With the growth of your company, the finances for the development of your business will also grow. Sometimes, however, you need to revise all items of expenditure in order to reallocate resources if necessary. To properly optimize your finances, it is worth choosing the right tools and a step-by-step action plan. For example, you can use the Gincore browser program, which has maintenance and optimization functions for all company processes, including finance.
How to properly reallocate the budget
You can rely on the following finance optimization plan:
- Select and record all items of expenditure. Next, you need to prioritize each item, highlighting the main and secondary ones.
- Record all expenses and income. For this, the maintenance system has a section "Accounting". This will allow you to keep track of all financial transactions.
- Conduct financial analysis every month, quarterly, six months, for a year. This will help you understand what costs can be reduced and what can be changed in the future.
- Review key cost items and cut them where possible.
- Regularly record all movements of money in the corporate account.
- Every month make a reconciliation of all indicators.
It is very important to constantly monitor the dynamics of expenses and income in order to compare the current situation with what it was before. Further, on the basis of these figures, planning is carried out and the development strategy of the enterprise is edited.
Financial accounting using Gincore software
To simplify your work, automate all processes and redistribute finances, use the Gincore program. In it, you can set up the profit received by the cash desks, as well as money transfers to the corporate account. Based on this information, reports are generated. By studying this documentation, you can understand which items of expenditure need to be redistributed, reduced or increased. Inconsistency between indicators and accounting reports is the main reason for the financial collapse of any enterprise.
In order to avoid problems with business, and in particular problems with the budget, shortages, it is necessary to optimize the financial structure. Using Gincore, you will be able to control the entire cash flow. Having data on all items of expenditure, you can start analyzing them to eliminate unnecessary waste.
Managers devote a fairly large share of the company's finances to marketing, but these expenses do not always pay off due to various mistakes:
- the target audience is incorrectly defined;
- there are few potential customers on the selected advertising channel;
- weak advertising text;
- poorly formulated key action;
- unsuitable advertising space.
In order to reduce marketing costs, you need to thoroughly study advertising channels and the mechanisms of their work, identify opportunities and prospects. Be sure to monitor advertising campaigns, study the following indicators: conversion of advertising channels, how much each client costs, the number of sales for each period, how many people made a purchase again.
By analyzing these numbers, you can reallocate finances:
- reduce the costs of ineffective advertising channels;
- increase the budget for promising advertising, which can bring more profit;
- It is cheaper to stimulate purchases of regular customers than to attract new ones.
When studying statistics, pay attention to how many of the people attracted by advertising have made purchases again, becoming regular customers. You need to make an effort to make products and services interesting and attractive to customers who have already worked with you. In terms of costs, it will be much more profitable than attracting new people.
Premises rental costs
Renting real estate for an office, shop, service center, warehouse is always a large expense item that cannot be excluded. You need to pay rent for the premises every month, but you can optimize costs as follows:
- Negotiate with the owner of the property, sometimes renegotiating the terms of the lease. If you have been cooperating for a long time, you can explain your situation or problem in order to try to find a compromise.
- Reduce the leased area. You can reduce the area in an already used room, freeing up some, or find another with a smaller area. Rearrange, rationally optimize the storage of goods and equipment.
- Transfer some employees to remote work. For some people, this type of work is more preferable and convenient, so there may be people in your team who want to work remotely.
- Change the location of the office, store or warehouse. Renting in the city center is always more expensive than in remote areas. Analyze the field of activity, see where competitors are located, study where you can find potential customers. Choose places where there is a large flow of people, close to transport stops, as well as, near objects with related directions. For example, a service center for refilling cartridges can be located next to a store selling computer and office equipment, in office centers. In this place, renting can be cheaper, but more profitable for finding clients.
Optimization of employee salaries
Optimizing wages is not about downsizing. On the contrary, the dismissal of employees leads to problems, losses and a regression of the company. Speaking about the redistribution of finances for salary, it is important for the manager and HR specialists to optimize the approach to finding and hiring employees, to increase the motivation of employees, to introduce a bonus system, which will increase the overall profit results.
Consider the following guidelines to optimize salaries:
- Outsourcing. Hiring freelancers for a project or for a long time is cheaper than formal employment of a worker on a permanent basis. This can be a designer, copywriter, accountant, call center operators or technical repair engineers.
- Motivation. It is much more efficient to adjust the salary, which depends on the results of work, and not on the hours worked. When a person realizes that he needs not only to be present at work, but to work productively, for which he will receive financial rewards, then subordinates become motivated to work better. As bonuses, there can be incentives for the sale of more expensive goods, related products to the main purchase, a percentage of the transaction, fulfillment or fulfillment of the sales plan.
As soon as you need a new employee to join the company, do not rush to post a job posting and conduct interviews. You can always analyze the work of your team, increase motivation, improve the conditions for calculating salaries. If you still need a new specialist, you can find an outsourced employee, which will be more profitable.
Cutting equipment costs
When optimizing equipment costs, the quality of equipment should not decrease. It is important to find and purchase good quality equipment, not the cheapest, otherwise it will impair productivity and entail losses. In this matter, it is not the strictest economy that is important, but the rational selection of suitable equipment.
No enterprise works without good equipment, so you can use the following tips for optimization:
- Buy used equipment. Used equipment does not mean that it is in poor condition. Often monitors, laptops, printers, scanners, system units, machine tools, etc. are sold to buy new models. In return, you can find great gadgets for your office in the used market at discounted prices, which will save you money.
- Sell devices that you do not use. If you are no longer using some devices, they do no need to gather dust in a warehouse, store or office. Put them up for sale because there are people willing to buy what you have. You can profit from the sale of this equipment, and use the money to develop your business.
An improperly organized warehouse can lead to business deterioration. This may be due to the fact that the warehouse is located far from the main enterprise or in an inconvenient location. There may also be problems with the system of saving spare parts, goods, equipment, which complicates the search for items, leads to shortages and surpluses of products.
To troubleshoot all warehouse problems, you can:
- increase the turnover of goods;
- find new sites for the sale of products;
- make sales and carry out promotions for products that have been in stock for a long time;
- exclude goods that are not in demand;
- reorganize the warehouse;
- apply a targeted storage system for goods;
- make a label with a serial number for each product, and by scanning each item will be easy to find in the maintenance program;
- for some items, introduce direct deliveries from the manufacturer to customers, and if possible, then completely transfer the business to dropshipping.
You can find other ways to reduce the area of the warehouse, improve the storage system of goods, and, if necessary, get rid of it, reducing costs.
It is quite possible to optimize and redistribute finances at any enterprise. It is important to choose a plan according to which you analyze all items of expenditure and decide how to reduce them. You can use Gincore software not only for maintenance, but also for optimization. This program has all the tools to control finances, warehouses, payroll, marketing and reports. This will allow you to monitor all resources in order to make changes in the future, reduce costs and reach the next level.