Too often, small business owners struggling to survive or looking to grow are overly focused on direct revenue generation to the point that they neglect to proactively manage their business expenses. Since profits (revenue after expenses) are what ultimately matters, small businesses can increase their bottom line by making a few simple expense management changes. Business owners absolutely need to give their expense management strategy the time and attention it deserves.
Interested in learning how to manage small business expenses?
The folks over at Ardent Partners have put together and distilled the top ten tips for small business expense management. You can read the report here or check out a summary of the tips below:
- Establish a formal expense management policy today.
- Make your policy a living document.
- Centralize the expense management function.
- Automate the expense management process.
- Distribute and use corporate credit cards.
- Seek integration of systems and processes.
- Develop a list of preferred suppliers or vendors.
- Reimburse employees using electronic payments.
- Develop expense management systems and processes that can serve a mobile workforce.
- Develop reporting and audit capabilities and standards.
The tips listed above can help a business gain control over expenses, see exactly where their money is going and find the most effective and largest areas for savings. To read explanations for each tip above, click here.