How to be successful in your cost control measures
Growth is an exciting phase of business. It contributes directly to your company’s profitability and sustainability. At the same time, it also marks an inevitable increase in business cost.
As you strive to sustain the growth momentum, it’s easy to overlook the cost of it. Furthermore, it creeps up on you almost unnoticed. We’d like to share four steps you should take to be successful in your cost control measures as you take the business to greater heights.
1. Scrutinise your financial reports
Technology such as Xero Accounting software has made it easier to track and evaluate the performance of almost every business activity. From employee productivity to your most recent marketing campaign, you can measure how effective their contribution is to the company’s growth. As they say, what gets measured, gets done. To this, we add ‘be held accountable’, too!
2. Watch your bottom line!
Your business’s growth is meaningless if it doesn’t raise the bottom line. After all that work, you would want to be left with something to reward the employees, yourself or reinvest. But above all, watching the bottom line empowers you to identify inefficiencies. Keeping them in check, or eliminating them as early as possible, ensures growth is healthy for the long term wellbeing of the company.
3. What matters most?
It can be challenging at times to manage cost and keep to your personal as well as business values. How do you manage loyal employees who have grown to be costly? Should you replace a supplier who has been supportive of the business for a less expensive option? These are difficult questions to address. It’s better to confront them earlier than later.
4. Be open and transparent
It doesn’t have to be lonely at the top. You can invite others to be part of the climb. By regularly sharing your endeavour with others, an idea or two may just emerge to help you manage the cost of growing your business.
Regular conversations with your accountant is a good practice. It should be part of your cost management strategy. Call 02 9810 3222 to speak to Sydney Accounting and learn more and get help with growing your business while keeping costs controlled. Or get in touch with us via or contact page.