Strategies to Reduce Accounting Costs

While generating income and a profit is a major goal in business, saving money is equally important; after all, for every saved of money earned is more profit.

Decreased costs mean higher profits. For example; Profusion ®ERP system offers accuracy and automation that together reduce operational and administrative costs. Profusion® ERP system allows businesses to improve the management of their operations while giving users the information they need to make quick decisions.

Also running a small business can be a complicated, and before you realize it, your costs can grow. Sometimes it is difficult to know where to cut costs, without hurting your business. To help you when checking out your expenses, we have put a list of the top ways to reduce your business costs.

What are the Ways to Reduce Costs in Your Accounting Department?

Doing more with less is the big target goal for business owners. It is easy to overlook expenses such as (paper, printing, and even wasted time doingdata entry tasks). While maintaining, or even increasing, your quality of service and/or product, is a challenge, but it’s not impossible. You might be surprised to learn that achieving these goals will also reduce costs associated with day-to-day operations, improve your budget.

Sounds good? Let us get into the details of how you can accomplish this:

#1: Identify & Eliminate Duplication

 Investigate if any activities duplicate across multiple departments or verticals.

Are two or more departments performing functions that only one of them can do for both? Or can a separate support department perform this function for both departments?  The answers to these questions should take in consider to your business to cut costs.

With Profusion ERP® transfer knowledge with minimal effort & time between employees, which is good to avoid duplicate work.so this will increase ROI and reduce Total Cost of Ownership (TCO).

#2: Trust in Technology

You may be wondering how to save time and reduce costs. Up-to-date technology helps accomplish all of those things we mentioned. You can achieve a streamlined workflow and automated process with the right management system for your business.

This especially helps to reduce costs in accounting, because of the invoice process and the need to get sign-off from Manager A to push the document through from Step 1 to Step 2. With ERP and automatically notifying the necessary person in the next step of the process, so there is no need chasing someone through the office to get an approval.

Also for SMB using systems with good price to replace some of the old systems that were in basic of your business for example; biloba® accounting system is cloud-based application designed for SMB and start-up you can use it instead of an obsolete   accounting system.

#3: Explore Non-Traditional Working Methods

Even in cheaper locations of rent, the costs of office space (rent, overheads) and human resources (salaries, insurance, transport) can spiral out of control. In such cases, you might consider to rent main office in one location and sub-office in lower-cost locations. Another cost-cutting measure you might implement is telecommuting/work from home. Virtual and collaborative working technologies can enable people to access work resources from any location and save the costs associated with physical space.

Our Business Solution help your business to work remotely from any placed you are.

#4 : Encourage Early Billing & Payment

Early payments often come with discounts, because vendors and billers are able to pay their accounts quicker for the month.

If you are not there, don’t worry – take steps to make sure your payments are on time, consider the following tips:

·  Note all your due dates for bills and supplies on the calendar.

·  For invoices, note what’s needed to submit the payment (credit card number, proper address, and the right documentation to  the payment)

·  Make a weekly schedule on what should be sent out & for whom, and give buffer time (allow at least 3-5 business days for time to process).

·  As your accounting department get on this way , you can use these methods for your clients’ payments, too, as guidelines on submitting payments

With ProTech business solution, you will have no worry about customer payments.

#5: Cut Back on Paper Use

Paper circulation in offices is unbelievable, not to mention wasteful. Most of paper that’s printed is thrown away by the end of the day – which means a trillion sheets of paper over the course of a year.

With our business solution, it is not only more efficient, but it’s also more cost-effective! Imagine what you could do with the saved money of a trillion sheets of paper annually.

Conclusion:

While accounting has a strong focus on numbers, it is hard to see the big picture on how to reduce costs. With the right technology implementation and standardized system, you can see cost in all departments.

If you would like to learn more. ProTech is constantly providing tips and ways on what to look for when seeking for business solution. Visit us today!

OR, maybe you’re finally ready to take it a step further and find out what specific benefits your business could see from our business solution… if so, what you are waiting for !

Reference:

https://www.inc.com/encyclopedia/cost-control-and-reduction.html

https://hbr.org/2010/05/when-youve-got-to-cut-costs-now