I have found over the years that as business owners are consumed in running their business, often times they don’t know about potential money saving opportunities that are available.
As a Virtual Assistant providing business support services, it’s my job to stay up to date on the latest and greatest techniques, softwares, programs, and…. money saving opportunities that can increase my clients bottom line. Because I am based in Colorado these top “3 Ways to Save” mostly apply to Colorado companies, however most states do have similiar programs available.
Cost Containment Certification
This is a cost savings opportunity available to all businesses in The State of Colorado who pay for Worker’s Compensation. The State rewards businesses who implement a proper safety program that meets the following criteria:
* A safety policy statement
* A safety committee or coordinator
* Posted safety rules
* Consistent safety training
* A designated medical provider
* Claims management procedures
* Once a company receives certification, your workers’ compensation insurance carrier, will apply a discount to the policy at the next renewal period after certification. A 5 percent discount is applied to companies with:
* An experience modification rating
* Lower frequency and severity of losses for the most recent policy period as compared with those from the previous policy period.
* If the company is not eligible for an experience modification rating: The discount depends on the accident experience during the 12 months before the renewal date. Discounts are awarded on the number and cost of accidents and range from 2 percent to 10 percent.
If you have your worker’s compensation insurance through Pinnacol, they provide you with a workbook that walks you through the process as well as providing sample forms. I’ve helped several businesses with the set-up process of their Cost Containment Certification and it can save at a minimum of 5% on your worker’s compensation premiums and more. I had a client saving 13% annually on their premiums.
Enterprise Zone Tax Credit
The State of Colorado provides a range of tax credits available to businesses that are located in what they call Enterprise Zones. You can click on this link to see if you are located in one of these zones, http://choosecolorado.com/doing-business/incentives-financing/ez/. Here are some of the available credits.
EZ – Investment Tax Credit: Providing businesses a tax credit of 3 percent for equipment purchases.
EZ – Job Training: Companies that implement a qualified job-training program for their enterprise zone employees may claim an income tax credit of 12 percent of their eligible training costs.
EZ – New Employee Credit: A tax credit offering businesses $1,100 per new job.
EZ – Agricultural Processing: A tax credit of $500 per new business facility employee may be claimed by business adding value to agricultural commodities through manufacturing or processing.
EZ- Enhanced Rural Enterprise Zone New Employee: Offers $2,000 total per new job for new businesses located within an enterprise zone.
EZ – New Employee Enhanced Ag Processor Credit: Businesses located in an enterprise zone may be eligible for a credit of $500 per new employee, if the business is an agricultural manufacturing or processing business.
EZ – Health Insurance: Offers businesses $1,000 per insured job available for the first two years in state enterprise zones.
EZ – Research and Development Tax Credit: A tax credit for businesses up to three percent, based on the increase of a company’s research and development expenditures within an enterprise zone during the previous two income tax years.
EZ – Vacant Building Rehab: Allows owners or tenants of a building in an Enterprise Zone that is at least 20 years old and that has been completely vacant for at least two years to claim a tax credit of 25 percent of the cost of rehabilitating the building for commercial use, up to $50,000.
EZ – Commercial Vehicle Investment Tax Credit: Offers businesses a state income tax credit up to 1.5 percent on commercial trucks, truck tractors, tractors, or semitrailers, as well as associated parts. Learn more.
EZ – Contribution Projects: Enterprise Zone (EZ) Contribution Projects encourage community participation and public-private partnerships to revitalize EZs. EZ Administrators may propose projects for EZ Project status to implement the economic development plan of that specific EZ. EZ Administrators work with their communities to bring forward proposals that meet the economic development needs, result in job creation/retention and business expansion, and have the support of the community. Colorado taxpayers may earn Colorado income tax credits by contributing to targeted efforts. Learn more.
Save Energy, Save Money
Throughout the U.S., everyone is interested in saving energy and money. Many local and state governments are offering programs that provide rebates, tax credits, and more. In my area, our county has a group called Garfield Clean Energy. They offer free walk through to business owners, and will help design an energy plan for you, provide coaching, and connect you with contractors. Rebates are available for up to 50% of a cost of project that will save energy according to your energy plan developed. For more information visit, http://www.garfieldcleanenergy.org/com-rebates.html
Complete an Office Systems Audit
Having an office systems audit or analysis completed takes an in-depth look at where you spend money within your business and provides an opportunity to analyze where savings can be implemented. I personally take it a step farther and look at potential increased revenue streams that might be left untapped.
Generally you review your company as a whole; your business structure, products and services offered, your target market, goals, overall efficiency, expectations, employee morale and turnover rates, training, safety, expenses, sales volumes and reports, marketing strategies, a thorough review of policy’s and procedures, processes, softwares, weaknesses, strengths, exit plan, procurement, contracts, and your future outlook.
Savings and increased revenue are almost always located in an Office Systems Audit and with the New Year coming, this might be a terrific resolution to start your New Year off with a bang.
Tina Holtz is a seasoned business professional with more than 20 years of experience in business development, business management, sales, marketing, and procurement. She is the owner of Executive Business Services, LLC and provides virtual assisting and business support services to business owners, entrepreneurs, professionals, and executives. You can reach her at 970-989-8047 or email at email@example.com – www.execbusinessservices.com
4 thoughts on “4 Ways to Save In Running Your Business”
Starting a new business can be really exciting, but it can also be time consuming and expensive. Very basic things that we need to keep in mind for big savings are mentioned below:-
Use your startup costs as a deduction
Use the special depreciation rules to take larger deductions.
Contribute to a retirement account.
Deduct some of your household expenses if you have a home office.
Excellent tips! I have used all of those to my own success as well as other businesses. Great places to save and opportunities to take advantage of. Thanks for sharing!
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