Small Business Income And Expenses Spreadsheet – How Small Business Income And Expenses Spreadsheet ? Control of expenses An expense, necessary for the proper development of the operation of the company, may be administrative type of sale, and in both cases, its recovery must be directly related to the Revenue generated during the period in which it was incurred.
It is very important to understand that, among more expenditures, less utility, and that control and management, is a very delicate issue for any organization, for this reason they identify perfectly, and know that incurring them, for a justified cause.
Here are some recommendations on how to keep control of expenses in a company:
1.- It is necessary to ask if the expense is really necessary, if it contributes to the operational operation of the company, and that without it, it is not possible to carry out properly the administration or sales management.
2 .- We must know perfectly, in what area of the organization is being made the delivery, because of this depends an adequate accounting record.
“The control of expenses must be a priority function in the company that allows the adequate identification of each one of them”
3.- Before making any expenses, you must know if in the company we can reuse existing resources.
4.- All expenses, must be included in the budget of the area, and if it is the spontaneous emergency, must be included in the budget of the following period.
5.- It is very important to analyze and question the expenditure, since it is possible, it should be eliminated, but taking care not to spare resources for the proper functioning of the area in question.
6.- It is a real danger, so it is very common that, with the intention of increasing profits, cut costs that generate problems in the operation of the company.
7.- The expense must be directly related to the income that is generated in the company, because of this depends that the cash flow of the organization is positive.
8.- It must be taken care that the expenses never exceed the income, since this is a deficit in the cash flow, what the search of other sources of income like loans that generate interests, diminishing the utility.
The control of expenses should be a priority function in the company, easy and that allows the adequate identification of each one of them, as well as the function of knowing if the organization uses its resources properly in the operation, and how they contribute to the generation Of utilities.