Review Your Business Expenses - And Save
August 1, 2024
Running a business will always mean incurring certain expenses, or ‘spend’.
Whether you’re a large family business or a small fledgling startup, there will be costs, overheads and supplier bills that mount up – and these expenses will gradually chip away at your cash position, making it more difficult to grow and make a profit. So, what can you do to reduce your spend levels? And what impact will this have on your overall margins, profits and ability to fund the next stage in your business journey?
Getting proactive with your spend management
Spend management is all about getting in control of your expenses – and, where possible, aiming to reduce the level of costs and overheads that you incur as a company. Why does this matter? Well, excessive spending eats into your cashflow, reduces your profit margins and stops you from achieving the profits that you’re capable of as a business. So if you can get proactive with your spend management, you can actually make your company a far more financially productive enterprise – and that’s great for your overall business health. So, what can you do to reduce spend and slim down your company expenses?
Here are some key ways to reduce expenses:
- Reduce your overheads – Your overheads are the unavoidable costs of running your business, producing your products or supplying your services. If you have bricks and mortar premises, these overheads will include rental payments, utility bills and even the cost of paying your staff. Drill down into the numbers and see where there are opportunities to reduce these overhead costs. That could mean moving to smaller premises, review your electricity supplier, or reducing the size of your workforce, to reduce payroll expenditure.
- Put limits on staff expenses – If your employees can claim expenses, or buy raw materials and equipment with the company’s money, these costs can soon start to rack up. It’s a good idea to put a spending limit in place, so each staff member can only spend up to an agreed amount. Having a clear expenses policy helps, as will training up your staff in good spend management techniques. Specialist expenses card software allows you to quickly set spend limits, track expenses and pull your expenses data through to your cloud accounting platform for processing.
- Benchmark your current suppliers – If you can reduce your supplier costs, this will go a long way to bringing down your overall spend. If you’ve been with certain key suppliers for years, look around for new quotes, look at current market prices and see if you can negotiate better deals. And if your old suppliers aren’t flexible enough, try swapping to newer, more eager suppliers who will be willing to meet you in the middle on price.
- Make your operations leaner – the bigger your operational costs are, the less margin you’ll make on your end products and services. One way to resolve this is to aim for a ‘lean approach’, paring back your staff, resources and operational complexity to the bare minimum. By making the business as lean as possible, whilst still delivering the same output, you keep your revenue stable, but reduce the spend level that’s eating into your cost of goods sold (COGS). The smaller your COGS, the more profit you make on each unit or sale – and that means better cashflow, more working capital and bigger profits.
- Explore tax reliefs – Tax costs are an unavoidable expense when running your business, but it’s worth exploring which tax reliefs, grants or other business benefits you may benefit from. For example, research and development (R&D) tax credits may be available to you to help cut your corporation tax expenses.
Talk to us about improving your spend management
If you’d like to get in control of your expenses, we’d love to chat. We’ll review your current costs and will highlight the key areas where expenses can be cut. Then we’ll help you formulate a proactive spend management programme, to reduce your unnecessary spending. Get in touch to start reducing your spend on 04 970 1182.
Thinking about selling your business? Whether you're ready to retire, change direction, or chase your next big idea - selling your business is a major milestone. And like any big move, preparation is everything. Here’s how to make your business more attractive to buyers - and get the best return: Get your numbers in order: Buyers want clarity. That means up-to-date books, clean financials, and a solid forecast. When your numbers tell a clear story, your business becomes more valuable and more trustworthy. Make your business easy to take over: Show potential buyers that your business runs smoothly, has reliable systems in place, and room to grow. A clear operational plan and documented processes make your business more appealing - and easier to hand over. Work with experienced advisors (That's us!): Selling a business can be complex, but you don’t have to do it alone. The right guidance helps you avoid costly mistakes, make informed decisions, and stay one step ahead. At All Accounted For, we help business owners get sale-ready with clean, well-organised financials and a clear understanding of their business’s true worth. With our support, you can move forward with confidence and clarity. Ready to take the first step? Call us on 04 970 1182 to book your appointment today.
Creating a mentally healthy work environment isn’t just a “nice-to-have” - it’s a crucial part of building a successful, sustainable business. Yet, when you’re juggling countless responsibilities as a business owner, it’s easy to put mental health on the back burner. This is a gentle reminder of why fostering mental wellbeing at work benefits everyone - from your employees to yourself: When people feel mentally supported and valued, they’re better equipped to manage daily stresses, stay motivated, and maintain positive relationships with colleagues. This not only boosts productivity but also creates a more collaborative and enjoyable workplace. Taking time to care for your own mental health as a leader sets the tone for your entire team. Your wellbeing influences your decision-making, creativity, and resilience, which directly impacts your business’s success. Investing in mental health isn’t just good for people, it’s smart for business. Let’s prioritise wellbeing as an essential part of our work culture, helping everyone thrive both personally and professionally.
For many SMEs, recurring subscriptions are one of the sneakiest money leaks. They’re small, automatic, and easy to forget - until they quietly add up to thousands each year. Now’s the perfect time to do a quick subscription audit. Look out for: Duplicate subscriptions Outdated software plans Auto-renewals you didn’t notice Tools your team no longer needs These little costs can seriously stack up. A 15-minute check might save your business hundreds - even thousands - every year. If you’re getting value from every subscription, that’s great! But in our experience, most businesses are paying for more than they use. Not sure where to start? We’d be happy to help you review your expenses and sharpen your spending. Get in touch today - your bottom line will thank you!
Reminder: Xero Pricing Increase from 1 September 2025 Just a quick reminder that Xero’s updated subscription pricing will come into effect from 1 September 2025. As a result, you may notice a higher amount on your September invoice. We included a breakdown of the new pricing in our June / July 2025 General Ledger newsletter. You can read the full update here: https://public2.bomamarketing.com/email/xeGr If you have any questions, feel free to reach out to our team.
If you want to stabilise your finances and grow the business, working to strict budgets becomes a necessity. Managing the cashflow twists and turns of a project can be hard work. But it’s easier to do when you have an agreed budget and can track your spending and performance. So, what’s the best way to stay in control of the budgets you’ve set? And how can you manage your cashflow position to make sure there’s always enough cash to fund the project? Understand the costs of each project Starting a project without fully understanding how much it will cost is a no-no. To keep on top of costs, overheads, staff expenses and general spending, you need at least a ballpark figure for this expenditure. In an ideal world, you’ll want to be as precise as possible with these costs. Run through the project from start to finish and highlight every point where there will be costs to incur. It might be the cost of your raw materials. It may be the cost of buying new equipment. It could be the payroll costs for the people actively working on the project. Break everything down and come up with a total expense for the project. This is your starting point. Set your budget and track it over time Once you know your baseline cost for the project, you and your team should decide on the amount of funds to allocate to the budget. Your baseline cost is a starting point, but don’t forget to include extra for specific contingencies. What if the project overruns? What if your raw material costs go sky high? What if you need more people to get the job over the line? Agree on a clear budget and set up your finance system to track spending against this budget. With a cloud accounting system at the heart of the business, it’s very easy to create a budget and then record and track your spending over time. Keep a close eye on budgets and project cashflow One of the big things to remember is that a budget is not a static thing. You’ll obviously aim to stick to your initial costs, but prices and availability will affect the total spend over time. Because of this, it’s vital to not just write the budget and then forget about it. Keep a close eye on your budget performance and the cashflow for each project. Being able to review this performance, in real time, should help you avoid overspending, or running out of cash for the project. And when the cash in the kitty is getting low, you can get proactive and look at ways to top up the budget, or rein in spending in other areas of the project. Take action to maintain your positive cashflow position Balancing the cashflow scales on a project isn’t easy. But when you spot that there’s a potential hole in the budget, the important thing is to do something about it, pronto! Running any project with your fingers crossed that ‘it will all work out in the end’ is a recipe for disaster. And with such detailed budget reports and cashflow forecasts available with today’s finance apps, there’s really no need to be disorganised about your spending. Think about: Setting up key metrics for each project, to measure spending, cashflow and progress Run worst-case and best-case cashflow scenarios, so you’re prepared for anything Regularly reviewing your spending and looking for areas to make savings Taking on finance facilities to plug any cashflow holes as they appear. If you’re thinking about scaling up your established startup, get in touch with our team today at 04 970 1182. We’ll help you build solid, workable budgets that can be easily tracked through your accounting system.
Speed Up Your Xero Invoicing with New Shortcuts! Xero has just launched a helpful guide featuring all the keyboard shortcuts for the new invoicing system. These shortcuts will help you navigate tasks more quickly and efficiently, giving you more time to focus on what matters most. Click the button below to download the guide. Saving it to your desktop will provide easy access to these time-saving shortcuts whenever you need them! Please note: some shortcuts are only available when an invoice is in a particular status, such as draft or approved.
View our August 2025 General Ledger: - Business Tips: Budgeting and Managing Cashflow - Important Notices - Xero Tip of the Month: New Invoicing Keyboard Shortcuts - Reminder: Xero Pricing Increase - 1 September 2025 - Track Your Carbon Footprint FREE for 12 Months with Sumday + Xero - Welcome to the Team: Swapnil Naik - Tax Question of the Month: Is the Payment of a Private Medical Bill for a Shareholder Employee Deductible? - IRD Upcoming Tax Payment Dates https://public2.bomamarketing.com/email/BP6n
Thinking of restructuring your business? Choosing the right structure - sole trader, partnership, company or trust - can impact your tax, liability, and long-term goals. The team at Business.govt.nz has a helpful tool to guide your thinking: https://www.tools.business.govt.nz/choose-business.../ ? But every business is different. Once you've explored your options, we're here to provide tailored advice and help you make the best decision for your unique situation.
Want to take control of your business performance? We’re here to help you move from guesswork to clarity. Whether you're looking to grow, improve profitability, or simply get a better handle on your numbers - we’ve got your back. We’ll work with you to: Set clear strategic targets Track the numbers that matter Monitor the KPIs that drive real results Get regular insights and support along the way Our expert team will work closely with you to build a performance-focused plan tailored to your business goals. It’s not just about the numbers - it’s about using them to make smarter decisions. Ready to level up your business? Call us on 04 970 1182 to get started today!
