Are you looking for more control over your business expenses?
Most companies waste 30% of their expenditure on tech and items that don’t help customers. If you’re one of those companies, it’ll take more than some cost-cutting to save long-term. But it can be daunting if you don’t know where to start or how to make changes that count.
Don’t worry, we can help with that! Keep reading for our guide on visa spend management and other spending tips.
Know Your Cost-Revenue Structure
Before you can manage your business spending, you need to understand your costs. You also need to understand your revenue and where it comes from. You need to answer questions like:
- How much are you getting from sales of products and services?
- Which products and services perform the best?
- Who are your highest spending customers?
Once you answer these questions you need to work out the costs of producing this revenue stream. After that, you then need to factor in any costs that aren’t sales-related.
Go Through Your Finances
If you don’t use it already, business finance management software is a must. It’s there to help organize, track and manage your business spending. This includes:
- Virtual card payments
- Business card spending
- Corporate card expenses
Some software can also handy petty cash cards. You can find out more about P cards today but this software will revolutionize your accounts.
It’ll help identify areas where you can cut back or make savings. If you’re hitting your overdraft each month, consider a low-interest loan instead. Any existing loans or overdrafts, make clearing them a priority.
Check for any subsidies or grants you might be able to get and apply for them. And, if you have extra space you’re not using on your premises, consider subletting if you can.
On the topic of building premises, check out other utility suppliers while you’re at it. Can you save money on your energy bills, phone line, or internet connection? Every little helps and you deserve a good deal.
Set the Benchmark
Take time to work out a benchmark to set yourself against other similar companies. You need to look into the average cost spend in your industry before you can do this.
Then look at how your costs compare to that industry average in each area. If you’re exceeding these average costs, review why and target areas to make savings a priority.
Speak to Customers
Spend management is a creative exercise that needs a creative approach. So, why not speak to your customers? Ask them if they think you’re sending them items they don’t need.
For example, expensive next-day delivery options might not be necessary. Or your packaging might be over the top and you could scale it back. Your customers will tell you what they value and what they don’t want.
Business and Visa Spend Management Made Simple
Before you can make real, long-term savings understand your finance structure first. This will help you identify the necessities and help identify your benchmark. With the help of financial management software, issues with business and visa spend management will be a thing of the past.
If you found this article helpful be sure to check out our blog for more business tips and tricks.
