4 Ways To Cut Costs During the Oil & Gas Downturn
With the price of oil below $40, everyone in the industry need to cut costs. Here are 4 quick ways to cut costs during the oil & gas downturn.
- Look at your credit card and bank statements to look for recurring charges that can be eliminated. You’ll be surprised by how many services or subscriptions you might have signed up for and forgotten. It might not seem like much but these charges add up quickly. Cancel all subscriptions and services you aren’t using or can do without.
- Cut back on company paid lunches and other special perks. You really don’t need to go out for lunch everday but you can if you want. Just don’t make the company pick up the tab. These meals can add up quickly to hundreds of dollars a month.
- Hold off on hiring new people until you find ways to justify and pay for them. Too often we hire because we think we see a need but don’t take into account what those wages will do to the bottom line. Will hiring increase efficiences and add to the bottom line? If so, go for it. Otherwise be hesitant to add overhead.
- Look at other high cost items you’re using that might have made economic sense during high prices, but now are a drain on cash. One of these could be your monthly software costs. If you’re using an Oil & Gas Accounting system that made sense during $80 oil but now isn’t giving you enough in return for it’s on-going maintenance costs, it might make sense to switch to a lower cost alternative that has the same functionality.
We’ve helped many companies switch away from their high cost oil & gas accounting software to SherWare. The benefits include lower yearly costs for maintenance and increased productivty for your current staff. This is a win/win because you can cut costs and avoid adding more wages!
Source: SherWare Blog