SPEND MONEY
Strategic Expense Management
At $3m+, expense management goes beyond bookkeeping. Here’s what a strategic approach to costs looks like and how it protects your margins.
How to Manage Expenses Strategically in a Large Business
At this size, expense management is no longer just about keeping records. It’s about protecting your margins and ensuring that every dollar spent is aligned with your strategy.
What this looks like in practice
Managers have their own budgets. Credit cards are in use. Procurement decisions are being made at multiple levels of the organisation. Without a proper oversight structure, costs can drift upward without anyone noticing until it shows up in a declining margin.
A strong finance function at this level includes:
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Budget holders who understand their numbers and are accountable to them
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A regular expense review process that compares actuals to budget and prior periods
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An Accounts Payable process with proper approval workflows and two-person authorisation for payments
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An accountant or CFO-level advisor who can identify trends and flag issues before they become problems
The cost of a strong finance team pays for itself many times over when it prevents margin erosion or catches a problem early.