One of the major costs in business are direct and indirect expenses that are often overlooked or not controlled or managed efficiently as they are not a core business activity. In most cases these expenses have a major impact on bottom line performance.
To create financial awareness, it is important to track your expenses to know where your money goes and how you spend it. Being able to identify spending habits and issues makes it easier to make changes and achieve your spending goals.
Budgeting expenses by category and closely monitoring them is essential if you want to understand your financial habits and make necessary changes. By consistently tracking expense budgets by category you will be able to see when to stop spending in a category and review each expense closely. This process will highlight issues very quickly.
There are simple methods to monitor and analyse expenses which, once established, take very little time each day to maintain and will provide important information on performance compared to budgets and enable informed spending decisions.