Secret 2 – A small leak will sink a great Ship

A Penny Saved is a Penny Earned

• Beware of your spending’s even on little expenses
• Prior Identification of spending and Set Budget
• Track excess spending and plan to reduce it

Challenges in Cost Control and Cost Analysis

• Difficulty in configuring the cost controls techniques/tools into the system
• Time and effort you have put into gathering data for reporting purpose
• Difficult in drawing insights if reports are not simple to interpret

Cost Management in Tally.ERP

• Availability of Reports on click of a button at blazing speed helps to save time and efforts
• Easy to set-up the cost units and budgets – One time setup
• Effortless comparative analysis across period, cost unit/departments/expenses etc. gives better insights for decision making

Cost Control and Cost Analysis

• Allocate the expenses while recording voucher to cost centers created

• The cost centre reports gives you the insights about the department-wise/unit-wise details to identify and reduce the spending as applicable

• Comparative analysis across period will give you insights about month-wise spending and helps in taking decision to optimize the cost

Cost Control and Cost Analysis – Budget Control

• Setting up goals and budget for planned expenditure will help you to plan and track your spending. This is one the best cost optimization technique
• In Tally.ERP 9, it is simple to set the budget at various levels such as specific type of cost, for particular department etc. and track it later

• In order to optimize your cost, it is very important to track the actual spending VS the budget.
• This will help in taking decision at a right time instead of doing the retrospective analysis at the end of budgeted period

Item-wise sales profitability

• It is important to track item-wise profitability to know which are the high profitability products and accordingly plan your inventories

Summary

Article Name

Secret 2 – A small leak will sink a great Ship

Description

Secret 2 of 7 – A small leak will sink a great Ship

Author

Orson Automation

Publisher Name

Orson Automation

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