How CFOs Can Achieve Cost Savings in 2023

With the current economic climate having a big impact on quarterly success, Chief Financial Officers are having to get creative to ensure economic gains are achieved. This process most often starts by conducting a thorough analysis of the company’s costs to identify areas where savings can be made.

So far, we’ve seen hundreds of public and private corporations make cost cutting measures through employee layoffs and the adoption of remote work. However, there are several more ways to better prepare for the future as well as earn savings in 2023. Here is your guide to greater financial success in 2023!

Achieve cost savings with these scalable strategies

There are several potential ways that businesses could achieve cost savings in 2023. Here are some of the best examples:

Invest in automation and digital technologies

Automation technologies can help businesses streamline processes and reduce the need for human labor, resulting in cost savings over time. A report by Gartner predicts that by 2024, at least 75% of businesses will have incorporated automation technologies into their operations. This may include automating accounting and financial reporting processes, or implementing digital procurement tools to improve supply chain management.

Automatic mileage tracking

Businesses can use automatic mileage tracking to streamline expense tracking, improve accuracy in tax reporting, and save time and effort. If your employees use their personal vehicles for work-related tasks, a software like MileIQ for Teams becomes an advantageous tool to your company. By accurating logging employee mileage or company-owned fleets, both you and your employees can save big during tax season.

Embrace remote work

The pandemic forced businesses to reevaluate the workplace landscape for several years. And now in 2023, as financial forecasts show the number of remote jobs are on track to increase, businesses have an even greater opportunity to save money on office space, utilities, and other related expenses. It may be the time to stop hybrid working once and for all.

Use all available tax credits

There are several state and federal tax credits that small businesses can take advantage of, yet few business owners actually take the time to learn about these incentives. Aside from the mileage deduction, CFOs should take a closer look at the company’s overall tax standing to determine which tax credits apply. Some examples include Credit for Increasing Research Activities (Form 6765), New Markets Credit (Form 8874) and Tax Credit for Small Employer Pension Plan Startup Costs and Auto-Enrollment (Form 8881).

Take energy-saving measures

The progression towards more sustainable practices shows no signing of slowing down in 2023. Many companies are making headway by upgrading to energy-efficient vehicles, reducing unnecessary energy usage through utility bills and investing in clean energy sources, such as solar panels.

Outsource non-core functions

CFO’s also have an opportunity to outsource non-core functions in an effort to reduce employee overhead costs. Roles such as accounting, IT, and human resources can be contracted on a by-needs basis instead of being a payrolled position throughout the year.

These are just a few examples of ways that businesses could achieve cost savings in 2023. The specific strategies that would work best for a particular business would depend on a variety of factors, including industry, size, and operational needs.