• A number of strategies can help improve your business's bottom line.Cash flow image by Blue Moon from Fotolia.com
  
  Business operators are always concerned about the bottom line, and one of the most effective ways to increase profitability is to limit costs wherever possible. To keep costs to a minimum, it is necessary to implement effective cost-saving strategies. By taking a close look at your business's operational policies and procedures, you can develop strategies that will save you money.
  
  

Strong Collections Policy

• Overdue accounts cost you money in lost revenue. They also increase your expenses due to the time and cost involved in chasing after payments. A simple strategy to increase timely payments is to call the customer the day before payment is due if it has yet to be received. A friendly reminder can help uncover any problems, such as the customer never receiving the bill.
  
  

Manage Cash Flow

• An effective cash-flow strategy means that you'll be able to maintain a larger amount of cash on hand. Work with your suppliers to see if they will extend your payment terms. If your payment history is favorable, they may be willing to work with you.
  
  

Focus on Reducing Operating Costs

• According to the Business Know-How website, a business has five categories of expenses: labor, rent, inventory, marketing and equipment. By paying as little as possible for operating expenses such as rent and equipment, you'll not only reduce costs but be able to devote more funds to money-making expenses such as marketing and inventory.
  
  

Consider Using Rental Vehicles

• If your business involves employees using their own vehicles to drive to job sites or take extended car trips, consider paying for a car rental instead of mileage reimbursement. According to IRS.gov, the standard mileage rate for 2010 is 50 cents per mile. If your employees take frequent long car trips, the cost of the rental may be less than paying the standard mileage rate, and your employees may appreciate saving the excess wear-and-tear on their vehicles.
  
  

Lease Computer Equipment

• If your company depends heavily on technology, and you need to keep up with the changes, it may be more cost-effective to lease computer and technical equipment instead of buying. When the lease term ends, it's simply a matter of leasing newer, updated equipment.