We often say “what you don’t know can’t hurt you” but in fact the opposite is often all too true. For small and medium-sized businesses especially it’s the invisible expenses that can hurt the most – the amounts you religiously pay each month or quarter without questioning. They are just small expenses right – probably subscriptions or memberships? Besides you never know when they’ll come in handy.
Let’s get serious! As soon as you start losing respect for your hard-earned money, no matter the amount, you’ve started your descent on a very slippery slope.
A good place to start is with your subscriptions, licences and memberships. So often we sign up for the latest app or a business networking group or a magazine subscription. We are enticed by the promise of a free trial or 50% off for the first 3 months. A few months pass and suddenly you realise you’ve been paying for monthly subscriptions and membership fees for something you hardly attend or use.
Now is a good time to do a business expenses self-audit. You can do this with yourself or sit down with your accountant for an honest chat. The aim is to eliminate all expenses that don’t directly benefit your business. They all need to go because they are eating into YOUR precious profit.