Knowledge Centre

Cut waste, optimise suppliers, and protect your profits. 

Reduce Cost of Doing Busines

1. What You Need to Know

Every business spends money to make money — but not every rand is well spent. 
Over time, costs creep in through outdated contracts, inefficient suppliers, and unnecessary overheads. Accountants review cost structures, identify savings, and ensure your business isn’t bleeding cash on things that don’t add value. 

2. Why It Matters to You

Regular cost reviews keep your business lean and competitive. 
Frees up cash for growth and investment. 
Protects margins in tough economic conditions. 
Ensures you pay fair prices for goods and services. 
Helps you renegotiate better deals with supplier

3. Frameworks, Standards, or References 

Cost management relies on analysis, benchmarking, and financial discipline. 

  • Frameworks to use: Cost-Benefit Analysis, Activity-Based Costing (ABC), Benchmarking models. 

  • Standards & compliance: IFRS for SMEs (expense recognition), Companies Act (directors’ duty to safeguard assets). 

  • References: CIBA guides on cost control and management accounting. 

  • What your accountant will actually do: 

  • Analyse your expense lines and identify inefficiencies. 

  • Benchmark your costs against industry norms. 

  • Review supplier contracts and renegotiate where possible. 

  • Recommend technology or process changes to reduce overheads. 

4. How to Apply

Steps to lower your cost base with accountant support: 

  1. Review all current expenses and supplier contracts. 

  2. Work with your accountant to identify unnecessary or overpriced costs. 

  3. Renegotiate contracts with suppliers for better terms. 

  4. Implement cost-control policies across the business. 

  5. Review cost structures quarterly to prevent creep. 

5. Common Mistakes to Avoid 

Avoid these errors that keep your costs higher than they should be: 

  • Ignoring small recurring costs → They add up over time. 

  • Staying with suppliers out of habit → Review contracts regularly. 

  • Cutting the wrong costs → Don’t harm productivity or sales. 

  • Only checking costs annually → Do quarterly reviews for agility.