Importance of Refining Costs

Nov 18, 2021 | Business

Importance of Refining Costs

Creating a budget is a very important preliminary step in owning a business. To use your budgets effectively, you will need to review and revise them frequently. This is particularly true if your business is growing and you plan to move into new areas. Budgeting enables you to be flexible and lets you manage your cash flow and identify what needs to be achieved in the next period.

When it comes to operating costs, one of the best tools a business owner has is scrutiny. By regularly evaluating expenses, you can vastly extend your cash runway. Bear in mind, however, that reducing certain operating costs can limit productivity and/or profit potential.

For instance, if a company chops away at its employee benefits package, it could fail to attract top industry talent. Although short-term profits would increase, an inexperienced team could stifle the product development process and cause investors to lose confidence. A restaurant that starts using lower quality ingredients to reduce its cost of goods sold runs the risk of losing returning customers.

You do not have to compromise your product or service to keep operating costs in check. Bringing your employees in on this process can help you spot inefficiencies and make the process easier.

Here are three ways to lower some major expenses

  1. Ask vendors about early payment discounts.
  2. Be selective with your business location.
  3. Choose a high-ROI marketing strategy.

Our trained professionals are ready to help optimize the efficiency of your business. We will work with you to review your unique operations and put a stop to overspending. Start your savings endeavor by giving us a call today.

Tax Season Cleanup: Which Records Can You Toss?

Tax Season Cleanup: Which Records Can You Toss?

If you’ve filed your 2024 tax return, you may be eager to do some spring cleaning, starting with tax-related paper and digital clutter. The documentation needed to support a tax return may include receipts, bank and investment account statements, K-1s, W-2s, and...

Payroll Fraud Threats Inside and Outside Your Company

Payroll Fraud Threats Inside and Outside Your Company

Payroll fraud schemes can be costly. According to a 2024 Association of Certified Fraud Examiners (ACFE) study, the median loss generated by payroll fraud incidents is $50,000. It’s essential to know the payroll schemes making the rounds and how to prevent them or at...

The Tax Side of Gambling

The Tax Side of Gambling

Whether you’re a casual or professional gambler, your winnings are taxable. However, the Treasury Inspector General for Tax Administration reports that gambling income is vastly underreported. Failing to report winnings accurately can lead to back taxes, interest and...

Stuck in the Middle: The Sandwich Generation

Stuck in the Middle: The Sandwich Generation

The term “sandwich generation” was coined to describe baby boomers caught between caring for their aging parents and their children. Today, it most commonly applies to Generation Xers and older Millennials. If you’re caught in the middle, it might be time for honest...