SPEND MONEY
Reviewing Expenses
At this size, expenses can quietly get out of control. Here’s how to review them properly and make sure your margins stay intact.
How to Review Business Expenses and Stop Wasting Money
When your business reaches this size, it becomes easy to lose track of what’s being spent. Managers have their own budgets, credit cards start getting used more freely, and before long, expenses have crept up without anyone noticing.
A regular review of expenses against budget and against prior periods is the best defence against this.
Two levels of review
The first is at the data entry level. A good bookkeeper doesn’t just enter bills — they look at each one and ask whether it makes sense. Does this amount look right? Is this consistent with what we’d expect? That kind of active review catches problems early.
The second is the monthly management review. When we prepare reports for clients, we go through every line to check that things have been allocated correctly and that nothing unusual has been missed. This is faster when done by someone who does it regularly — a skilled bookkeeper or accountant will spot anomalies that a business owner reviewing their own numbers might miss.
If you know your costs need more attention but don’t have the time or headspace to do it consistently, get in touch and we can talk through how we can help.