As a business owner, it is critical to keep an eye on your monthly expenses because they can have a huge negative impact on profitability over time. Meeting with your accountant is a great way to keep an eye on your monthly expenses but you can also look at your bank, credit card, and merchant account statements to find some ways to cut expenses. Here are a few areas to look for specifically:

1. Bank Fees: If you are paying excessive fees, it might be time to switch banks. If you see fees that you do not understand, ask your banker. If you do not have a personal banker at your bank that might also be a sign you need a new bank.
2. Merchant Fees: Your merchant account statement can be hard to understand, so it’s not a bad idea to have your statement audited from time to time.
3. Equipment Rental: Sometimes it can be more cost effective to own equipment outright rather than renting.
4. Utilities: Are you paying too much for your Internet service or phone service? If it’s been a while since you have looked at your statement or called the company, now might be a good time. There may be special programs or reduced fee plans and it’s rare that they will call you to show you how to pay less money. Also, if you have add-ons or enhanced features you are no longer using, you can cancel them.
5. Subscriptions: We very often get sucked into subscriptions, whether it’s a magazine, membership, software, or training program and end up not using it. Find these cash flow killers and cancel them ASAP.

Reducing expenses is one of the simplest ways to improve profitability. No matter if your business is struggling to make ends meet or thriving, wisdom says “don’t spend it if you don’t have to.”