So we are all in a downturn. We need to reduce those costs to see us through. You’ve looked at all the line items in your P&L and you have worked on most things to cut your costs. Is there anything else you can work on?
Yes there is. You need to look at your systems and processes. In our instance we were doing the payroll on a weekly basis. The process takes some time. Its not difficult, just takes time from verification of time-sheets to processing in the Payroll Accounting package to sending the payment file to the bank and then emailing out all the pay-slips. None of these tasks in themselves pose any challenges.
But we were doing the same thing 52 times per year.
By changing our pay cycle, we were able to cut our payroll processing costs into half. That’s a 50% saving on administrative costs. It still takes the same amount of time, but its done only 26 times each year.
Maybe in your industry you can change payroll processing to Monthly? Huge time savings for your payroll processing tasks and overall improvements in productivity for your admin team.