Could You Be Missing Out On These Revenue Streams?
Though at times this can be economically feasible, what many small business owners fail to realize is that they could essentially be hurting their business finances. When you take on too many tasks on your own (particularly in areas you’re not familiar with), you cannot see the potential there is to increase company revenue. Below are four areas in which you could be missing out on the means to either produce more income or save on the funds you do have:
1. Tax FilingAccounting is a pertinent part of running a business. Depending on the nature of your business and size of the company, you will need varying levels of accounting. There are some things, however, that remains constant no matter what your business type is or where you’re located – taxes. Without a doubt you’re required to pay your business taxes. Failure to do so could result in serious financial trouble for years to come.
An accountant or accounting firm is available to assist you in this area. Through strategic planning and processing, an accounting professional is able to evaluate financial reports, discern your tax situation, and find you credits or incentives that can be used to improve your business. There are many things that you could receive a credit for, which would essentially lower the cost of your taxes each year. On the ADP website, they point out the possible ADP business tax credits and incentives you might receive, including new employee and investment credits.
If you’re not well versed in accounting, you run the risk of passing these credits by each year. If you’ve ever had to file taxes before, then you know full well how much these credits and incentives can save you going forward. Whether it’s a few hundred or a few thousand dollars, this is essentially revenue that can be put to use in other areas of your business.
2. VendorsWhether your organization relies on vendors to provide you with your products or you utilize vendors to get your office supplies, there are ways in which you could save money on these costs and increase your company’s revenue. However, when you’re stretched thin in other areas of operating your business, you don’t tend to have the time to pay attention to rising costs and competitor pricing that could save you additional money.
Again, working with an accountant or financial professional on a periodic (or ongoing) basis could point all of this out to you. They are trained to find areas that are draining your company financially and discern methods for helping to fill the gap. This might come in the form of finding new vendors that will provide you with products at a lower price, or making the decision to purchase in bulk to receive free shipping and additional savings on your purchase orders.
3. EmployeesHaving the right team of employees on hand is certainly imperative to running a successful business. Be that as it may, it does cost to hire, train, and manage employees. While this is certainly an investment you don’t want to eliminate, there are ways in which you could be unnecessarily spending money.
Human resource staff or accounting professionals might be able to help in this area as well. Through their specific training and experience, they know how to pinpoint areas that are unnecessary or outdated and find new ways to operate. For instance, maybe you’ve decided to spend $1,000 per year on training your staff not including the cost of traveling and booking a hotel. Your HR staff or accounting professionals might know of online trainings that are comparable and only cost you $600 per year.
4. Office Operational CostsIn order for your business to run effectively (whether physical locations or virtual) you need to have the necessary supplies, equipment, and staff. Affording each of these things comes at a cost. If you have a physical location you’re essentially paying for the lease, the utilities, basic office equipment and supplies, along with the employee salary and taxes. Virtual locations still require an office (this might be your home office) and staff salaries and taxes. Though these expenses might be unavoidable, there are ways in which you can streamline business processes and save money.
The right professional, be it an accountant, IT professional, or human resources employee, can help you to realize the areas of operation in which money is being thrown away. They can help to streamline processes and save money which might include things like changing phone systems, integrating cloud database software, or even deciding to hire contract employees.
It’s great that you can do it all yourself, but sometimes in an effort to save money you end up losing it in the long run. As a successful business owner, it is important for you to not only continue to work on the standard ways to generate revenue such as through effective marketing and quality customer service, but to also focus on the non standard revenue streams like tax credits and operational costs. Even if your business is doing
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