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5 Ways CFOs Can Reduce Costs Going Into 2016

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5-Ways-CFOS-Can-Reduce-Costs-Going-Into-2016As we approach the new year, CFOs are already starting to look at future spending and trying to find creative ways to cut costs. Let’s take a look at some ways you can consider your current budget, as well as how you can prioritize needs to save in the coming year.

Rethink Your IT

If you haven’t looked at your IT department lately, you could be losing money where you don’t need to be. Our world moves at the speed of technological advancement, so your company’s investment in technology needs to be assessed frequently. Set up a meeting with your CIO, and discuss how you can reduce your computing costs in the new year. Here are some ideas to get you started:

  • Switch to cloud computing. Maintaining an in-house server can be costly, so putting some money into cloud computing offers you a serious return on investment.
  • Choose a one-stop shop. Working between several vendors can be costly. Select a comprehensive company that can take care of all of your IT needs. Chances are greater that the enterprise will offer a discount for multiple services.
  • Anticipate problems, and fix them before they start. Doing this requires a running conversation with your CIO, as you may not be privy to the inner workings of your IT department. Be proactive about checking your devices, and you could save some serious money down the road.

Be Realistic

We’d all like to think that every aspect of our companies are essential to their survival. Therefore, when we run into money problems, we’ll try to nibble around the edges of several programs instead of just eliminating one in its entirety.

The reality is that this is just a Band-Aid solution that can lead to bigger issues later. Finding the financial drain and eliminating it offers a more long-term resolution in cost-cutting than taking little chunks here and there.

Prioritize Expenses

A CFO’s job can be just as creative as it is analytical. Take a hard look at your budget, and see where you’re losing money. For example, is it necessary to pay for travel expenses when technology gives us the ability to video-conference? If you’ve had a lasting relationship with a vendor, is it time to renegotiate terms?

Use Social Media To Recruit The Best Talent

Taking to Twitter can be a fantastic way to attract local talent in your area – and it’s free. Learn to use hashtags to attract young, eager, and engaged job seekers. When it comes to hiring, it remains a buyer’s market, so you’ll have your pick of employees ready to put in the extra effort for your company.

Onshore Your Manufacturing

Research suggests that wages will even out between Chinese and United States workers by 2017. Switching your manufacturing to domestic companies will save you time and money, sparing you the hassle of time zone differences and cultural barriers.

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