This may sound a bit ridiculous, but it is a real question that you should be asking yourself – Is your business currently focusing on making a profit?
We get it, no one starts a business to intentionally lose money, but many businesses fail to give added attention to exactly where their income and expenses are weighing on the scale. Are your business expenses leaving your business with enough profit for you to take money for living and paying taxes?
Let’s Be Real
Let’s talk real for a moment – creating enough income to pay your bills and have a comfortable lifestyle means making a profit. When was the last time you balanced what you are spending against what you are making?
Sometimes profit can only come from growing your business and taking on more employees, but that is not the only option. Sometimes businesses can make enough profit for themselves without relying on this – and that comes from examining exactly where your business currently is.
Many business owners do not fully look into the costs it is taking to run their business every month and can be in the dark as to why they are not doing as well as they feel they are.
Every small business has its fair share of fixed costs such as telephone bills, insurance and software licences mixed in with their rent, rates and company vehicle costs. These require paying however much your business is making. However, they may be much less than you are currently paying.
Many business owners fail to follow up with their mobile phone provider to see if upgrades are available. When mobile contracts expire, they rarely ever come to the attention of the person paying the bill. Most upgrades are cheaper on a monthly contract and the service is better. When it comes to insurance, your insurance provider can make you a good deal for upgrading your existing plan or taking out a longer term.
Software licences are one of the biggest areas that get overlooked. Many may have expired and no longer serve a purpose – but you would be amazed at how many small business owners fail to realise that they are paying licences for products they stopped using years ago.
It’s not your fault – you are a business owner trying to juggle 10 balls in the air and your financial records are the 11th.
If you want to understand where your business is from a financial standpoint, you need professional bookkeeping services to look over exactly where your business financials are standing, failing and can be improved.
Contact the team at Pebbles Bookkeeping services in Manchester today and start discovering where your profit is coming from.