Psst – Wanna Save Some Cash?

May 9, 2008


I did it! You can too!

OK, that sounds too much like one of those “Available only on TV” offers.

But reality is that in the Small Business space, technology spending is often an ad hoc an affair. I saved quite a bit of money just cleaning up the entire purchasing process of IT OPEX and CAPEX expenses.

1) If your chart of accounts does not already break out technology expenses, you should do it. At the very least an accurate addendum of fiscal costs should be kept.

2) Get rid of ad hoc purchases – ensure that written requests (electronic or paper does not matter) for all purchases exist and are signed or approved. Approval levels may be different depending on dollar value.

3) Ban credit card or retail account purchases. Utilize distributors and re-sellers.

These simple steps can save money in multiple ways. Direct costs are lower through the channels, plus accounts of Net 30 with a a few points is a lot less than credit card rates. And ensuring that proper sign off is made gets rid of the requests for some “cool” thing that is “only” 300 bucks.

Longer term, it provides visibility into which parts of the organization are generating the most IT spend requests, and helps identify services or components that can be reduced in price or utilized better, leading to lest wasted spending.

And finally, it provides excellent detail into operational expenses that can be tied into improving future budgets.

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2 Responses to “Psst – Wanna Save Some Cash?”

  1. […] To start off with zero, the first thing we have to do is determine as much as possible exactly what we spent last year. So first thing; set up a meeting with your financial  staff, In this meeting, there are two things that initially you want to look at. First, Ask that every new invoice of any kind that could be related to your IT function be flagged for your review. The second task is to look at every technology related invoice for the previous fiscal year. (tip: This good time to look at formalizing the purchase process too!) […]

  2. […] this blog has covered IT topics for non technology managers from file services, to financial controls, – the magic of Google has ITIL and the small business / medium business as one of the most […]

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