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Why Your Home Business May Not Be Doing Well

It really is great to be able to operate your business from home. It has a much more relaxed atmosphere and there are a lot of different ways that it can save you money.   One of the biggest downfalls of the new at home business entity is not keeping track of what may be costing the business money.

One of the biggest factors that create a potential loss of income for the home business is being disorganized.   Some reasons as to why any business may be losing money has actually been the subject of research and it is indicated that business owners in general can lose around $35,000 a year simply because they are disorganized.

The first step to getting over this problem is by finding out what resources are available to organize the home office.   This means looking at a lot of different systems that can be put in place that are going to be able to keep everything where it should be.

The two biggest issues that come with disorganization in the home office are that the owner not being organized ends up duplicating a lot of their tasks.   The other problem is they can never find anything so a great deal of time is wasted on retrieving items and information that they need because it has not been organized.

It even comes down to the small items like organizing all of the office supplies.   If these are not kept and tracked in an orderly fashion then many people find that it is easier to go out and buy what they’re looking for instead of sifting through all of the boxes and stacks of supplies that they have in their office that they have not arranged properly.   A good example of this can be the printer ink that has not been put into a designated spot, and when it is in need of replacing the home business owner doesn’t realize that they already have some so they go out and buy more.

The atmosphere for the home office is really important because it is easy to stray away from the responsibilities if it is not a good atmosphere.   When the home office is set up appropriately and properly organized it is a pleasure to go into it each and every morning. However if it is highly disorganized and cluttered one may dread opening the door to begin the day of the work that is going to be ahead of them.   The psychological factor that this can have on the owner can mean that they are not going to be able to do their job as effectively as they should, which in the end can end up costing them money because they are not working to the best of their ability.

 

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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant

Email: sam@torontoaccountant.ca

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