1. Check Your Sales By Hour
Checking sales by hour is hands down one of the easiest ways to get your business on the path to saving money. Analyze this data and get in the habit of recognizing trends that might be costing you big bucks.
For example: identifying that you sell significantly less the last 2 hours of your work day can help you save money on employee costs and utilities if you decide to shorten your hours. Identifying sales trends such as this will not only help you save money, but allows you to allocate that time back to business (or personal) tasks you’ve been meaning to tackle.
2. Save On Accounting Costs
Adopting an accounting solution that works in conjunction with your POS software will allow you access to cheap and easily accessible reporting. Since a certified public accountant can cost you up to $150 an hour, say goodbye to expensive hourly accounting rates and hello to saving money.
3. Track COGS In Relation to Gross Profits
If you aren’t paying attention to COGS (cost of goods sold) in relation to your gross profit, you’re doing yourself a disservice. Paying close attention to COGS (or the amount you pay to acquire an item) can help you increase profits down the road. Think of it this way: just because you make a $5 profit off of 2 different items doesn’t mean those items are created equal.
If it costs you $25 to acquire item A and $125 to acquire item B, you’re ultimately able to purchase (and potentially make) more off of item A. If you’re operating on a shoestring budget, being able to purchase more units for less in the beginning will be more beneficial to you then only having the cash to purchase a few. More available inventory to sell equates to more revenue opportunities. Cha-ching!
4. Save Money With Accurate Sales Reporting
When you pull accurate sales data from your POS system, you not only simplify the tax process for yourself, but also potentially save yourself money. Your POS software provides the most accurate sales information possible. It clearly distinguishes sales tax and other non-income fees from total sales.
So instead of having to take the time to calculate your final gross receipts, simply pull the information from your POS report and be confident in its accuracy. When both the gross receipts and the returns and allowances figures are correct, you can be sure you’re neither over or underpaying on your taxes.
5. Go Green, Save Green
A good POS system should give you the option to both print and email receipts. Do yourself and the environment a favor by saving some paper and some money. Encourage your customers to have their receipts emailed to them. In addition to the money saved, you’ll also be collecting email addresses, which can add to (or jumpstart) your email marketing efforts.
Now that you’ve learned a few ways for saving money with your POS, we encourage you to apply these tips to real life. No two businesses are the same, so use what works for you and table the rest. Remember, owning and running a small business is more an art than a science, so a few tweaks and fine tunes here and there is usually necessary when adopting any new business practice.