Tracking your company’s spending is a very important step toward maximizing revenue and freeing up money for investments. Here are some suggestions for streamlining your accounting so you’ll know exactly how much you are spending each month.
Document Every Expense
From business card printing services to payments made to vendors, keep meticulous records of all expenditures. If you keep some expenses off the books, you’ll never have a clear picture of how much money your company is spending. This shoddy bookkeeping opens the door for wasteful spending and possible theft. Any expense that’s not tracked is like a leak at the bottom of a boat.
Double Check Employee Expense Reports
Ensure that employees who travel follow expense guidelines. For example, many companies do not reimburse staff for alcoholic beverages. By checking expense reports before cutting a check, you may catch mistakes that could save you thousands over the course of a year.
Verify Bills From Vendors
It’s worth taking the time to review bills you receive from outside vendors. You may be getting charged for products or services that you don’t need. This is a great opportunity to think about cost-cutting measures or even seek new vendors if your current ones have recently raised their prices.
Be sure to track charitable giving by your company. In-kind contributions, as well as cash donations, should be reflected on your books. You may find that you’re giving away more than you thought in the way of in-kind gifts and services, something that could cost your business in the long term.