Cost control in times of uncertainty – 2024 report
Numbers don't lie, but few people look them straight in the eye while business is running. Since January 2024, we entered 38 companies in Lesser Poland with a notebook to check what happens with cash between issuing an invoice and the end of the month. It turned out that most owners lose from 800 to 2400 PLN per month on things that can be fixed with one decision.
Dead subscriptions and forgotten services
In 17 out of 38 studied companies, we found active payments for tools that no one had used for at least 7 months. The record holder, a wholesaler from near Krakow's Rybitwy, was paying 314 PLN monthly for access to a database that no one had logged into since September 2023. These are not huge individual amounts, but on an annual scale, it is almost 3800 PLN thrown down the drain. Often this is the result of an employee leaving and the access remaining active.
The rule is hard: if no one has used the program for 30 days, we turn off access. A simple Excel sheet with renewal dates and the name of the person responsible is enough. We create such lists for our clients in an hour, and savings are visible in the next settlement cycle. This is a foundation of peace – you know what you are paying for and why it is needed.
The record holder paid 314 PLN monthly for a program no one had logged into for over a year.
Silent increases at regular suppliers
Trust in business is important, but mathematics is more important. Analysis of 124 invoices from utility and office supply providers showed that prices can rise by 4-7% without any clear notification. Owners of small workshops or design offices rarely compare item by item. They assume that since they have worked with someone for 6 years, the price is fair. Unfortunately, automation on the corporate side often imposes higher rates on regular customers.
In one Krakow printing house we worked with in May, the audit showed that the price of paper increased by 12 cents per ream without notice. With their consumption, this meant a loss of 460 PLN in one quarter. After one phone call and referencing specific dates, the supplier returned to old rates. Facts matter, not promises of good cooperation heard over coffee.
Chaos in fuel and travel settlements
This is where friction most often occurs between owner and employee. In 11 companies, the mileage reimbursement system practically did not exist or relied on loose notes. The lack of a clear management structure in this area causes the company to pay an average of 140 PLN extra for every business trip due to rounding errors or lack of route verification. This is not a matter of lack of trust, but lack of order in the documents.
Implementing a simple travel cost reporting form took us exactly 3 days in one construction company. The result? Fuel expenses fell by 19% per month because it suddenly turned out that routes could be planned better. We build foundations that prevent such leaks. P.S. Often it is these small sums that decide whether you can afford a bonus for the best people at the end of the year.
Fuel expenses fell by 19% just thanks to the introduction of a simple route reporting form.
Time is money, or empty meeting runs
The hardest to measure, but most painful cost. In 38 audited companies, we checked how long meetings last. The average time is 84 minutes, of which real decisions were made within the first 18 minutes. The rest was discussions about nothing. If 5 people sit in a room, each earning an average of 45 PLN per hour, then one such 'empty' hour costs the company 225 PLN in pure cash.
At Korona Corporate Governance, we promote principles stronger than the crisis: every meeting must have an agenda and end with a written decision. Introducing this rule in a small accounting office in Krakow shortened meeting times by 40%. This allowed employees to close 6 more invoices each day without staying after hours. This is a hard structure that gives a certain profit without hiring new people.
