Part 1 of a 6 part series

Warning Signs:

• Increased administrative expenses.
• Increased overhead expenses.
• Significant adverse deviations from budget.
• Significant increase in a particular line item's cost.

Steps to Improve: CUTTING ADMINISTRATION EXPENSES

• Cut overhead: it falls directly to the bottom line.
• Cut costs in hard times.
• Charge to direct costs: recover - reimburse/pricing; minimize absorbed overhead.
• Accounting costs: improve systems; computerize; take work in house.
• Auto expense: monitor personal use of company cars.
• Collection expense: use a "dunning service" to avoid collection agency fees.
• Computer supplies: shop around.
• Credit card fees: trim the cost of credit card processing.
• Credit card fees: comparison shop banks to lower credit card fees.
• Dues & subscriptions: review spending for publications and organization dues.
• Financing costs: reduce bank fees; front end costs.
• Financing costs: negotiate sweat equity / barter.