With ever-changing market trends and costs, it is important for construction companies to identify and adjust any areas in which their business could be saving extra money. The first place to look is where the largest amount of money is being spent in the industry as a whole. Here are a few of the top places where your company can cut unnecessary amounts of overhead costs:
1. Supplies and Equipment - This includes everything from on-site tools to the use of fleet and company vehicles to electronics like iPads and laptops. Shopping around for high-quality materials for your employees will pay off in the end as opposed to continually repurchasing unsatisfactory equipment. Implementing policies for checking out and logging time on these devices can also help reduce negligent behavior and abuse of company items.
2. Litigation - Avoid any costs imposed by legal action against your company. To do this, simply be sure to stay up-to-date on all equipment, paperwork and government- and company-imposed procedures put into place. Be sure to file away all of your documents in one secure place so as to have a paper trail should any litigation arise.
3. Payroll and AP Efficiency - The amount of time and money spent on accounting tasks such as payroll and accounts payable can easily be streamlined through the use of an electronic content management system. This allows the use of electronic invoices, centralized data, document tracking and automation which increases efficiency and decreases human error and funds exhausted.
Over one-third of U.S. construction companies spend less than 1% of corporate money on IT, which includes any kind of document management system. With a little bit of an investment in this sort of technology, you can significantly reduce the costs of other major overhead expenses to make your company more profitable overall. Learn how you can implement these practices with Paperless Environments®.