Monthly Subscriptions with automatic payments can cost You Thousands.
One of the most important things you can do is review your general ledger weekly. When your review your general ledger periodically you will find a bunch of things hurting your profitability. One of those things that get us all are our monthly subscriptions. I reviewed mine recently, right before I went on vacation, and here is what happened to me.
Every Monday morning I go in and I enter and reconcile all of my transactions in my QuickBooks. I will import my Amex credit card transactions and review and enter bank transactions. I noticed my Amex was charged $269.95 from a vendor Efax, this amount is unusually high. Since my employees work from home, I use an online faxing service. So I went online to see why I was being charged so much. It turns out I got charged for an annual fax line which I am no longer using. So I called them and canceled the line and received a refund, which was a $220 charge. Looking deeper there was two lines I really did not need any more so I canceled those and I was able to lower my bill from $49.95 to $19.95 or $30 per month. The great news is I was able to save over $700, by reviewing the services of this vendor.
We need to review these automatic vendor transactions periodically. We set these up and we forget about them and our money drips out of our pockets. But these drips add up. Saving $30 per month is $360 per year!
Since the beginning of this year I cut $9,122 per year by reviewing my monthly subscriptions. We set these things up and our situation changes and we have a tendency to forget about the automatic payments.
For more information on how you can do this, check out my book here.