Professional Bookkeeping Advice For Cutting Costs
Small changes can help reduce expenses and improve profitability that can help prevent more painful cuts later on. Some tips will save you more money than others, but the end result of your overall spendthrift strategy could add up to a bundle. Be sure to seek Affordable bookkeeping and Payroll services to help save extra time and money.
Curb Travel Expenses
Cut business trips that don’t generate revenue, such as conferences, and opt for less expensive flights and hotels on essential trips.
Find Cheaper Space
Renegotiate better terms on your current lease now that real estate markets in many areas are tilting in tenants’ favor.
Find office equipment and furniture at a fraction of the retail cost as other businesses liquidate or unload their assets. Buying used office equipment can cut expenses and allow you to allocate money toward other areas.
Manage Your Inventory
Keep only supplies you need in stock to reduce overhead. Inventory management is an important part of any industry handling goods. Managing inventory is part of the Business Payroll Analysis Service at Heartfelt CFO and Tax Services of New York.
Cut Your Tax Bill
Take advantage of tax deductions for new equipment purchases, hybrid cars and other expenditures.
“Buying appropriate insurance upfront saves money in the long run,” says Jeanne Salvatore of the Insurance Information Institute, a nonprofit organization in New York City. Consider what situations would be catastrophic to your business and protect yourself with adequate insurance. “Disaster recovery,” says Salvatore, “is one area where business owners shouldn’t scrimp.”
Mind some petty pointers.
Don’t get careless about your petty cash account. “Though you don’t need receipts for expenses under $75, you should still track these expenses since they can add up,” advises Holmes Crouch, author of 18 tax books.
Don’t overlook crucial tax deductions. In addition to being able to deduct a portion of your rent or mortgage interest and utilities as a business expense, you can also deduct a percentage of various home maintenance expenses, along with a portion of the cost of services such as house cleaning and lawn care.
Get out on the town.
If much of your business is conducted at restaurants or you find yourself driving to clients’ offices, make sure you take those deductions. If you entertain clients or potential clients to discuss a current or future project, you can deduct a portion of your entertainment costs. To qualify for this deduction, you must maintain a log of entertainment-related expenses you plan to deduct.
Beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 56 cents per mile for business miles driven
- 23.5 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
Seek at least three bids on everything.
Even mundane purchases merit shopping around. If you quote a competitor’s lower price, a supplier or vendor will often match that price to win your business.