Thursday, May 10, 2012

Save Money With A Yearly Business Cost Evaluation

expenses_28sept2009_0522(Photo credit: patrick h. lauke)
For a business to survive and be profitable it must keep costs and overhead down. There is something that occurs in all businesses called expense creep. It is the slow and progressive increase of a companies business expenses. It has as many forms as there are expenses in a business. Taking a yearly look at business expenses to see if they are necessary or if you are over paying for services is a necessary task to keep more money in your pocket.

Office Supplies.
Today we have many sources to purchase office supplies. It can be on the phone, a salesman coming to your business, the Internet, or your local Office Depot. Are you doing all you can to shop around for the best deal. 

Phone Service.
Your phone and Internet service are major costs to your company. Even if you are a small company, savings can really add up by reducing expenses. Check your phone and Internet bill, line by line, to see if any unnecessary services can be canceled. Phone companies offer special business class packages like 0845 phone numbers to help you save money.

401(K) Expenses.
It's commendable that you offer your team a 401(k) retirement plan. But you should be careful that you do not over pay for the administrative costs. They can unusually be high, which may make the plan to expensive to continue. Why not shop around and check what other companies are charging for running your plan. 

Insurance Costs.
This a major cost to any business. A business has to deal with many kinds of insurance. Your business has many types of assets to insure. There is also liability insurance for your products and services. It pays for you to do a yearly audit of your insurance to see if costs can be cut. Insurance is one of the easiest expenses to relocate to a cheaper provider. Insurance companies provide package deals and new customer discounts. Take advantage and shop around.

And that's not all. Here are 5 more ways to save money in your business.

  • Postage and shipping in bulk and contract discounts.
  • Upgrade old and high maintenance computer networking gear.
  • Set up systems to avoid paying late fees on bills.
  • Be sure your purchasing office always buys in bulk with the greatest discounts.
  • Evaluate your in house services and outsource your business needs to keep expenses down.

You can probably add many more ways to save money in your business. We are so busy as business people trying to bring money in that we neglect keeping an eye on the ways we can reduce costs and save money.

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