How Can You Analyze and Reduce Overhead Expenses?

Introduction to overhead expenses on a white and an orange background with an illustration.

Overhead expenses are the ongoing costs of running a business that is not directly related to the production of goods or services. These expenses include things like rent, utilities, insurance, and administrative costs.

They are also known as indirect costs or operating expenses. While they are necessary for the smooth operation of a business, they do not directly generate revenue.

Furthermore, it is important for businesses to carefully manage their overhead expenses in order to maintain profitability. This can involve reducing costs, negotiating better rates with suppliers, or finding more efficient operating methods.

By carefully controlling overhead expenses, businesses can ensure that they are using their resources effectively and maximizing their profitability.

Can You Reduce Overhead Expenses?

Overhead expenses are not enough challenged by finance. Why? Because we think that we can’t do much about it. I also thought that there was no possibility of improving overhead costs.
How to change group fees? How to reduce personal costs? This seemed impossible to me.

But one day, I was assigned to reduce structural costs. I had no other solution than… finding solutions. As a result, together with my other colleagues from management, we launched a project to improve the company’s competitiveness. And we succeeded in reducing costs despite inflation costs!

Why Did It Work?

I realized that reducing overhead expenses was like any project, and with a good methodology, you could achieve your goal. But many finance professionals are still struggling with the topic. That is why I decided to share with you, for free, the full lesson on “Overhead analysis.”

In this lesson, you can learn how to:

  • Analyze overhead expenses
  • Reduce personal overhead costs
  • Challenge group recharges
  • Decrease external services

The Bottom Line 

You might think that decreasing your overhead expenses is a difficult endeavor, but you’d be amazed at how much even tiny cuts over time can add up to. Simply review your existing financial position and look for ways to decrease spending. It doesn’t necessarily need major budgeting or downsizing.

Here you can watch the first part of the lesson for free. Moreover, this lesson is part of my course, which I create to help finance people upskill themselves to help their career or transition into a new role.


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