Padró & Company, P.A.

Want to minimize rent and storage costs?

Have you ever considered that you could be spending less on storage and rent? Consider these ideas for cutting down on costs.

For many small businesses, office rent and inventory storage costs are perceived as fixed. But are such expenses truly inflexible? Oftentimes, no.

Because rent and storage costs often constitute a significant portion of a business's total expense budget, creative owners who find ways to minimize those costs may reap substantial rewards. Consider the following questions when trying to shave some money off your rent and storage costs:

• Rent — Is it negotiable? If your business is located in an area with unoccupied office buildings, you may enjoy a strong bargaining position. Open up negotiations, especially if you're nearing the end of a lease term.

If your company is struggling, consider letting your landlord read your firm's financial statements, making it clear that a reduction in rent would enable your business to survive and prosper. A renegotiated lease agreement might also provide for a temporary rent reduction in exchange for increased payments when sales start climbing.

• Moving — Is it an option? Just because you settled in this location years ago doesn't necessarily mean you should stay put. You might get better lease rates across town, closer to your customer base or suppliers. Or you might pick up stakes and take your business back home.

• Subletting space — Should you become a landlord? If your current landlord agrees and your lease terms allow, additional cash may be generated by setting aside space for a rent-paying partner or another company. But be sure to consider possible ramifications. Confirm that you won't need the space in the near term, and don't forget to specify conditions under which the location can be reoccupied or the lease terminated.

• Inventory control — Can you minimize storage costs? If goods have been sitting on your shelves for too long, it may be time to sell, donate or otherwise dispose of them. Insurance, spoilage, interest, and taxes (basically all the costs associated with storing unused or obsolete inventory) can eat up your budget in a hurry. If storage capacity is limited, disposing of obsolete stock may also free up space for saleable items and fresh materials.

Survive financial stress with these 3 mindset changers .

TEASER: Finances stressing you out? A few small tweaks to your mindset could help you handle the hard stuff.

COMPLETE ARTICLE:

Because financial stress is a normal part of life for most people, learning to cope with money worries is important — vital, in fact — for maintaining positive relationships, job productivity and personal health.

If you're dealing with excessive anxiety about your finances, consider implementing the following three policies:

• Move forward and control what you can. If you've been laid off from your job, for example, don't spend time mulling over the idiosyncrasies of your old boss, the shortcomings of the guy who took your job, or anything else that's beyond your ability to change. Looking ahead and focusing on the things you can control can relieve stress now.

• Take charge. When dealing with personal finances, uncertainty can generate stress. Use your energy to start creating positive changes. For instance, preparing a written budget can bring your money worries into focus and provide a starting point for action. You may find that cutting out a few unnecessary luxuries can provide breathing room.

Getting the debt monkey off your back may take time, but watching your credit card balances decline for a few months can provide relief and hope for the future.

• Recalibrate your priorities. Remember that life is a lot more than money. If you're burdened with financial worries, take time to consider the many good things in your life you enjoy: health, family, nature — whatever gives you pleasure and a sense of wellbeing apart from your checkbook.
Sometimes talking to a trusted advisor also helps. If you'd like help with your finance or tax issues, give us a call.

If you or your business was not paid back for a loan, the IRS may allow you to take a tax deduction for the outstanding debt.

If you drove your personal vehicle while donating services to a charity you may be able to deduct the mileage. Just keep records!

The annual amount of qualified business assets that may be expensed was raised to $1 million for 2018 and beyond. Call us at 305-500-9361 to see how we may assist you with all of your Accounting needs.

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