Sometimes in business we ignore the small things. A tiny overcharge on an invoice, a few euros off on the VAT but these small things can become material.
Today while working with a client I phoned one of his suppliers to get an ?8 delivery charge removed from an invoice. This might seem very small but we also convinced the supplier to remove the delivery charge on a permanent basis as along as there is an agreed spend (the spend is necessary so no extra cost there.)
Although this started off as an ?8 expense the saving from the negotiations is now ?3,000 per annum, This was worth the phone call im sure you agree. Over the last week or two we have reduced the clients overhead, eliminated unprofitable work, reduced waste, decreased their tax bill and created management reports to allow focus on high margin work.
The net effect of this will be at least ?30,000 a year on the bottom line. The cost of the consultancy to achieve this was 5% of the savings.
A good accountant should always cover their cost!
Think of the ?30K saving the next time you have a small extra expense which you don’t bother sorting out.
If you require any assistance with cost saving or management reports please do not hesitate to email
ralph@domybooks.ie
or phone Ralph on 086-3336665
