04/05/2018 Increasing Profits by Reducing Expenses

4/5/2018 QBOchat

4/5/2018 QBOchat

Increasing Profits by Reducing Expenses

  1. Welcome everyone to #QBOchat. Please introduce yourselves to the group -> Name, location & name of biz.
  2. Today, we'll be chatting about Increasing Profits by Reducing Expenses. #QBOchat https://t.co/rkvMBiJhsx
    Today, we’ll be chatting about Increasing Profits by Reducing Expenses. #QBOchat pic.twitter.com/rkvMBiJhsx
  3. .@CathyIconis here running #QBOchat from the beach at Spring Break. I love being able to connect with you all from anywhere!
  4. Good afternoon. Audrey Blackburn, Blackburn Consulting from sunny NC. Hi all! #QBOchat
  5. Hey everyone. Audrey with erplain, joining from Toronto today. #QBOchat
  6. @QBOchat Hi all! Alan here in Seattle with Avalara, your friendly neighborhood tax compliance automation pros. Hope everyone is having a grand day! #QBOchat
  7. It’s Tiffany from Share a Refund checking in. Share a Refund is an app that saves shippers time and money 💵#QBOChat
  8. Hi, Amigos and Amoebas! 😃

    Morgan w/ ClockShark popping in from Chico, California, where we’ve seen sunshine, we’re about to see rain, but we always knew that we’d see you again in #QBOchat 🎵

    Now that you’ve smiled, that 4th word should actually say “Amigas”. 😏 pic.twitter.com/0IbXxnzmb6

  9. Hello #QBOChat, it’s Shuyi at Bento for Business. It’s somehow STILL winter here in Chicago.
  10. Hey everyone! Harika with Circulus checking in from Dallas, TX! Hope everyone’s having a great start to the month! (Also, how is it already April…?) #qbochat
  11. Happy April everyone! Sarah from Aero here. Looking forward to today’s chat! #qbochat
  12. @QBOchat Hi all, Barb here from @mydryrun in Ontario, Canada rewriting the first tweet of the chat as I forget EVERY WEEK to include #qbochat. Happy Friday eve! pic.twitter.com/ZPzmQ14T1H
  13. The first question is right around the corner, remember to use A1, A2, etc when answering a question. #QBOchat
  14. Hey everyone, Clayton with Shoeboxed here for our first #QBOchat
  15. Hello everyone! @laurenatinsynq here with Insynq from Gig Harbor, WA! #QBOChat
  16. Q1: What steps should a business take to review expenses? How often should expenses be reviewed? #QBOchat https://t.co/mi8OzjBReR
    Q1: What steps should a business take to review expenses? How often should expenses be reviewed? #QBOchat pic.twitter.com/mi8OzjBReR
  17. Taking a break from bookkeeping and numbers. 👾 #QBOchat
  18. Joining the #QBOchat from San Francisco! We’re a business travel and expense app so we’re excited to be talking about cutting expenses today pic.twitter.com/aiQ26gfWwm
  19. @getclockshark @QBOchat I can’t help myself….when I get that Friday eve feeling I just gotta GIF. 😀 #qbochat
  20. @bentoforbiz I have family in Illinois and they sent me pictures of the lovely APRIL snow. 😬 #QBOchat
  21. A1: use bank-feeds/apps/automation to ensure expenses are recorded correctly …or you’ll be reviewing bad numbers. #QBOchat
  22. @mydryrun @QBOchat Haha! It is better to GIF than to receive, so well done! 😉 #QBOchat
  23. A1: Expenses should be reviewed ongoing. At AP entry & in comparison to budget monthly. #QBOchat
  24. A1: Businesses should review all expenses but especially recurring ones to see what could be cut. Many times we have expenses that are not necessary. I stay on top of mine monthly. #QBOchat
  25. #qbochat A1 – I have a report that goes out weekly to my clients of expenses I’m unsure of. Additionally I send them a P&L each month so they can review their overall expenses. If something is higher than the period prior I flag it. — Basically work with your accountant!
  26. A1: A system to track expenses is vital. A business should always know where every penny is being spent. SMBs can likely get by with a monthly review, larger companies should go every 2 weeks. A system that allows real-time review and approval can also work well #QBOchat
  27. A1: Look at expenses monthly, quarterly, and yearly and compare them to budget and prior year’s numbers to help manage costs. #QBOchat
  28. A1: Reports of monthly expenses along with an approved vendor list lends credibility to the review process #qbochat
  29. A1: Another good time to review expenses is when you get those email receipts. Are you still using that app or whatever? Is it time to look at different options or just cancel it all together? #QBOchat
  30. A1: monthly. But if things have gotten out of hand do a zero-based budget. That way you tell your money where to go and can account for every cent. #QBOchat
  31. Greetings to #QBOChat from Brent Blackburn here in Utah, owner of Biz Books Cloud LLC, sorry for arriving #Learylate
  32. @TotallybookedNY A1: Reason #982467 why we love accountants! they keep us all in check 🙂 #qbochat
  33. A1 – First take steps to PLAN your expenses and how you’ll track them. Enforce your controls and tracking with help from automation tools. And go for tools that give you a live dashboard and alerts (e.g. Bento) so you can review your expenses anytime and OFTEN. #qbochat
  34. Q2: What controls can be put in place to help manage a business's expenses? #QBOchat https://t.co/C3V2a210HX
    Q2: What controls can be put in place to help manage a business’s expenses? #QBOchat pic.twitter.com/C3V2a210HX
  35. @QBOchat A1: Keep expenses in check by reviewing every two weeks. #qbochat
  36. #qbochat A1 …and how could I forget… using @billcom ‘s Approval feature … Each expense is reviewed before being paid!
  37. A2: Use systems that include approvers on expenses over a certain amount – maybe even utilize PO’s which are prior to the actual purchase to ensure a business need. #QBOchat
  38. A2: Budgets, policies for expenses, purchase orders and credit card limits all work well. #QBOchat
  39. A2: hard controls are things like credit cards with spending limits, PO systems with approval process, Per diem use #qbochat
  40. A2: for employee expenses, an approval system before payment is a must. Our other product, @fetchmoney1, requires expenses to be submitted and approved before being reimbursed #QBOchat
  41. A2 After the fact controls are expense reports and reimbursement and to some extent budgets #qbochat
  42. @QBOchat A1: controls such as planning with budgets and strong communication go far! #QBOChat
  43. A2: Budgeting brings a benchmark to the process of managing expectations of expenses. Approval for transactions over X amount of $ #qbochat
  44. @BizBooksCloud And isn’t always fun to go back to the purchaser and ask what X or Y was for? #QBOchat
  45. Budget reviewed regularly and approvals over a certain $ threshold. If people are complaining about getting approval at that $ threshold, you’ve probably hit it just about right. 😉 #qbochat pic.twitter.com/3MxbGts96p
  46. @CathyIconis @Shoeboxed We’re finishing up the integration right now, should be ready within a week! #QBOchat
  47. @mydryrun When comparing to budget have a % over threshold and a $ over threshold so that you aren’t spending time on pennies and more time on the important stuff. #QBOchat
  48. @insynq @laurenatinsynq You’re welcome anytime! Consider me anxiously awaiting your arrival! (also, likewise, never been to Gig Harbor!) #QBOchat pic.twitter.com/Oj0C0QNC1M
  49. @QBOchat Restrict the dollar amount that employees can spend, create a structured approval process, create POs first, & zero-based budget. Scrub the budget. #QBOchat
  50. Q3: How should cost of goods sold be reviewed to find ways to reduce expenses and increase gross profit margins? #QBOchat https://t.co/Twgmk3bDsr
    Q3: How should cost of goods sold be reviewed to find ways to reduce expenses and increase gross profit margins? #QBOchat pic.twitter.com/Twgmk3bDsr
  51. A3: COGS should only increase to keep your gross margin the same or more. If your gross margin decreases, you are losing efficiencies with your growth. #QBOchat
  52. A3 always look for better deals, but also watch the gross margin and compare it to industry standards #qbochat
  53. @QBOchat Q3: Constantly be willing to go back to the drawing board and find alternatives that are better and cheaper. Review with fine tuning! #QBOChat
  54. @BizBooksCloud Comparing to industry standards is a great tip! I usually use First Reseach to get that data –  http://bit.ly/2uP6yu7  #QBOchat
  55. A3 Audit your COGS regularly (e/o month?) to avoid bloat and stay in line with industry standards. #qbochat pic.twitter.com/6HVJbzp82r
  56. Q3. Franchises analyze their Cost of Goods Sold based on % of Sales benchmarks and use a month over month comparison #qbochat
  57. #qbochat A3 Constantly review your contracts.Reducing cost, & raising your price to your consumer increases your margins. I went to the nail salon the other day and they had a poster explaining why they needed to raise their price based on COGS, if they can do it my clients can!
  58. @insynq Yes! Managers and owners should always be looking for new efficiencies without losing any of the effectiveness of their workflows. #QBOchat
  59. Sorry guys but I had a client issue come up. Got to run early. See you next week! #QBOchat
  60. @insynq @QBOchat A3: Agreed! Shop around a bit and make sure its not only the most cost effective but also the most efficient for you #qbochat
  61. Q4: What are some tips on how to cut costs on overhead? #QBOchat https://t.co/t5aljBFW0a
    Q4: What are some tips on how to cut costs on overhead? #QBOchat pic.twitter.com/t5aljBFW0a
  62. A3: Setting quarterly reminders to review and compare costs to industry standards can give peace of mind as well #QBOchat
  63. A3 also for businesses who only do periodic inventory, gross margin can vary a lot depending on purchase timing #qbochat
  64. A4: Consider going virtual or cutting back on office space and utilities with a small location or coworking. #QBOchat
  65. #qbochat A4 Give your staff the tools they need to be more efficient, negotiate your rent and review contracts with your phone/internet/utilities companies where possible. Use @tsheets to monitor employee time! Go remote if possible. There are so many ways!
  66. A4 automate, evaluate and streamline processes, outsource tasks as much as possible instead of hiring employees #qbochat
  67. A4: #1 tip is having an effective system in place to track expenses. Choose a category, and drill down into where the money is actually going. Could be a monthly exercise! #QBOchat
  68. A4 – My all time fav is revisit scope and pricing for every 3rd pty contract your biz has. #qbochat pic.twitter.com/Uccjorwzpp
  69. A4: outsource, streamline, automate #qbochat Hey, everyone!
  70. A1: It’s good to stay on top of your expenses as much as possible. That’s why we offer next day reimbursement with our automated expense management. #QBOchat
  71. A2 -I could write a whole essay on this…Controls are useful when they’re detailed, set up ahead AND real time. Control your budget (by person or category), and how much+when employees can spend. Using prepaid cards with controls helps #smallbiz protect the bottom line! #qbochat
  72. A2: We think a helpful way to stay on top of your expenses is to have a budget. Luckily, our app auto-creates a budget for any business trip. You can customize it be selecting which factors you want to include such as flights, hotels, food, and more. #QBOchat
  73. A4: There’s ways to lower overheads in every area. Depending on the company, even putting in place business travel restrictions can save loads of $$. #QBOchat
  74. Hey, All. I must depart a bit earlier than usual today, but don’t fear: I’ll be back in a GIF. 👋

    Have an excellent weekend, and I hope that deadline is looking more like a finish line for you CPA’s and bookkeepers. 😃

    See you next week in #QBOchat pic.twitter.com/R6fCsMA5wC

  75. @QBOchat This is a good point. Moving to a smaller space but putting more effort into office design can really pay off #QBOchat
  76. A4: Consider drifting away from paper-based, manual processes and towards more automated ones – could turn out being more cost efficient in the long run! Time = Money 😉 #qbochat
  77. A4 (I’m so behind with my answers!) – Review your current apps and services, evaluate whether they’re actually saving you time and money. Automation should be expected these days. Time IS money, especially when you run your own business!! #qbochat
  78. A5: After a #smb cuts the obvious fat from payroll I’d prefer to see yearlong audit, then optimization of project vs admin time for each employee….especially in project based businesses. Beware cutting staff then paying out in OT when things get hectic! #qbochat pic.twitter.com/jDBhRWjuU3
  79. A5: Don’t hire until you are sure you have the work to keep that employee busy and effective for your business. #QBOchat
  80. #qbochat A5 I feel like my answers are co-mingling …Use a payroll service, like @GustoHQ , to cut down on the time it takes to run payroll & use something like @tsheets to track time electronically… Having those to systems speak to each other is another time saver!
  81. re Q5: does anyone have experience or opinions with trading additional time off for reduced compensation for salaried workers? #QBOchat
  82. @QBOchat Along these lines, streamline workflow and projects so that no one is playing ‘hurry up and wait’ = expensive employee downtime #QBOchat
  83. Q6: What are some features in @QuickBooks Online or in other Apps that can business owners cut costs? #QBOchat https://t.co/Kg1VgsQUHJ
    Q6: What are some features in @QuickBooks Online or in other Apps that can business owners cut costs? #QBOchat pic.twitter.com/Kg1VgsQUHJ
  84. A6 use @QuickBooks online fab API to bump data into scenario based #cashflow forecasting and optimization software. @mydryrun is my fave of course. 😍 #qbochat
  85. A6 – With Bento, biz owners can set detailed, automated spending controls that prevent overspending BEFORE it happens. SUPER important in cutting costs. Plus, real-time monitoring and monthly statements help you easily review your costs. #qbochat
  86. Q7: What are some cost-cutting measures that can really HURT a business and not help it? #QBOchat https://t.co/6SCTajZbAx
    Q7: What are some cost-cutting measures that can really HURT a business and not help it? #QBOchat pic.twitter.com/6SCTajZbAx
  87. A4: Cut costs on overhead by saving money on employee spending. Incentivizing employees to beat a set budget by rewarding them is one of our favorite ways. #QBOchat pic.twitter.com/2US8JPXxzM
  88. A6: shameless plug, but i’ve spoken with so many small biz owners who use Shoeboxed to review they spending by category or project year over year  https://goo.gl/H1R9rp  #QBOchat
  89. A7 going after nickel and dime stuff like efficiency software and apps instead of the bigger costs #qbochat
  90. A7: Cutting benefits can really hurt a business. No quicker way to lose talent than by reducing the value employment provides #QBOchat
  91. A7 also, cutting out things that keep employees happy and motivated #qbochat
  92. A6: Business owners can cut costs by getting great deals through our app, using the budget feature to set a standard, and allowing employees to earn rewards by beating that budget. #QBOchat
  93. A7 – Not understanding the long-term values of the strategy/tool you’re cutting out. This could really hurt your business down the line and/or take away a big chunk of your time and energy. #qbochat
  94. @Shoeboxed A7: Yes, completely agree! People are one of, if not THE, most important resource 🙂 #qbochat
  95. #qbochat A7 prolonging Payables can really damage your relationship with vendors, slow production and possibly effect your relationship with your clients.
  96. That’s it for this week’s #QBOChat, thanks for taking the time to tweet with us!
  97. Next week’s topic is: Open Q&A. Schedule it on your calendar now! #QBOchat
  98. Remember to sign up for our newsletter to get the most up-to-date news on #QuickBooks and #QBOchat.  http://bit.ly/2nJVXIC 

Author: QBOchat Admin

#QBOchat began in July 2013 with the simple idea to host a weekly Twitter conversation around QuickBooks Online (QBO). We have since grown into a very strong community comprised of a diverse group of users. Our weekly tweet chat is held each Thursday at 3:00PM Eastern. The discussions cover a wide range of topics including QBO’s latest features and updates, business operation tips and apps that integrate with QBO, to name just a few.

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