Cut Expenses – Small Business Accounting

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Many businesses will scramble to cut expenses when they are already in a bad situation. The key is to evaluate and look for ways to save before there is a desperate need to do so. I am going to say this again. If you really want to have a successful business you must have a way to document your accounting transactions. Doing this will allow you to print out an organized list that compares last year to this current year. There could be 1,000 ways to cut expenses but until you have a list there is no way to know what is what. For now, let’s assume that you have printed your list. Here are a few things to look at:

  • Monthly services that you may not need any longer.
  • Advertising expenses. Look for inexpensive ways to advertise.
  • Payroll Service – Start comparison shopping and see if there is a comparable service for less money.
  • Card processing fees. There are so many out there and this is one place where you may want to really look at. You can call your current processor and ask for lower rates. They may work with you.
  • Overtime hours. Can you cut these if this is an issue?
  • Job duplication. Are there any jobs that can be combined and have one person, not two.
  • Outsourcing jobs. This is another way to possibly save a considerable amount.
  • Internet and Phone fees. Call your provider and many will work with you.
  • Software. Is there anything that can be automated with the use of new software?
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These are just a few suggestions. This is something that needs to be looked at on a monthly basis when you are comparing actual to budgeted numbers. Also, if you are not able to print off a list then get started on implementing a set-up for your accounting software. I know that you can spend $17.99 per month on a top-level plan using a cloud-based software. Your business will only benefit from spending a minimal amount of money. A minimal investment that will give you way more back in returns. You will see how beneficial software is once you have it up and running. Once your daily tasks include entering things in the software you will see how easy it is to maintain. The wealth of information you obtain from reports is amazing. You will be able to be proactive and grow your business.

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