Handling Your Expenses

Reviews and expense management works together in order to meet the company’s goal. When we say of expense management in does not connotative means that reviewing is focused on expenses alone. It is also important to take note for the costs value. With this, you could scale the expense together with the cost if there is a significant relation between them.

Remember this, whatever your sales level is; costs that appears and hang about fairly stable should be entered as fixed expenses. This will include the payments for rents, certain taxes, payments equipments used/ leased, phone bills and other utilities expenses. Variable expenses are those that increase and decrease with production and includes your sales cost, cost of goods sold, labor expenses, promotion expenses or advertising and variable utilities.

These two costs expenses may not remain in constant and fluctuate. Taking note of it will ensure your expense management plan to have a concise and actual operational costs report. It is also important to compare and assess “best” and worst” scenarios, with this strategy you will formulate a more realistic report that can be used in future decision making.