In one of my recent blogs, I wrote about the "It took me HOW long?" question, which you might find yourself asking when you wonder why you're insanely busy, yet not insanely rich. Hmmm... good question, right? Well, here's another question you should be asking yourself: I spent HOW much? And if you don't know the answer off the top of your head, and if you can't find the answer pretty quickly, I'm thinking you have a problem! If there's one number you should always have an idea of, it's your business expenses. Those can come in many forms and often include intangibles that are harder to tally, but must be accounted for nonetheless. Because when you do account for them, you're giving yourself a true picture of your financial situation. I know... sounds kinda scary!
But it doesn't have to be! (OK, maybe it will be the first time your realize you spent an exorbitant amount of money on overnight FedEx that you didn't bill your client for because you didn't include it in your proposal. But once you realize you're doing that, you'll stop doing it and all will be well again!) Knowledge and information are always empowering. You can use it to change course, and anticipate and prevent problems. The best way to have this knowledge of your company is to carefully track revenue and expenses related to each job you do or each area of your business. And when you review these numbers regularly, you won't have to look at them with your eyes half covered as if you're watching a scary movie. That's because there won't be any surprises.
Are Some Of Your Profits Sitting In the Lost & Found?
In my book, I talk about the importance of having a coding or job costing system to track spending for every job or client. Everything – and I mean everything! – needs to be accounted for in this system: labor, postage, supplies, mileage, parking, printing, freelance charges, etc. You probably get the idea. When you take the time to account for all of this spending, you may find you're not charging enough. Or that you're over-spending in areas you hadn't thought of. Sometimes this over-spending can be reduced by making a few minor changes or by simply planning better. When you reduce your business expenses, it's kind of like finding money in the lost & found. Without having to change your entire business strategy or find new clients, you can increase your profits by hanging on to more of your money instead of losing it to unnecessary and thoughtless spending.
This week I shared some quotes from one of my fave authors... moi! Hopefully you liked them and maybe they even got you thinking about how you run your company and what's going on with your business expenses.
Be Oh So Quotable This Week!
I always say running a business means the work never ends! Ain't that the truth? I bet your to-do list is a mile long! Make sure that the items at the top of your list are the things that relate to being more profitable. Everyone is so proud of being so "busy"...But Are You Making Any Money? Don't be too busy to focus!
Check out the summary of last week's business tips and motivational quotes from my Instagram page which you hopefully got to see in real time! If not, let's make sure we're following each other on Instagram!! So...here is this week's roundup of Instagram images of My Top Business Tips and Motivational Quotes.
Business Expenses – Tip #1:
"Make sure you are tracking revenue & expenses for every job to make sure each is profitable."
Business Expenses – Tip #2:
"At the end of the day, job costing helps you to figure out exactly which areas of your business are profitable and which aren't."
Business Expenses – Tip #3:
"When the bookkeeper prints a P&L for current jobs, the boss can analyze & adjust accordingly."
Business Expenses – Tip #4:
"Change is not always fun but in order to run a profitable business, you've got to course correct, constantly."
Business Expenses – Tip #5:
"Uncovering hidden costs empowers you. Not only can you improve your bottom line, you can start anticipating and preventing future problems."
Let's talk! I want YOUR stories on business expenses gone right!
I'm sure you have advice to share about getting a handle on business expenses. Which tips above did you find helpful? I would LOVE to hear from you!
Anyhoo...I publish these business tips and motivational quotes to get you fired up for your work week! And, if you want more business tips, get my book, But Are You Making Any Money? or contact me to really take your business to the next level!
P.S. Of course that's not all we've got! Searching for more tips about running a business?
Then definitely take a look at these:
I'd love to hear your ideas! So please comment below and then SHARE!