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How Can Reducing Overhead Boost My Bottom Line?

Some expenses, such as wages, may be either a direct cost or overhead. For instance, in a manufacturing business plant worker wages would be listed under “Cost of Goods Sold” as a direct cost on the Profit and Loss Report whereas office wages would be an overhead expense.

Overhead expenses are sometimes taken for granted and not monitored as closely as direct costs. Every dollar in overhead reduction adds that dollar directly to net profit!

Here are several expense types that should be monitored closely:

  • Costs associated with company paid mobile phones and other data devices
  • Company credit card expenditures by employees and management
  • Subscription fees (often businesses subscribe to online services but forget to cancel the subscription when they no longer use the service)


Click here to schedule a free session with Paisley to review your overhead.