I know that I promised this article to help you with saving money last week but with the holiday I was unable to get this written for you so here it is.
So as I discussed in the last article, once we get so busy within our businesses keeping a close eye on our finances can sometimes be extremely difficult. The truth remains that if we don’t keep an eye on them we can very easily be throwing money out the window and small businesses will not be able to sustain this very long. Cutting costs does not have to be as difficult as it seems. Below is a list of ways to cut costs for each way that you are wasting money.
- Spending More On Supplies Than Necessary-The easiest way to save money on supplies is to sign up for email notifications about current sales and discounts. Most office supply stores will also send you updates on sales for your most frequently purchased items. Another easy way to save money on your office supplies is to join the rewards programs. It’s amazing how much money you can save and how quickly they add up. Bonus tip: Download the Walmart App onto your phone and every time you purchase anything for your business from Walmart scan the receipt into the Walmart savings catcher. The savings catcher will scan all of the local ads and if you paid a higher price at Walmart it will give you the difference in a Walmart Egift card.
- Not Collecting on Past Due Accounts-It is easy for your past due accounts to get pushed aside because you are focusing on growing your business and you just don’t have the time to chase your clients down especially if the amount is $100 or less but if you have one customer each month that does not pay his $100 bill you are losing $1200 a year. Set aside some time every month to pull an A/R aging report within your bookkeeping program and start following up with those past due accounts just keep track of how much time and effort you are putting into each account because if it gets to be too much you may just be better off writing that amount off at the end of the year but you need to at least try.
- Memberships to Organizations That You Are Not Utilizing-When first starting out you want to join many different organizations just to network and get assistance with growing your business and eventually you quit utilizing the ones that haven’t been as productive as the others but you still continue to pay the dues just because you haven’t had the time to cancel the membership but this could be costing you a ton of money. The easiest way to figure out which memberships you don’t need is to pull a report using your bookkeeping software, filtered by membership dues and go through that list once a month and cancel all unused, unnecessary memberships.
- Donating to Random Causes Just To Get Your Name Out There-When you first started out one of the best ways to get your name out there was to donate to different causes. These donations would get you an advertisement or they would list you as a sponsor of their event and this worked wonders for getting your name out there but now that your business is thriving you can be a little bit more selective as to what you donate to. Even though it is difficult learn to just say No if it is not a cause near and dear to your heart.
- Not Having Good Bookkeeping Habits-The fifth and final way that I am going to discuss saving money is to make sure that you have good bookkeeping habits. Good bookkeeping habits is much more than just getting the required data to file your taxes accurately and it is also much more than just to see if your business is running at a profit or a loss. If you have good bookkeeping habits you can easily analyze the data that is included in the reports to see what your biggest expenses are, allowing you to figure out the best places to cut costs.
So there you have it 5 ways you are losing money and how to start saving money. Some of the ways to avoid losing money can be time consuming and if you feel that they are just too time consuming (such as analyzing expense reports or collection on past due accounts) don’t be afraid to contact Collins Bookkeeping Services so that we can help you with saving money.