Whatever kind of business you’re running, labor is one of the biggest costs you’ll have to contend with. With wages rising, and competition getting steeper, many businesses find it increasingly hard to manage their bottom lines and keep their heads above water.
Fortunately, there are a number of strategies you can deploy as a business owner, to help combat the cost of labor; here are 7 of them:
- Automation
From processing invoices and payroll, to inputting data, if a task can be automated – saving you time, energy and money – why shouldn’t it be? That said, there are multiple automation software options available, so be sure to carry out plenty of research before investing in any of them.
2. Cutting down on unnecessary costs
It may be that your business can reduce the time and money being spent in certain areas such as expenses (like marketing or employee benefits), or save money by hiring temporary workers instead of full-time employees.
3. Outsourcing
For accounting firms, many of the more repetitive and mundane tasks such as bookkeeping, can be taken off your hands by an experienced outsourcing service provider, freeing up more of your time to focus on tasks that make you more money, or give more satisfaction to your clients. Many CPA firms in particular, choose outsourcing tax preparation to help them cope with the increased workload during tax season, for example.
4. Reducing overtime
One way of getting the most out of an existing workforce, is to make sure that your schedules reflect their most productive hours, and that overtime is kept to a minimum.
5. Offering a working day with reduced hours
As long as your employees are able to complete their work on time and to a high enough standard, you may be able to offer them reduced working hours. Whether a reduced working day is right for your business, will depend on a number of different factors, and you may wish to trial it before implementing it fully.
6. Reducing staff turnover
With competitive salaries, good working conditions, and opportunities for growth, you may be able to encourage your workforce to stay with you for longer, reducing the cost and inconvenience of recruiting new employees.
7. Streamlining processes
From simplifying some of your employees tasks, to putting stricter working practices into force, streamlining the way your firm operates could help you improve your overall efficiency, and even reduce waste to save you money in the long term.
If your accounting firm is struggling to manage labor costs, why not try some of the strategies listed above? CPA firm outsourcing for some of your more basic requirements (such as bookkeeping) is a great place to start, especially as you typically only pay a service provider for the work they carry out. Making long-term investments in such things as training and employee development, can also help you find and retain the best talent; keeping your clients satisfied and reducing employee turnover.
It may require a combination of these strategies, but when you get it right, you’ll find saving money on labor costs is easier than you think.
