Business owners and managers are encouraged to get creative when looking for ways to save money.
This can lead to interesting ideas like cutting energy bills by putting light sensors in bathrooms and hallways that only turn on when someone is there. Or taking an old elevator off-line – not only will this cut down on maintenance expenses, but it will also ‘encourage’ employees to take the stairs.
Some businesses are moving to phase out desktop computers, and allowing staff to use their laptops or mobile devices. This also can save on hardware repairs and software upgrades but may require more security to make sure these phones are safe.
Expenses can also be monitored in the area of reimbursable employee costs. Though employees are often empowered to go out with clients since it often leads to new business and better relationships, there are still some ways to cut these amounts.
- Credit card use. If there’s a practice of letting employees get whatever they want, this may need some tweaking. Have someone audit the statements every month to see if all charges are appropriate and work-related.
- Modify approval practices. Consider approving meals with clients but create a policy requiring the employee to reimburse the company for extras like liquor or dessert. They can still throw these in if they believe it will help a deal, but also can lead to less chance of being abused.
- Look into new credit cards/credit card processing software. If you’ve had the same program in place for years, it might be a fine idea to research other options with lower interest rates or more services and benefits.
- Negotiate for discounts. Can vendors give lower rates if you declare them your exclusive provider and buy in bulk? This can be hotels, restaurants, airlines, or car rentals.
- Establish spending limits. It’s nice to trust employees to do what’s right, but you can also set a per-person guideline to keep them from dining at the classiest places (“we’ll pay up to $20 per lunch, and you’ll pay anything beyond this.”
For more financial strategies contact Nations Capital Financing.