It can be difficult making ends meet for the first few months upon opening a small business, and as any franchisee will know, keeping up with daily demands is a job that cannot be done alone. While your company may be seeing a bit of profit from month to month, you are also noticing a rise in overall expenses. What is causing this annoying increase in costs as time goes on? What can you do to keep all of your accounting department’s monthly bookkeeping services under control? Try these top 7 small business expenses.
Top 7 Small Business Expenses
Identifying the top 7 small business expenses that you are likely dealing with can prevent you from getting caught by surprise during your next bill cycle. Today, Indevia’s top accounting professionals will list some well-known but easily-hidden business expenses and how to take care of them before they start to pile up.
Business Supplies
You may not think that items such as pens, pencils, and desk chairs cost too much, but stocking up on the initial supplies you need to get a business up and running can really do some damage to your bank account. Instead of buying everything brand-new and going broke before you’ve had the chance to turn a regular profit, check out online refurbishment centers and wholesalers who can sell you like-new products at a huge discount.
Utilities
No matter what kind of business you are operating, your physical storefront is going to incur some expenses just to stay up and running. However, you can greatly cut the costs of utilities by doing an energy audit around the building. By making some small changes – like utilizing an online cloud service for phone calls rather than having a landline phone – you can greatly save on electrical and energy expenses every month.
Tax Filing
The tax year is typically an accountant’s least favorite time of year, but it is all the more vital that tax filing is done right. By staying organized, it will be so much easier to stay on top of tax needs when the time comes. If you are feeling behind with your accounting needs and you worry about meeting organization standards by tax season, you can go far with third-party catch-up bookkeeping services with Indevia.
Everyday Labor
The cost of labor is an understated but core expense when it comes to running any kind of business. In fact, a recent Paycor report showed that over 70% of a company’s operating budget, on average, is spent on paying for labor alone. Hiring short-term staff is not the answer, since the cost of training and turnover can eat even more costs than retaining a long-term employee.
One method of saving costs across the board is investing in automated accounting solutions that can not only catch these small business expenses before they get too big but manage them without making you pay someone to do it.
Rent
Rent can be expensive or cheap depending on the negotiations you establish with the landlord. However, there are many things you can control to keep costs low in this area. For one, you should determine whether or not your business needs to be located on the most expensive street in town. What other location options are available that offer more flexible payments and affordable features while still drawing in a big enough crowd to turn a reasonable profit?
Equipment and Vehicles
Does your business use company cars to get around? Do you deliver food, pick up supplies, or operate large pieces of equipment to get the job done more efficiently? If so, they might be draining some of your extra savings. A stellar strategy for keeping your equipment performing well without having to pay for expensive out-of-the-box pricing is to invest in regular maintenance. Work with local professionals who know how to repair and operate your vehicles and who can keep everything in tip-top shape, saving you from having to shell out for costly repairs.
Accounting
Your books should be kept tight and tidy so that no information is lost during tax season. However, it is easy for some of the smaller daily tasks to fall by the wayside, resulting in backed-up books and frantic accountants who just can’t keep up. Or, perhaps some bookkeepers green to the field have been causing errors that go unnoticed for months, only coming back worse when it is time for a financial review. Automated accounting is a great way to reduce human error while still meeting and exceeding your company’s accounting goals. You can customize your accounting needs and set your parameters in place while our advanced systems do the rest.
Learn More About Automated Bookkeeping
Using data-driven bookkeeping methods, automated bookkeeping performs all the mundane tasks that require complete accuracy while totally getting rid of the potential for human error. Learn more about how you can boost your company’s profits and cut down on unnecessary expenses when you invest in outsourced accounting solutions with Indevia today.
