How your business could be wasting money

How your business could be wasting money

Is your business wasting money? Have you re-evaluated your budget for 2019 and want to re-invest back into the business, but can’t figure out how? Here are some ways your small business could be wasting money.

  1. Not paying your bills on time.

    While you may not think that the odd $20 late payment fee is an issue, if it is a regular occurrence, it could be a money leak on your business. Not only that, you could incur a mark on your credit score which will not help your case if applying for future loans. It’s as simple as this. Pay your bills on time or set up a direct debit for the re-occurring bills. Not only will you avoid overspending, you’ll save time on making the same payments every month.

    Don’t have the time to manage all your business bills yourself? If you haven’t yet already, hire a book keeper to manage your incomings and outgoings for your business. Aspect Accountants and Advisors offer book keeping management services tailored to your needs. Aspect Accountants and Advisors are a MYOB professional partner and Xero Certified Advisors, so you can rest assure your ongoing book keeping will be done efficiently and with the required expertise.

  2. Bad recruitment can be bad for your budget.

    Making a hasty hire can have detrimental effects to not only your competent staff, but your bottom line. Wasting time trying to train an underqualified staff member can cost you more money than you may be saving on their salary. You may also invest the time and money on someone that doesn’t stick around, incurring further turnover costs.

    If you are hiring in 2019, be sure to take the time to write a comprehensive job roll and the qualifications it requires. Conduct several interviews before deciding to hire someone.

  3. Reducing or re-budgeting overhead costs.

    There are plenty of ways to save on business overhead costs that accumulate to a better bottom line every month. Here is a checklist of possible overheads you could be saving on:

    1. Energy Costs – Switching off appliances when not in use overnight. Try low wattage light bulbs where possible.
    2. Monitor your heating and cooling or install a thermostat to control office temperatures.
    3. Paper wastage – try to keep all office communication via email and set your printer to double sided when applicable.
    4. Do you have extra office space? Sub lease the space or downsize altogether to cut rent costs.
    5. Track you staff expenses and set limits to administrative purchases where possible.

If you are looking for business coaching and consulting in West Perth, Aspect Accountants and Advisors can help. Click here to see a list of Business Consulting services

Ph: 9227 9400