All offices have a number of expenses that are frequently considered overhead. Some of these expenses are unavoidable such as the cost of electricity or rent for the space. Other expenses might have developed organically over time because of tradition or a quick policy response to a changing situation. These expenses can grow out of control and reduce revenue. Office managers should consider delegating fewer funds to four specific areas in order to reduce expenses.

4. Hardware and Software

The way that successful businesses operate when it comes to information technology (IT) has changed. The old idea of buying and maintaining entire rooms of expensive rack servers and redundant storage systems is slowly fading away in average offices. Office managers can allocate less money to hardware by switching to managed or cloud-based services. This allows the office to maintain only inexpensive dumb terminals instead of expensive workstations. Software as a service (SaaS) also allows for lower expenditures in licensing when it comes to work applications. SaaS providers charge offices based on metered use of applications instead of expensive licenses.

3. Special Rewards

Some expenses that can receive less funding in an office are special reward and incentive programs. Special rewards are usually office-wide events such as a free lunch on Friday or an elaborate anniversary celebration. These can be converted into smaller rewards that cost less money such as a simple presentation ceremony that only lasts a few minutes. Similarly, incentive programs can be reduced so that fewer people qualify for a particular reward. The incentives could also be changed to items that cost nothing such as a closer parking space for a week.

2. Office Supplies

Office supplies have the potential to drain a significant amount of money from a budget when employees do not value the items. It is easy for a person in an office to simply throw away or stop using a pen or other item when another one is readily available in a nearby supply closet. One way to help manage office supplies is to use the QuickBooks inventory management module. This will allow a single person to track supply use. Managers in the office can let employees know that stock levels are now limited and will not be refreshed for another month or two. This will reduce supply usage and lower costs.

1. Travel

Office managers can usually reduce the amount of money in a budget allocated for travel. Travel is necessary in some instances. It is not usually required for some basic functions. Employees do not need to travel in order to follow-up with every sales lead. Similarly, employees can delegate responsibilities at other offices or warehouses to people who are already at the other location. Employees can replace some travel with video conferencing.