When you’re just getting started in the small business world, you may find yourself overwhelmed by all of the advice you’re given. Even if you’ve been in business for a while, it’s hard to know what will work and what won’t. In fact, even some experienced business owners tend to rely on outdated practices that yield little to no ROI. Many of these practices actually may be draining your small business budget.
If you have a business located in Southeast Wisconsin, let Nolan Accounting help with your financials. We can help you determine what is working and what is not. We can help with your monthly bookkeeping, accounting, tax planning, and payroll.
Below we’ll discuss some of the things that may be draining your small business budget.
Pay-as-you-go software offers a variety of benefits. Unfortunately, most business owners don’t plan for an increase in these expenses as the business grows and since priorities hinge on optimizing revenue, ROI is often ignored. However, cost optimization on these expenses should be a priority from the start.
One of the main ways that businesses waste money is by not having a bookkeeper. While it may sound crazy to pay for a bookkeeper, it makes more sense to have someone focused on the books to avoid outdated practices and find ways to save.
Slow Response to Customers
Companies such as Amazon have changed the way that customers interact with the company. Customers now expect fast, detailed responses when they reach out with a concern or request. Slow responses can give your business a negative reputation among customers, which can decrease the amount of customer you generate. This results in a lesser amount of capital coming into your business to offset expenses.
When starting a new business, it’s important to take the time to research reliable providers, from inventory management to a POS for credit card payments to accounting. If you do not work with a reliable service provider, you could be losing money.
Some businesses require physical space to function, but many others do not. The pandemic proved how digital connectivity can keep teams connected with each other and businesses connected with clients. Consider if having an office is costing your business an unnecessary amount.
Doing Too Much
When you’re starting a new business, trying to do everything in-house is a waste of money. You can spend less on things like IT, HR, accounting, compliance, and tax prep by outsourcing these tasks.
Traditional Phone Systems
A traditional phone system can be expensive and doesn’t work well with the new way of doing business. Internet phone systems are a better option for allowing your team to work from home and reducing your response time.
One of the biggest ways that companies overspend on marketing is with internal and giveaway items that don’t bring revenue. Most people don’t care what brand the t-shirt is that you’re giving them, and most other items such as pens/pencils, notebooks, etc. are thrown away. Many of these items go to waste and are left unused in an office closet. If you feel the need to invest in promotional items, spend the money on things that people will use.
As a new business owner, you will have a variety of companies reaching out with offers to make your life easier. While they might help, it’s important to note that these fees add up and may not be necessary. Take the time to evaluate these products and services before signing up.
Let Nolan Accounting Manage Your Budget
As a new business owner, you have a lot on your plate. If your business is located in Southeast Wisconsin, let Nolan Accounting handle your financials. We are a small business and understand the importance of a small business budget. We can help you with payroll, monthly accounting and bookkeeping, tax planning, and more.