Usually, the focus of the business owners is on spending. Usually because this is the simplest and most spectacular thing to look at. However, there are other aspects to control the costs. The first is how to manage your cash flow. That's how I understand your budgets.
I would like to repeat that if you spend the time defining your budgets, it is much easier to handle the costs on the track. This also allows this process to be delegated by the Accounting Officer or the Chief Financial Officer.
1) TIP: IMPLEMENTING THE SYSTEM WHICH IS SOLELY IN PURCHASING ORDERS
One of the most effective ways of controlling costs once you have set your budget is to introduce a system where you only pay your bills for purchase orders. This prevents the staff from urgently ordering the numbers. Because as soon as you issue the instructions to the staff, make sure people are billed ONLY on a purchase order.
Staff has to spend money, which means that you have to request the order from the account. They then check the budget to make sure that the amount has been allocated and that the customer of the goods is entitled to make the order. If the answer is yes to both, the invoicer will issue the order to the customer for a purchase order
So when the bill is received by the accounts person will check that the goods and that there is no unresolved issue. Then you would make a payment check or an online transaction.
If there is no ordering order, you must return the supplier and / or ordering the goods to the assigned employee. I suggest that they are tough here – if you are not sorted, you will not pay. Then the employee has to pay for the settlement of the bill – and, most likely, but if there is a perceived consequence, he usually places the godly fear on them. Usually you will not spend your money again after the scare!
2) THE REALITY OF THE MONEY
One area that most contractors are generally comfortable with is cost control. But let's move on to the basics. As a business owner, set a key performance indicator for the financial controller responsible for the money. It is constantly striving to handle costs differently and innovatively, thus affecting the profitability of your business. Saved as a dollar, it leads directly to basic profitability. Some companies find that by executing tight cost controls and questioning that each release has achieved the same profitability improvement that would otherwise result from a significant increase in sales.
I must briefly go through a checklist found in the "Essential Financial Management Templates" workbook that you can buy from our website.
3) PUBLICATION OF PURCHASE
The first rule around the purchase. No matter who I deal with, regardless of whether you are a good friend or colleague who provides the service, I always compare it to two other quotes. I usually do not usually go to the cheapest option, but it allows me to go back to the original person and to open and honestly discuss the original cost reduction. I always think of a comment a NASA astronaut did once when asked about his feelings that space was in a new space shuttle for the first time. In his answer, he replied, "How do you feel when you want to fly into the art of millions of craftsmen in space where security of transfer is entirely based on the policies of our governments to get the cheapest part?" That's right. It is not always the cheapest solution, but to ensure that you get money.
4) ACTUAL COSTS OF BUDGETARY EXPENDITURE
Another point is to always check costs continuously. Every month I would suggest that we should not wait until the end of the year, or when we are in the feud, we must always focus on ensuring that we always get value for money. When you keep your reports at the Financial Controller, use this in time to review your costs and compare them to your budgets.
5) ASK THE RISK AND SHOW OTHER REMARKS
be sure you are aware of what's happening on the market. There is a new player who can offer a competitive price or is there an online opportunity for you. Maybe even a global opportunity to explore. I give an example to a website. I had a friend who tried to ask my opinion about the offer for building a website. The offer was $ 10,000. I started an elance.com website with a global online bidding community. A project gave a brief description of someone building a website and finally building up for $ 1,400. He was very pleased with the quality and the end result – the only thing he said was that he had to spend more time communicating with them (than overseas) but he was happy to save $ 8,600.
6) CONTINUING OVERVIEW OF STANDARD SERVICE FOR THE BEST PRICES
Are there areas that are controlling your budget or are they entering the market? For example, electricity or gas suppliers, telephone service providers, etc. You can save money by consolidating the accounts on your mobile phone bill. There are also telecommunications providers that actually provide free evaluation services to see where they can save your costs – they are used!
7) OVERVIEW OF GENERAL ENERGY CONTROL COSTS
Expenses, Did you carry out energy conservation checks in your business to ensure that you do not waste your money unnecessarily? For example, some energy-saving strategies may include turning off lights in offices that are not used or shutting down the air conditioning system, copiers, printers, and computers at the end of the day. Is it possible to use electricity during peak periods? Put timers in plants and equipment and post a message to your store, remind people to stop the lights and save energy.
8) FLIGHT TOWARDS
should be a stationery. Many business visitors do not pay a $ 10 shipping fee for their business, but send an office person to pick up the stationery at $ 25-30 per hour and allow them to buy "whatever they want". Did not you try to buy impulse items in a stationery store? This is impossible – take it from someone you know. See also small-volume purchases – you can save money with a large amount of shopping, especially when printing. Make sure that one person is responsible for the purchase of paper goods and order printing, so it is not open to everyone and you can be certain that the batteries are really needed.  POLICY
Do you have a travel policy for your business? If so, you must clearly define the class of air travel, the quality of hotel accommodation and the costs you incur and reimburse. There are a number of accommodation available today to make last-minute bookings at considerably reduced costs – check out wotif.com to see what I understand. On this page it means you actually have 5 star accommodations at a 3 star price.
10) CHECK BANK CHARGES AND CHARGES
Take into account bank interest rates, fees and fees – they need to be checked on a regular basis. Banks often blame for erasing fees and interest rates. It should continue to keep track of interest rates and margins quoted by banks and buy between the best interest rates.
11) REVIEW OF VEHIC PAYMENT BENEFITS
Vehicle allowances are also another cost quickly when workers are cotton on the fact that they can get a nice little finder through ATO vehicle support data. If many people use the vehicles, consider buying or renting a pool car. Often, the amount of money you can spend on vehicle payments can actually pay off your corporate car – so you can build your assets at one time. Another way is to offer all the fuel costs. So all that the employee has done is only to pass the receipt and they will be fully reimbursed. This is still cheaper than paying motor vehicle allowances – and it is easier to budget for your profit and loss forecasts.
To further simplify this process, you may need to further specify the limits of the cost reimbursement within your business.
12) REFUNDING THE REMUNERATION OF REMEDIAL EXPENDITURE EXPENDITURES
Insist on the induction program in business to make everyone clean from expectations. This is especially important if you are a business developer who wants a "fun" budget. Generally, I authorize people in this regard by providing profitability targets for sales – which includes things like their fun budget. But more often, I will sit with them and go on how to evaluate potential customers, without cost, to "win and eat" experiences. In fact, in my IT days, where everyone had a corporate credit card for "smoothing". I was more effective with my sales, because I was taking people for coffee.
13) CONSIDERING THE COMPLETE PAYMENTS
Advertising is an area where businesses can count on a lot of fees. In the Jump Start Your Business series, I covered an ad on another CD, but one thing I would like to mention here is to provide "false" accounts for advertising and to verify that each invoice is valid for a valid ad. Now if you have a buying order system or a centralized procurement process, you will not catch it. But a few years ago there was a scam where people got bills for "advertising", then pressure on the bills paid by staff to pay them. A nice little finder who comes from the lack of internal systems in 99% of companies.
14) CAUSED BY CAUTION!
I want to end up overcharging and checking accounts continuously for contracts. This includes rental contracts, supplier accounts, etc. If you have any doubts, do not forget to ask the vendor to give more details or ask any inconsistencies. Errors can be easily made, and suppliers are usually extremely apologetic if they discover a discrepancy.
15) WARNING THAT THE WEEKLY DEFAULT IS USED
Despite the best design, there will be cases when you need some small cash – that is, small amounts of cash for fairly small and random purchases
make sure that the amount of initial money is realistic – if you exceed the amount of money a month, you must determine that you spend cash and then put alternative strategies into place. At the same time, I would definitely suggest a one-month limit that the staff is aware of – eg. Monthly sum is $ 150. If you have exceeded it, you have exceeded it.
The cost of re-estimating costs will have a direct impact on you. However, be careful not to focus on minimizing costs than creating an opportunity. It is easy to reduce costs, but it is straightforward to create more income. So make sure you focus your attention in the right direction.
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