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Get business costs under control - Giles & Liew Chartered Accountants

Smart ways to get your business costs under control

September 30, 2020

Cash Flow has been a big issue for thousands of businesses this year, and when the money’s not rolling in, it can help to rethink your costs. To do it effectively involves more than just keeping an eye on outgoings. It’s about looking at all the moving parts of your business to see if your systems (or lack of) are costing you unnecessarily. Here’s how:

Muck in: Take stock of where you are spending money. Look at your big cost centres and the systems you are currently using to manage them. Our Process Optimisation team can walk through your business processes and systems and make recommendations as to potential areas of efficiency gains. Our Business Advisory team are experts at financial statement analysis, interpreting results and giving advice as to ways you can look at increasing your profitability.

Be aware: Simply slashing your expenses may not always be the best course of action. When looking at either decreasing or increasing various cost centres within your business always refer back to the return on investment that each change will make. Taking a different approach to the way in which you do business may significantly improve your business performance. For example: Negotiating pricing with existing suppliers, or contacting alternative suppliers to get a more competitive price may have favorable outcomes.

Unite your team: Focussing on business culture during trying times is more important than ever. As with any good change management process make sure you seek your team’s feedback every step of the way.

Look to your peers: How do your costs compare to others? If a business of a similar size and production system to you is performing well, but spending less, explore what they’re doing differently.

Seek advice: Do you have a good idea of where the issues in your business are or are you feeling totally confused? Talk to our Business Advisory team about your next steps.

About Giles & Liew Team

Giles & Liew Chartered Accountants, Auckland, East Auckland AccountantsRecognised as industry disruptors, Giles & Liew takes a forward-thinking approach to business growth. We understand the complexities of future-proofing your business for long-term success and the importance of change management throughout your business lifecycle. Giles & Liew has a history of providing innovative solutions grounded in technical accounting expertise to clients to help grow successful businesses.

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