Roxana Olivares, Director Programs of The Forum Sport and Fitness shares, “We all work in extremely busy and demanding industries. It is easy to get caught up in the day to day and let your business continue running the same it always has.” But then again, this also means that regular expenses just keep on getting paid, no questions asked.
Here’s one example of how performing an expense audit can save you some money:
Did you know that by shaving one hour per week off your rosters can attribute to a saving of approximately $1000 per year? Make sure you are regularly checking your rosters in line with your business needs. It may also help to have some targets for the different periods throughout the year. Our business is broken up into peak, off peak and shoulder periods. This is a quick reminder to check rolling rosters and reduce hours here and there when not needed.
How to Complete an Expense Audit
Step One: Create a cash flow budget. Your budget should take into account common company expenses such as advertising, travel, lodgings, meals, office supplies, hardware supplies, general upkeep and petty cash.
Step Two: Fix an expense audit date.
Step Three: Compare the actual amount spent against the cash flow budget. Does it tally?
Step Four: Find out why your business overspent/underspent the amount.
Step Five: Create a cash flow budget (the following year) while also taking into account the results from the previous expense audit.
*Note: Click here to download a template of an expense audit report by SmartDraw.
Expense Audit is Essential
Expense audits do not have to be complicated, but they are necessary as they help you stay within budget. This in return helps you maintain a healthy cash flow and ensures that your management team is in control of the financial situation.