Five Unexpected Ways Your Business Could be Losing Money
Tuesday, May 6, 2014, 1:00 AM | Leave Comment
Whenever a business is not making money it is losing money, and often in unexpected ways. All business owners should understand these five sneaky and often overlooked drains that could be resulting in lost money every single day.
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Bank Account Fees
Small and medium business bank accounts are going to be much different than personal accounts. Business owners should speak with their bank to understand exactly what fees are going to occur and how to remove them. Many will find themselves overpaying for banking fees such as fraud protection or unnecessary ATM charges.
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No Follow Up With Customers
Maintaining a relationship with every single customer is extremely important, especially when a business first opens. Many companies will spend extra money searching out new customers and clients instead of saving money and making a quick call or sending out an email for repeat business.
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The Incorrect Business Hours
Instead of the traditional 9 to 5 business hours, some companies may want to look at altering their hours to cut down on labor and material costs. An example for restaurants would be to shave off a few hours in the middle of the day immediately after the lunch rush and increase hours at night during the dinner rush.
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Overpaying on Taxes
No matter how successful a business may be, taking a closer look at taxes at the end of a fiscal year can be disheartening. Many will find their hard-earned profits being eaten into, and that is why it is essential to take a very close look at any tax credits that are available. Utilizing companies such as ADP.com will help business owners take a new look at the nearly 3,000 tax credits available to them.
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Purchasing New Electronics
While new computers, laptops, smartphones, and tablet PCs can help efficiency throughout a company, they can also become a drain on resources. Instead purchasing new equipment yearly, business owners should spend extra time finding devices that will last longer or can be partially upgraded at a lower cost. This could also include expensive commercial software that may not need to be upgraded every year.
Creating a budget is one of the best ways for a business owner to track their profits and expenses. By searching out these relatively small expenses, owners may improve the efficiency and financial durability of their company.
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