Sunday, September 24

3 Surprising Ways Your Business Might be Wasting Money

If you ask any business owner whether they’d like to reduce their overhead costs, most will say yes. Still, many seem to think that there’s absolutely nothing they can do to reduce them. But if any of them went through an audit, they’d realize that they’re overspending in more ways than one.

Sometimes it’s easy to see, but there are some cases when it’s more subtle. This is why you need to pay special attention to areas where you might be wasting and where you could be doing better. Let’s take a look at a few surprising ways that your business might be losing money.

Energy Vampires

Did you know that leaving appliances and equipment plugged in even when they’re not turned on could cost you a lot of energy every year? As a matter of fact, it has been estimated that ‘energy vampires’ could add as much as 30% to your monthly energy bill. This means you need to put some serious measures in place to make sure that you don’t throw away money for something that could be so easily corrected.

Make sure that you have a clear turn-off and unplug policy on your shop floor. Also, make sure that you invest in good power strips to make the process easier for areas with lots of office equipment. Just doing that will make a significant difference and demands little effort.

You’re Loyal to Your Providers

Some people seem to think being loyal to their service providers is the way to go. While this might be true with some suppliers, we’re sorry to tell you that most utility providers care more about their new clients than established ones. So, instead of staying in one place, shop around. 

This goes for business water as well. Since the deregulation of the commercial water market, you are now free to compare business water providers and find the best deal. Make sure that you use choice to your advantage, and come back to your current provider with these offers so you can have more bargaining power.

Doing their Accounting In-House

You might be thinking that you’re making savings by doing your accounting in-house, but you might be doing yourself more harm than good. Working with professionals will not only ensure that you don’t make errors of omission, but that everything is compliant. Not only that, but you’ll be able to free up more time for things that actually contribute to making profits.

Professionals will also be more aware of the recent tax changes and schemes you might be eligible for, so that’s even more money in your pocket. While you’re at it, you should consider if outsourcing other functions like payroll or HR would be better handled by a third party.

These are all examples of how businesses waste money without realizing it. You now need to see if you’re committing any of these mistakes in your organization and make the changes necessary as soon as possible.

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