How to reduce corporate storage expenses
Posted: Mar 23, 2020
Using corporate storage has huge benefits. Many companies have offices full of documents and other material they don't use at the moment but are required to keep. However, since in the business world every penny counts, it is crucial to find clever ideas to reduce corporate storage expenses. If you succeed in that task, your budget will increase, and you can put that money in better use. With that in mind, let's see what approaches you can take.
Easy ways to reduce corporate storage expenses
Finding ways to reduce corporate storage expenses depends on a few factors:
- what type of storage is your company using
- what kind of material you keep in the storage
- how much of the storage space you use
Let's see how these factors reflect on corporate storage expenses.
Types of storage
There are 3 main types of storages:
- Traditional type - A conventional storage unit often used to keep a large quantity of stuff you don't use at the moment. Needs access approval.
- Self-Storage - An option often used for a smaller quantity of stuff, and it can be accessed at any time.
- Storage in transit - a type of storage that allows you to keep your stuff in a moving truck for an amount of time. Mostly used when relocating.
As you can see, different storage units have different usage and prices. The first way to reduce corporate storage expenses is to check if you are using the correct type. You could be spending more money than you actually need.
The type of material you keep stored
Before you can divide your stored items into categories, it is crucial to have your storage organized properly. Only then you can continue thinking about reducing the cost.
Many companies keep contracts and important documents in storage. The amount of paperwork is large, and keeping it in this manner is not advised. Not only it costs a lot, but the paper is damaged over time. If you do have paper documents that you keep in the corporate storage, see that it is transferred in an online storage unit. Keeping your documents in the electronic form is the best way to store them.
After all, that's why Cloud services are so useful. And the price is way lower.
Are you using the most affordable storage unit?
Another question to ask yourself is, are you using the most affordable storage unit? Prices differ based on the company you pick, and you should definitely do your research before renting one. Moving companies have great deals when it comes to storage units.
For example, Carrolton, TX has to offer a variety of moving services, and among them the perfect storage unit.
Turn your office in a storage unit
If you have enough space in your office, there are ways to keep some of the stuff in the office and reduce corporate storage expenses. However, you should only decide on this option if you are storing something you might need from time to time. You shouldn't occupy office space with unnecessary items.
With that in mind, invest some money in your office by installing:
- filing cabinets
- storage carts
Any of these options is viable if you wish to turn your office into a storage unit.
Write off the cost of corporate storage as a business tax
It is really important to know that you can write off the cost of the storage units you use. However, there are a few tricks you should know. First, you shouldn't classify this deduction as you would classify your office space. Instead, it should be classified as rent. That way the rental charge is added to any other rental charges your company may have.
So, when you are filling out your taxes, this is how you should include the corporate storage deduction:
- sole proprietors / single-member LLCs: it should be included on Schedule C—Line 20B
- partnerships / multiple-member LLCs: it should be added to Form 1065—Line 13
- C-Corporations: add it to Form 1120—Line 16
- S-Corporations: add it to Form 1120S—Line 11
Using self-storage for mixed purposes
There are multiple cases when companies use a part of the storage for private purposes. That is perfectly legal, however, in that case, you should know that you can't deduct the entire rent of the storage. What you should do is, calculate the percentage of the storage you use for business purposes. Then, submit a deduction in the value that covers only that percentage. You can pay the rest out of your pocket.
To give you an example, if you are paying a storage unit $100 a month, and you use 70% in business purposes and the rest for private items, you can deduct $70 dollars as business rent tax, but you have to pay $30 dollars for the rest.
If you wish to inquire about possible uses for self-storage, you can easily rent storage online and check what your options are.
Moving your office
Reducing corporate storage expenses has multiple benefits. First of all, you save some money you can later use for other business purposes. Furthermore, the entire process makes you organize the storage, which is useful if you wish to move at some point.
It is especially important if you are using an office unit rented from a moving company. If you are already a customer with them, it might be beneficial if you decide to relocate. Chances are that you might get a better package cost. Or, it can lower your storage cost in the future.
If you are considering this, give a chance to smallworldmoving.com.
Simple and easy, as promised!
As you can see, there are many ways to reduce corporate storage expenses. You just have to be creative and do your research. Corporate storage is useful, and it should be used when possible. Just have in mind to organize yourself in a way that will allow you to save money and avoid overpaying for a corporate storage unit!
My name is Betty and I have been writing expert articles in relation to the moving industry for the last couple of years. Besides this specific area, I am also experienced in other spheres pertaining to the concept of relocation.