If your company has more than one department, why are you charging
all your gas and electric expenses to your administrative department?
Even small businesses have various departments such as shipping, inventory or parts, sales and even service.
Yet when it's time to post the utility charges, it's easier to make one journal entry and allow this expense burden to go to one department - the admin department.
Your first thought here may be, "Splitting expenses between departments doesn't lower my utility costs!" and you'd be right. What it can do, however, is help departmental managers and supervisors pay closer attention to their expenses and step up and make marked efforts to lower energy costs, especially if they know they are sharing the burden and are paid on net profits.
Most accounting software companies easily allow you to do this. New businesses can do this at accounting startup by determining a percentage each department should bear based on size and energy needs and when the utility bills are paid, the software automatically posts the percentage costs to the appropriate department.
If you have an existing business, you can modify how this vendor payment is charged by revisiting your accounting setups and divvying up the expense across the board.
If you pay your managers on department net profits, they will become more aware of energy costs and may even take it upon themselves to seek out the multitude of gas and electric providers available to see if they can realize even more savings.
No business has to be stuck with just one utility company yet many stick with the one they have because they simply don't have the time to perform any price comparisons. Along with making each leg of your company a little more responsible on the company's utility costs, you, as the business owner, can also make changes in your provider.
Sharing utility expenses is an eye-opener for many supervisors but to find real savings, why not seek help from a professional? There are free energy consulting firms who will do the research for you allowing you to find a better business gas quote faster.
These professionals know their stuff so why not utilize their services today? Sharing costs departmentally is a useful motivator but when it comes time to research and compare and even change your utility provider, take advantage of free consultants for the largest savings.
More info:http://www.articlesbase.com/small-business-articles/business-utility-expenses-too-high-split-the-expense-5737937.html
Yet when it's time to post the utility charges, it's easier to make one journal entry and allow this expense burden to go to one department - the admin department.
Your first thought here may be, "Splitting expenses between departments doesn't lower my utility costs!" and you'd be right. What it can do, however, is help departmental managers and supervisors pay closer attention to their expenses and step up and make marked efforts to lower energy costs, especially if they know they are sharing the burden and are paid on net profits.
Most accounting software companies easily allow you to do this. New businesses can do this at accounting startup by determining a percentage each department should bear based on size and energy needs and when the utility bills are paid, the software automatically posts the percentage costs to the appropriate department.
If you have an existing business, you can modify how this vendor payment is charged by revisiting your accounting setups and divvying up the expense across the board.
If you pay your managers on department net profits, they will become more aware of energy costs and may even take it upon themselves to seek out the multitude of gas and electric providers available to see if they can realize even more savings.
No business has to be stuck with just one utility company yet many stick with the one they have because they simply don't have the time to perform any price comparisons. Along with making each leg of your company a little more responsible on the company's utility costs, you, as the business owner, can also make changes in your provider.
Sharing utility expenses is an eye-opener for many supervisors but to find real savings, why not seek help from a professional? There are free energy consulting firms who will do the research for you allowing you to find a better business gas quote faster.
These professionals know their stuff so why not utilize their services today? Sharing costs departmentally is a useful motivator but when it comes time to research and compare and even change your utility provider, take advantage of free consultants for the largest savings.
More info:http://www.articlesbase.com/small-business-articles/business-utility-expenses-too-high-split-the-expense-5737937.html
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