Inflation isn’t making headlines like it was last year. But Canadian businesses are still feeling the pressure. Operating costs are creeping up. Revenue looks steady on paper, but profit tells a different story. And if you’re not actively reviewing your cost centres, you might be bleeding cash without even noticing.
At Enkel, we work with lean teams every day. Many of them come to us not because they’re in trouble, but because their margin has eroded to the point where business as usual no longer feels sustainable.
They’re looking for clarity. Accountability. And a reset. That starts with understanding what’s quietly draining your profit.
This isn’t a list of generic cost-cutting tips. It’s a breakdown of overlooked operating expenses that can be cleaned up or reallocated to restore margin without killing momentum. These are the exact issues we help clients solve every month.
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TL;DR
- Hidden costs like bloated software stacks, autopilot ad spend, and outdated vendor contracts are quietly eroding your margins.
- Most small and mid-sized Canadian businesses don’t have time for a full audit — but a few smart moves can unlock serious savings.
- Enkel helps teams get leaner without cutting to the bone by bringing structure, clarity, and accountability to your operating expenses.
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Where Most Businesses Go Wrong: Confusing COGS with Operating Expenses
If you’re trying to tighten margins, start by looking in the right place.
Many business owners zero in on Cost of Goods Sold (COGS) (materials, packaging, production, etc.) because it’s tied to delivering the product. But in reality, operating expenses (OpEx) are where silent profit leaks often hide.
Here’s the difference, and why it matters.
| Type of Expense | What It Covers | Who Manages It | Can Enkel Help? |
| Cost of Goods Sold | Direct materials and labor tied to delivering your product or service | Ops or production leads | No. COGS is operational, not part of your finance back office. |
| Operating Expenses | Software, marketing, admin costs, rent, salaries, contractors | Founders, GMs, finance teams | Yes. Enkel can reduce waste, streamline ops, and optimize spend. |
Why OpEx Matters
You can’t “save” your way to profit by cutting essentials. But if you’re overpaying for underused software, locked into legacy vendor contracts, or running bloated ad campaigns, your margins will keep eroding.
That’s where OpEx becomes your leverage point — and where Enkel becomes your ally.
15 Must-Track Metrics & KPIs for Nonprofit Success
10 Hidden Cost Centres Worth Reviewing Every Year
These aren’t frivolous expenses. They’re areas we’ve seen quietly balloon inside companies that otherwise appear to be running lean.
1. Software Subscriptions
- Tools you rarely use but continue paying full price for
- Auto-renewals no one tracks
- Overlapping tools doing the same job
What to do: Run a license audit. Assign an owner for each tool. Cancel or consolidate anything that doesn’t support your current operations. Enkel clients often come to us with dozens of tools on the books. We help flag redundancies and clean up spend.
2. Marketing and Advertising Spend
- PPC or social campaigns still running from last quarter
- Agencies charging retainers with no clear ROI
- Unused martech or automation platforms
What to do: Pause and assess. Ask: what return are we getting from this spend? Is there a more efficient way to achieve the same results? We’ve helped clients reduce marketing costs by tens of thousands without losing pipeline—just by aligning spend with strategy.
3. Freelancers and Vendors on Autopilot
- Contractors who are no longer active but still invoicing
- Retainers without deliverables
- Out-of-scope work slipping through without oversight
What to do: Review every contract. Re-scope where needed. Move to project-based arrangements if retainers aren’t producing value. Our finance team can help set better vendor controls and clarify spend categories.
4. Inefficient Processes and Manual Workarounds
- People manually reconciling data across systems
- Finance or payroll tasks that eat up hours
- Duplicate roles across departments
What to do: Automate what you can. Clean up legacy workflows. At Enkel, this is a core part of our service: helping clients modernize financial processes so their team isn’t stuck doing busywork.
5. Legacy Vendor Contracts
- Insurance, IT, or payment processors you haven’t benchmarked in years
- Services that were once a fit but now cost too much for what you get
What to do: Shop around. Renegotiate. We’ve seen clients save five figures by switching providers—and we help manage the transition so it’s not disruptive.
6. Travel and Event Costs
You probably trimmed travel in 2020 and haven’t really re-evaluated since. But now those costs are creeping back into budgets without the same scrutiny.
Common drains:
• Conferences with questionable ROI
• Unused flight credits or travel subscriptions
• Poor tracking or late filing of expense reimbursements
Fix it: Set clear ROI expectations for travel and events before you book. Track spend in one place and centralize approvals to avoid post-trip surprises.
7. Underused Office Space or Real Estate
Office costs still account for a major share of overhead, especially for hybrid teams. But many companies haven’t re-evaluated their space since going remote-flex.
Common drains:
• Paying for full-time space that’s half-used
• Long-term leases on underutilized units
• Offsite storage units and leased furniture that no one monitors
Fix it: Audit your physical footprint. If you’re not using the space every day, renegotiate, sublet, or exit the lease when possible.
8. Employee Perks That Don’t Get Used
Perks feel generous. But if they’re not being used, they’re just line items draining margin.
Common drains:
• Gym or wellness memberships no one redeems
• Branded swag, catered lunches, or subscription perks with low uptake
• Irregular spending on culture initiatives without evaluation
Fix it: Survey your team to find out what actually matters to them. Cancel low-usage perks and redirect budget to high-impact benefits or morale boosters.
9. Payment Processing Fees
It’s easy to overlook fees when revenue’s flowing. But with margins tight, even a 1% fee swing adds up.
Common drains:
• High per-transaction fees from legacy platforms
• Unoptimized payment flows with costly intermediaries
• Avoidable cross-border or currency conversion charges
Fix it: Review your rates. Shop for better processors. Consider Canadian-first platforms that reduce FX costs or bundle payment services at better rates.
10. Recurring Bank and Accounting Fees
Some businesses have been with the same bank or bookkeeper for years out of habit, not value.
Common drains:
• Multiple business accounts with monthly service charges
• Bookkeepers who deliver compliance but no insight
• Paying for both internal and outsourced finance support with unclear value
Fix it: Review your financial services. Consolidate accounts. If your back office isn’t helping you grow or improve margin, it’s time to reassess.
How to Run a Smart Operating Expense Audit
You don’t need to be a CFO to do this.
Start with a basic table:
| Expense Category | Monthly Spend | Owner | ROI Rating (1–5) | Action |
| Slack & Zoom | $385 | Alex | 3 | Consolidate |
| Meta Ads | $1,200 | Kim | 2 | Pause & review |
| IT Retainer | $750 | Drew | 4 | Keep |
This simple framework creates accountability. It helps you decide what to cut, what to keep, and what to change.
We recommend clients revisit their operating spend every quarter. It takes less than a day and can reveal tens of thousands in unnecessary outflow.
Why You Need to Audit Costs Before 2026 Planning Begins
Budgets don’t start in January. They start now.
If you don’t address waste this quarter, it’ll carry over into next year’s baseline. And if you’re already stretched, that could mean:
- Skipping key hires
- Missing cash flow targets
- Overinvesting in low-ROI areas
Getting ahead of margin leaks now puts you in a stronger position to grow without sacrificing stability.
From Cost Creep to Control: What Working With Enkel Looks Like
Enkel isn’t just a bookkeeping provider. We’re a financial operations partner. That means:
- Helping you understand where your money is going and why
- Supporting your internal team with tools, processes, and strategic input
- Giving you access to finance professionals who know what good looks like
We don’t just keep your books clean. We help you run lean without compromising performance.
Want support reviewing your operating spend or preparing for 2026?
