The Little Things that Can Save Money in Business Operations
Most business owners tend to overlook the little things that can roll up quite a heft bill at the end of a financial year. These little things include how much stationeries are used, how much energy does the business premise use, how much ink is being used by the printers, the breakdowns, or even how much receipt paper rolls are used on a daily basis.
It is due to the fact that these things seem so trivial when looked upon singularly on a daily basis, it does not seem to matter, but if it was assessed over the period of a year and auditors are instructed to not add these elements as miscellaneous in the year-end financial statements, the big picture will be quite evident.
As a simple example, let us assume that the company uses an unnecessary amount of energy that totals to 5 dollars a day, the amount of 2 or 3 ply bond receipt paper rolls used on a daily basis amounts to another 3 dollars, stationeries are used excessively causing a loss of just 1 dollar and unnecessary printing costs another 1 dollar on a daily basis, now these things which are just off the top of a hat add up to 10 dollars a day which means at the end of the year the cumulative value of losses incurred by the business adds up to 3650 dollars.
If the business had a total of 10 employees, what would be the outcome if at all these loses were curbed, saved up and given as an added bonus for each employee evenly split of 365 Dollars. Wouldn’t it make your employees happy? And when employees are happy, their performance at work is automatically enhanced due to job satisfaction.
In actual truth, the daily loses incurred by a company that has a workforce of 7 people or more generally cause loses of this form at an average of 0.50 to 1.00 USD. Just imagine if a business has 30 employees and based on the average 0.75 USD for each employee, the losses add up to 22.50 EACH DAY. Hence, in a year the total amount of loses snowball to more than 8,000 USD and if at all this money was saved and given back to employees on an even split, employees will have an extra 273.USD at the end of the year.
There are many ways that business operators both large and small may effect cost savings and reward employees with these saving at the end of the year. As a simple example, employees are only give 1 pen a month from the stationery controller (most companies just leave this unattended and ‘unintentional’ abuse becomes a common thing that nobody pays attention to.
If you are using 2 or 3 ply bond paper to issue receipts, change it thermal receipts as the price of Bond Paper (2ply or 3 ply) receipt rolls is four times higher meaning that if you are spending 1000 dollars currently for receipts alone, by changing your receipt system to thermal paper rolls, you will be reducing cost by 750 USD every year.