Are Your Expendable Expenses Dragging You Down?

by | Feb 7, 2018

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It’s always an exciting time when you’re ready to take the next step in life and buy a home. But finding that perfect home can be a challenge, especially if you’re not familiar with the real estate industry. That’s where Danielle comes in. With over 7 years of...

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Accounting and bookkeeping services can go a long way toward helping your small business get its finances in tip-top shape. However, just like your personal trainer can’t actually do all that cardio and weight work for you, you’ve got to do much of that financial heavy lifting yourself.

One way many small business professionals impede their growth is by piling on a whole host of unnecessary expenses. Some of these expenditures are luxuries you almost certainly can do without. Other unneeded outlays are counterproductive, inapproriate or repetitive. Sometimes an expense is necessary but a little too high. Other expenses are just, quite simply, not smart.

Let go of luxuries

One colleague is a woman with a deep appreciation for fancy coffee drinks. Every day on her morning walk, she would stop in and plunk down upwards of $5, and sometimes again in the afternoon. At five bucks a pop, it might not seem like a damaging indulgence, but it adds up—quickly. One day she did the math and realized she was spending more than a hundred each month, so she put the brakes on her habit. She’s since purchased an AeroPress to make cappuccinos at home for pennies a cup. The money she spent on java is instead going toward credit-card payments and other necessary bills, and she hardly misses her barista at all.

If you (or your accounting and bookkeeping services) take a fine-toothed comb to your list of regular expenses, you likely will find unnecessary expenses that can be eliminated, or reduced via substitutions. Are you springing for a Keurig when automatic-drip will do? (Keurig cups equate to over $30/lb for coffee.) Do your trips to the airport take place in a Lyft or taxi, or in a stretch limo? Are you paying for subscriptions to newspapers and magazines you don’t even read? Or software you don’t use? Pinpoint and eliminate these “extras”; you’ll be surprised how much more is in your accounts at the end of the month.

Open up negotiations

Frequently the companies you do business with are willing to work with you to help you attain a more appealing monthly bill. Cable, internet providers, credit cards and the like all have been known to be open to negotiations to bring those numbers down. It might seem counterintuitive, but companies like Xfinity or Visa may happily agree to accept less money from customers like you. They want to keep your business, and they know you might switch to one of their competitors if you’re not happy. Therefore, they likely will trim a bit off your rate to keep you in their fold.

Granted, the service provider in question might say no, but asking doesn’t hurt (and it’s free). To increase chances of success, keep a few things in mind. One, your odds of getting a discount increase if you’ve been paying your bills on time. Remind the representative they’re talking to a loyal, long-standing customer. If they do say no, find out if there’s an obstacle to getting that rate cut (like a missed or late payment). If so, remove that obstacle (i.e. pay on time for several months), then try again.

Demand results

One company that turned to MSBP for its accounting and bookkeeping services was an absolute wizard at delivering its core business. As all ambitious small business professionals do, this organization looked for ways to grow its client base. Their initial tack was to spend five figures annually on a high-end digital marketing package. It sounded like a great plan, until at the end of the year they looked at the numbers. Despite costing as much as a small car, the marketing plan hadn’t gifted them with any new leads or accounts—one very pricey goose egg.

In addition to ensuring your expenses yield results, a small business professional should examine its customer accounts and make sure these jobs are profitable. Examine your invoices related to a particular customer and weigh them against the time and supplies expended. If after this financial sleuthing you discover you’re breaking even or in the red, you might want to consider saying goodbye, or at least looking for ways to turn the account around and make it more profitable. This is another area in which accounting and bookkeeping services help find solutions. It’s easier for experienced financial professionals to spot such problem areas, leaving you to focus on other things like providing your core services and product.

MSBP has years of experience helping small businesses like yours plug financial leaks and better managing their expenses and accounts. If you’d like to know more, feel free to reach out to me at Daliah@MySmallBusinessPro.com—I’d be happy to help.

Client Spotlight: Danielle Suchala Klausing

It’s always an exciting time when you’re ready to take the next step in life and buy a home. But finding that perfect home can be a challenge, especially if you’re not familiar with the real estate industry. That’s where Danielle comes in. With over 7 years of...

Who is responsible for payroll?

One of the most expensive resources for any business is payroll. It’s also one of the most important. We are firm believers that people are your most valuable asset, so it’s no wonder that payroll gets costly. Especially if you are a professional services company, and...

Let’s just Write it off! 

Ahhh the joys of being a business owner. You get to set your own schedule, be in complete control of your success and of course, deduct your business expenses.   Just like all of those statements, there are some pros, cons and a lot of misconceptions that go...

How to beat tax stress

It's March and that means two things:   Tax season is in full swing.   Chicago winter is about halfway over.   There isn‘t much a financial consultant can do when it comes to the weather, but when it comes to making your tax season less...

Meet the team: Eileen Manaloto, Sr. Accountant

Despite a job market full of unique challenges, My Small Business Pro was incredibly fortunate to bring on a new team member last year, Eileen Manaloto. Like many small businesses, we got creative in finding the right resource to support our amazing clients and fit...

Back to the Financial Future! 

A new year is upon us! While there’s a tendency to charge into 2022 with new hopes, plans and goals; but you need to pump the brakes. One of the most prudent things you can do is slow down and take some time to do a serious review of your past. Last year is full of...

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Schedule a meeting with Daliah Fritz