Businesses can make profits by doing two things- either increase sales or decrease functional costs. We have read many articles about improving business profits but let us now focus on decreasing functional costs to indirectly increase the company’s profits.
Most organizations assume they are functioning in a cost-effective manner but in reality, there is a large scope of areas where they can cut cost and not really affect the functioning of the company.
We are going to focus on some of those cost-cutting areas below;
- Cell Phone:
Cell phone companies can send you the most confusing bill possible so that you don’t really tally everything, and they can get away with all the extra service charges. Other than legit call bills, the company may be charging you for caller tunes, horoscopes and other services not related to the company functioning. Every time your employee submits the bill, make sure your finance team tallies the bill before clearing the payments.
Now let us speak about the phone insurance you opt for all the company phones provided to employees. Frankly, cell phones are cheap nowadays whereas adding insurance for all your employees’ phones may be a much more expensive affair, after all how many of your employees lose their phone every year?
- Landline phone:
Just like cell phones, landline phones are also known for adding up unwanted charges for services your company does not really need like voice mail services, even after all the phones are voicemail enabled. On top of that, these companies add taxes and tariffs to the bill as well which increases the overall cost.
Internet providers usually give a listing of plans to choose from based on your speed, upload and download requirements. The faster the speed, the more they charge. In fact, the charges raise exponentially as per the speed and many times you will not even notice the difference. Sit with your IT team before you choose a plan based on the number of users using the same bandwidth. Also, take quotes from 2 to 3 providers to get the best rate possible.
Most companies use multiple computing systems to function. Each system will have a list of software which needs valid license to function. The software license is in general expensive hence you should make sure that you are buying only the required number of licenses. Contact the software supplier and check for discounts on bulk purchases.
To do computing activities for business purposes, you may need to use the software. Sometimes, the same functions are provided by multiple software hence you can compare the different functions each software provides and choose the one which meets all your requirements and is cost-effective at the same time. For e.g., if one of the businesses your company is involved in is trading then you will have to install a trading software to compute and predict future market trends. There are many trading software options available hence choose the right one by reading reviews and comparing the prices. Algo Signal is one such trading software which gives you multiple trading features at a competitive price; you can get more information about this software from algo signals review 2019.
Security and alarm companies quote a price while making a contract with the company just to get hold of your company as a customer and slowly start increasing their price in just a few months. They also try to push in extra redundancies just to increase the price. Make sure you have a team of people to verify the optimally needed security and check the prices as per contract, every time the payment is made.
- Common Area Maintenance Charges:
Businesses that run in a commercial building where there are many other companies will have to pay maintenance cost for common area functioning. This value is calculated every month and sent to your company directly which you are expected to pay. Most of the time, the calculations in the bill are ignored and paid without verifying. The reality is that the value is calculated based on your company’s footprint which is often miscalculated hence make sure your finance team is instructed to thoroughly verify the value every month before making a payment.
Your aim while running a company should not just be to improve revenues but it should also be to focus on unwanted cost cuts; after all the money saved by efficiently cutting on unnecessary costs also adds up to the overall profit.