What happens when your business needs to cut costs…now. Don’t fret – you can work quickly before time runs out! And if you are looking at your books, evaluating your profits (or lack thereof), and wondering if your expenses need to be assessed you’re not alone.
But when faced with the issue of needing to reduce expenses immediately it can seem a daunting task. Administrative expenses are an easy first place to start if you aren’t quite ready to hire a professional. There are many areas within administration that, when controlled, can add up to significant savings.
Consider looking at the costs of your incidentals throughout the company. For example, the “extras” such as special employee holidays, event tickets, and other perks are an excessive expenditure that can easily be dialed back. If you’re already done this consider consolidating some of your remaining expenses, such as combining a special employee event with a training day or cross-combining outside resources across departments.
In addition to consolidating expenses, cutting miscellaneous costs can also help you find relief immediately. Every department has some sort of miscellaneous expense and it will take some manpower to comb through the reporting, however you may find 15% to 20% savings in the end. Making sure that department budgets are reasonable as well as proper checks and balances in place for spending are also good measures to follow.
Finally, money can always be found in your personnel expenses. Have you had a position recently become vacant? Taking your time to fill it can save you money in the meantime. Additionally, if your company is in serious jeopardy it might be time to freeze pay raises and/or consider layoffs.
All of these strategies can help you cut expenses immediately. However, if you would value a professional’s opinion before taking action we would love to learn about your company and situation. Contact us here or give us a call at 317-580-8440.
