Managing Business ExpensesAssociation of Business Training
November 5, 2012 — 934 views
Managing Business Expenses
Any small business owner will tell you that every penny counts. While it can sound like a cliche, it is true that small business owners need to keep track of every penny that comes into and goes out of their company if they want to stay in business. In order to keep enough cash on the company bottom line, there are some tips small businesses can use to manage company expenses.
Buy With a Credit Card
A small business that uses a credit card which gives cash back for purchases is accomplishing two things. The first is that the business is creating a purchasing report each month that can be used to track expenses down to the penny. The other advantage of a cash back credit card is that the cash back becomes extra money when you pay the balance off each month. As long as you do not carry a balance that can accumulate interest, then you always be ahead of the game with a company credit card.
Have a Plan
Every company that wants to be successful needs to have a business plan in place that dictates where every dollar is spent. Many small business owners bypass creating a business plan because it takes time. But when you have a detailed company budget that tells you exactly how much you are spending now and in the future, then it becomes much easier to manage expenses.
Keep Personal and Business Separate
It becomes tempting for small business owners to mix personal and business expenses because it seems easy. The truth is that your personal expenses and your business expenses are two very different things. If you want to manage your business expenses, then keep them separate from your personal expenses.
Buy in Bulk
Do you already know that you will be buying one ink cartridge per month for your company printer when the year starts? Then you can save money by buying all 12 cartridges at once instead of one at a time. Estimate your supplies and other expenses and save money by buying in bulk.
A small business owner needs to develop effective ways of tracking and managing company expenses if he wants to stay in business. Once you start developing good financial habits, you will start to see them pay off with more money on your company bottom line.