11d • General discussion
Best Practices for Expense Management: Keep More of What You Earn
Running a profitable business isn’t just about growing revenue — it’s about keeping costs under control.
Poorly managed expenses can eat away at margins, restrict cash flow, and limit your growth potential.
Here are 7 proven strategies to master expense management and boost profitability:
1️⃣ Start with Clear Policies
Put written expense policies in place so everyone understands what’s reimbursable.
✅ Reduces confusion
✅ Prevents unnecessary spending
✅ Speeds up approvals
Example: Set travel limits, rules for entertainment costs, and require receipts above a certain dollar amount.
2️⃣ Use Technology to Track Spending
Manual tracking = missed expenses + errors.
Use tools like Expensify, QuickBooks, or Xero to:
📱 Capture receipts instantly
⚡ Automate expense categorization
📊 Get real-time insights into spending trends
These save time, reduce human error, and give you better data to make smarter decisions.
3️⃣ Regularly Review and Categorize Expenses
Break expenses down (marketing, payroll, operations, etc.) and review often.
💡 Pro Tip: Compare expenses as a % of revenue. If marketing is 12%+ of revenue, ask if it’s driving proportional results.
4️⃣ Negotiate with Vendors
Don’t accept vendor pricing as fixed. Renegotiate contracts, seek volume discounts, or explore alternative suppliers to free up cash.
5️⃣ Set Budgets and Hold Teams Accountable
Budgets should guide, not restrict. Empower department heads with budget ownership, then track results against actual spend.
6️⃣ Separate Personal & Business Expenses
Mixing expenses causes accounting headaches and potential Internal Revenue Service (IRS) issues.
Keep clean records with separate accounts, cards, and documentation.
7️⃣ Work with Your CPA for Ongoing Oversight
Your CPA can do more than file taxes:
📌 Benchmark expenses vs. industry standards
📌 Provide cash flow forecasts
📌 Identify missed tax deductionsProactive guidance ensures you optimize expenses—not just track them.
📌 Key Takeaway:
Expense management isn’t about cutting everywhere — it’s about spending smarter.
With clear policies, the right tools, and consistent oversight, you can protect profits while still fueling growth.
📈 Next Steps
At Smith CPAs & Associates, we help for-profit businesses across the U.S. turn expense management into a competitive advantage.
📞 Book Your Free 30-Minute Discovery Call
📩 Email: [email protected]
🌐 Website: www.smithcpasassociates.com
Let’s streamline your expenses and improve your bottom line 💪
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Best Practices for Expense Management: Keep More of What You Earn
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