Trimming expenses is something businesses must do in earnest to survive the economic downturn due to the pandemic. Here are some areas where your business may still have cost saving opportunity.
Interest rates. If you have credit cards, banks will often listen to a request to lower your interest rates. This is especially true if you’ve been a long-time, loyal customer who has always made on-time payments. Also consider asking your banker about refinancing other debt, such as installment loans or revolving lines of credit, to a lower interest rate.
Telephones. When is the last time you shopped your phone service and telephone hardware supplier? Many companies are relying on the same hardware and service they bought 40 years ago, which can cost plenty to use and maintain. Consider transitioning to a Voice Over Internet Protocol (VoIP) service that can easily integrate with mobile phones and other electronic devices.
Internet service. Similar to your telephone service, it’s easy to sign up for internet service and forget about it. If it’s been more than one year since you’ve spoken to your internet service provider, get on the phone and ask about different options. Maybe you’re spending for more bandwidth than you need or unnecessary add-ons like a turbo boost.
Software as a service. These online software tools create monthly expenses that go on forever. In addition, many of them charge you per user. Review your recurring bills to identify all of these software fees. Understand who is using them and why. Cancel all but the most essential, and reduce the number of users to just those that absolutely need it.
Data storage. The cost of storing data in the cloud has become extremely affordable over the past 5 years. At the same time, many businesses overestimate the amount of storage capacity they actually need. Consider doing an annual audit of your storage needs and asking your provider about different capacity levels if you find you have ample, unused storage space.
Completely chopping expenses from your income statement isn’t the only way to save money. Keeping certain expenses but temporarily dial it back is another viable option that can your business money without entirely eliminating much-needed services.
Last updated: 10/05/2020
The Covid-19 Tax Resource Portal (herein after referred to as "Site") is made available as a service to our clients and others for informational purposes only. These materials and information should not be considered as, or a substitute for, accounting, tax or financial advice. While it is hoped the materials provided here are helpful as background material, it is not warranted either expressly or implied as accurate or complete. You should refrain in taking any action based upon the information provided here until you have received proper counsel.
In addition, you understand that any links to any other web site or services does not constitute endorsement of or warranty of any service, product or information provided on their site(s). These links are provided for convenience only.
While our intent is to make transmissions to and from this web site secure, it is understood that no warranty of security can be made and that unforeseen security breaches by "hackers" is a possibility, however slight.
Reproduction of part or all of the contents on this site in any form is prohibited other than for individual use only. All content on this site is copyright protected and/or trademarked as appropriate and may not be copied, duplicated or altered in any way.
In no event shall J&K Tax and Financial Services LLC, its affiliates or suppliers of any content on this site be liable for any indirect, incidental, special, punitive damages or consequential damages of any kind, or any damages whatsoever arising out of or related to your use of the Site, the content and other information obtained therein.
© 2020 - 2022. All Rights Reserved.