Businesses are meant to make money, and business owners spend significant amounts of time and effort pursuing new opportunities to improve their bottom line. What many businesses often overlook, however, is the internal practices that are left unchecked—often costing businesses significant amounts of money without them even knowing it.
In Part 1, we looked at not investing in your employees and a poorly planned sales process, two problems that might be staring you straight in the face but you don’t even see them. Here are a couple of others.
Poor Billing Process
Likewise, it might seem strange that your billing could be costing you money. After all, isn’t this exactly where your money comes from? Unfortunately, many companies lack clear organization when it comes to tracking their billing. This can lead to misplaced invoices, late payments, and a host of other issues that can cost time and money.
Whether you handle the billing yourself or have a team dedicated to it, make sure that there’s a clear system in place. This can include knowing who’s accountable for what tasks, how files and invoices are organized, and how late payments or difficult clients are handled.
Inefficient Time Tracking
Tracking time is a great way to keep an eye on your business’ finances. It will tell you how much your payroll costs you, and it can even tell you what projects are taking up the most time. Best of all, you’ll inevitably see payroll expenses go down as your time tracking becomes more accurate.
Many businesses use inefficient time tracking systems, like paper time cards, which can be wildly inaccurate, take hours or days to process and don’t provide as much actionable insight.
With modern time tracking technology, businesses can have their employees clock in and out in seconds and receive 100% accurate data on employees’ time. Many time clock apps can even track time on a project-by-project basis so you know exactly how much time was spent on any given project. Combined, these two features will save you money on lost payroll expenses (like overpaying employees and the time spent processing timesheets) and allow you to better allocate resources for future projects.
One such system with many helpful resources is ExakTime’s time clock software.
Are there internal processes that are costing your business money? It’s worth spending some time to analyze how your business runs to see if you can uncover any overlooked gaps that are costing you money for no good reasons. It’s kind of like finding money in your couch cushions—except a lot better!