It’s always a good idea to be on the lookout for ways to increase your profits, and luckily, there are many ways to do that. One way is to focus on cost-cutting, and here are four expenses that are good to periodically review for cost-cutting possibilities.
Re-negotiating with the phone company every one to two years is a really good idea. Many telecommunications companies will often bargain with you or offer you a new deal just for checking in with them.
Has your business changed? Do you need all those extra features you are paying for? Could you do without those extra lines? Would another phone plan save you money on long distance or international calls?
The risk is low: one quick call will let you know if you can save money in this area. It’s worth it to give it a shot, and while you’re at it, you can call your smartphone provider too.
Travel is always a great area to look into for possible ways to save. Are all trips necessary and profitable? Are there any meetings that can be done virtually instead of face-to-face? Virtual tools such as GoToMeeting can make travel unnecessary.
What trips can be cut this year? Can travel arrangements be made early to save money? Are booking dates flexible so you can compare and find the lowest rates? Is a taxi or rental car cheaper?
Dues and Subscriptions
Paying our annual dues for the club or association we’ve belonged to forever may be a habit, but is it beneficial for your business? We might enjoy seeing everyone once or twice a year at the meeting, but we may not necessarily have to have a membership to do that. Sometimes paying the guest rate is more affordable than the member rate if we are attending infrequently enough.
Review a list of organizations and publications you are part of, and choose which ones you are truly benefiting from. If being an officer in one of your organizations is not getting you any new business, then you may eliminate a time drain by bowing out and letting someone else volunteer.
Fixed Assets and Equipment
Another place to save money that can be significant is purchases of large items such as furniture, automobiles, and production equipment. It’s a good idea to get three bids from reputable vendors so you have a choice. Going with the lowest bid is not always a good move; going for the highest quality is.
Look in these four places, and let us know how much you find to increase your profits. As always, if we can help, let us know.
Deb Howard Greenleaf, EA, CEO and Principal, of Greenleaf Accounting Services provides virtual accounting and bookkeeping services and specializes in financial management to consultants, coaches, solo professionals, and other small business owners across the US. Deb is an Enrolled Agent (EA)—an IRS-licensed tax professional—and specializes in small businesses and entrepreneurs filing Schedule C or as an LLC. As an Advanced Certified QuickBooks ProAdvisor, Deb spends her day in QuickBooks Online and specializes in providing QBO support.