Which Expenses Are Legitimate Expenditures?
Keeping business costs down isn’t about punishing Angela for that one time she used the company dime to splurge on a Venti white chocolate Latte Mocha Frappuccino with coconut milk and an extra sprinkling of cinnamon.
Sticking to a budget is about clearly defining legitimate expenditures. Define which costs are frivolous and be smart about the purchases you make. Involve your entire team for ideas on cutting down costs wherever possible. You can definitely expect positive reactions when you implement their ideas, rather than face office-wide strikes because you withheld Christmas bonuses.
Make sure you know how the company money is being invested. Here are some very large standard business expenses that can be kept to a minimum.
Paper, printers, and stationary
Projects used to be logged manually, from daily memos to hand-outs and copies of agreements. Unfiled papers ended up in messy file folders and notes often got lost. Large printers would often need repair. With the incorporation of project management software, reams of paper, valuable office space, and printers are all costs that can be dramatically cut back on.
Take out those filing cabinets, large printers, and deskside drawers and what you’re left with is a lot more office space. That means you can be more flexible when utilising your space. Time to take out that book on Zen designs. With newly freed space you may decide to rent a smaller office.
Collaboration software will change your financial outlook in more than one way. All those meetings with customers are no longer necessary as instant chat and easy-to-access project development is now on hand to keep the client up to speed every step of the way. Save on conference room hire and petrol, driving to meetings can be reserved to close new deals.
Track all of your expenses carefully; every lunch, flight, and night in a hotel while on business is a reimbursement waiting to be filed. Software like ExpenseIn can help you do it. Find ways to cut down on costs wherever possible. Book flights from Tuesday to Thursday and avoid eating overpriced lunches at sterile business centre chain restaurants. And for goodness sake, don’t blame poor Angela, we all need to indulge once in a while.