How to control the cost?

Enterprises are profit-oriented economic organizations, and economic benefits are the ultimate comprehensive indicators to measure all economic activities. The low economic benefits of today's enterprises are mainly manifested in low product quality, high cost, serious waste and backward technology and equipment.

How to control costs and expenses. Financial management is an activity to predict and analyze the management functions of enterprises, such as business policy, financial objectives, cost control, financial security and financial improvement. It is the most important subsystem of enterprise management system and the center of enterprise management. The goal of its management is to maximize the wealth of enterprises; The management object is the circulation and turnover of cash; The main content of its management is the decision of investment and dividend. Therefore, strengthening financial management is a very important way for enterprises to improve economic efficiency.

Strengthening financial management mainly includes:

1, strengthen fund management,

2. Strengthen overall budget management,

3. Improve the use value of financial information.

1. To strengthen fund management, we can do the following:

① Strengthen investment management. First of all, we should do a good job in market research and analysis and make a good budget before investment; Fully consider the time value and risk degree; Accurately compare the investment return rate and financing cost rate of the project; Fully consider the solvency of enterprises and prevent blind borrowing;

(2) Increase the efforts of currency recovery, debt settlement and sales, make products marketable, fix production by sales, and increase the preferential treatment of cash orders; Implement "no payment, no delivery" to control the occurrence of new debts, formulate countermeasures and methods for clearing debts, and organize all forces to urge payment through various channels and forms;

(3) reasonably control the storage quantity and give full play to the efficiency of capital use;

(4) Reform the fund management system and implement centralized management, two lines of revenue and expenditure, and a system of unified revenue and expenditure.

2. Comprehensive budget management is a systematic prediction of production activities, investment activities and capital operation activities of enterprises in a specific period in the future in the form of money or other measurement under the premise of fully studying and scientifically predicting market demand. It is a systematic management method, which is used to allocate financial, material and human resources of enterprises to achieve their strategic goals. Comprehensive budget management plays a very important role in improving economic benefits.

3. Improve the use value of financial information. Financial information is also a very valuable resource, and the problems existing in all aspects of the enterprise are reflected in financial information. The use of financial information is conducive to finding and solving internal problems of enterprises and optimizing production and organizational structure. Financial information can also reflect market information, thus providing reference for decision makers.

Second, reducing costs is a very effective way to improve economic efficiency, and it is necessary for us to analyze it in detail.

The cost level of an enterprise is a comprehensive reflection of its production level, technical level and management level, which determines its competitiveness and profitability.

Enterprise costs generally include:

① Material costs: procurement, transportation and storage costs, as well as material loss;

(2) Processing cost: loss of equipment, waste of water and electricity materials, loss of waste products, etc. ;

(3) Labor costs: employee salaries and management expenses;

④ Sales expenses: publicity expenses, manpower and material resources spent in sales, transportation expenses, after-sales service expenses, etc.

The main methods to reduce costs are:

1, technical means,

2. Management means.

By introducing new technology, advanced production technology and buying new machines, production costs can be reduced, labor productivity can be improved, and the improvement of product quality can also reduce the cost of after-sales service. The management means is to implement cost management. For example, cost management in the supply process, including procurement, material maintenance, material raising cost management, etc.

In order to implement cost management, there are the following ways:

(1) First, implement a reasonable cost budget, and then implement a quota system. Through the comparative analysis of actual cost and budget, find out the reasons, solve the problems and further adjust the quota.

(2) through the establishment of reward and punishment system, arouse the enthusiasm of employees to reduce costs;

(3) Incorporate cost reduction into internal publicity and corporate culture. For example, you can post some slogans advocating saving, and write some small ways to reduce costs in the publicity column, so that the whole enterprise can gradually establish cost awareness.

Third, some other ways.

If you want to increase sales, you can provide prizes, gifts, social welfare activities and so on by establishing a strong marketing team and media publicity. In order to improve labor productivity, we can also train and allocate personnel reasonably, determine production scale reasonably, improve production conditions, implement reward and punishment system for employees, and improve their production enthusiasm. In addition, cooperate with national policies to produce green products or products that fill domestic gaps in order to obtain government support; Through mergers, acquisitions, financing, etc., economic benefits can sometimes be significantly improved.

How to control costs and expenses Part II: Full participation. Consolidate the basic work of cost management

In view of the characteristics of our industry with large span and high management cost, according to the actual situation of our industry, cooperate with the product design department to formulate different cost control plans and work plans of the product development department, and seize and demonstrate them; The order received before is scientific and reasonable in the competent department of computing industry (feasibility analysis); Revise and improve the man-hour quota standard of the Human Resources Management Department, the technical department will organize the revision and improvement of the material consumption quota, the management department will revise and improve the energy consumption quota, organize the inspection, supplement and installation of measurement standards, revise and improve the management process and system, and the scope and standard expenses determined by the financial department.

Second, do a good job in material procurement management.

Reduce the cost of material procurement, and reduce the proportion of material cost to production cost. In general, the procurement cost accounts for 50% of the total cost? 80% is the focus of traditional cost management. Mainly to control the purchase cost analysis, and to determine the items, suppliers and purchase time to be purchased by scientific decision-making and reasonable economic order quantity or economic batch. It is not only reflected in the reduction of cost and cash outflow, but also directly reflected in the reduction of product cost, profit and product competitiveness. We should strengthen the control of manpower, material resources and procurement costs in the following aspects.

1) Establish and improve the procurement system. Procurement cost control is the basic work of the procurement system, and the procurement method, quotation and price should be approved according to the requirements, approval authority, procurement process, responsibilities of relevant departments and the relationship between various materials.

2) Supplier files and access system Suppliers should establish files, and each supplier file should be strictly reviewed. Enterprises should record supplier procurement, supplier files should be updated regularly or irregularly, and special management should be carried out. At the same time, the system of potential suppliers has been established, and the main material suppliers must pass the examination, and enterprises should carry out strict examination procedures and indicators. In order to study this problem, only one score reaches or exceeds the standard can become an archive supplier.

3) Establish a price file and a price evaluation system. The purchasing department shall establish the price files of all purchased materials, compare each batch of goods and payment with the recorded price, and analyze the reasons for the price difference. If there is no special reason, in principle, it should not exceed the price level of the document, or be explained in detail according to the purchase price. For the price of key materials, the price evaluation system collects relevant information to supply prices, analyzes and evaluates the existing price level, and submits price updates. The principle of "purchase" in sufficient market research and information collection should be strictly implemented. When purchasing goods, competitive bidding must be standardized in the bidding process. Strictly regulate the phenomenon.

Third, strengthen the cost control of the whole manufacturing process.

In order to reduce the product cost, strictly implement the energy management system, improve the energy evaluation system, fully implement the full cost accounting and control layer, truly understand the manufacturing cost of each product, including the normal consumption of raw materials, water, electricity and steam, and formulate practical measures to reduce costs and consumption. It is necessary to reduce the energy consumption per unit product. Strictly implement the management and control of raw and auxiliary materials consumption quota. Formulate reasonable consumption quotas of raw materials, auxiliary materials, water, electricity and steam, control the waste caused by free use, and formulate practical measures to reduce costs and consumption, and overcome the phenomenon of "running, running, dripping and leaking" in the production process. Adopt new technologies, new processes and new materials, improve technical equipment and technological level, reduce energy and raw material consumption, improve production processes and procedures, improve comprehensive utilization rate of waste materials, reasonably control product moisture, and increase product output and export rate when conditions permit. Strengthen employment management, cultivate employees' more technical and technological abilities, and greatly increase the proportion of piece-by-piece wages. Show the potential of employees and improve labor productivity.

Fourth, strengthen the cost management in the sales process.

Profitability is an important process for open source enterprises to establish risk awareness and sales links. In this process, the sales department studies and promotes the operating cost and scale of the sales and service marketing system, earnestly studies the national and local tax policies, establishes tax risk awareness, strengthens legal study, strengthens tax and tax skills, scientifically plans, reduces tax costs, and applies relevant knowledge; Location theory. Rationality of location selection of sales branch. The completion of income assessment indicators, the relationship between the sales of circulation units, and the increase of sales revenue, internal unit sales should be submitted to taxable income and non-taxable income, tax, in order to avoid violations, the tax authorities.

1) Strengthen product sales management, and conduct volume, cost and profit analysis. Cost-volume-profit analysis is an effective means of enterprise modernization management, and analyzes the influence of changes in sales investment, financial management, cost, sales unit price and other factors on profits. In product sales, through the analysis of the quantity, cost and profit data of various products, we can evaluate the profitability of each product, tap the potential, make different sales plans for different products, determine the focus of product sales and optimize the product structure. For products with small market share, high gross profit margin and large growth space, we should try our best to promote the market by increasing sales volume and obtain more profits; For products with large market share, low gross profit margin and small growth space. Various measures should be taken to reduce costs and increase profit margins; Small market share. Products with low gross profit margin, little room for growth and failure to reach the breakeven point should be considered for stopping production or changing production. When expanding the sales scale. We should also make full use of the analysis of quantity, cost and profit, equip personnel, equipment and facilities accordingly, determine a reasonable sales scale and avoid wasting funds.

2) Strengthen the management of accounts receivable. Speeding up the withdrawal of funds in the highly competitive market economy, it is inevitable to use credit sales in order to seize the market and expand sales. The formation of accounts receivable increases the risk of enterprises, in order to ensure the safety and effectiveness of accounts receivable. We must strengthen the management of accounts receivable, correctly and reasonably use the credit sales strategy, speed up the capital turnover of enterprises and improve the efficiency of capital use. It is also conducive to preventing business risks.

Fifth, make a reasonable inventory.

Controlling the inventory cost and reducing the capital occupation of inventory will not produce any additional value, which will not only occupy space and capital, but also produce handling and warehousing costs. And with the passage of time, on the one hand, the corrosion and deterioration of inventory will lead to waste and price loss; On the other hand, technological progress and the improvement of competitors' products will make products depreciate overnight and even become waste products.

Six, strengthen cost innovation, open up new ways of cost management.

Enterprise cost control. In addition to preventing costs from rising. What's more, I hope to reduce the cost to a certain extent every year, but there is a limit to reducing the total cost. To a certain extent, if there is no innovative technology and technology, it is difficult to reduce costs and management may rebound slightly.

How to control the cost Part 3 Through the two-day cost control training of Mr. Johnny Ma, I have a deeper understanding and perception of cost control. The main experience is as follows:

1. Importance of budget in cost control

This training made me understand that cost control runs through the whole process of enterprise management. In the case of a certain total income, enterprises must reduce costs if they want to improve profits. The quality of cost control directly affects the profitability of enterprises. For our real estate industry, under the premise of basically fixed income, reducing costs has become a decisive factor in increasing profits. Traditionally, reducing costs mainly depends on saving costs, but through this training, I once again realized that controlling costs is an important aspect of cost control. But for a good cost control enterprise, the cost target should be set in advance and implemented at different levels, which is what we now call cost budget. Budget is an annual financial revenue and expenditure plan based on enterprise development planning and tasks. A scientific and reasonable budget is the overall basis for all sources of funds and expenditures in the year, the premise for carrying out various financial activities and the guarantee for development in a certain period. Now all aspects of our property management company are implementing step by step according to the budget plan. With the development of the company, the requirements for scientific, comprehensive and meticulous budget management are getting higher and higher, which shows that the role of financial budget in cost control is obvious.

2, cost control work should highlight the people-oriented.

Through training, I deeply feel that the cost is not controlled, but motivated. Cost control is not to reduce costs, but people-oriented. Employees are the ultimate executors of all work, and they are familiar with all kinds of situations in the workplace. Enterprises or departments should create a mechanism and atmosphere for employees to consciously participate in cost control, and give full play to the cost control role of each employee. If everyone can put forward and improve the waste of cost, it will produce amazing results in the long run.

3. Cost control should focus on digitalization.

During the training, Mr. Johnny Ma emphasized that if we want to control the cost well, we should learn to use various tools and digitize all our work and activities. Only those that can be measured by numbers can be quantitatively analyzed to find out problems or improvements. Cost data mainly includes original data, management data and business data. Complete, accurate and detailed statistical data is the basis of cost control. If this part is not in place, some cost control work, especially the waste phenomenon hidden in various processes, will not be effectively controlled and the expected effect of cost control will not be achieved.

4. Do a good job in cost control and learn from excellent enterprises.

The importance of cost control has been recognized, but cost control should be carried out according to different industry requirements. This lecture is about the cost control method of real estate industry. For our real estate industry, we also need to determine the appropriate methods according to our own industry characteristics and learn from excellent enterprises. First of all, we should make sure that the enterprises that do better cost control work than ourselves are the goals for us to learn and catch up with, then carry out the cost control work of this enterprise with reference to their cost control methods, and finally form our own cost management model through learning and implementation to surpass the target enterprises. Now we have hired the financial staff of Great Wall Property Company as consultants, which is also a measure to learn from excellent enterprises. Taking an excellent enterprise as the goal can make us take fewer detours and achieve the ideal cost control effect in a short time.

The above is my experience of this training. Cost control is a process of tapping potential, and there is a lot of cost waste hidden in every process, so cost control should be people-oriented and digital. Through the standardized system, a good cost control atmosphere is formed, and finally the purpose of improving the profitability and competitiveness of enterprises is achieved.