Ten Ways to Save Your Company Money
When the latest recession hit, all companies started researching any way imaginable to save money. While there are many ways to save money, some are more easily achieved on a day-to-day basis than others.
A lot of money can be saved in Human Resources alone. Salary freezes, hiring freezes, and a no over-time policy during a recession are not uncommon. The company as a whole should look for ways to save money. If an employee travels to another city, he should be given a per diem allowance for food and accommodations. Even if he may claim the restaurant was the closest to the hotel and most convenient for the clients, a $400 meal is excessive. Manage spending by managing who spends how much, while keeping allowances and budgets fair. Certain departments may receive higher budgets than others, making confidentiality a key concern when managing spending.
Technology allows for many ways to stretch a dollar. If one of your employees often conducts presentations and prints out the Power Point slides for the audience, be sure that she prints at least three slides to a page. From there, she can make copies double-sided, saving thousands of sheets of paper over a period of just a few months. She may also choose to send the presentation electronically through e-mail in .pdf form, instead of making copies. This way the audience chooses if they need the presentation printed and if they do, they use their own ink and paper.
Cross-training and employee learning opportunities can increase productivity and brighten morale. However, you should look for local seminars and conferences to save travel expenses. You may even work with a training vendor on special prices if you agree to send a certain number of employees to a certain number of workshops a year. Cross-training employees can save money by eliminating an entire position, thus saving the money you would be paying in salary and benefits to another employee.
The accounting office should be most conscientious about spending. They should provide you monthly reports of budgets and expenses and predict spending trends. If an order of office supplies is greatly discounted at a certain amount, then office supplies should only be purchased when that amount is reached. Those in accounting should also be wary of every invoice that passes his or her desk. Telecommunications companies are notorious for making mistakes and/or adding taxes from which you may be exempt. If a vendor claims an invoice has not been paid, make sure your staff follows through the entire process of securing the cashed check and communicating with the vendor to clear the debt. Don’t be afraid of change – if an employee finds a vendor that can provide an every-day product at a lower rate than you are currently paying, change vendors.
Saving money means paying attention. Your entire company should cooperate, sacrifice, and acclimate to any changes in policy or procedure that may mean the difference between profit and failure. All expenses should be scrutinized and justified, just as any important company-changing decision should be.
