Many business owners believe that if they have their accounting under control! they have no hidden costs. But the truth is that these costs are not what your accountant records.
Hidden costs are invisible resources that flow out of a business every day
They Money is slipping are not on the surface and therefore fax lists are often not taken into account! but their impact is tangible: increased costs! reduced profitability! communication problems! risks to development.
These costs are hidden in routine processes that you have come to accept as “the norm.” Money is slipping They can be excess inventory! overproduction! waiting times between work stages! or even unnecessary actions by your employees. They are invisible without careful analysis! which is why they are dangerous and continue to “eat” your resources.
A significant part of such losses is excess inventory
These are any materials! raw materials or goods that are not used on time. They are often purchased “in reserve”! without any real need. But inventory is not only about physical objects. For example! the additional time spent on performing routine tasks due to differences in employee qualifications is also inventory that takes money. The jackie lyles senior accountant same goes for information: data that you collect but do not use creates an unnecessary burden and costs for collecting! processing! analyzing and storing such information. Sometimes they clutter up the workspace so much that it is easier to find and process this information anew than to search for it in a catalog or database on a server.
Another example of hidden waste is overproduction – the production of products or services earlier than necessary! or in excess of what is needed. This is a typical situation when a product is burkina faso business directory created “just in case”! without an order! and then sits in a warehouse waiting for its buyer. This type of cost is the most significant! because it usually provokes the appearance of other types of waste.