While the economic crisis continues, it's a constant challenge for small businesses just to weather the storm. Streamlining various aspects of company-wide operations is a priority that can be approached from various aspects.

Key areas that CPAs and others have identified as potentially reaping cost benefits for businesses are inventory tracking, payroll outsourcing, retirement planning, and negotiating better credit terms. In addition, seeking financial advice can aid in establishing cost-saving goals.

INVENTORY

"Two of the biggest control costs that small businesses have are their inventory and staffing costs," said W. Neal Carris, CPA, a shareholder at Glickstein Laval Carris, in Maitland, Fla. Carris suggested that to cut down on inventory costs, businesses should schedule their services and shipments to coincide with their sales cycles to save capital.

Cash on delivery is something more businesses are demanding either in full or in part to protect themselves in the receivables department, said Theresa Ruzicka, CPA, partner-in-charge of the Small Business Group at RubinBrown in St. Louis.

In terms of staffing, businesses should plan ahead to make sure that they can cover overhead from month to month, Carris said. To reduce employment-related costs, businesses should split shifts and hire temporary workers, he added.

PAYROLL

Outsourcing payroll can save not only with internal payroll costs but also with compliance. One particular area of the downturn's impact is the increase in unemployment insurance claims.

"First of all, it's a time-saver," explained Don McLaughlin, vice president of marketing for ADP Small Business Services. "We tell people all the time you probably didn't go into business to do payroll."

Payroll compliance is a big portion of ADP's services, as well as a key area for businesses, McLaughlin said. ADP not only calculates proper withholding rates, but also has a premium payment solution to figure out workers' compensation insurance.

ADP calculates premiums and sends them to the insurance carrier and thus helps avoid upfront estimated payments to the insurance carrier at the beginning of the year because the premiums are paid in increments over each pay period.

ADP's unemployment solution can help companies avoid having to pay out unnecessary unemployment claims. During an audit, ADP can work with the small-business owner to see if there are ineligible claims in the system and can file appeals with the state where necessary. "It's not always as clear-cut as it ought to be," McLaughlin added. "We take a look at what's actually going on."

McLaughlin noted that ADP consistently sends clients announcements on changes, including on payroll withholding rates on the latest tax tables, state by state. "We're in the compliance business," he said. "There is no forgetting deadlines."

Carris said that he cautions employers to get payroll taxes in on time. Penalties and interest on late payroll taxes can add up, he said. In addition, those company employees who are authorized signers on paychecks can be held personally responsible by the Internal Revenue Service for a company's late tax filings.

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