There are good suggestions and tips for saving money for business owners, and then there are bad ones.
Leveraging your iPad-based POS system, however, is always a smart bet for shop owners. We also happen to be experts on the subject. So sit back, relax, and absorb our knowledge so you can start saving some cash.
1. Check Sales By Hour
Periodically checking your sales by hour can be one of the easiest ways to save your business money. The important thing here is to remember that just because a day is profitable, doesn’t mean all hours of the day were. Recognize that your slower hours of the day — specifically the first and last few — instead of making you money, might actually be costing you money. Examine these hours, taking into account staff payroll and how much it costs to keep the lights on. Then, look at your sales for that time period. Are you making money? And if so, how much? If you’re not making any money, or only dollars more than your overhead, it might make sense to close your store early, or open later. You’ll not only save money, but can allocate that time to business (or personal) tasks you’ve been meaning to tackle.
2. Say Bye-Bye To Your Accountant
By using an accounting solution that works in conjunction with your point of sale software, you’ll have access to clean and easy-to-understand reporting. You’ll no longer need to pay an accountant $65 an hour to organize this information. You’ll both save money by leveraging your POS and will become more familiar with the finances of your business. Which is always a plus.
3. Pay Attention to Cost of Goods Sold (COGS) In Relation To Gross Profit
These are two numbers that if you are not paying attention to, you should start noticing ASAP. Examining your COGS (the amount of money you pay to acquire an item) and gross profit, can save you money in the short term and drastically increase your profits down the road. Just because you make $5 off both item A (which cost $95 and you sell for $100) and item B (which costs $5 and you sell for $10), doesn’t mean these items are created equal. It’s true that your gross profit off of each item is $5, but how much did you have to spend up front to acquire each? That’s the catch. If you’re spending $5 on the second item, you’re more likely able to purchase a great number of item B than A, ultimately having the option to sell more product and make more money. Cha-ching!
4. Pull Sales Reports To Save Money at Tax Time
No one likes tax season, including accountants. But by pulling accurate sales data from your POS system, you not only are simplifying the tax process for yourself, but also potentially saving yourself money. Your POS software provides the most accurate sales information possible. It also clearly distinguishes sales tax and other non-income fees from total sales. Instead of having to take the time to calculate your final gross receipts, you can simply pull the information from your POS sales 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.
Because, when it comes to taxes, Uncle Sam doesn’t mess around. He expects precision and will go after those that slack. Pulling reports from your POS system will minimize human error and help you avoid steep penalties. Want to learn more about POS and tax time? Check out our post on how POS software can save you money at tax time.
5. Encourage Email Receipts
You know what costs money? Paper does. So why not use less of it? With a good POS system, you should be able to both print and email customer receipts. Encouraging customers to have receipts emailed to them will not only allow you to collect email addresses, but also save money on receipt paper. It might seem like a small expense, but every penny counts when running your own business. What are some of your favorite tips for saving money with your POS? Let us know in the comments or Tweet us [@ShopKeep]9.