Lorna Paterson of Expense Reduction Analysts looks at ways in which organisations can keep their costs under control in 2011

Whether you’re determined to take up running or learn a new language, no new year would be the same without resolving to change your life for the better.

However, when it comes to looking at your company’s expenditure, it’s not so easy to spot the changes that could make a real difference.

As the economic downturn continued to dominate headlines in 2010, many CFOs may have been prompted to thoroughly review their company’s costs. If you’re one of these, it may seem like all the hard work is done and you’re well placed to reap the rewards in 2011.

However, those impressive savings could be lost if you don’t continue to keep a close eye on spend. By focusing on the following key areas, you can continue to achieve real savings without becoming sufficiently overwhelmed as to abandon your efforts before the end of January.

Whatever the size of your organisation, utilities are likely to be a significant headache, particularly when managing multi-point renewals. Utility companies have different termination and renewal processes, so knowing when and how to go to market can significantly improve your costs. Knowing your renewal dates and making sure termination is served in good time to ensure you’re able to negotiate before renewal is also vital to achieve savings.

Similarly, it’s important to dedicate proper time and attention to your insurance arrangements. You may struggle to do this if your renewal falls at the end of March, so try to extend cover to a quieter time of year. Insurance is not a science and you need to ensure your risk management and claims record are presented in the best possible manner and that you have the market knowledge to negotiate. Brokers will adopt defensive strategies to close down markets, so a due diligence benchmarking process is most cost-effective.

Another key area to closely watch is spend on communications. Although the telecoms market is perceived to be in decline, some suppliers continue to try to push through price increases, particularly for line rental costs. If you spot this, negotiate hard and look at alternative suppliers.

Finally, be aware that we’re seeing an increase in tariffs on merchant cards acquisition fees – especially where the cardholder is not present – which in extreme cases can reach up to 69 per cent. These reflect more than increased costs and are often enforced without notice. Do not accept these unchallenged, but consider specialist advice to help determine your transaction mix and the current ‘market rate’.

By focusing on these areas, you will continue to see the benefits of your cost management programme and be well placed for a financially successful 2011.