There is no doubt about it – companies that aren’t in control of their spending will quickly find themselves in serious trouble.
But the enterprises that tend to stand the test of time and enjoy longevity in their industries are those that know where each and every dollar is going, and how those expenditures benefit the organization as a whole.
With this context in mind, it certainly does pay to take out a little time in your work week to look up the best business bank accounts available to you – just to make sure that you’re equipping your business with the right financial assets to support conscientious company spending.
If you truly want to get your company lean, mean, and filled with green, you need to open a business transaction account that allows you to keep a close eye on both incoming and outgoing funds.
A separate bank account for your company can also provide added peace of mind come tax time, as you can be absolutely certain that all expenses and deductions being claimed have actually been processed as business transactions and not through your personal bank details.
Here are some other ways that you can manage your company spending with minimal fuss as your business continues to grow.
Develop A Sustainable Growth Plan For Your Business
It may come as an absolute shock, but there are actually business owners out there who don’t have clearcut development strategies in place for their business. Don’t be one of those business owners.
Whilst there can be some benefit in keeping yourself agile and adaptable, understanding the most fiscally sustainable way that your business can grow can help when it comes to actually responding to growth opportunities without jumping the gun.
That’s what makes thorough preparation and planning an essential element to cutting company spending.
So take the time to evaluate, analyze, and implement business development investments and spending measures that will produce the growth results you want without sacrificing too much of your capital in the process.
A good place to start is by outlining your weekly, monthly, and quarterly expenditures and maintaining these financial records in the long term.
These records can then help you determine exactly how much of your business budget you can allocate towards growth strategizing.
Compare Your Costs To Competitors
Benchmarking is not new to any industry, as capitalism thrives off of competition.
But if you have no idea what your competitors are paying for their own business operations or expansion plans in comparison to your own, that leaves you extremely vulnerable to falling behind the curve.
Thankfully, competitor analyses are easy enough to navigate nowadays, as cost models for business technologies are standardized now more than ever before.
It’s easy to simply look up technologies and services online to determine what your competitors are likely paying for these assets.
But what if there are multiple service or SaaS providers in the mix? Depending on your industry and business, there may be a range of different suppliers for your various needs, and it pays to know who’s highly recommended in your market niche.
So do a little digging, or even just ask around for recommendations across your professional network. Any insights can help you map out your own cost analyses here.
Vigilant Financial Tracking
And speaking of SaaS solutions, business owners can also easily just use financial management software to help support their company spending across employees and departments.
With the sheer volume of computer software available to track everything from petty cash receipts to monthly electricity bills, it is essential that you take advantage of whatever solutions are available to you and to sign up for free trials wherever possible.
This is just so you can really get a sense of all the financial management platforms that are out there before you land on the one you’d like to implement in your workplace permanently.
Be sure to ask your employees for their own feedback on the platforms that you do trial, and think critically about the features that each tracking system boasts and whether or not these features would be useful to you.
Evaluate Fixed Expenses
Although we’ve been looking at a few variable expenses over the course of this article, it’s important to keep in mind that all businesses must also juggle their fair share of fixed expenses.
These can include expenditures like rent for real estate, internet services, employee salaries, and perhaps even the monthly repayments on any business loans or credit cards.
Any sensible business budget should allocate a baseline amount of funds for handling these expenses every month.
In other words, your fixed expenses should act as a foundation upon which you can build profit estimates for your business.
If you haven’t taken a look at what you pay for fixed services like software or your digital work suite each month, it may be worth the time to do so now.
Some SaaS providers will happily offer loyalty discounts, while others may happily offer you a discount for switching providers.
Sometimes all it takes is a simple phone call to help you save some serious funds in the long term.
Be Strategic With Your Business Investments
Finally, your business is going to need a constant flow of investment capital to both ensure that things run smoothly in your daily schedule, alongside supporting future growth plans.
With that, the single best goal that any CFO can have is simply working towards building up a healthy reserve of funds to help your business make growth investments down the line.
And when you do have the capital to make these investments, it’s imperative that you think critically about where your money will be going.
This means prioritizing business growth investments that are more likely to provide a faster return on your initial investment and may even help boost your revenue streams.
Maintaining this strategic approach can effectively help you make spending decisions that always deliver the results you’re hoping for across all the evolutions of your business.
All things considered, developing spend-savvy habits now can not only set your business up for future success, but can also allow you to lead by example for your employees – cultivating a workplace culture that advocates spending smart, be it spending money, time, or energy.