5 Simple Cost-cutting Tips for Clever CFOs

2018-10-05T21:55:32+00:00

Sales people may get all the glory that comes with pulling in revenue, but CFOs and their teams are the unsung heroes of the bottom line. You understand that a penny saved is worth more than a penny earned (after taxes), and you’re always looking for intelligent ways to cut costs without compromising quality.

Here at Refund Geeks, we’re all about your bottom line—so we created the following list of cost-saving tips designed to help your business thrive.

Get a Free Energy Audit: Don’t let the word “audit” scare you—in this case, it’s a good thing. Most energy companies offer a complimentary energy audit to their commercial clients, and they’ll help you figure out where you’re wasting energy and how you can cut costs.

For example, you might be able to reduce your heating and A/C bills by replacing old weather stripping, and cleaning out blocked vents could reduce your energy costs by 25%.

That’s just the tip of the iceberg, of course. Contact local provider(s) to see if they offer this service, and check out 5 Clever Ways CFOs Can Cut Energy Costs to learn more about energy conservation.

Monitor Your Shipping Spend: UPS and FedEx shipments are guaranteed to arrive on time and intact. When that doesn’t happen, your company is eligible for a refund.

Of course, it’s not very cost-effective to have your logistics department manually monitor every shipment… and that’s where Refund Geeks comes in. (Pardon shameless plug, but if you’d like to save up to 30% on shipping, you’ll want to read this.)

The Refund Geeks platform syncs to your UPS and FedEx accounts, and our algorithm identifies shipments that are eligible for refunds (due to late deliveries, invalid fees added by the shipper, or a number of other reasons).

The result? Your company automatically saves up to 10% on shipping costs, and we take a small commission off your total refunds.  If you leverage Refund Geeks for contract negotiation services, you could up to 20% more, bringing your total shipping savings to a whopping 30%.  That’s impactful.

The platform also allows you to easily analyze shipping costs, compare fees between suppliers, and more. With Refund Geeks, you and your logistics team can work together to reduce costs.

Curious to learn more? Contact us with any questions, or start your free audit today.

Offer Telecommuting where It Makes Sense: Telecommuting has increased 140% since 2005, in part thanks to technologies such as Zoom and Skype that make videoconferencing simple and straightforward.

According to a study by Global Workplace Analytics, half the U.S. workforce holds a job that can be done at least partly from home, and 80-90% of the workforce says they would like to telecommute at least part of the time.

It’s not surprising that employees are excited to leave the morning commute behind, but how much does telecommuting benefit their employers? According to the study referenced above, “a typical business would save $11,000 per person, per year,” for every employee who telecommuted just half the time.

This saving comes in the form of decreased energy and real estate costs, increased employee productivity, and reduced turnover due to greater employee satisfaction (see below to learn more about the cost of turnover).

Adjust the Travel Mindset: Aside from the obvious (setting per diem travel expenses and identifying approved fare classes), reducing travel expenses may require a cultural shift in your organization.

Do employees book tickets and hotel reservations at the last minute, even when they knos about travel needs in advance? Do they grab the first flight they find, even though Google makes it easy to find the best available fare? Do they forget to use hotel chains when your company has special negotiated rates?

Protecting the bottom line is everyone’s responsibility, but if the business travelers in your organization don’t have the bandwidth to hunt for bargains, consider outsourcing the task to a travel agency. In the end, a professional could easily save you money.

Reduce Employee Turnover: High employee turnover can be costly. According to a study by the Center for American Progress, replacing an employee costs around 20% of that employee’s annual salary.

What can you do to reduce excessive turnover? In an article for Forbes Magazine, Mike Kappel recommends taking your time to hire the right people, paying them a competitive salary with a solid benefits package, and giving them plenty of praise.

Yes, appreciation matters! Studies repeatedly find that employee recognition boosts both morale and retention rates, and it can increase worker productivity significantly… so it’s a win-win for everyone.

Chances are, you’re already managing some of these areas very well, but there’s always room for improvement… and it helps to get as many employees on board as possible. In other words, when it comes time to implement changes, be sure to let them know that they’ve got some skin in the game.

What’s in it for them? A thriving business means job security and greater opportunity for everyone. When they understand this, they’re more likely to buy into the changes.