Looking after your business’s money is easier said than done. There can be a lot of things in business that are thrown at you with no warning, and any wrong move can spell disaster for your company if not prepared. Here’s how to look after your money when running a business.
Be Wary Of Staff Expenses
Staff expenses can be a real draining factor of your finances in business. If you’re not careful, expenses can end up becoming something that’s taken advantage of, and why wouldn’t it if it’s not well monitored. It can be easy for a lot of businesses just to sign off expenses when they come through without having looked at them properly. That’s why it’s good to ensure your finance department and your staff, in general, know the rules regarding expenses. Anything, where the staff member is representing the business and needs to spend money, is beneficial but where that money is spent and how much, should be considered carefully. Set a limit and think about which staff members get the expenses entitlement, as this shouldn’t be rolled out to everyone unless necessary.
Have Regular Budget Meetings
Budget meetings are a way of understanding what’s coming in and going out of the company. It’s hard to monitor what all departments are spending at any given time, and they’re likely to have their own budgets, which they may or may not stick to. That’s why a quarterly or annual finance meeting is essential to sit down and assess what’s being spent and any additional spending that has changed since the last meeting. That way, you and your HOD’s all have a clearer idea of what’s being spent, what can be cut, and where budgets may need to be moved around to cater to extra expenditures.
Sell On Old Equipment
All equipment within your business, at some point, is going to break down or will need to be replaced. Whether that’s because it’s broken or because you’ve found a more efficient alternative, there is an opportunity to sell on that old equipment to either scrap companies who will take it or to other businesses that might benefit from what you have to offer. Don’t just chuck away something that you may have bought on https://pomi.dk/en/ but is still functioning and working properly.
Build Relationships With Suppliers
Company relationships are what open doors to other opportunities, and the same can be said when it comes to saving money. For the suppliers you use on a regular basis, it is important that you try and build up these work relationships because it could end up with you getting a more personable deal. So don’t underestimate treating suppliers to a dinner out or a hamper to say thank you at Christmas. These gestures won’t go un-noticed with your suppliers and could end up turning into some lucrative deals.
Look after your money, and your business will continue to thrive and grow from the money you save.