CONTROLLING SELLING, GENERAL, AND ADMINISTRATIVE (SG&A) EXPENSES

Selling, general, and administrative expense (SG&A) is the sum of all direct and indirect selling expenses and all general and administrative expenses of a company. It includes all the costs not directly tied to making a product or performing a service.

For a staffing firm, this includes in-house expenses like office furniture, computers, and phone systems. In order to control these costs, you should have a process in place to monitor them closely. Here are some best practices for controlling overhead costs:

WATCH YOUR TRAVEL COSTS

Per diem limits for meals, teleconferencing when possible, and booking months in advance can help you save money. Defining your travel policy early on is key.

SKYPE IS YOUR FRIEND

Internal communications services such as Skype or Google Voice can greatly reduce your phone bill. Do some research on communication alternatives.

NEGOTIATE RENT

Rent is often one of the highest costs for businesses. Negotiate with your landlord often, or, depending on the size and location of your firm, co-working spaces might be an alternative option.

SAVE ON ENERGY

Consider switching to LED bulbs over incandescent bulbs, or plugging computers and other electronics into power strips and turning them all completely shutting them off at the end of the workday.

MAKE PURCHASING A PROCESS

Assign one person to review and approve purchases so that they can monitor all expenses before they are paid. Also set policies for spending, such as requiring competitive bids for purchases over a certain dollar amount.