Implementing an Expense Management Process Can Increase Profitability

Implementing an Expense Management Process Can Increase Profitability


Expense and cost-reduction directly impacts your business


Imagine a kid after a night of trick or treating at Halloween, she's collected a huge stash of Kit-Kat bars and gumballs and gummy bears. And when she gets home, suddenly decides how and when she wants to eat it all. Should she eat it all at once or spread it out over the next few days or weeks?

It's a big decision. Now paying bills is a lot less fun than eating candy, but the same types of decisions must be made when it comes to business owners, CEOs, and financial controllers.

 

a couple doing accounting on their business



With skin in the game, the decision-makers need to figure out how to allocate their capital to pay expenses so they can pay salaries, buy inventory, cover rent, and run their operations. In fact, of all the things a business owner must do, is not running out of money is the most important priority.


They wake up daily thinking about their business and about its bottom line. What can they do to improve everything? "Am I paying a fair price for the services I use? I wish I had time to control my costs. I wish I had more money in the budget to get what I need for my business." Sales and growth and market penetration are important and crucial. And if there's no money to do those things, the business won't last. Here are some ways to manage your expenses and ensure healthy, sustainable growth.


How Schooley Mitchell can help you


  • Stay on top of it

    • Make sure you set up regular reviewing procedures to ensure expenses are completely updated and accounted for. This is hard to do when you're running all the other aspects of your organization. So consider giving Schooley Mitchell a call, as they can monitor your business expenses regularly to ensure you're not paying a penny more than you should.


  • Stay vigilant

    • Most small businesses, especially the brand new ones must keep lean and mean in order to get off on the right foot. Managing expenses is an integral part of this mindset. It's imperative not to ignore small expenses that add up and chip away the bottom line. Thankfully, Schooley Mitchell is here to be your expense watchdog, constantly staying on top of your spending and negotiating lower prices for you on the market. 


  • Be ruthless with overhead expenses

    • It is imperative to scrutinize your overhead. Investigating new technologies for phones, payment processing, shipping utilities, and waste removal is pivotal in keeping costs down. Operating as thinly as possible in these areas frees up more money to optimize your operations and improves your products and services. Schooley Mitchell can scrutinize your expenses for you, negotiating with vendors in several business areas in order to reduce your costs and streamline your systems.

    You can't always afford to sit on the phone with your telecommunications vendor for an hour to knock their price down.


  • Be aware of the Inventory 

    • Be aware that inventory, even if you're starting a small business or you've been in business for a   while and you have to carry inventory, it is imperative to set up a system. Excess inventory will be a drag on any small business. And likewise, sparse inventory may repeat sales. So inventory is really just cash sitting on the shelf. You don't really want things idly for too long. As experts in shipping and courier services, Schooley Mitchell can be beneficial in evaluating the price, different shipping vendors, charge and obtaining the most cost-effective options for your business.


  • Managing Expenses

    • Managing your expenses will directly impact the profitability of your business. Keeping a firm grip on all costs will benefit you as you expand and grow. With Schooley Mitchell, you can ensure all your costs are as low as they can be. Your service vendors are being held accountable and your systems and processes are optimized. Being successful in business is rarely a solo endeavor. It usually takes a team, trusted mentors, solid employees, good leadership, and the right financial backing. 


    Benefits of Outsourcing

    Even though we know it's hard to do things alone, we lose sight of this when we're faced with day-to-day tasks. Most businesses have meager beginnings. Often the founders are in charge of everything from accounts payable to human resources to marketing to IT. It's understandable because we try to do as much as possible ourselves in an effort to save money. Eventually, that strategy usually backfires because as the business grows, demand grows with it.


    A single person just can't keep up. By identifying tasks and seeking outside assistance, business owners can realize plenty of benefits. 


    TIME
    An outsourced expert can save you substantial time by handling tasks that interfere with the work you should be and need to be doing to make your business thrive.
    Engagements can be of varying length, but for complex projects, consider partnering with someone who will stick with you, in the long run, to ensure demands are continued to be met.
    MONEY 
    Too often, we mistakenly think the cost is too high to engage an outside consultant. When in fact it's far more economical than hiring a full-time staff member to handle the task. That is, of course, if you can find someone with the credentials needed and keep them busy enough to justify adding another salary to the books.
    SECURITY 
    Enlisting the help of an expert gives you peace of mind knowing you’ve made the right decisions and taken the right steps to take care of business.
    KNOWLEDGE
    Enlisting the help of an expert gives you peace of mind. Knowing someone with specialized knowledge is giving you proper advice, tailored to your specific needs. Even the strongest companies could benefit from outside assistance. As a cost reduction consultant, Drew routinely encountered businesses who think they have their expenses and their services under control.
    When in reality, there's plenty of room for improvement in cash savings. Next time you're facing a challenge or hit a roadblock, consider outsourcing it to a professional in the field and spend your time focusing on what you do best growing your business. Ask yourself, “are you paying too much for your business services?”

    Schooley Mitchell


    Since 1998, Schooley Mitchell has helped businesses save an average of 28% on their various business expenses. When combined, these services often represent 15 to 20% of a business as expenses, and most companies have several vendors they have to manage, making things complicated. Schooley Mitchell can act as a single point of contact to manage all these relationships, so you could focus on what you do best.


    And we do it with complete objectivity. We have no ties to any of the vendors or processors. In fact, 80% of the time, our recommendations entail no supplier change. Our service is truly an everybody wins situation. If we can save you money, our compensation is a percentage of your savings. The rest goes to you. If we can't save you money, you just received a free, independent audit of your services.



    ABOUT DREW DERANEY

    Drew Deraney, Cost-Reduction Consultant and a Strategic Partner at Schooley Mitchell


    Drew Deraney is a cost-reduction consultant and a Strategic Partner at Schooley Mitchell. He helps proactive businesses, practices, and firms transform their financial health and profit margin by implementing an expense management process that will decrease expenses, save time, deliver security and provide knowledge so they can keep more of their hard-earned money in their budget.



    Get to know Drew Deraney more! 



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