“Be watchful! Be alert!” (Mark 13:33).

It’s important to watch our spending and be good stewards of what God has given us in our home, and it is also important as a business owner. And, this is the best time of year to review our finances from the previous year to see where we can make changes.

Everywhere, it seems, we’ve had ads screaming at us to buy the “best deal of the year.” On the business side, there are tons of ads telling us to buy this or that to make our operations go more smoothly in the new year. I hate to tell you, but it’s just another marketing gimmick.

There are many expenses that we need in order to operate our businesses every year. However, it’s important to make sure we aren’t overspending and to make sure that we buy things that we actually need, not things that sound good. With that in mind, here are five expenses to watch in your business this year.

1. Subscriptions and Memberships

Subscriptions and memberships are great to help you automate and grow your business, but it is a good idea to reevaluate them each year. Here are some questions to ask as you do so:

• How many subscriptions, memberships, and apps are you subscribed to that have a monthly fee?

• Are you using all of them each month?

• Are they saving you at least one hour of time each month?

• Are you actively participating in your memberships? Is there anything you can cancel because it’s not worth it?

2. Marketing Expenses 

Marketing is a necessary part of running a business. However, there are many ways that you can save money in this area. Are you seeing a return on your investment (ROI) for all your marketing efforts?

Answering this question is especially important if you’re running ads on social media. Did you hire an agency or contractor to help you with ad strategy? Evaluate the effectiveness of each campaign, and focus on the strategies that provide the best ROI.

Do you purchase any print ads? Are they giving you brand awareness? Ask your customers how they found your services to find out if they discovered you through an advertisement.

You can run a profit and loss report that shows your sales versus your advertising expenses. With this report, you can see whether you had an increase in sales after implementing a new marketing strategy. Decide which strategies you want to cancel or keep using in 2024.

3. Office Supplies

Keep an eye on the costs of office supplies, such as paper, pens, printer ink, office electronics, and other items. Take advantage of seasonal sales to stock up on items for the year, and buy in bulk when you can. Evaluate which supplies you are actually using and which you can do without. With so much of our work being done remotely, we don’t always need every fancy new pen or planner that catches our attention.

4. Bank Fees, Interest, and Credit Card Fees

Review your bank and credit card statements for any unnecessary fees. I have often seen expensive banking fees for maintaining a credit card or checking account. If your bank is charging you a high monthly fee, explore changing to a bank with lower or no fees.

Avoid late payments by paying your bills on time with calendar reminders or autopayments turned. When you can, avoid paying interest on your credit cards and loans by paying them off early. Try to maintain cash flow as much as you can in order not to take on business debt. Work on saving money in the other areas mentioned in this article so you can send more money to your credit card and loans.

5. Travel and Transportation

Are you using a mileage app? I recommend MileIQ. Even if you run your business from home, you may end up driving for work a lot more than you think. All those trips to the post office, office supply stores, and networking meetings can add up throughout the year. You could be missing out on hundreds of dollars of deductions.

If you have to travel for business, make sure you track expenses related to transportation, accommodation, and meals. Look at ways to save on travel costs, such as booking in advance, sharing a room with a colleague, staying with a friend who lives in the same city, or renting a vacation home or room with several business owners.

You can also explore the use of Zoom Meetings to reduce your need to travel depending on the type of work you are doing. (Though I know there is sometimes nothing like in-person meetings and events!)

The beginning of a new year is a great time to review all of your business financial transactions. It’s a great time to cut out things you aren’t using or that aren’t working, to change banks if needed, and to plan expenses for the new year. I hope these tips will help you make some of those decisions more easily!

Beth Anne Kaczmarczyk is a cradle catholic and wife who is passionate in helping others in her community with her husband through the Knights of Columbus. She has been a QuickBooks Online ProAdvisor for over 10 years and runs her own Bookkeeping firm at BethAnneBookkeeping.com. She is passionate about helping small businesses understand their business finances so they can have less stress and grow their businesses. You can connect with her on her website, Instagram or join her monthly newsletter to receive a Monthly Bookkeeping Checklist!