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Cost Containment |
Costs are an important element in the profit equation.
Experience has shown that costs usually increase at a faster
rate than revenues--putting a squeeze on the bottom-line.
Effective cost management can have a substantial impact on
profitability. In fact, for a company with a five percent
profit margin, just a $50,000 reduction in overhead would require
a $1 million increase in revenues to have the same impact on
profitability. A thorough cost analysis can target waste and
financial inefficiencies and help your company improve its
financial performance.
SG&A Expense Audit
Offered on a contingency basis, an advanced
historical cost analysis is performed of your company's
selling, general, and administrative expenses. Over time, many companies
suffer from "cost creep"--even though they may think costs
are under control. This analysis will pinpoint
excess costs down to general ledger line-item detail.
Primary Benefits:
Pinpoints, down to general ledger line-item detail, areas of financial
waste and inefficiencies. Very useful for targeting areas
that are candidates for cost containment. Recommended as a
starting point for business performance improvement and an
excellent stand-alone service for clients with limited
budgets.
Data Requirements:
Requires 1) the most recent five years of general ledger
expense accounts year-end detail and 2) the most recent five
years of year-end revenue totals. Interviews with internal
staff are also necessary.
Guaranteed Recommendations:
There is no charge to the client if no recommendations can
be made based on available data.
Current Fees (US$):
Fees are billed based on a percentage of
the estimated first-year cost savings from final
recommendations approved and accepted by the
client.
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