Working with Other Departments to Cut Costs

As the costs of launching and running a business keep growing, companies continue looking at cost-reduction ideas. Asking the accounting department to work with other departments within the same business is one way that many businesses began reducing overhead costs. While accountants are generally in charge of the financial side of operations, this department can often help you to find ways to reduce spending.

When some companies decide to cut down on spending, the supervisors in the company decide to lay off employees or pay employees less. According to a recent article by Matt Brownell, this can actually do more harm than good. Brownell points out that well-paid employees are more productive, which is a sentiment echoed by Costco, Trader Joe's, and a few other companies that pay employees a rate well above minimum wage. Companies should look at other cost-reduction ideas that do not involve the employees.

As a company begins work on a new project, cost management should be the main issue at hand. Accountants and those working in the accounting department must make sure that the project comes in at or under budget. Cost-reduction ideas can be as simple as changing from paper receipts to paperless receipts or recycling scrap paper and reports for use in the future. Companies can also shop around for a lower rate on credit and debit card processing, security costs, and insurance for employees.

Cost-reduction ideas often involve the accounting department working with other departments. This is especially helpful if you find yourself spending more time in your office and less time communicating with others. The advertising department might suggest a cheaper form of advertising that focuses on retaining customers rather than a more expensive program that attempts to bring in new customers. Other departments can offer cost-reduction ideas such as telecommuting. By letting just a small number of employees work from home, companies can save on a number of daily bills. Talking to employees is another way to find potential ways to save. These employees can offer suggestions that include prepaying for office expenses, bartering for equipment, and applying for business credit cards that come with additional perks like free airline miles.

Cost-reduction ideas for new and existing businesses can help a company save money on daily operating costs. Whether it's a future project or a new project, cost management can also help by keeping everyone on the same page and helping workers stick to a set budget. While the accounting department is responsible for the financial side of the business, smart business owners know that this department can work with employees and other departments to find and implement cost-reduction ideas.

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