Administration Expenses (1 of 6): Cutting Administration Expenses - John M. Leask II CPA/ABV, CVA

Administration Expenses:

Part 1 of a 6 part series

Warning Signs:

    • Increased administrative expenses.
    • Increased overhead expenses.
    • Significant adverse deviations from budget.

  • Significant increase in a particular line item’s cost.


  • 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.

Back to The Business Doctor

>>Administration Expenses (1 of 6): Cutting Administration Expenses
>>Administration Expenses (2 of 6): Cutting Insurance Costs
>>Administration Expenses (3 of 6): Cutting Interest Charges & Legal Expenses
>>Administration Expenses (4 of 6): Cutting Supply & Telephone Costs
>>Administration Expenses (5 of 6): Printing, Rent & Misc. Costs
>>Administration Expenses (6 of 6): Training & Utility Costs