As a small business owner, you're constantly looking for ways to boost your bottom line. Cut the fat from your business by eliminating bloated cost centres.
1. Curtail Travel Expenses
Review business trips that aren't generating revenue and opt for less expensive transportation and hotels on essential trips.
2. Create and follow a Business Budget
You need to understand the flow of funds in your business in order to make financial decisions. Daily, weekly, monthly, quarterly, and / or yearly budgets will keep you on track and let you know when you are spending too much.
3. Look for Cheaper Space
Be selective with your office space and look for bargains. Renegotiate better terms on your current lease or consider sharing space with colleagues. Look into downsizing your office space or operating from home.
4. Pay Invoices Early
Take advantage of discounts suppliers offer for paying invoices early. Often trade terms offer a handsome discount for early payments.
5. Go Paperless
The cost of paper, ink, and mailing supplies can be a substantial and unnecessary business cost. Look for opportunities to digitize your business. Your billing and payment systems are a great place to start. The upfront investment will pay significant dividends in the long run and can provide you with a source of competitive advantage.
6. Slash your software
More than likely you have licenses and fees for software applications that you can do without. Pay close attention to upgrade fees and look into open source solutions.
7. Get an accountant
An accountant will cost more than your run of the mill tax return service or an out of the box software solution. But, your accountant will more than likely understand the financials of your business better than anyone else. A good accountant will spot deductions that have been overlooked and areas to improve your cost structure.
8. Shave your tax bill with a Health Spending Account
Small business owners can reduce the cost of their personal medical expenses by up to 50% with a Health Spending Account. Take advantage of Canada's best kept tax secret for small business owners and put a dent in your business costs.
Do you own a small business in Canada? Find out how you can begin lowering your cost today by using a Health Spending Account.
What's in this article
