There are many expenses that your company has to account for. For instance, you have to pay your employees, pay for equipment and pay for supplies needed to make goods or provide services to customers. There may be many other costs that you may not think of on a regular basis. However, accounting for and cutting those costs could help make your company more profitable.
Your Energy Bills May Be Higher Than Necessary
Do you keep the heat at 70 degrees during the winter or run the air conditioner when no one is in the office? By turning down the thermostat or turning off the air conditioner when nobody is using it, you could save hundreds of dollars a month. However, the problem might just be in the energy company that you use. This is why comparing prices with other companies, such as Lumo Energy, is necessary. By switching to a company that is more affordable, you’ll be able to save hundreds, if not thousands, of dollars every year.
Do You Offer Benefits to Employees?
You may think that offering benefits to employees is a net expense. However, it can actually be a way to keep labor costs in check. For some people, an employee may accept $40,000 in salary and $5,000 to help pay off student loans instead of a $50,000 a year salary. Some companies also offer bonuses for those who go over their quota. At first, this might seem like something a company that is trying to cut costs shouldn’t do. However, it will help your company save on the money that would have had to be put towards hiring new employees to do the extra work that your bonus-incentivized employees are doing.
Have You Considered Renegotiating Your Building Lease Terms?
If you are leasing office space or leasing your storefront, it may be a good idea to renegotiate the terms of the lease before it expires. This may be possible if you are a good tenant or if property values have gone down since you signed the deal. In those scenarios, a landlord would rather have a consistent rent check compared to an empty building. If you can’t negotiate a lower rent payment, you may be able to convince the landlord to help pay taxes or other expenses.
How Much Do You Pay in Merchant Fees?
Merchant fees can be as much as 5 percent of each credit card transaction that is processed through your POS system. Depending on how much credit card business that you do each month, you may be able to save thousands of dollars for each percentage point your current fee is reduced by.
To ensure that your company isn’t spending more than it needs to, it may be a good idea to have an accounting firm audit your expenses. The insights provided may allow your business to cut costs while becoming more productive and better able to serve its customers.