Client's Tax & Financial Update
A Tax, Business, and Financial Planning Newsletter for Our Clients and Friends
Volume 40, Number 3 | January/February 2018
Inflated overhead costs are a progressive disease in many businesses. Increases in one small overhead item at a time can add up until they finally gobble up a sizeable portion of profits and create serious cash flow problems.
Preventative medicine is the best way to avoid these problems. A good record keeping system will let you examine overhead costs every month to make sure they remain relatively constant. Payroll and expense accounts, telephone costs, and equipment and supply costs should receive special attention.
But the real key to keeping overhead down is to see that each area that generates overhead costs is under the direction of one individual. When expenses appear to be getting out of hand, you can then meet with the person in charge of a problem area to discuss why costs are climbing and how changes can be made to bring them under control.Read Full Newsletter
Vintage Burroughs adding machine