TAX ACCOUNTANTS AND BUSINESS ADVISORS

  • Home
  • Blog
    • Blog
    • NewsLetter
    • Webinars
  • Solutions
    • Individual
    • Business Accounting
    • Business Planning
    • Cashflow and Profit Improvement
    • LookOver - Second Opinion on Tax
    • LookOver - Business Health Review
    • Hospitality
  • Our Service
  • Team
  • Contact
  • Q & A
  • Home
  • Blog
    • Blog
    • NewsLetter
    • Webinars
  • Solutions
    • Individual
    • Business Accounting
    • Business Planning
    • Cashflow and Profit Improvement
    • LookOver - Second Opinion on Tax
    • LookOver - Business Health Review
    • Hospitality
  • Our Service
  • Team
  • Contact
  • Q & A

Review your expenses – and save yourself money

19/2/2024

1 Comment

 
Picture
​Need to rein in your expenses? We’ll review your current costs, find the expenses that could be cut and provide a proactive spend management programme to reduce your spending.
#businessadvice #SmallBusiness #SmallBiz #SMB #expenses
Running a business will always mean incurring certain expenses, or ‘spend’. 

Whether you’re a large family business or a small fledgling startup, there will be costs, overheads and supplier bills that mount up – and these expenses will gradually chip away at your cash position, making it more difficult to grow and make a profit.

So, what can you do to reduce your spend levels? And what impact will this have on your overall margins, profits and ability to fund the next stage in your business journey?

Getting proactive with your spend management.

Spend management is all about getting in control of your expenses – and, where possible, aiming to reduce the level of costs and overheads that you incur as a company.

Why does this matter? Well, excessive spending eats into your cashflow, reduces your profit margins and stops you from achieving the profits that you’re capable of as a business. So if you can get proactive with your spend management, you can actually make your company a far more financially productive enterprise – and that’s great for your overall business health.

So, what can you do to reduce spend and slim down your company expenses?

Here are some keyways to reduce expenses:
​
  • Reduce your overheads – Your overheads are the unavoidable costs of running your business, producing your products or supplying your services. If you have bricks and mortar premises, these overheads will include rental payments, utility bills and even the cost of paying your staff. Drill down into the numbers and see where there are opportunities to reduce these overhead costs. That could mean moving to smaller premises, or reducing the size of your workforce, to reduce payroll expenditure.
  • Put limits on staff expenses – If your employees can claim expenses, or buy raw materials and equipment with the company’s money, these costs can soon start to rack up. It’s a good idea to put a spending limit in place, so each staff member can only spend up to an agreed amount. Having a clear expenses policy helps, as will training up your staff in good spend management techniques. Specialist expenses card software allows you to quickly set spend limits, track expenses and pull your expenses data through to your cloud accounting platform for processing. 
  • Look for cheaper suppliers – If you can reduce your supplier costs, this will go a long way to bringing down your overall spend. If you’ve been with certain key suppliers for years, look around for new quotes, look at current market prices and see if you can negotiate better deals. And if your old suppliers aren’t flexible enough, try swapping to newer, more eager suppliers who will be willing to meet you in the middle on price.
  • Make your operations leaner – the bigger your operational costs are, the less margin you’ll make on your end products and services. One way to resolve this is to aim for a ‘lean approach’, paring back your staff, resources and operational complexity to the bare minimum. By making the business as lean as possible, whilst still delivering the same output, you keep your revenue stable, but reduce the spend level that’s eating into your cost of goods sold (COGS). The smaller your COGS, the more profit you make on each unit or sale – and that means better cashflow, more working capital and bigger profits.
  • Explore tax reliefs – Tax costs are an unavoidable expense when running your business, but it’s worth exploring which tax reliefs, grants or other business benefits you may benefit from. For example, research and development (R&D) tax credits may be available to you to help cut your corporation tax expenses.

Talk to us about improving your spend management.

If you’d like to get in control of your expenses, we’d love to chat. We’ll review your current costs and will highlight the key areas where expenses can be cut. Then we’ll help you formulate a proactive spend management programme, to reduce your unnecessary spending.

Get in touch to start reducing your spend.
1 Comment
Jessi
15/8/2024 10:23:06 am

Your writing style is persuasive and compelling. You've made a strong case for your viewpoints on the subject. To delve deeper, <a href="https://moneywaveoriginal.com/DS/vsl/#aff=rmaw5559" target="_blank">click here</a>.

Reply



Leave a Reply.

    Archives

    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020

    Categories

    All
    Financial Awareness
    General
    Management & Strategy
    Payroll
    Sales & Marketing
    Superannuation
    Tax / Compliance
    Technical


      Learn More

      Get monthly updates with
      ​the latest news and insights. 
    Subscribe
Call: 1300 273 900 today and speak with one of our friendly Accountants.
Book a Meeting
Picture
Brew Accounting is a CPA practice.
Picture
Registered Tax Agent
Picture
Chartered Tax Advisor

​copyright(c) 2023 Brew Accounting