How to Improve Company Expense Management

I track one metric religiously. Not revenue. Not burn. Not runway. Every week, I log it: Monthly close. Reconciliations. Paying invoices. Expense reports. Last month: 47% of my time. That’s time not spent on pricing strategy, cohort economics, or helping the team make better decisions. We all know that the value isn’t in maintaining the books, but in driving insights. But most finance teams get it backwards: 80% maintenance. 20% strategy. Then they wonder why they’re not in board meetings. My rule: keep repetitive work under 40%. Here’s my approach: → Weeks 1–4: Learn + set goals + build roadmap → Weeks 5-8: Implement + track processes → Weeks 9–12: Automate + templatize → Weeks 13–16: Train or delegate → Weeks 17+: Review and refine Real examples: • Close: 20 days → dynamic checklist, automated schedules → 7 days • Rev rec: 12 hours → rebuilt workflow, standardized categories → 90 minutes (80% fewer errors) • Reforecasting: 6 hours → simplified model, power queries → 30 minutes Every hour trapped in Excel reconciliations is an hour not identifying why your best customers churn. Every day in the close is a day not analyzing unit economics. The uncomfortable truth: If you're spending most of your time on routine tasks, you're not a finance leader. You're an expensive bookkeeper. Your CEO knows it. Track this metric. When it creeps above 40%, improve your systems. Your value isn't in perfect books. It's in perfect insights. The books just need to be trusted. Not worshipped.

I've seen companies with millions in revenue struggle to make payroll because they're leaking cash from dozens of tiny holes. That’s why I developed something called "The $10K Profit Leak Audit." Here's the playbook: Step 1: Pull Your Top 10 Expenses Review your expenses from the last three months and identify your 10 largest recurring costs (excluding one-time purchases). Send this email to your leadership team to “encourage” them to help with the process... SUBJECT: This stops today Hey [FIRST NAME], I was reviewing our monthly recurring expenses and they've gotten a little out of control. We're paying for tools and services that I know we aren’t using and in some cases probably don’t even remember buying. We're not going to do that any more. Here's what I need you to do. 1. Export credit card charges by month for the last [3 or 6] months. 2. Filter recurring payments and sort from most to least expensive. 3. Let's meet [DATE] at [TIME] to create a keep, kill, question list. 4. At the end of the meeting we’ll cancel the entire kill list and add up how much cash we just freed up. It's going to feel so good after we get this done. Let me know if you have any questions. [YOUR NAME] Step 2: Ask the “3-Why” Questions For each expense, ask the following three “Whys” 1️⃣ Why do we pay for THIS? (You’re likely paying for legacy tools no one even uses.) 2️⃣ Why do we pay THIS SPECIFIC VENDOR? (You’re likely paying people who added value in the past but no longer add value today.) 3️⃣ Why do we pay THIS MUCH? (You’re likely paying more than you need to pay, because most vendors will lower their rates if you ask.) Step 3: Apply the 30% Test Ask, “Could we cut this expense by 30% without seriously impacting operations?” If yes, it's a leak. Cut it. Step 4: Identify 3-5 Key Metrics For each identified leak, establish a specific dollar amount reduction target with a deadline. The average business I work with finds at least $10,000 in immediately recoverable monthly expenses through this process (hence the name). Virtually every business has extra profit hiding in plain sight… …you just have to be willing to look (and ruthless with what you find it). ⚡ Action Step: Run a “Profit Leak Audit” this week, and then set a reminder to repeat the process in 90 days. Goal: Find 3 - 5% of extra profit margin. P.S. You just read one of the most popular posts from The Accidental MBA, my free newsletter for bootstrapped business owners. My goal with each issue is to help you generate at least $10,000 in new sales, capture at least $10,000 in immediate profit, or save at least 10 hours a week through better systems. You can subscribe now by going to: 👉 https://lnkd.in/gy3h5sG7

Most small business owners I know spend 68.1% of their time dealing with day-to-day problems instead of focusing on business growth. They are still stuck with "I'll handle it all myself" when it comes to finances. You see, initially, when businesses were simpler, managing everything manually in a spreadsheet or a shoebox full of receipts was feasible. But now?  The complex nature of modern business finances won’t work for what growth demands currently. In 2024, this mindset could be costing you up to $12,000 per year in lost opportunities and inefficiencies. So, here's the smarter approach for you: 1/ Automated accounting: Cloud-based solutions like QuickBooks and Xero simplify bookkeeping, automate invoicing, and integrate with your bank. Businesses that automate financial tasks reduce the time spent on admin by up to 73%, allowing you to focus on growth. 2/ Cash flow forecasting: Predicting cash flow fluctuations is critical for small businesses. Tools like Float, Pulse can help you project revenue and expenses, improving cash flow management by 20% to 30%. 3/ Expense management: Companies that track expenses in real time typically save 10-15% on operational costs annually. You can automate expense tracking with platforms like Expensify and Divvy gives real-time visibility on spending, helping businesses cut unnecessary costs and stay lean. To make the most of it, business owners need to consider how these tools impact daily operations, streamline cash flow management, and support long-term financial strategy. The future of small business finance is about reimagining how money moves and grows. Leveraging the right tools can only lead to more sustainable growth and higher profitability. So how are you optimizing your financial systems while staying focused on your core business? #smallbusiness #fintech #entrepreneurship