Understand & reduce your operating costs

October 18, 2021

It can be daunting to look at balance sheets and income statements. After all, coming across terms you’re unfamiliar with when you’re already trying to juggle business accounting only adds to your stress. Luckily, most of the terms are fairly self-explanatory.

We already know that every penny counts in a business and it’s a good idea to keep an eye on any outgoings. By familiarising yourself with key terms, you’re already putting an effort towards making your business more cost-effective and profitable. By reducing certain outgoings, you can capitalise on profit and show your stakeholders just how profitable you are.

As we come out of lockdown, a lot of small and medium-sized businesses are struggling financially. Unfortunately, we saw a lot of businesses go under during the pandemic and now we’re just starting to creep out. Now is the time to educate yourself on the outgoings of your company and start putting cost-cutting measures in place to keep these outgoings low.

One of the outgoing terms that you will probably be coming across is “operating costs”.

What are operating costs?

These are the outgoings of payments to keep up with admin, maintenance and facilities. One of the most important parts of operating costs is the cost of goods sold (COGS) - the direct costs of producing your business’s goods or services.

But operating costs can also include:

Sales commissions
Maintenance costs (facilities, utilities, equipment)
Labour costs (staff, payroll)
Employee benefits, health insurance, tax, pensions
Depreciation
Amortisation

When you know how to measure and record your operating costs, you’re in a much better position to start reducing these outgoings.

How can I cut operating costs?

There’s no one answer for every business and often it takes using several of these ideas in tandem to experiment with what works best for your business. It depends on your industry, the nature of your business, your management team, and your business goals.

We’ve outlined some guidelines to reducing operating costs that should provide a sounding board.

1. Automate processes with new technology

It’s true that technology is often more efficient than human labour. Automated machines can work quicker and more accurately than human workers, improving supply chain models and processes, as well as increasing working times.

But more than using machinery for the manufacturing, packaging, or processing aspects of your business, you should look into digitising other elements, especially admin. If you haven’t already, take your accounting and organisational records onto digital spreadsheets on your computer. Use a cloud network and email to instantly share files with your employees and clients.

Technologically apt companies are swiftly becoming more appealing to clients and stakeholders.

2. Shop around for more affordable rates

You should always keep an eye on alternative vendors but a fantastic way to drive costs down is to ask three separate vendors for quotes and then pit them against each other.

Whenever going to a vendor for a quote, always make sure to supply all the possible information they could need. Gaps in information could affect the quoted rate and even drive the price way up.

3. Hire interns

Interns are paid less than standard workers but are usually interested in your industry and in bettering their employability. Give them opportunities to shadow or meet with management, so that in return, you can work closely with schools, colleges, and universities to organise placement and internship schemes.

4. Turn away from traditional marketing methods and embrace the digital

Gone are the days of flyers, posters and newspaper advertising. These costly physical materials are often big holes in the pockets of businesses that should be making more profit than they are.

The most effective form of marketing is online – on the internet and on social media. Focus on developing your business’s Instagram, Facebook, Twitter, and TikTok to attract customers and clients this way. If you still send letters, turn to companies that will send regular newsletters to all of your email addresses on file.

5. Focus On SEO

SEO stands for search engine optimisation and means that the text on your website or social media is written specifically to make sure that it appears at the top of any internet search by potential clients. This is one of the easiest and cheapest ways to market your company.

6. Buy supplies and try not to lease

If you’re planning to use equipment or supplies long-term, then the financially wise decision is to buy instead of leasing. Buying assets can also provide an immediate, large tax deduction.

For all of your accounting needs, get in touch with 360 Accounting Services today.

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5 Signs It’s Time to Hire a Virtual Bookkeeper

By 360Accounting Services • January 20, 2026

Running a small business requires wearing many hats, and for a long time, you might have managed to handle the bookkeeping yourself. However, as your business grows, so does the complexity and volume of your financial records. Trying to keep up can lead to stress, errors, and missed opportunities. If you are debating whether or not it’s time to bring in professional help, here are five clear signs that you should stop delaying and hire a virtual bookkeeper. 1. You’re Spending More Time on Books Than Business Time is your most valuable resource. When you first started, a couple of hours a week might have been enough to manage your transactions. Now, if you find yourself regularly working late or dedicating entire weekends just to categorise expenses, reconcile accounts, and chase down receipts, it’s a red flag. A virtual bookkeeper can take these essential but time-consuming tasks off your plate. This frees you up to focus on core business activities, strategy, and client service—the things that actually generate revenue and help your business grow. 2. You’re Constantly Missing Deadlines (or Filing Extensions) Tax season always seems to sneak up, and if you’re consistently scrambling to prepare the necessary financial statements or missing key filing deadlines, you need help. A virtual bookkeeper keeps your books organised and up-to-date year-round, ensuring that all necessary documents are prepared well in advance of deadlines. If you are preparing for tax season, you can also ensure all your necessary files are ready by reviewing the File. 3. You Don't Truly Know Where Your Business Stands Do you really know your profit margins? Are you unsure which services or products are your most profitable? If you have to guess the answers to crucial financial questions, your current bookkeeping method is failing you. Good bookkeeping provides a clear, real-time picture of your company's financial health. A virtual bookkeeper provides consistent reporting and analysis, giving you the accurate data needed to make informed business decisions, such as when to expand, purchase new equipment, or increase pricing. Without this insight, you are effectively running your business blind. 4. You Are Afraid of an Audit Fear and anxiety around financial records are clear indicators that your system is disorganised. If the thought of a tax audit makes you panic because your receipts are a mess, or your records are incomplete, it’s time to seek professional organisation. A virtual bookkeeper implements a solid, cloud-based system that organises all your financial documents logically and securely. They ensure every transaction is recorded correctly, backed by documentation, and compliant with current regulations. This professional structure eliminates audit fear and provides peace of mind. 5. Your Business is Growing Rapidly Business growth is exciting, but it almost always means increased financial complexity. More transactions, new employees, international sales, or taking on debt all complicate the bookkeeping process. What worked for your business when it was small won't work when it's scaling rapidly. Don’t let growth become a burden. Bringing in a virtual bookkeeper allows you to sustain your expansion without sacrificing the accuracy of your financial data. They can seamlessly integrate with your existing processes and grow with you. Next Steps If any of these signs resonate with your current situation, it's time to explore the benefits of outsourcing your financial records. Ready to see how a virtual bookkeeper can save you time and money? Schedule a consultation today! Phone us on 1300 360 749.

Bookkeeping Tips for Trades Industry

By 360Accounting Services • January 16, 2026

Running a successful trades business requires more than just skilled craftsmanship; it also demands meticulous bookkeeping. Effective financial management can mean the difference between thriving and merely surviving. This blog post offers essential bookkeeping tips tailored specifically for professionals in the trades. 1. Separate Business and Personal Finances This is fundamental. Using a separate bank account and credit card for your business not only simplifies tracking income and expenses but also protects your personal assets in case of a business audit or liability. 2. Track Every Expense, No Matter How Small Every dollar spent on your business is a potential tax deduction. Keep detailed records of all your expenses, including: ● Materials and supplies: Lu mber, pipes, wiring, paint, etc. ● Tools and equipment: Purchases, rentals, and repairs. ● Vehicle expenses: Fuel, maintenance, insurance, and registration for your work vehicles. ● Subcontractor costs: Payments to other professionals you hire. ● Marketing and advertising: Website fees and online ads. ● Insurance: General liability, professional indemnity, and workers' compensation. ● Training and certifications: Keeping your skills up-to-date. ● Office supplies: Software subscriptions, stationery, computers...e ven small items add up. Consider using an expense tracking app to easily capture receipts on the go - dext, xero, etc. 3. Understand Your Revenue Streams Do you charge per project, hourly, or have retainers? Clearly categorising your income helps you analyse profitability and identify your most lucrative services. This information can inform your pricing strategies and future business decisions. 4. Master Invoicing and Collections Timely invoicing is crucial for cash flow. Ensure your invoices are clear, detailed, and include: ● Your business name, address, and contact information ● Client's name and contact information ● Invoice number and date: Date ● Description of services or materials provided ● Quantity and unit price ● Total amount due ● Payment terms and due date ● Accepted payment methods Don't be afraid to follow up on overdue invoices promptly and professionally. 5. Reconcile Your Accounts Regularly Reconciliation involves comparing your bank statements with your bookkeeping records. This process helps you: ● Catch errors or discrepancies. ● Identify missing transactions. ● Prevent fraud. ● Ensure your records are accurate for tax purposes. Aim to reconcile your accounts at least monthly. 6. Utilise Bookkeeping Software Gone are the days of manual ledgers. Modern bookkeeping software like QuickBooks, Xero, or MYOB can automate many tasks, including: ● Categorising transactions ● Generating invoices ● Tracking expenses ● Producing financial reports ● Integrating with your bank accounts Investing in good software can save you significant time and reduce errors. 7. Plan for Taxes As a business owner in the trades, you'll likely need to pay estimated taxes quarterly. Set aside a portion of your income specifically for taxes to avoid a large bill at the end of the financial year. Consult with a tax professional to understand your obligations and maximise deductions. 8. Monitor Your Cash Flow Cash flow is the lifeblood of any business. Regularly review your cash inflow and outflow to ensure you have enough money to cover your operational costs. A healthy cash flow allows you to take on new projects, invest in equipment, and handle unexpected expenses. 9. Seek Professional Help While these tips provide a solid foundation, don't hesitate to engage a professional bookkeeper or accountant. They can provide expert advice, ensure compliance with tax laws, and help you make informed financial decisions. Their expertise can free up your time to focus on what you do best – your trade. For a consultation, contact Person at File. By implementing these bookkeeping tips, you can gain better control over your finances, make more informed business decisions, and ultimately build a more stable and profitable trades business.