Office expenses can cut into your profits more than you would think.
As a business owner, one of your main focuses is to increase profits, and so in order to accomplish this you must look for ways to reduce costs when possible.
To remain competitive and keep your business moving forward, being cognizant and proactive when it comes to payments and expenses can help ensure the profitability of your organization.
Between your internal payments, external expenses, and everything that goes through accounting, there are many effective ways to make sure that you are not wasting any money.
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It is common to think that everything your business is spending money on is necessary. When your business runs smoothly and similarly day after day, it is natural to think that your equilibrium is optimal and that no cuts can be made. In many situations this can be true – there are many costs that are important and must remain.
However, there are also dozens of costs and expenses that fly under the radar and don’t get enough attention. These expenses, which many see as small or unchangeable, account for a large portion of your office’s expenses.
One of the difficulties, as you may be aware, is that you are already juggling dozens of other tasks and projects – adding another to your plate is no fun. However, until you can maximize your revenue by minimizing unnecessary costs – other projects and agendas are being under-optimized. Here are three effective ways that you can cut office expenses.
1. Save Money on Employees
Stay away from making unnecessary hires and expanding your team before it is financially appropriate and stands to increase the value of the company. Cutting costs on your employees begins with the hiring process. Make sure to only hire when you need to fill a need, or a gap, in the company.
Merely “Growing your company” or “expanding your team” aren’t sufficient reasons to hire. When your company would measurably be improved by adding a new employee – that is when you add one. Make sure to have a system in place that calculates the maximum value each department has per employee, and from there extrapolate to determine how many employees will fit into each department.
When possible, consider replacing long-term employees with services like Fiverr, Staffly or Odesk to fulfill short-term or project-based needs. Fiverr is a popular, easy-to-use platform that enables users to find workers based on work which they need completed. It’s quick, simple, and to the point. Similar in some ways to Fiverr, Staffly is an online platform that matches employers with employees. It aims to quickly connect retailers with screened, insurance and trained staff – all by using their mobile phones.
Staffly is a go-to for employers looking to find someone to cover a few shifts, and for staff members looking to make extra income by helping out with a project or task. Odesk (also known as upwork.com,) matches freelancers and contractors with job opportunities and paid projects. For an employer, this is a great outlet to find mobile developers, web developers, customer service agents, virtual assistants, and more.
2.Watch Your Cable and Electricity
The average cost of internet in the US is $38 per month, and that can go all the way up to $150 per month, per individual. Between Verizon, AT&T, Xfinity, and RCN – there are dozens and dozens of cable providers to choose from, and choosing the best one for you is crucial for saving money. And, believe it or not, your company’s TV bill can really make a dent in your overall expenses.
One of the easiest ways to save money on your company’s TV bills are to know which cable providers are in your zip code and what deals they offer. Depending on your specific location, some cable providers might be far more favorable than others. Better yet, some providers will be offering discounts depending on where your business resides.
Your best option is to compare different prices and options before settling on any. This could save your company hundreds or thousands of dollars in the long run. In addition, make sure to find the best broadband coverage. By strategically choosing your cable and broadband providers based on advantageous price offerings in your area, you can drastically increase your net savings per year.
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3. Go Digital
Using the cloud and other online storage software tools will make your office not only more efficient in terms of production, but also in terms of cost. Using the cloud, storage spaces, and computing services are held by a third-party provider, and thus office storage and software costs will be reduced. In addition, rather than using your customized or standard-paying email accounts, word processing, and other tools, take advantage of Google and Microsoft’s free version which you can obtain online.
Believe it or not, the average employee uses over 10,000 sheets of paper per year, which adds up to a couple pounds per day. By reducing this and going digital, it enables you to send data anywhere you want to send it. This allows you to streamline communication with clients, employees, and partners, and give them access to information right away.
Which projects and materials can become digital? Almost everything. The only items that will have to remain as physical copies are insurance documents, employee records, and safety reports. While it may seem like a small change, going paperless will help you save money, give you quick access to info, reduce clutter, help the environment, and promote easier disaster recovery.