How to Prepare for Your Initial Cost Recovery Meeting

Your accountant has recommended that you sit down with a “contingency-based” savings consultant that is geared toward helping you find errors in many different areas:  workers compensation expense, waste management, merchant service fees, tax bills, wireless service, shipping and freight services, monitoring vendor insurance coverages, and the like.  The whole concept can be overwhelming.  You think to yourself, “Where will we begin to determine how to save?”  You might even think to yourself that you just don’t have time to delve into something of this magnitude.  Well, time is money, and most businesses want to stick to their core business, without having to learn about each and every service listed above, so many hire a cost recovery advocate to take care of finding money to put back on the bottom line.

Here are four tips to maximize the efficiency of your initial visit with this cost recovery advocate: 

1.  The person most interested in the bottom line should be at the meeting.  It’s fine to delegate the gathering of these few documents but the direction has to come from the top down and the owner of the company or franchise or commercial property owner has to drive the process.

2.  Be prepared to gather a few past bills, whether it’, tax, merchant services, wireless, freight, etc.  Nothing fancy, just something your cost recovery advisor can review to see if there are “inappropriate” charges.  From there, a proper baseline can be established with your cost recovery advisor.

3.  Don’t assume that everything you’re doing is correct.  If the focus is on the bottom line, be open to looking at small changes that may yield big returns.  For example, a simple review of your processes may indicate the need for a small administrative change on the front end.  Remember, garbage in is garbage out.

4.  Be ready to move forward.  Recognize that while you waste time in making a simple decision, you can waste money.  In most cases your cost recovery can begin immediately and there’s no reason to wait, particularly if your consultant is paid based on what they save.

In summary, don’t fret about your initial meeting.  The concept is simple…if both parties are focused on the bottom line, then the goals are in sync and the effort is minimal.  Just “do it”!