With cash flows being down for many small businesses due to the economy, business owners are looking for ways to save on expenses. However, it can be difficult to know if you’re spending too much on some expenses versus others, or if you can really get a better deal.
As such, here are some tips to see if you’re spending too much on your business expenses.
Get a Budget
Take a page out of personal finance and start a budget for your business. First, you need to make sure that you have specific details on cash outflows, and what the categories of each line of spending are for. Once you have the categories, you can look at your data from month to month.
Then look at the categories which make up the largest percentages of your spending. Do categories such as printing and reproduction, office supplies, or utilities seem rather high? Are you paying an accountant when you can earn your online associates degree in accounting and do your own bookkeeping? If so, chances are you are spending too much on your expenses.
Ways to Cut Costs
Once you’ve identified your highest expense categories, it’s time to look where you can trim. The first step is to shop around to see if you can get a better deal on the products and services you normally buy. The internet is a great place to start.
For printing and office supplies, there are a lot of online retailers that offer these services at very low costs. See what you’re paying, and try out a few orders through the online company. You may be surprised at the quality you get for the price. For regular office supplies, check on Amazon or even office supply stores like Office Depot online. Many times the online prices are more competitive than in store prices.
You can even shop for utilities such as phone service online. If you have 0800 telephone numbers, there are several sites that let you compare your options for pricing and services for these types of phone lines. You can also look at VoIP services to see if you can save even more money compared to your local phone company.