Contact Us

Insights

Review Your Business Expenses – And Save!

January 23, 2025

Here’s why you should make time for this important task and how it can save you money:

1. Identify Unnecessary Costs

Many businesses unknowingly waste money on unnecessary expenses. These might be subscriptions for services you no longer use, or recurring charges for outdated software. Reviewing your expenses helps identify areas where you can cut back or eliminate waste. For example, does your business still need that additional office space, or could you move to a smaller, more efficient location?

2. Negotiate Better Deals with Suppliers

With so many suppliers competing for your business, it’s worth checking if you’re getting the best deal. A thorough review of your supplier contracts can lead to renegotiating rates or exploring alternative suppliers. You might even discover bulk discounts or loyalty benefits you weren’t aware of. In some cases, simply asking for a better price can yield significant savings.

3. Streamline Operational Processes

Over time, your business operations can become more complex, leading to inefficiencies. Take a step back to assess whether your current processes can be streamlined. Investing in technology and automation can help reduce manual labour costs, lower the chance of human error, and improve productivity.

4. Maximise Your Tax Deductions

A detailed review of your expenses can also uncover additional tax deductions that could be claimed. By ensuring you're not missing out on valid deductions, you can lower your taxable income and reduce your tax burden. Working with an experienced accountant can ensure you're maximizing your eligible deductions while staying compliant with Australian tax laws.

5. Improve Cash Flow Management

Understanding where your money is being spent allows you to better manage your cash flow. By cutting unnecessary expenses and improving your budgeting processes, you’ll have more flexibility to reinvest in areas that drive growth or weather unexpected financial setbacks.

6. Enhance Business Strategy

An expense review gives you a clearer picture of where your business stands financially. This allows you to adjust your strategic plans more effectively. Whether you need to scale back on non-essential spending or invest more in growth initiatives, a better understanding of your costs will help you make more informed decisions.

Actionable Steps to Review Your Business Expenses:

  • Conduct a monthly or quarterly review of your business expenses.
  • Categorise your expenses into fixed and variable costs.
  • Check for any recurring charges or subscriptions you can cancel.
  • Compare supplier prices to ensure you’re getting the best deal.
  • Assess your operational processes for opportunities to improve efficiency.
  • Work with your accountant to identify potential tax-saving opportunities.
Disclaimer: All strategies and information provided on this website are general advice only which does not take into consideration any of your personal circumstances. Velich Advisory does not represent, warrant or guarantee that the communications on our website are free of errors, virus or interference. Liability limited by a scheme approved under professional standards legislation.
ABN: 46 650 985 729
© Velich Advisory Pty Ltd 2022

clickk