways to cut costs and increase profits. Here are four money saving tips for small businesses to review quarterly for possible cost-cutting measures that will directly and positively impact your profits. Urban Accounting Services are experts in Budgeting and Forecasting.
Dues and Subscriptions. Many small businesses and individuals have various expenses on auto-renewal. Whether it is a magazine or another service that is delivered digitally or in the mail, there is a natural tendency to renew dues and subscription automatically. If you are blindly renewing subscriptions, take a few minutes to review your subscriptions and determine if they are still relevant and adding value to your business. Is anyone even reading the daily newspaper or magazines that are delivered? Another suggestion is to review the list of organizations and publications you and your employees are associated with and identify which ones are truly beneficial.
Insurance Policies. This one cannot be stressed enough. Review your insurance policies every six months or, at the very least, on an annual basis. Get a few quotes from other insurance carriers; opt out to automatically renew your corporate insurance policies. Also, understand what each policy covers and evaluate if any aspect of the business has changed during the year. If so, do you still need all the coverage you have? It is beneficial for small businesses to shop around to ensure they get the best insurance prices.
Travel. If you are looking to improve profits and make cutbacks, travel is a good place to start. In today’s digital age, there are many options to conduct meetings virtually. For instance, a popular telecommute conference software is GoToMeeting. Virtual meetings not only save money, they also save many hours of hassle and travel time. Depending on the type of business, face-to-face meetings may still be necessary, as they remain very effective; however, the required frequency of such meetings should be evaluated. When travel is necessary, book ahead to score better prices. Planning ahead allows room for more flexibility and better travel rates. Additionally, insure your trips to allow for free rescheduling or refunds, should the trip be changed or cancelled due to unforeseen circumstances. Lastly, when you reach your destination, determine if it is cheaper to rent a car or to take an Uber or other taxi.
Equipment and Fixed Assets. Some equipment is necessary for business operations. However, in small business industries where equipment and technology changes relatively quickly, you should determine if the company’s bottom line would be better off renting some equipment on an as-needed basis. There is good chance of saving money on big-ticket items by renting instead of purchasing. When gathering bids, get a few rental bids and choose the one that best suits your business needs. Evaluate the best quality and the price; the lowest price may represent compromised quality, so it is wise to consider higher quality over the cheapest price.
Telephone and Cable. It is time to review your company’s telephone and cable bill and determine if change is necessary. It is easy to stay with one provider, but there are many benefits in taking time to negotiate with your carrier to ensure you are getting the best deal. As a small business owner, you understand businesses change over time, as do your communication needs. Therefore, this should become part of the company’s annual operations review.
These small savings may seem insignificant by themselves; however, they can really add up over time and positively impact your bottom line for reinvestment in your business. If you would like more cost-saving tips, contact our office to schedule an appointment with one of our advisors at info@urbanaccountingllc.com. Check our Facebook page.
Published by Annmarie N. on September 17, 2018
