Update: This article was last updated on 13th May 2020 to reflect the accuracy and up-to-date information on the page.
Every business, be it large or small, aims to make profits from its services. The most common way to do this is to cut costs and save money. This sometimes might come at the cost of a decline in the quality of its products or services (which can negatively impact the business). Thus, cost-cutting should never come at the expense of quality.
The accounting department is the leading financial manager of every company, plays a significant role when it comes to cutting money without compromising with the quality. Modern technologies and business practices are continuously looking for efficient solutions that can bring down the investment amount while delivering the same level of productivity, if not better.
This infographic lists major areas where every company spends a lot of money along with simple ways to cut down on those expenses in order to make profits.
1. Manpower Cost
Hiring a dedicated accounting team can help in a lot of financial activities such as auditing, tax preparation, policy-making, etc. However, it comes at the cost of spending large amounts of money.
One of the simplest ways of cutting costs here is by switching to offshore accounting. It saves a lot of money spent on office space, hardware purchases, and a lot of other on-premise expenses.
2. Infrastructure Needs
Having an on-premise accounting department requires a dedicated office space along with a lot of hardware needs such as printers, billing systems, desktops, furniture, and more.
The easiest way of saving money here is by encouraging employees to work from home and by promoting BYOD (Bring Your Own Device) culture. This enables employees to work on their personal devices in their workspace that saves up a lot of money spent otherwise on infrastructure needs.
3. On-premise Setup
Working on-premises comes with the need for an entire setup for each employee with personal desktops, printers, bar code scanners, etc., leading to the spending of a lot of money.
Moving to the cloud solves the problem here. When accounting and other software are hosted on the cloud, accountants can work from anywhere on any device that cuts a lot of money spent otherwise while working on-premises.
4. Software Licenses
Every accounting department requires many software to work with, such as accounting software, billing and invoicing software, CRM software, and many more add-ons and applications. Having individual licenses for each employee calls for huge investments.
The best way to save money here is to use shared licenses. This means that one can easily purchase a single license and create multiple users in it that makes it easy for it to be shared with various people. Hence, it saves a large amount of money.
These are some effortless cost-cutting methods that any business/company can take up in order to save money and make profits without compromising with the quality of their services. Following such steps will definitely bring huge relief for them in the long run.
So, take up these cost-saving measures now and boost your profits!
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