Have you ever made a New Year’s resolution that has a 90% chance of adding meaningful cashflow to your bottom line? One that many companies are making now is scheduling an expense reduction audit in early 2017. What is an expense reduction audit? First, it requires someone with a high level of expertise and industry experience. Second, you need to hire someone with a strong track record and evidence of satisfied customers.
Succinctly, an expense reduction audit requires someone reviewing your telecom, bank fees, merchant processing, worker’s comp, waste & recycling, etc. monthly statement line-by-line to look for overcharges and excessive fees that you should not be paying and getting those corrected and refunded back to you. Once the audit is complete, they will continue reviewing these statements going forward to make sure these fees do not return.
Expense reduction audits offer no risk because you only pay for the services if savings are found during the audit. It’s like hiring a very specialized employee this is only compensated on performance results after they have been achieved.
Expense reduction consultants usually hire former industry insiders from the telecom, merchant services, banking, etc. industries to review monthly account statements to find overcharges. For example, you probably negotiated a great rate for your merchant services processing. But did you know that below the rate there are approximately 400 different categories that a card can go through to determine the fee you are charged? If these cards are not going into the proper category, then you are paying more than you should. And depending on your volume, this could amount to significant money each month. An experienced executive will know what to look for and where to find the hidden fees.
Let’s recap. There is no charge for an expense reduction audit. There is a 90% chance you will save money and potentially a lot of money. Out of all the New Year’s resolutions, you could pick, why not pick one that has the best odds of increasing your bottom line in 2017?