Keeping an eye on the following areas will help keep them under control. You might be recording all of your company’s or client’s expenses, but you probably don’t control them. Below you will find some tips to help you with Trimming Expenses for your business.
- Supplies expense. Look for discounts: get bids from multiple vendors who are not on your usual list, such as on bulk purchases, and avoid locking into the same supplier for too long. You might miss out on future savings.
- Insurance expense. Don’t just renew—get annual bids to see if you are paying the lowest possible premium.
- Salaries expense. Weigh the potential payroll tax savings of using freelancers instead of hiring full-time employees.
- Interest expense. Examine unnecessary debt before incurring it, such as a conventional loan to make ends meet. Prior to taking the loan, do a thorough cost-benefit analysis and forecast, or ask your CPA to do one.
- Marketing expense. Marketing on mainstream media can be extremely costly—check out platforms such as Facebook, LinkedIn, and Twitter.
- Office expense. Look into relocating to a lower-rent area. Consider joint office space so key office expenses can be shared.
It is a good idea to keep on track, review financials at least quarterly. That way you can always keep on top of where expenses are going, where you need to cut-back and why trimming expenses often is so important.
It’s well worth it. You should invest in effective bookkeeping and you’ll build a solid foundation for a resilient, forward-moving small business.
We hope you found this post on Trimming Expenses helpful!
Looking for more bookkeeping information or tips? Check out our post on Why Bookkeeping is Crucial to Your Success and Profit Building