Cost items and rationalization of costs

Cost items and rationalization of costs

Accounting is rather difficult, betterentrust this activity to professionals. But the head of the enterprise should be aware of all matters, especially financial ones. However, in practice it happens that the only point of contact between the accountant and the head are the items of expenditure. And everyone has his own view of the problem. The first focuses on the law, the second - on profit and cost reduction. As a result of their joint work, the goal of the head should be achieved and the law is not violated.

Basic Costs

Items of costs can be reviewed, modified,introduce new ones, divide into your own discretion. But there are some that can not be touched at this time: the enterprise's obligations to third parties, employees, state bodies.

Among the main for all enterprises can be calledthe following: advertising, taxes and deductions, wages, rent, transportation costs, communication services. If the activity of the firm is reduced to the realization or production of the goods, the calculation is added to the listed with the suppliers.

Revealing the reasons for the increase in costs

The reasons for the increase in costs can be different. At the company - it is irrational use of funds, changing demand for services, seasonality. The largest items of production costs are the raw materials and labor of workers. As well as the introduction of new technologies, the purchase of equipment, electricity and other supply systems in the workplace. If the enterprise is not very large (up to 100 personnel), it will not be difficult to find out in which article the expenses have increased. In the case of large organizations - we should compare all items of expenditure with the previous period, correlate data with the dynamics of productivity. It is possible that the costs are justified, as the scale of activity has increased.

Cost reduction

Experts recommend the following ways to reduce costs:

1. Identify a cost item that exceeds the rate of productivity (profitability).

2. Revision of costs for the item: identification of factors that increase costs, reduce, stop financing in any part of the article.

3. Planning measures to reduce costs.

The last paragraph can include such actions asreducing raw material costs, reducing staff, redistributing responsibilities or retraining, purchasing equipment to optimize the production process. After determining the specific actions, the costs for them and the expected result are estimated.

4. The plan is then adjusted and put into effect after the appointment of the responsible persons.

For example, costs have increased according to the article "advertising". The campaign was designed for the flow of customers, with whom it would be possible to conclude contracts for the provision of services. The profit should be about 50 thousand a month. The advertising action cost 13 thousand. However, customers came and went without concluding agreements with the company. After analyzing the errors, the management came to the conclusion that at the consultation stage, specialists can not "bring" the communication process to its logical conclusion (before the conclusion of the contract). After comprehension of the reasons, the following measures were developed: coordination of actions, separation of questions of consultation between employees, development of the process of communication with the client. Additional costs were not required, after a couple of rehearsals, employees were able to provide the enterprise with a profit of 20 thousand rubles. It is planned to train employees at specialized courses and trainings (it required the introduction of a new cost item - training of personnel). Continuation of these actions will achieve the target result of 50 thousand additional profits. And the cost of training (15 thousand) will pay off in a month (together with a repeated promotion).

Tips for optimizing costs

Such an expense item as taxes is considered to beinviolable for the adjustment. However, it is possible to reduce costs. This measure is called tax planning and allows you to use all the benefits and legal measures to reduce taxes and fees.

Also untouchable is the salarystaff. However, the methods of payment of labor and the possibility of concluding an urgent labor contract, or agency, give a "loophole" for reducing this cost item.

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