Profit thieves come in all shapes and sizes, but they all have one thing in common: they're experts at siphoning off your hard-earned profits. And as any small business owner will tell you, profit margins are often slim. That means even a small profit theft can have a devastating effect.
When we're onboarding new clients for bookkeeping services, there are three profit thieves we tend to see more than others. Today, we'll break each of them down to help you prepare and protect your business from falling victim to the same ones.
Redundant expenses happen when anyone switches over services (like Internet providers or cell phone carriers) without canceling their original contract. This means that they are still paying for the old service while using (and paying for!) the new one.
Miscommunication with a customer service representative or a glitch in their billing system may also be to blame for continued billing. So, be sure to save some kind of documentation after canceling and keep an eye out for any unauthorized recurring charges over the next few billing periods.
(Don't miss these tax reduction tips for small businesses next!)
Automatic drafts are great because of their convenience. However, it’s important to keep track of them so they don't become profit thieves. With automatic drafts, it’s easy to accidentally be double charged.
Also, if you’re signed up for an app or subscription that you no longer use? Be sure to cancel it and then follow our advice for “redundant expenses” above to make sure the recurring charges stop.
(QuickBooks is one subscription you won't regret! Learn more about what switching to QuickBooks Online can do for your business here)
How much control do you have over business expenses? Who’s keeping tabs? Knowing what you spend money on and how much you spend is important. After all, if money is being spent, it’s not going towards your bottom line. Keeping your business expenses in check helps increase your profit margin and grow your business.
Do you feel like you should be making more from your business than what you’re making now?
While these three profit thieves are easy to eliminate with proper account monitoring, others are not quite so simple. Contact us online or give us a call at 865-212-0063 and we’d be happy to review your account and discuss your concerns. Sometimes all it takes is a second pair of eyes.
Here are three more posts to read next:
A Beginner's Guide to Nonprofit Financial Management Planning
Small Business Tax Help: Getting Your Business Through Tax Season
This post about profit thieves was first published in 2015. It was updated in 2022 just for you.