301-812-1330 sales@sgmtraining.com

Security Company Business Tip: Are your costs inline?

Knowing your monthly operating expenses is crucial to managing your cash flow and budget. Operating expenses, sometimes known as OPEX, are not related to service production. Most successful security managers and business owners try to keep operating costs as low as possible, while not damaging the business.

The following are some suggested line items, listed by the month, that should be reviewed. (Note: January contains the most line items for obvious reasons.)

TYPICAL SECURITY COMPANY COST REVIEW

JANUARY

  • Customer Review –expiration date / billing rates
  • Bank Loans
  • Term Loans
  • Bank Line of Credit
    • Credit Limit (% or Fixed)
    • Interest
    • Term
    • Overdrafts
    • Late Fees
    • Collateral (Accounts Receivable)
    • Liquidity
  • Salary & Benefits
    • Executive Salaries
    • Security Personnel Hourly Rates
    • Overtime
    • Group Insurance
  • I-9 procedures
  • Employment Application —
  • Signage
  • ID Cards/Guard Cards
  • Fingerprint procedures
  • Bonuses
  • Vehicles
    • New Purchases
    • Leases
    • Vehicle Condition
    • Mileage
    • Repairs and Maintenance
    • Depreciation

FEBRUARY

  • Customer Review–expiration date / billing rates
  • Recruiting / Advertisement
  • Training program
  • Furniture and Equipment
  • Plan Purchases
  • Depreciation
  • Telephone Equipment
  • Employee Probation System
  • Travel and Entertainment
  • Occupancy Permit/License
  • Repair and Maintenance Contracts
  • Procedure Manual Review

MARCH

  • Customer Review–expiration date / billing rates
  • Building Cost (except Utilities)
  • Repairs and Maintenance
  • Insurance
  • State Tax
  • Federal Tax
  • Policy Manual Review
  • On-The-Job Training
  • Testing Procedures
  • Lease or Amortization Costs

APRIL

  • Customer Review–expiration date / billing rates
  • Inventory
  • Storage
  • Uniforms & Equipment
  • Firearms Training
  • Pepper Spray Training

MAY

  • Customer Review–expiration date / billing rates
  • Office Supplies
    • Stationary and Envelopes
    • Printed Forms and Legal Documents
    • Routine Office Supplies
    • Data Processing Supplies
  • Employee Benefits

JUNE

  • Customer Review–expiration date / billing rates
  • Advertising and Marketing
  • Advertisements
  • Company Newsletters
  • Direct Mail
  • Fire Prevention Training —-
  • Self-Defense Training —-
  • Promotional Gifts
  • Software Leasing Programs

 

JULY

  • Customer Review–expiration date / billing rates
  • Vehicles
    • New Purchases/Leases
    • Vehicle Conditions/Mileage
    • Repair and Maintenance
    • Depreciation
  • Bonuses

AUGUST

  • Customer Review–expiration date / billing rates
  • Communications
    • Telephone / Cell Phones
    • Incident Report Procedures —
    • Daily Log Procedures
    • Radios
    • Dispatches
  • Postage Expense
  • Classroom Equipment
  • Annual Refresher Training Programs —
  • Inventory Procedures
  • In-House Business Forms —
  • Security Officer Pocket Manual —
  • Insurance
    • Workmen’s Compensation
    • Liability
    • Automobile
    • Health
    • Property

SEPTEMBER

  • Customer Review–expiration date / billing rates
  • Supervision —
  • Professional Fees
    • Legal
    • Auditing
    • Accounting
    • Consulting
    • Medical
    • Key Control Procedures
  • Court Procedures —
  • Customer Relations Training —

OCTOBER

  • Customer Review-expiration date / billing rates
  • Business Development Expenses
  • Publications
  • Subscriptions
  • Travel and Entertainment
  • Dues and Memberships
  • Conventions and Meetings
  • In-Step Pay Raise Procedure
  • 90 Day Employment Probation Procedure
  • Attendance
  • Late / No-Show / Call Off,  Monthly Percentages
  • Disciplinary Procedures
  • Bonuses

NOVEMBER

  • Customer Review–expiration date / billing rates
  • Annual Budget Preparation
    • Overall Cost Reduction Targets
    • Line Item Increases/Decreases
    • Approval and Implementation
  • Personnel Files
  • Discipline Procedures and Documentation
  • Security Contract Renewal Dates
  • Recycling Procedures
  • Interest Expenses/LOC

DECEMBER

  • Customer Review–expiration date / billing rates
  • Data Processing
    • Hardware and Software
    • Repairs and Maintenance
      • Internet Fees
      • Website
      • Webmaster
      • Domain Names
      • Shopping Cart/PayPal
      • Internet Fees
  • Human Resource Procedures
  • Employment Application —
  • State Regulation Compliance
  • Security Surveys for Customers —
  • Postage