Companies are fuelled by money. However, the cash flow for many firms is often at risk.
Early last year, many smaller businesses were running out of money fast. Dependence on government grants grew, and seismic cutbacks occurred within company infrastructures. Entrepreneurs fought tooth and nail to secure additional funding however they could, and for lots of them, that struggle continues today.
Companies should never waste their money at the best of times. However, careful financial management is sorely needed more than ever before.
If you’re running your own company, here are some tips for having control over business spend.
Keep Negotiating
It is a mistake to assume that every price point your firm comes across is fixed. There will often be a little wiggle room depending on your negotiation skills.
Try to negotiate lower prices with clients, partners, suppliers, and even energy suppliers. You can improve your chances of success here by:
- Reciting more favourable quotes from competitors.
- Emphasising how the deal can directly benefit the entity you are dealing with.
- Rejecting the first offer politely if you have a stronger rapport with those offering it.
These basic negotiating principles should help you have better control over business spend. If appropriate, offer some compromise on your end if you’re exchanging services. Train your staff to be persuasive, too, if they regularly liaison with these entities.
Secure a Virtual Credit Card
Managing the spending of other employees can be challenging. These pressures can be more potent if your business has hundreds of workers on the payroll.
Setting spending parameters is easier than you might assume. Read about the benefits of a virtual card on Payhawk’s website. They issue company cards with built-in spend rules, which means you and your employees can’t surpass the set limit. Things like a gas station and transport costs can be covered, which means reckless spending urges while out of the office won’t be satisfied either.
You may worry that a virtual credit card may subtly imply that you do not ‘trust’ your employees. However, you can counter these suspicions by emphasising the benefits of all-in-one finance, managing company cards, and spending from a single account. Everything is made much simpler for those in charge of the books.
Invest in Spend Management Software
Technology has long played a central role in money management. Businesses will use things like Microsoft Excel to track expenditures. Additionally, people may also use budgeting apps to keep track of their personal finances in their free time.
When managing company finances, dedicated spend management tools can provide you with a central dashboard. From this digital platform, you should be able to see where all your company’s money is going and who is spending it. Employees can also fill out expense claims, leading to further transparency for all parties.
Spend management software can provide clarity and comfort, especially if you’re under much stress as a business leader. There are many unknown variables in the business world today, but to have a holistic overview of your spending should give you peace of mind – or at least a plan of action for improving things.