Should I Consider Becoming a Cost Clerk?

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Simply put, a cost clerk determines whether the expenditures of a company’s finances are making or losing money in the different departments. Cost clerks look to see if the different departments are operating within the financial limits. A cost clerk will review this information and seek out ways of reducing costs.

Overview of the Career

Although a college degree is not required, to have an associate’s degree will help tremendously in the job search of a cost clerk. Computer, mathematics and bookkeeping skills are needed for the basics of a cost clerk. Many learn some of the skills while on the job and others will go on to college in order to gain the fundamentals of accounting and move on to the better paying jobs.

According to the Houston Chronicle, cost clerks median salary is $32,000 to $35,000 with an expected growth of 14% between 2012 and 2022.

Cost clerks are constantly on the hunt for ways to cut cost. Although they start in the construction industry, they are now used throughout companies of all industries both large and small. Their job is to identify areas of waste and come up with ways to cut costs of operations. This would include things such as finding cheaper suppliers, purchases, quality and control of inventory, budgets, organizational changes, and strategies related to procurement.

Cost is a Factor in This Business

After their reviews, they would report their finding to mid and upper level departments, such as finance and accounting departments, to come up with strategies to cut the overall costs within the departments in which they might be losing money.

For example, if an auto supply company is sending out parts made of resin material that has to be cut into several different pieces for the customer, but there is a machine operator in the plant that could do the same job and save the company $30,000 a month, it would be a good place to save $30,000 a month in cost. It would also create more productivity for the company and the employees.

Some companies cut costs by bringing in workers from temporary services instead of hiring within the company. This provides the services needed, but the temps work for lower wages and the company does not have to provide benefits. Some companies choose to outsource for cost reasons.

While a cost clerk is constantly seeking cost-cutting methods to save company money, sometimes they have to think outside the box about the future. When they come up with a potential plan or idea they will report those potential findings to upper management for a final review. Strategizing business ideas for planning is part of the overall process.

The departments will work together as a whole for the benefit of the company’s overall financial outlook. Although some companies might seem a bit unconventional in the ideas they might come up with, the bottom line is what the company is looking at for their final sustainability.

Learn more about this entry-level job and find out the unique challenges by going back to school!