How you can self-audit your expenses without spending 1$
Self- audit is an underestimated secret to cutting costs.
It does not impact quality. It’s smart savings. And you can do it yourself.
I once saved 30K/year following 7 simple tips.
First, this is what you want to know.
Did I receive what I paid for ?
Did I pay what I was supposed to pay ?
Any abnormal expense ?
And here are the simple process in 7 steps that you need to go through to answer these questions.
Select your biggest costs
If you have many expenses, you can’t audit them all. Focus on the most important ones as a % or as an amount.
See how these change year on year
Any big variation ?
Dig deeper. Quarter-by-quarter. Month-by-month.
Always have proof
Each expense must have an invoice/receipt/contract. Otherwise it can be FAKE.
Ask yourself
Do I really NEED to continue making this expense ?
Pay attention to your team’s spending
Review the credit cards. Make sure to have a clear policy for reimbursements.
Have you approved the important expenses ?
Have you / someone you trust approved the expenses ? Define thresholds above which people need your approval.
Self-auditing is just being informed about your own business. It’s smart business. Not rocket science. Don’t be intimidated.
Download this free Financial Dashboard so you can
Monitor your expenses year on year and visualize how you’re doing
Spot variations so you can head off oddities before they become problems.
