Effective expense management is a very important part of financial management and if not managed carefully can cause major cashflow issues that may sink your company in due course. Expenses can easily get out of hand as we see it increasing as the business grows. As a company grows through various stages, you will experience different increases in expense types and accounts. Examples are when you start recruiting permanent people for functions the owner would have initially done, such as sales and marketing, or replacing outsourced services, or vice versa such as outsourcing your accounting function to a proactive accounting practice, and then such services will also increase over time as you expand your processing requirements. Travel expenses is another example as this may increase incrementally over time based on various factors such as petrol price increase or a need to service more customers more frequently.
It is very important to manage expenses and understand where the increases are coming from, as well as how to compensate for them via possible increases in margins, loan restructuring or decreases in cost of sales items for instance by changing suppliers. One needs to be proactive in expense management.
It is also important to understand incremental expenses and when certain large expense amounts drop annually, to support your planning and how that will influence your cash flow at any stage. Additionally it is important to understand the percentage increases and percentage of expenses vs. sales to give you an understanding of the total margin not just against cost of sales items.
Our latest #SageBusinessCloudAccounting improvements provides a detailed analysis on expenses. We have included ten new expense analysis sheets which will give you all the analysis and comparisons you may need to clearly understand your expense movements.
Our analysis provides you with annual, monthly and per expense account analysis.
Top Expense Change Analysis
Comparative Cumulative Expenses
YTD vs PYTD Analysis
Comparative Expenses Details
Detailed Expense Amounts
Expense MTD % FY
Cumulative MTD Expenses %
Expense MTD % vs Sales
We have built and are in the final testing phases for our comprehensive inventory analysis. The inventory analysis will give you a detailed breakdown of the following:
We have substantially improved our #SageTimeTracking application by bringing in the billables information across all the analysis as well as brining your invoice view into the analysis so you can interrogate billables vs. actual invoices and invoice items within the same analysis.
The new application version will be released with the inventory analysis over the weekend
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