10 tips to make business expenses more predictable
How to keep track of your business expenses
Author: Ieasha Allen, small business owner, global small business strategist, Lexmark
June 29, 2023
VIDEO [MP4 10:54]
Learn how to navigate the world of small business expenses from bar and restaurant owner, Ieasha Allen.
Starting and running a small business can be an unpredictable journey. As your business grows and achieves revenue goals, it can become overwhelming if you don't manage things properly. Failure to effectively plan and control costs can lead to serious cash flow issues. Whether you are in a growth phase or maintaining your current state, it is crucial for new and established small businesses to manage expenses properly.
Five years ago, my business partners and I opened Creaux, a bar and restaurant in Lexington, Ky. Our business has been successful, but our industry, like most, is full of surprises that can’t be planned for. To offset that, we continually explore new ways to reduce business costs and keep track of unplanned expenses.
Here are 10 strategies I use to make business expenses more predictable:
Begin by creating a detailed list of predictable monthly small business expenses, such as rent, utilities, inventory, salaries and other costs. You can use templates like this one from Intuit Quickbooks.
Avoid overspending by hiring a certified public accountant (CPA) to stay updated on business laws, monitor your spending and project small expenses. It's an investment worth making. Online small business resources like the Top 20 free small business printables and tools can also be helpful.
Negotiate with suppliers to set up longer plan terms, fixed pricing or low-interest rates. Consider subscription services like Lexmark OnePrint™, QuickBooks and Buffer for stabilizing costs, reducing waste, and minimizing sudden price increases, particularly for variable costs.
Observe patterns in other businesses to forecast your own business expenses. Prepare for seasonal holidays, special occasions and other busy times specific to your industry to prevent overstocking or running out of popular items.
Automate processes using professional SMB tools and software. Outsourcing tasks unrelated to your core business functions, such as accounting or IT support, frees up time and allows you to gain better control over your finances.
Review miscellaneous spending and impulse buys to spot opportunities for cutting expenses.
Allocate funds to cover unexpected expenses and emergencies. Having a financial cushion provides peace of mind and helps mitigate the impact of unforeseen costs.
Review your finances for savings monthly."
Evaluate your insurance needs and find the best coverage for your business. Minimize financial stress caused by events like collisions, natural disasters, or any other unanticipated fees by protecting your business.
Did you know? According to J.P. Morgan Research, one in four small businesses holds fewer than 13 days (about two weeks) of cash revenues as a buffer.
Consult with a financial planner, accountant or business consultant to get feedback on the health of your business. Together, you can devise strategies for essential office expenses such as office equipment and supplies like printers and toner.
As a small business owner, I understand the difficulty of controlling expenses. My advice is to stay informed and educate yourself. Don't wait until it is too late to improve your business operations. Start creating better budgets, negotiating contracts, building networks, and finding ways to save today for better cash flow in the future.
Ieasha Allen is a small business owner and an expert in small business (SMB) printing with over a decade of experience in global SMB strategy and analytics at Lexmark.
Before her current role, Allen served as senior analytics analyst, digital marketing operations manager, and web user experience, design, and strategy manager at Lexmark, where she grew her expertise in consumer goods marketing and sourcing. Her minor in business management, paired with her bachelor's degree in human environmental science from the University of Kentucky and master's in business administration from Midway University, further support her knowledge in this field.
In addition to her work experience and education, Ieasha holds certifications in global digital marketing and localization and From Ideas to Actions, demonstrating her commitment to continuous learning and professional development. She also serves on the board of directors for Lexington's largest youth select soccer club, and previously volunteered as a troop leader for the Girl Scouts of the USA and as a member of the board of trustees for Midway University.
Article from the author:
Peace of mind delivered to your door
Flexible print subscription including printer + toner options and warranty for life.
Which Lexmark printer best suits your small business needs?
Need to print, scan, copy, fax and more?
GO with:
Lexmark Color All-in-One 4-series (MC3426i)
Part #: 40N9650
More color printing than black and white?
GO with:
Lexmark Color Printer 3-series (C3326dw)
Part #: 40N9010
Print mostly text but need all the features?
GO with:
Lexmark Black and White All-in-One 3-series (MB2236i)
Part #: 18M0751
Print more words than images?
GO with:
Lexmark Black and White Printer 2-series (B2236dw)
Part #: 18M0100
