Monday, March 15, 2010
How to Reduce Expenses in a Home Based Business
1. Keep coomplete and accurate accounting records, and review your expenses at the end of each month to determine where you could cut back.
* Get an envelope and put the current month on the envelope and put all receipts for that month in the envelope. At the end of the month, put all the receipts in order by date and enter them into a spread sheet or an accounting book that you can purchase at a stationary store or Wal-Mart. This way you'll be able to see where you can cut cost if needed.
2. Join a purchasing alliance for small and home-based businesse to get discounts on everything from health insurance to office supplies.
* At home business owners do need a discount on health insurance as we are now having to pay more for our own health insurance. Research this carefully.
* Office supplies can be quite costly as well, so look for deals that offer discounts and free shipping.
3. Purchase multifunction office machines. For example, look for a fax, copier, printer, and scanner all in one. This same time as well as money.
4. Take tax deductions for business us of your vehicle and home/apartment. Talk to your tax accountant/preparer about those deductions.
5. Earn supplier discounts. Often a supplier will offer a 2%, if not more, discount if an invoice is paid within 10 days of the invoice date.
6. Give free Internet access services a try, if you can find them. If not, try to work out a deal with your current provider by purchasing a bundle package deal.
7. Go over your insurance coverage with your insurance agent and look for ways to cut your premiums. Consider addidng an incidental business option to your existing homeowner's insurance at a much lower cost than a standard business liability policy. Shut off nonessential equipment at night; this saves on your electricity bill.
8. Check garage sales and thrift stores for office furniture. You can get great bargains, and sometimes you can eve find like new used or reconditioned fax machines, and other office equipment. You can refurbished them to your own specifications.
Until Next Time,
Jeane' Elliott Bennett