How to Cut Costs in Your Business
This year is coming to an end and many business owners are taking a closer look at their finances. As a business owner, your goal for the new year may be to cut back unnecessary or extravagant costs. Implementing small, preemptive steps while your company is financially secure is an excellent way to avoid drastic measures like downsizing your team. Below are some simple steps to take your business out of the red and into the black!
Review automated expenses
Take a few hours and review your credit card and bank statements. You could be surprised at the number of services automatically charged to your business card that you scarcely or never use. Whether the expense is $20 or $200 a month, these costs add up over time – especially if they are no longer useful to your business. Once you identify the wasted expenses, cancel the subscription or search for cheaper alternatives!
Wait on supplementary spending
Although you may want to get a start to 2018 with a fresh coat of paint, hired cleaning crew or more artwork for your walls, these costs should be the first to be removed from the company’s budget. Besides, when the business begins to profit a larger margin, you can treat your office to updated amenities!
Delay additional hiring
One of your largest concerns is most likely to ensure that you do not fall into the position where you need to lay off employees. Consider delaying additional hiring or bring on more interns to handle the workload. This helps you and your employees stay on top of the work, and allows college students to gain more experience – win/win!
Traveling costs hundreds to thousands of dollars a year. If you are traveling, especially flying, long distances for business, we recommend that you cut those expenses drastically. Remember, your personal travel expenses should not be run through the business account. We recommend decreasing your flying frequency and increasing the use of video chat services such as Skype or FaceTime. Your video meeting will probably be shorter than the time you would spend at the airport and cost a lot less money!
If your business needs financial management, please contact us at (781) 436-5810 or hylencpa.com/contact-us!