Continue reading to discover the top tips to consider to begin saving money for your businesses.
Tips to Start Saving Money for Businesses
Review Employee Benefits: You may wish to bolster payments for certain employee benefits including health insurance premiums, transportation costs, education assistance, and more. This can reduce taxable income and strengthen employee loyalty.
Defer Income: It may make sense to push off invoices to do later in the year or even in the new year for some businesses. Invoicing the month of January instead of December can lower current-year profits and reduce tax liability in the new year.
Negotiate Lower Rent: You may be able to negotiate and bargain when renting an office to achieve a lower rent cost for the space. This is especially true if you are in an area with unoccupied office buildings or spaces nearing the end of a lease term.
Investigate Equipment Costs: One of the best ways to cut back on money being spent is to look into where you are overusing it. Business owners may want to examine phone usage, lease contracts, and more. You may be able to cut back on how many phone lines are being used in the office. You may also want to purchase a piece of equipment instead of leasing it from a company to cut back on costs.
Reduce Storage Costs: It may be time to sell, donate, or dispose of inventory that has not been used for months or years in your office. Storing obsolete inventory can lead to certain associated costs that can deplete a budget due to spoilage, interest, taxes, and insurance.
Focus on Variable Costs: Many businesses may benefit from cutting back on specific variable costs such as advertising expenses or sales commissions.
Sublet Office Space: If you can rent space to another partner or company, this can bring in more money (as long as your landlord agrees).
Accelerate Deductions: If your clients are not making payments on time, you may want to write off uncollectible accounts to increase the year’s business expense deduction. This act can also help to get rid of properties that no longer benefit the business so that they can be deducted as a loss within the year.
If you have any further questions about how to save money as a business, do not hesitate to contact our experienced Certified Public Accountant firm. To learn more about our CPA services, give our firm a call today to schedule your initial consultation with our team.
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Werdann DeVito LLC is an experienced Certified Public Accountant firm serving clients throughout New Jersey with all of their financial needs. If you need quality assistance with accounting, tax, or consulting services, contact Werdann DeVito LLC today.