Many businesses, especially when they first start out, blow through their budgets sooner than expected. This can be attributed to poor planning and a lack of discipline around certain key areas.
Here’s how to make the most of your company’s budget and keep your business’s financial goals on track.
Cut Unnecessary Expenses By Hiring An Accountant
In order to start making the right financial decisions for your company, you need to have a handle on your finances.
Having a cash flow management plan and a way to limit and track expenses is an essential skill that all businesses should have. If you’re not financially savvy yourself, it’s time to hire an accountant!
Succeed As Your Own Boss has an awesome list to consider when trying to find the perfect accountant for your business.
- “Know What You Need
- Look For Small Business Experience
- Decide Whether You Need an Accountant or a CPA Firm
- Ask for Recommendations
- Compare Fees
- Leverage Social Media
- Ask About Accounting Software
- Check If the Accountant Uses Cloud Technology
- Ask About Reporting Frequency
- Be Selective
Hiring an accountant is one of the most important financial decisions you will ever make for your business. Make sure that the needs of your business are in alignment with the skills that your accountant has in order to find a good match.
Cut Unnecessary Expenses By NOT Spending Money On Frills
It’s easy to get caught up in thinking that you need to buy unnecessary items for your business. However, those fancy business cards with the foil finish or polo shirt with your logo are hardly worth it.
“If your people are at shows and in public, it’s okay to buy for your own folks, but if you really think someone is going to wear your YoBaby.com polo when they’re out and about, you are mistaken and have no idea how to spend your money” – Mark Cuban
All that swag will be useless if your business goes under. Focus on what really matters and let go of the need to “feel” like an official business.
Cut Unnecessary Expenses By Spending Money Where It Counts Most
It’s important to avoid unnecessary expenses. However, it’s equally as important to know how to spend money where it counts.
“Even though it is a very obvious tip, spending money wisely is highly important. If any startup wants to succeed, it is highly vital for them to prioritize the things that they would be spending money on.” – Medium.com
This is where a good business accountant will come in handy. They will help you cut unnecessary expenses and optimize for what’s important.
Cut Unnecessary Expenses By Building Strong Relationships
Building relationships is one of the most effective, indirect ways to cut costs. Connections can offer you industry insights and support that you would otherwise not have access to. You’ll spend less time and money considering deals and running down pointless avenues.
Find ways to connect with colleagues and partners on a human level. Good relationships with your employees, contractors and vendors will mean that anyone working for you will go the extra mile. In other words, you’re likely to get far more than what you paid for!
Connections can also pay-off in unexpected and non-monetary ways.
“Imagine being connected with the owner of the top new restaurant in town with a several month waitlist and you want to celebrate your spouse’s birthday there the following week? Calling the owner and getting a table is an example of a connection paying dividends.” – Biz Journals
Cut Unnecessary Expenses By Setting A Budget
Needless to say, it’s impossible to follow a budget if you don’t have one.
“People who do not have a budget tend to save less money than people who do. It is because when you budget you assign your money to do certain things.” – The Balance
The easiest expenses to deal with are the ones that you plan for. Planning your budget a year out ensures that you don’t overspend. It will also help you avoid unexpected and unnecessary expenses that can do a number on your bottom line.
There are few things more demoralizing for a business than an unplanned financial loss. Follow these tips to avoid a budget deficit and reach your financial goals in 2020!
If you have questions or would like more information, I’d be happy to help. Please send an email, and my team will get in touch with you!