Part 1 of a 6 part series
- Increased administrative expenses.
- Increased overhead expenses.
- Significant adverse deviations from budget.
- Significant increase in a particular line item’s cost.
Steps to Improve: CUTTING ADMINISTRATION EXPENSES
- Cut Overhead: It falls directly to the bottom line.
- Cut costs in hard times.
- Charge to Direct Costs: Recover – reimburse/pricing; minimize absorbed overhead.
- Accounting Costs: Improve systems; computerize; take work in house.
- Auto Expense: Monitor personal use of company cars.
- Collection Expense: Use a “dunning service” to avoid collection agency fees.
- Computer Supplies: Shop around.
- Credit Card Fees: Trim the cost of credit card processing.
- Credit Card Fees: Comparison shop banks to lower credit card fees.
- Dues & Subscription: Review spending for publications and organization dues.
- Financing Cost: Reduce bank fees; front end costs.
- Financing Costs: Negotiate sweat equity / barter.