We must cut expenses.!!! It is easy to say, expression mainly if coming from an external adviser, consultant or Executive of banks, when referring to how improve the operation at a company or customer regarding expenses. To reduce costs, there are many techniques with sophisticated names, among them: downzising or rightzising. The important thing is not the name if reduction and optimization of expenses should not be as a strategic issue and focus on key industries, over which we have control and mainly to reduce them not afectemos business. Expenditure reduction involves tightening the belt in all areas. All spending must be justified and preferably those that perform: affect business positively, preferably easy to interact with sales growth, or increased productivity, are strictly necessary. A company should not expect a crisis to start a programme of efficiency in spending. Control cost You must be a permanent part of the Manager task / Comptroller.
There are items most important on which we must pay attention and implement a plan to reduce costs: cost of production or cost of producing services, general expenses, payroll; Maintenance and extraordinary expenses. That method follow? It is difficult to indicate one adhoc to each company, but the most common are: trend analysis: comparatively review expenses versus months or earlier periods and focus attention on those who experience significant variations, both increase and decrease. Justification: The exercise of budget base zero postage and request to each area and Department to justify every expenditure to perform and explain or detail above the expenses already incurred. Ask is this expenditure necessary? It can be reduced? Can you postpone? Budget: In these times of crisis, it is important to establish the expenditure budget and irlo monitored every month, evaluating their deviations. The fact of having a budget does not obligate to spending, if we can avoid or postpone expenditure must be motivated to do so.