How Do I Cut My Business Costs?

Georgia CPA Helps Reduce Unnecessary Spending: Budgeting 101
Eliminating excess spending is the most critical component of any business plan. Often what sounds good at the moment and appears to be a sound business decision at the time will result in a shortage of cash later and poor operating results. Therefore it is critical to carefully review all expenditures in light of present business needs and long term cash flows. Many expenses appear initially appropriate, however when reviewed in the light of day and with an objective judicious mind we see that many of our expenditures were indeed based upon folly rather than prudence.

Planning Ahead

“The plans of the diligent lead to profit as surely as haste leads to poverty.” (Proverbs 21:5)

God’s word is self evident and clear for those who are insightful, thoughtful, and are not complacent about tomorrow will be those who will be successful. There is no such thing as luck, only divine providence. Though there will be times when God alone will steer you to your destination but God favors the prepared and those who are ready. Therefore it is up to each of us to prepare and plan for what might next be around the corner. Leaving our destiny to chance will result in poverty well below the favor that God prefers to reign down in our lives.

Delaying Gratification

Perhaps one of the most critical components of budgeting and economic survival is to delaying gratification until either the perceived need for an item is erased or it is deferred to such a time to which we can easily afford it. In our society we are constantly bombarded with consumerism teaching us that our wants are indeed our needs. Unless we are able to discern the difference between the two we are doomed to a paradoxical series of financial disasters. With credit so readily available we have to self discipline ourselves to avoid buying things that we clearly not afford. As a guideline to this it is suggested that you do not buy things you cannot afford to pay cash for in full at the time of purchase and to avoid buying anything on credit. Often we are swayed by a deal which appears to be too good to be true promising items such as no interest, however we should always be guarded to remember that “Creative financing means you probably can’t afford it.”

Seeking Counsel

“Plans fail for lack of counsel, but with many advisers they succeed.” (Proverbs 15:22)

No one is expected to know it all. In fact, it is very difficult and takes all of energy time and effort to do one thing well. As we cannot all experts at everything we should often seek the advice of others. Seeking counsel does many things for us including the lifting of the fog and confusion surrounding a decision, shortens our time needed to make an appropriate decision, and it dramatically heightens and increases our chances of success. Though many things are clearly not out of our reach and understanding in making appropriate decisions, there are still strategic and perplexing issues that come our way for which we are not qualified. Though it is clear to all of us we would not perform medical procedures or surgeries on ourselves as a physicians skill and expertise are critical to our well being, it is often as critical to other areas of our business and life as well. Thus, it is essential for us to have a circle of trusted advisers to help us navigate through the many channels and options available to us.

To help plan for your financial future contact us today as our primary focus is both your short and long term financial security.