Whether you are a small or large company, an expense is always something you are trying to reduce. Therefore, knowing how a company can make savings is one of the keys to having an optimized income statement (i.e., that our expenses have the least impact on the bottom line).
Here are some tips to help you optimize your finances and save money. The key is, as in many occasions, to reduce expenses down to the smallest details. It is not a matter of simply making cuts, but of reviewing your processes in order to optimize them.
How can a company save money?
1. Manage basic expenses correctly
Today, there are many platforms and tools to compare prices and services of our supply providers (such as electricity, gas or telecommunications). For commodity calls, it is highly advisable to make this comparison so that you can choose the cheapest provider in the market.
As we mentioned earlier: starting with the most basic savings can have a big impact. Do the right research and hire the most optimized service for you.
Reduce fixed assets
Convert as much of your fixed expenses as possible into variables. For example, do not invest in offices for more than what is necessary: you can rent them for months, days or even hours. At this point you can also add the formulas of renting and leasing to cover investment needs in cars and computer equipment and look for free tools that suit your needs or SaaS (pay-per-use) solutions instead of investing in software packages.
Another key is, if your company needs to use a payment system for your business, compare the costs very well, as most entrepreneurs choose a POS from their bank because the exchange rate is better than a payment gateway, but the fees are higher and in the end it can be more expensive.
3. Strategic costs
Once the operational adjustments have been made, it is time to take a step forward and think about whether the structure of the company (such as the product portfolio, the markets in which it operates, etc.) is absolutely essential.
In other words, beyond the operational cuts, it is also important to rethink the strategic ones. How can we continue to operate with lower costs? Do I still make this product? Rethink if it makes sense to produce that product/service and if it really makes sense what we are doing.
Therefore, it adjusts the portfolio of products and services, as well as eliminates unproductive lines.
4. Hiring incentives
Take advantage of the hiring bonuses that exist at any given time and that can result in significant savings. For example, social security bonuses if you have personnel dedicated at least 85% to research, R&D or technological development activities.
5. Commitment to digital accounting
More and more companies can be managed more effectively with the new SaaS. The savings compared to traditional management can be (economically) up to 50%, as well as the reduction of operating costs and the gain in agility.
6. Automate processes
The new tools allow you to automatically perform many processes that used to be done manually. Making the change improves efficiency and reduces the risk of errors that can cost you money.
An example of this can be inventory. It is as bad to have too much as it is to have too little, because if you cannot satisfy the customer, he may be disappointed and go to the competition.
These six possible solutions can help to understand how a company can make savings.
Orama allows you to have a complete and forward-looking view of your company’s expenses. This will make it easier for you to analyze in which expenses your company’s liquidity is going (and will go).
In a 15-minute, no-obligation demo, we show you how to create future forecasts and learn how a company can save money.