Analyzing business costs with an eye toward reducing expenses will improve your company’s bottom line. It's a good habit to review them periodically.
It’s so easy to get caught up in running a company that we overlook making the time to find ways to save in overhead costs. At Kerby Accounting & Business Solutions, we enjoy working on this with clients. They tell us that because we know what to look for in terms of cost-saving opportunities, it makes the task much easier. We’re glad to help!
Here are a few good areas to analyze in terms of reducing business costs and improving your company’s bottom line. Whether you own a landscape business, art gallery, law firm or medical practice, regular considerations of overhead expenses — the costs of running your business — are only beneficial (even if just to demonstrate that you’re running lean already).
Can you go paperless? In our digital world, it’s easier and easier to at least greatly reduce the amount of paper used in the office, if not eliminate it totally. Assuming we are all not using fax machines anymore, and that our presentations are on PowerPoint and not on giant paperboards, other small changes add up as well.
More robust use of paper recycle bins is one way to reduce paper waste. Also, before printing an email, ask yourself if it’s necessary. (In many cases, it’s just as easy to cut and paste the section of email you need and save it into a document for your later reference.)
Finding ways to save paper — storing documents in the cloud, for example — doesn’t only save you time in searching through paper files. It saves your company in costs of paper, printers and ink, as well.
Have you quantified client value recently? Time tracking is a great way to demonstrate what clients are eating up the most of your time. Paying attention to how much you give and how much you get in terms of each client helps you see what kind of return on investment you’re actually getting. There may be areas where you should charge more.
Is a permanent hire always the right move? When costs are considered, outsourcing can be a business owners best ally. Your company may have tasks and responsibilities where a freelancer is a better choice in terms of cost and commitment. By paying an hourly rate, you are only paying for hours worked, and don’t have the additional cost of supplies, office space, taxes and vacation days.
These are a few areas of consideration to reduce your company’s costs. A qualified accountant can certainly help you find more. Give us a call today at Kerby Accounting & Business Solutions.