Today’s CFOs are tasked with the same goal as always, increase profits.
But in today’s world, that end goal is extremely complex to work on.
There are compliance issues.
With all of these things piling up, it’s easy for costs to pile up with them. But now it’s time to trim some fat, without losing the meat.
Here are some ways to think about saving money without sacrificing performance and profit.
What Leftover Costs Can You Cut?
For any growing company comes growing costs. Costs in labor, tools, space, supplies, etc.
During that growth, you may have overestimated some needs or just made some higher priced commitments than necessary.
Sometimes it’s even overlooked that you are still paying for an old solution that worked when the company was smaller, but wasn’t canceled yet when the new solution was implemented.
It’s obvious, but so obvious that it often gets overlooked.
Take a look over your spending for areas that you can eliminate completely at this new stage of your business.
What Can You Consolidate To Save Money And Improve Productivity?
Great job, you’ve eliminated the waste.
You’ve identified the areas of spending that are no longer needed, but what about the tools and processes you NEED to keep, but are becoming inefficient or even lackluster on their own?
For example, are you still using a separate tool for your time and attendance, ACA compliance, and payroll?
Not only will consolidating those needs into one tool save you money, but it will also save time (which is more money) and improve the efficiency of your HR staff.
Of course, by giving your HR staff an easier tool to use, they’ll be happier and less stressed.
Optimize To Amplify The Results From What You Have
By definition, optimize means to make improvements that will help achieve maximum productivity with minimum wasted effort or expense.
That would also play well in your job description as CFO, huh?
Here is where you can really flex your muscles.
You have to cut costs. You have the best tools for the job at the right price that makes them valuable to the organization.
Now it’s time to ramp up that efficiency and get the most out of what you’ve put together with your team.
What tasks are slowing people down?
What is holding back your higher level employees that could get delegated down to a more appropriate person?
Are there any bottlenecks in key processes and assignments that your team is regularly working on?
Find the opportunities for removing the fat from the processes just like you did with the expenses.
Remember that technology is not the only thing that can become outdated. Talk with your team regularly to understand their strategies and approaches to make sure the way things are being done is still the best way.
Set up a monthly or quarterly meeting to talk with your lead HR staff to discuss with them how they are doing, what they are struggling with, where they are excelling. Listen to them for ideas and opportunities. Allow for some experimentation so that you can test and grow together to become and continue to be the best organization possible.
Dive Deeper With Your Free CFO Guide To HCM
Want to take a more strategic approach to managing your workforce? This guide will give you what you need to for better collaboration with HR, attracting and retaining talent, and identifying soft costs, and of course several other key topics for CFOs.