Every organization needs cost management and cost controls.  These potential equity killers can be found in payroll and benefit costs, cost of goods, inventory control, G & A and operating expenses.  It is easy for a company to ignore the issue of costs when they are making money.  However, when the business or economy is retracting and profits are low or gone, the company decision makers will stand up, take notice and make cost cutting decisions that at times are the wrong ones to make or sometimes too late. What was needed was cost controls and accurate and timely reporting giving management the edge it needs for making qualified changes. 

Staffing Costs: Some companies have poor or non-existent training and development of staff, some just have the wrong staff. Managing people and the time they use is cost control.  Wage and benefit expenses have to be controlled which includes the hiring and development of the right staff.

Inventory Control: A serious problem for some organizations is with its’ inventory controls and valuation methods - assuming it has any.  Some companies lack the procedures or expertise to be able to control their inventories which can lead to excessive costs or lack of inventory.  The following are costly inventory mistakes: placing the wrong value on inventory, having inaccurate physical counts, having too much or too little inventory on hand, posting incorrect quantities or costs on bills of material or poor time studies in the process of manufacturing.  All of those will have a detrimental affect on inventory valuation. Do not let any of this happen.

Banks and investors use the value of inventory to determine specific ratios and the liquidity of a company.  It is an integral part of a balance sheet having a significant impact on the profit and loss statement as well as owners equity.  The effects of poor inventory controls can literally mean the difference between success and failure in a business. 

Companies also need to control selling, operating and general expenses.  The successful companies control costs and expenses during the good times as well as the lean times.  Kelley Business Group can help your organization with controlling costs and creating more value added in the following areas: 

-  Inventory Valuation and Inventor Control
- Cost of Goods Control (Procurement, Timing and Terms)
- Wages and Benefits Control
- Selling, Operating and G&A Expense Control