Is Your Business Leaking Money?

Money doesn't come easy and businesses must often expend much energy and time trying to keep their slim profit margins from declining. At some point most small and medium size business owners don't know what else they can do in order to put more money in their pocket. Shaving just a few percentage points off the cost of doing business can put considerable money into the owner's bank account. Is your business leaking money?

Common Inefficient Aspects of Small and Medium Size Businesses:

Supplies: Many small businesses pay an exceptional amount for their supplies because they do not have the advantage of making purchasing contracts with suppliers. However, this doesn't mean that a small business should be paying retail price for their products. Purchasing supplies in advance from suppliers, bulk stores like Sam's Club, or finding cheaper alternative can save a bundle at the end of the month. You might pay more in one month but save over the next few months when you don't have to continue reordering these products.

The Cost of Labor: Labor can be expensive. The Federal Government raised the cost of labor and this has placed much stress on small and medium sized businesses that often work within thin margins. Starting employees at a lower wage and consequently lower skill only works well if you are going to train these employees for more pay and abilities. Start employees at low pay but throw in nice benefits, mentoring, pay increases, training and bonuses in order to better get what you are paying for once the employees have proven they can do the job well.

Facilities: Facilities include the cost of rent, utilities, and any other costs associated with your business. The cost of facilities can be one of the most expensive costs that a business can incur on a monthly basis. Generally, the cheaper the price of the property the worse the location is. However, some businesses don't need fancy facilities. If your business isn't retail and is service orientated consider the cost/benefit of your location.

Accounting & Taxes: Accounting and taxes can be a huge problem for many businesses. It can be a bigger problem if you owe the government money. A strong CPA is beneficial for any small or medium business. With the proper expense tracking and the saving of receipts a CPA can save a small business tens of thousands of dollars.