As Warren Buffet once famously stated, “Do not save what is left after spending, but spend what is left after saving.” This timeless advice applies as much to a business as it does for the individual investor. Businesses often look to see where they can cut costs after much of their revenue has already been spent. A business finance management app helps provide insight on how to save on business expenses before business income is spent.
Here are two of the ways a business reduces its expenses with the help of a business finance management app.
Businesses Reap the Benefits of Time Savings That Translate into Efficiency and Profits
Business expenses are not always hiding in plain sight. In other words, most businesses have more expenses than the costs that show up on the income statement. Viewed on a daily or even a weekly basis, those lost minutes don’t seem to amount to very much. But, let’s be generous and say that the lack of a quality finance management app costs you only five minutes per work day, five days a week — even though the lost time is greater than this for the typical business. Assuming you or the employee handling the bills loses five minutes per day in a typical five-day work week. This amounts to 1,300 minutes of wasted time each year.
For businesses small and large, there is no reason to ignore the ways an effective finance management app helps cut down on expense-related costs. In effect, saving time and money on expenses and accounting is one less business expense in and of itself.
Too many businesses wait until they are in desperation mode to cut their administrative expenses by 20-30%. There is no reason to needlessly endanger your business when you can take proactive steps to cut expenses and administrative waste now. One of the reasons too many businesses wait is that, frankly, juggling all aspects of a business makes time the rarest and most valuable of luxuries. Many small businesses just don’t have the time.
Still, time is just one of the many hidden costs that could be costing your business money by adding unforeseen expenses that drain your resources. Think about the office space, equipment costs and similar expenses that are unique to your business, and it is likely that a business finance management app will help you save on several your hidden costs.
Businesses Save Money with Corporate Saving Programs
In addition to the “hidden” costs businesses save on through more efficient finance management, there are tangible, visible, and practical savings as well. A business finance management app gives small and medium-sized businesses benefits similar in nature to corporate saving programs.
The best finance management apps build models centering around the idea of providing lower costs and higher levels of service for small businesses at an affordable price. This directly translates into cost savings ranging from 10-40% compared with traditional costs. Some of the area’s businesses can reduce expenses include:
- Printing and Promotional Products
- Office Supplies and Paper Products
- Payroll, HR & Accounting
- Office Equipment
Whatever your business needs and expense categories are, better finance management reduces your expenses on the hidden and upfront costs of your business alike. Best of all, acting to cut down on expense costs and save money that goes back into your business is simple.
Expex makes administrative waste outdated, allowing your business to seamlessly transition toward reallocating that time into work hours that help your business succeed. To learn more about Expex contact us or call (518) 389-2311 so we can get you started today for FREE.