Managing larger or smaller budgets is not only a demanding task, but also one that involves a lot of responsability. The way you manage your incomes and expenses could turn your business into a successful one, or into a failure, depending on your results.
Therefore, when planning your budget, you should pay attention to all aspects of your company, assess where you need to invest more or when it’s the case the reduce expenses. Each company has a set of goals and a strategy to follow, and this means knowing exactly what your strengths and weaknesses are, and also what you’re lacking or overcompensating with. That’s why some expenses, for example, are profitable on the long term for some companies and irrelevant for others. But, most managers and executives agree on the following company expenses as being borderline useless:
- Outdated office equipment and software. The costs with repairing, updates and service are much higher than if you were to replace old computers, fax machines, printers and programs used with newer devices and software. Not to mention that sometimes, especially in the case of software, it can incorporate multiple functions and you can manage different various activities without having to use 3-4 different applications.
- Office space. Flexible working hours and remote employees or co-workers are more and more common this days. It’s easy to keep in touch with over the Internet, making it easy to reduce the need of office space and storage space. Digital documents are a big help in this situation, because there’s no need to keep a large amount of papers and hard copy records.
- Travel expenses. Unfortunately, a lot of money is spent with travel expenses and most of them are not even worth it. It’s important to keep track of everything, from hotel rentals to travel tickets in order to manage efficiently your company’s founds.
- Less employees,more talents. In corporations and large companies, there are plenty of employees who act like busy bees, although it’s not always the case. Your Human Resource department shouldn’t be responsible only with hiring and firing, but rather finding true great talents that make a difference in your company. It’s a tough business world and you need the best to survive. After all, the saying “you’re only as good as your team is” was invented for a reason.
- Marketing. Make sure you work with a good agency or you have a good marketing department, because there’s no use spending money with campaigns that don’t have much impact because they weren’t targeted at the right audience, or the right message wasn’t sent. You shouldn’t give up on advertising, because it’s something any company needs all the time, but you need to have it done properly.
As stated before, these are 5 company expenses that are easy to reduce for most companies, but it doesn’t mean this applies to every business. Assess carefully each department of your company to make the best decision afterwards.
ExTreM Time Sheet and ExTreM Expense Report are software meant for efficient project management and expense report approval. It’s easy to analyse time spent on each project by your employees and to control all company expenses. Project management and expense report is made much easier, increasing productivity and reducing costs.
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