Over the years, AcceleratingCFO has identified consistent business expenses that can be minimized, irrespective of industry or type of company. Helping businesses identify cost-savings and minimizing exposure to risk and/or loss are two of the many ways that AcceleratingCFO adds value.
We encourage businesses to explore the following examples of cost-savings or risk minimization:
Buy-Sell Agreement: This is a common agreement that all businesses with more than one partner should have — but surprisingly many firms don’t have one in place. The most common reason why? Companies are not aware that they need it nor that buy-sell agreements exist. According to Sergio Rosa, Financial Advisor from Morgan Stanley, buy-sell agreements play an important part in protecting the business owner and their family interests and preserving their wealth when an unfortunate life event occurs.
Cyber Insurance: We have been preaching for several years now that no business is too small to protect itself from a cyber attack. As evidenced by the recent Colonial Pipelines ransomware fiasco, there are many ways that a business can be crippled by nefarious technologically savvy individuals all over the world. Please please please (!!) just do the bare minimum to get a large amount of protection. Security awareness training, two-factor authentication, encrypting your hardware and messaging, and making sure all your computers, anti-virus, and software are all patched and up-to-date. Please do the basics!
Utilities: Companies can save money through a simple analysis conducted by an outside firm, such as Schooley Mitchell. Drew Deraney from Schooley Mitchell reported that a typical analysis yields a cost savings benefit of 28% off the bill. No matter how much your utility bills are, 28% savings is something that any entrepreneur would be thankful for! When you factor in that you don’t pay a fee unless the savings has been realized, this is a classic win-win situation.
Credit Card Fees: Over the past year, largely due to pandemic, there has been a greater need for contactless transactions — which led to an increased demand for credit card processing. Although demand was heavier, there are still many players in the space that are charging as much as 3.5% or 4% of a transaction per month. It is important to look at your credit card statement and calculate what you are being charged and push back on the provider to maximize your savings.
Small Package Shipping: In lieu of brick and mortar and wholesale, there is growing demand for the direct-to-consumer model. As a result of this pivot, shipping costs to individual homes (vs a central warehouse) is more costly. Still, there are ways to save. Ed Flanagan from Expense Reduction Analysts performs a review of his clients shipping costs to ensure that they get the most savings, that the pricing structure is easy to understand, and to determine the optimal shipping service for the company.
It is important to continually review both the cost and services that you are receiving from all vendors and do quality checks on a regular basis (typically we do it annually).
Takeaway: If you are a business owner and feel you are paying too much and may not be getting as much bang for your buck as you would like, call Brian or Scott to review your expenses and analyze potential cost savings. You can reach out to us for a free diagnostic at info@acceleratingcfo.com.
Co-founders & Managing Partners
AcceleratingCFO
