Expense Reduction Proposal Template

An expense reduction proposal template is a proposition suggested by a different organization to an already existing business in helping them reduce their expenses or cash flow. This proposition can also be urged by the expense manager of a company to the superintended to guide them in reducing their extra expenses. This scheme involves the assembling and recognition of all expenses made by the company. Then the insignificant ones are pointed out and some measures are taken to eradicate them and economize the company’s expenses. This technique poses to be very useful for those companies that are looking for ways to cut down the unimportant expenses and save that money to invest in the company’s growth or some other purpose.

Importance of Expense Reduction Proposal

Although, this technique might require some time and consideration from a few members of the organization. As the managers and the higher authorities are required to take a look at all expenses made by their organization and then put mind in figuring out which ones can be excluded and what is a cheap solution to cover the excluded expense. For example, if you remove the expenses made on coffee and tea of the employees, then you have to formulate a cheaper version of that expense. Instead of coffee, you can spend lesser money on juice for the employees.

How to Make An Expense Reduction Proposal?

Now that we have discussed why we need an expense reduction, the next thing we need to discuss is how exactly we should make an expense reduction proposal. The step-by-step guide is mentioned below;

1. If the proposal is proposed by a different organization, then the document should begin with a short introduction about the company. The introduction should include a brief introduction like the company’s name, the name of their representative and their contact information.

2. Then the reason why they want to assist our company in reducing expenses should be stated and what are the expectations that the organization has from the client company in return. For example, if they’re expecting to get paid for helping us by reducing our expenses or if they are looking forward to staying in business with us in the future.

3. The next step is to describe the scheme that they have formulated that will help the company to reduce their expenses and what measures they should take to eradicate unimportant expenses. This step usually includes all the expenses made by the company and their alternative cheaper expenses that will not cause any damage to the company’s economy, but instead it will benefit them..

4. After this, the last step is to mention if they are looking forward to a follow-up on call or a physical meeting to further explain their scheme to the company.

This expense reduction proposal is then printed out and mailed to the company. Nowadays, because of increase in the use of technology. Especially because now most business deals are carried out via email, it is much preferred to simply email the document to the company or to superintendent of the company. This way, it is easier for the targeted company to get back to you as soon as they can and proceed to deal further.

---

Template for Expense Reduction Proposal

---

---