Any accountant will tell you that when it comes to minimizing your business expenses, doing the small things can make a big difference. If you are ready to make some changes in your operations to cut back on expenses, our accountants at Cathy E. Parker, E.A. Bookkeeping & Tax Service recommend these easy strategies to accomplish this goal.
• Negotiate with Your Suppliers– Most suppliers are open to the idea of negotiating with you so they do not lose you as a consistent customer. Before you bring up the idea of having one of your suppliers lower their prices, however, try to find other suppliers offering lower prices to use as leverage. If your supplier doesn’t agree to a change, you may want to think about going elsewhere.
• Outsource– Hiring a full-time employee can cost your business significantly. If you can’t afford to take on another employee, but you need a certain task done, consider outsourcing it to a freelancer. Many platforms and resources exist to help businesses find the professional help they need at a fraction of the cost of paying a local hire.
• Avoid Perpetual Expenses– As your accountant, we realize that there are some perpetual expenses your business cannot avoid, such as your utility bills and phone bills. However, your business should opt to purchase company vehicles, printers, manufacturing equipment, and other devices you need to run your organization instead of renting them to stop an infinite stream of payments and to gain the financial benefits of depreciation.