Subscription Services: Take Stock of Hidden Expenses
Subscription services are everywhere. While many are critical to small business operations, others can slowly drain your accounts. Subscription services often become background noise, and you don’t realize the money you’re spending. Most digital subscriptions are on autopilot. You don’t receive monthly, quarterly, or annual billing notifications, so they easily can be forgotten. Additionally, unless you keep track of every free trial you accepted, you’ll end up paying for the services that you intended to cancel once the free trial ended. (Quick tip: Set up a calendar alert as a reminder to cancel a free trial or subscription once you’re finished using it.)
Nobody likes to waste money, least of all small business owners. Even the smallest of monthly charges can add up quickly. Consequently, unused subscriptions can cost hundreds of dollars a year.
Take Inventory of Your Subscriptions
As the New Year begins, it’s a good time to take inventory of your subscriptions. Make sure you’re not paying for ones you don’t need. To start, review your business’ credit card, bank, and PayPal statements. Look for recurring payments and automatic deductions. Next, decide if these subscriptions are worth keeping.
Transition to Free Subscriptions
Certainly, a subscription to QuickBooks benefits your organization as a financial management tool. That’s a keeper for sure! However, your Skype subscription may no longer be necessary if you’re now using the free version of Zoom for video conferencing. Perhaps you no longer read trade magazines; they just pile up on the corner of your desk. Also, why pay for a subscription to a social media automation platform when you only post a couple of times a month? You can save on fees by manually posting to Facebook, Instagram, YouTube, or LinkedIn at no cost. Obviously, some subscriptions are worth keeping, while others aren’t.
Take Stock of Recurring Fees
As you complete your review, use a spreadsheet to track your subscriptions and their costs. Even if you plan to keep a subscription, login to the account to confirm you’re at the appropriate membership level. Don’t pay for features that you don’t need.
Financial Management by Prosperity Bookkeeping
So, ring in the New Year by evaluating how much you’re shelling out for subscription services. Decide which services are worth the expense, and eliminate or transition to a free membership for the rest. Lingering subscriptions can be easily forgotten. Now’s the time to bring them to the forefront. Contact Prosperity Bookkeeping for more business tips related to financial management. Check out our array of financial services, bookkeeping/payroll solutions, and cash flow advisory services. Schedule a no-obligation consultation today.