There Are Little Tricks To Control Costs.

If your company has a CFO (chief financial officer) post, he / she should start helping you with this kind of analysis.

CFO with good financial control should be very active in this work.

Please note that this is beyond the experience and skill category of most simple bookkeepers.

I understand the original intention of entrepreneurs to search for answers. Therefore, if you want to grasp the details of your expenses or you want to know about the work of CFO, you can follow the following steps.

In order to find out the cost of each operation cost of a company, we need to calculate the corresponding return on capital and its percentage in the revenue system.

Your financial software (such as QuickBooks) should be able to create similar reports easily.

The results were compared with the average of last month, the last three months, the first few months of this year and the data of the same period last year.

Second, examine the reasons behind each data.

I have a client whose recent parking fee for freight cars has increased significantly compared with the previous quarter and last year, which greatly reduced the company's

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From this we analyzed the parking management of the city where the company was located, so we suggested that he change the delivery time, implement the peak shifting system and start the ticket defense service, which is more economical than handling every ticket.

Create and use

It is one of the most important links in financial management.

Through the budget mechanism, we will establish an estimation system for the details and benefits of expenditure in the coming year.

It allows you to think about the origin of every expenditure naturally.

It needs to be reminded that over budget is always unavoidable. Don't worry, as long as we can find out the reasons for overspending, we can make moderate adjustments.

Simplifying the actual expenditures into data or trends and making them

It is an intuitive and essential report, which is convenient for analysis.

Profit, expenditure, income and cash flow are particularly important indicators.

Financial software can provide essential reports to all enterprises in all walks of life, regardless of size, and automatically generate data.

On the basis of daily or weekly reporting system, let you and the management team quickly get to know the company's movements and problems.

This is the most important representation of the company's operation. Whether the news is good or bad, it will help the steer to have a good idea of his company.

Generally speaking, it is difficult for enterprise managers to get reliable data related to their own industries without paying a certain fee, but smart helmsman can always take the initiative to make strategic plans with some analytical tools.

ProfitCents, a commercial service software provided by Sageworks, is an effective tool.

Once a business leader thought his sales cost was very low, but according to ProfitCents's data, the cost was two times the average of the industry.

Eventually, the helm reorganized the Sales Department of the company, saving over $100 thousand a year.

If it is difficult to find such service tools, we can analyze all kinds of data of industry associations, such as overhead ratio.

At the same time, data sharing can be sought from some local businesses of the same size - non competitors.

You can get the local rent, salary level and other cost related data.