As a business owner it is important that you understand the expenses in your business and the easiest way to do this is with a well thought out expense template.
So what is the first number that you think of in your business?
For most business owners it is sales. Somehow if we are to succeed we gravitate to income and customers which is entirely correct.
The most difficult thing for a growing business is to find enough customers and income to make the business successful.
However, often business owners with a focus on bringing income into their business find it disappearing just as fast in expenses so that they have little for themselves at the end of the day.
So to combat this I believe it is mandatory for a business owner to understand and monitor their key expenses and how to keep them to a minimum.
It is often incredibly easy to let expenses get away on you particularly those that are necessary to service and keep your customers satisfied.
The context of the business owner is often different to the employees who work for you. The person who does your book keeping will not normally be thinking like a business owner.
Their focus is on getting the bills paid and stopping suppliers ringing up for their money rather than making a profit and developing a sustainable and successful business.
This means that even if you get them to prepare the expense template for you, it must be at your direction.
They may be far better skilled than you at using Microsoft Excel and be able to prepare figures much faster than you but they will never have the business perspective that you have.
This means that the format, order and style of the expense template that really works for the business owner must be determined by you.
Many business owners that I know wait for the book keeper or administrative person to come to them rather than going on the front foot and determining and instructing on how the figures should be presented.
Never assume that your administrative people know all about your business.
They normally get their perspective from seeing the figures come through the creditors invoices and never have the overall context and perspective that you have of your business.
So my encouragement to you is to get involved on go on the front foot designing the expense templates in your business.
What’s your experience on this?