Being Organized Saves Your Small Business Money

It may not be obvious to most, but being organized and running an organized business saves you money. Much can be gained by added efficiencies and productivity to your business. In 2003 I started a professional organizing business in Chicago. I served customers for twenty years and most of the focus was on their residential spaces and finances. When Amber’s Bookkeeping was launched in 2016, I started to draw the parallels between running an organized household and running an organized business. Much waste takes place when we are not watching the details and following tried and true organizing principles. Efficiency and productivity are pillars and foundational to how we run our accounting and bookkeeping profession. We are consistently looking at how we can utilize software, time, and energy efficiently. The same goes for our approach to our clients’ processes and accounting. We look to simplify where things are overcomplicated, and we look to add processes and workflows that will save time and production. It’s a win for them and us, working efficiently together to give the best financial reporting and results. You’d heard it said…if you don’t know your numbers then you don’t know your business. That’s 100% true. Knowing your numbers means looking at the details and how the numbers are showing up. Where can organization be added to save money?

9 Ways to Organize Your Business’s Finances

1.Watch subscriptions.

These add up over time. Which are you using? Which could be canceled? Could you get a discount with an annual upfront price? Are you overpaying for too many employees to have access and not all employees are using their access?

2. Consider supplies.

How are tangible job or office supplies organized? Are you overbuying supplies? Is your storeroom, storage unit, or office shelving a mess, so you can’t find anything? This will prompt you to re-purchase or over-purchase supplies you already have. Schedule time to get organizing done in these storage areas for your business. The dividends will pay off when you find supplies you can use and better yet know what is needed instead of wasting money making purchases. This may not add up for office ink or paper but when you consider a roofing company, all those nails, shingles, and wasted supplies will quickly affect your profit margin.

3.Watch payroll.

When you reduce your employee count mark them inactive or gone from your roster so you don’t get charged extra for an employee. Some payrolls count per employee and some do not so make sure you check the settings.

4. Stop paying late fees.

There’s no need to get overdrafts or late fees. Automate everything that has a due date. Whether it’s a one-off bill or a recurring credit card payment. Every credit card or automated payment should be scheduled ahead of time to be“on time”.

5. Check bank fees.

If your business bank is charging you a monthly fee, switch banks. There’s no need to be paying bank fees for running a business through their bank. They should be grateful to have your business.The only exception might be a very low balance in that account, thus incurring fees.

6. Shop insurance rates.

Instead of letting your business insurance lapse, look at coverage and shop around whether it’s health, liability, or worker’s compensation.

7. Outsource your bookkeeping.

It’s a proven fact that employees are more expensive than outsourcing your accounting and bookkeeping. Think of all the costs involved. Money is spent acquiring the person, training the person into your specific systems, accommodating the person with workspace and/or a computer, and payroll expenses for the employee. Skip all those costs and outsource that piece of the business.

“Employees are more expensive than outsourcing your accounting and bookkeeping.”

8. Send out invoices on time.

If you’re disorganized and delay in charging your clients, it’s costing you money. I recently had a conversation with a business owner who only bills twice a year because he’s too busy and disorganized. I couldn’t believe it. Billing and invoicing for your products and services should be a top priority over everything else. Without cash coming in, your business won’t sustain itself.

9. Pay attention to how time is being spent in your business.

If time is wasted looking for things, participating in time-sucking meetings, and putting out fires, it’s time to add processes and procedures. Without them, disorganization is costing you precious hours.

In summary, pay attention to your reports and be aware of your numbers every month. You will catch things see things and be able to adjust in real time. In the long run, this will save you money. If you’re never looking at your numbers, things will be missed and will cost you precious growth and profits. We see and watch for trends like what I’ve been explaining above, and we bring it to your attention.

If you’d like to partner with an organized accounting firm, we are happy to see if we are a good fit for your needs and bring financial productivity to your business. Schedule your free consultation today.