As a business owner you have a responsibility to monitor expenses.  It is not being miserly; it is sound business acumen.  There are always approaches that you may have dismissed in the past or simply haven’t considered.  Here are some things to ponder.

Negotiate

Working with suppliers, it doesn’t hurt to try to negotiate a better deal.  It isn’t necessarily a lower price, but sometimes more favorable terms like having an extra month within which to remit payment, or a discount for paying early.  Even if you have used the same vendors for years, check out their competition and see if you are really paying the best rate for the products or services you need.

Purchases

There’s an app for pretty much anything these days.  One valuable tool are applications like Ebates and browser alerts to let you know when prices on designated items are being lowered.  It is like your grandma using grocery store coupons or watching the ads for sales.  It may be even more savings if you purchase those items in bulk.  However, there are some criteria like making sure it is something you actually need and use in the regular course of your business; the price is really lower than any other you can get; you will use the product in a timely manner before it spoils, expires, etc.; and it won’t cost you anything for storage.

Hiring

The hiring process is time consuming.  Finding the right fit of skills and personality, especially in a small business, can be tricky.  Then there is the time investment in training and cross training, just to have them leave the company (voluntarily or not) within a few months.  If you offer benefits to your employees, this increases the paperwork and the cost.  Some alternatives are to use freelancers or part-time employees, who are less expensive. 

Equipment

You need the right tools to do the job correctly.  However, that doesn’t mean everything needs to be factory fresh.  There are a lot of good sites like eBay that offer good, relatively new equipment at better prices.  There are also some charities that accept donations from companies upgrading equipment and then the charity resells to other companies.  Just because you are buying something pre-owned does not mean you need to buy something in poor condition or so out of date you will be sorry.  Before you pay for it, make sure you can return the equipment if there are serious problems. 

Payables

Pay bills on time.  Late fees and interest payments can really add up over time.  Reminders help to get the check in the mail promptly as well as to contact anyone on your receivables list.  If you can get your customers to pay as quickly as you do, you stand a better chance of having a positive cash flow.

These are only a few ideas.  Check with your accountant in Mississauga or Brampton about more money saving tactics that you can implement.  He or she will most likely have a number of ideas for your business that can prove beneficial over the short and long haul.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team