| 3 Hidden Costs That Are Eating Away At Your Budget

Posted in Finance at 9:00 AM by Loftis Consulting

In this piece, we’re talking about three hidden costs that could be eating away at your business budget, and how to solve them. Take a look at the points below for more info:

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(Image via: http://bit.ly/2nE1fFn)

Phone Bill

It’s ironic how many companies neglect their phone bill when they actually make lots of calls every day. In a world where there are so many different communication methods, phone calls are still seen as the most personal and preferred method of contact for a lot of businesses. As a result, your office phone bill can soon ramp up and be very costly indeed. It may not seem like much, particularly when the cost per call is so small, but every month these calls could eat away at your budget. Plus, it’s even worse when you spend a lot of money calling your other offices across the country or even across the world. If you’re an international company with branches in different countries, you could suffer international call costs that are huge.

 

So, what are the solutions to this problem? For one, you could try and use other means of communication where possible to cut down on calls. Secondly, companies like eSudo LLC offer VoIP services that mean you can make calls to your other offices via the internet. As a result, you no longer pay for those calls. Trim this hidden cost and your budget will be in better shape.

Energy Bill

Yet again, another utility bill that businesses don’t pay much attention to is their energy bill. As a company, you will use up lots of energy in your premises every day. So much so that your bills can be massive. Think about all the electronics you use on a daily basis and the costs soon add up.

 

But, you can reduce these costs by being smart and undertaking green business practices. Unplug things when they’re not in use, avoid turning on the heating or AC unit, and opt for more energy efficient lighting. All of this will bring your bill right down, and save your business some money.

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(Pic source: http://bit.ly/2jmrCQE)

Mistakes

The final hidden cost isn’t a bill, but it is something you will pay for! Mistakes are made in every line of work, and they can end up being very costly. If someone makes a mistake, then it often means the work has to be done again. In some businesses, this means using up twice the amount of resources just for one task, and these resources cost money. Small mistakes can add up and cost your money a lot of money over time without you even realizing it. Whereas, big mistakes can cost you loads of money all at once.

How can you avoid this hidden cost? The idea is simple; stop making mistakes! It can be hard to do this, but you need to be more thorough in checking your work and checking that everything is ready before you undertake a task. Make sure you know exactly what’s needed of you, and you can avoid mistakes. Also, communicate more, as a business, so people are on the same page and fewer mistakes are made.

Don’t allow these hidden costs to eat away at your budget. Fix them, save money, and keep your finances in good order.

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