“Budgeting is telling your money where to go instead of wondering where it went.” – John C. Maxwell
If you control or manage the finances in your company, you know that efficiently managing your company’s spending is crucial to your success. Not only does effective spend management help you achieve your financial goals, but it also allows you to better serve your customers and contribute to the overall growth of your business.
It can be challenging to keep track of your expenses and stay within budget, especially when multiple employees in a company have spending responsibilities. This is where effective spend management comes in. By adopting key habits and practices, you can take control of your business’s spending and reach your financial goals.
In this post, we will discuss 5 simple habits that you can adopt to help UAE businesses manage their spending. Whether you’re just starting out in business or you’re looking to improve your existing spend management strategies, these habits can help you stay on track and achieve your financial goals.
Track your Spending in Real Time. To stay on top of your budget, it’s essential to keep track of every penny your business spends. There are several methods for doing this, such as using a budgeting app, keeping a written record of expenses, or most efficiently, using a spend management software like Qashio to track spending. By tracking your spending in real time, you’ll be able to see exactly where your money is going and identify any areas of overspending and tackle this before exceeding your budgets.
Set Strict Limits on Discretionary Expenses. A good way to control your business’s spending is to set limits on discretionary expenses like dining out, entertainment, and travel. These types of expenses can quickly add up and make it difficult to stay within budget. By setting clear limits on discretionary spending, you can ensure that you have sufficient funds for other financial commitments. You may also want to consider setting a cap on the amount individual employees can spend without prior approval to keep overall spending in check while still allowing your team some flexibility. Cards issued via Qashio can be set up with proactive spend controls to help employees avoid out of policy spending.
Look for Easy Ways to Save Money. By understanding exactly where your company is spending in terms of both categories of spending and merchant specific spending, you can easily identify duplicate spending or opportunities to negotiate better rates with a vendor. By finding these quick wins in cost saving, you can free up more funds for your other financial goals.
Keep your Long-term Goals in Mind. It’s easier to stick to your budget and avoid unnecessary spending when you have a clear idea of what you’re working towards. 44% of companies do not have a clearly defined strategy for digital marketing, while those that do are 331% more successful than those who do not. Strategically planning and spending towards a clearly defined strategy will increase your success and reduce the chance of throwing money away.
Consolidate Your Spending. The biggest challenge for finance managers currently is fragmented spending which leads to a lack of visibility and control. A spend management solution like Qashio which offers corporate card issuance, real-time tracking, and customizable spend controls, allows companies to consolidate their spending on one platform and easily monitor their outflow. By providing finance managers accurate visibility on spending, they can make informed decisions about where to allocate funds and ensure their spending aligns with the companies financial goals.
In conclusion, adopting these simple habits can help you take control of your business’s spending and achieve your financial goals in 2023. It’s important to remember that spend management is a continuous process, and you may need to make adjustments to your habits and strategies as your business grows and changes. However, by maintaining focus and committment to your financial goals, you can set your business up for success in the long term.
