Keep control of those expenses/costs!
This week’s Guest Blog is from Helen Winder Managing Director of Transire Ltd – here are some of Helen’s thoughts keeping control of your expenses and costs.
My team quite often look at me as if I am nuts when it comes to money being spent.
Well, you know what, keeping control of those costs and expenses is so SO important. Lose control and you are in trouble.
I just want to share with you what I do …
- I request from my accounts chap, a complete rundown of all known expenses at the end of each month.
- I review everything in detail
- If I see something we can do without then it goes. If it is an essential then it can stay!
- I then set a budget for the following month for incidental expenses. This is then communicated to everyone so they understand and I get their ‘buy in’.
If at any point the budget for that month disappears and something is needed it has to be run past me before being purchased. If it really is needed then ok, it is purchased … But … I the set a target – If the item costs X amount then we need to increase our income by X (more than the item costs!) or we save the same amount elsewhere.
If at any point I feel that it is not an essential purchase then the team have to give me a good reason and show me the benefits in both performance and new income to the company.
Yes, I may sound hard faced towards something that may be small and meaningless to others looking in but, you have to keep control.
Having been through bankruptcy and come out the other side, I know from first-hand what it is like to live on a budget. I am simply applying this to my business.
You have to keep an eye on your income, profit, costs, and expenses on a regular basis. If you don’t, then you are out of control and it will play on your mind all the time which then contributes to stress.
I hope what I have shared will help you in some way.
We would love to hear your thoughts and how you keep control!
Short Bio
Helen Winder is the Managing Director of Transire Ltd. Helen works very closely with all the clients of Transire and is always looking ahead to ensure they meet their personal and business goals. Through her own experiences in business she also acts as a sounding board when needed. Connect with Helen on twitter: @helenwinder and @transireltd or visit http://transireltd.com
To learn how to use Excel to help you keep track of those expenses give us a call on 020 8203 1774 and visit our website at www.theittrainingsurgery.com
Helen
This may seem like common sense but it is something really overlooked in many businesses. I was the same as you here as a business owner. And for staff, it is so much easier to spend other people’s money (yours) than their own and only when it comes out of their own pocket would they realise.
It can be the difference between trading and not trading as profit is of course vital in any business, but cash flow, or lack of it, is why businesses are killed off.
Thanks for posting!
Regards
John
PS – thanks for being honest re: bankruptcy too in your article – great to see falling off the horse and getting back up, only to then jump higher fences – it is the same the world over for many – too few are prepared to say so however!