In our previous article, we discussed how categorising expenses can help optimise business spending and increase profits. But how can you as a business owner ensure you eliminate hidden costs, reduce unnecessary business expenses, and maintain financial control?
The answer is simple: ASK—but let’s break it down into practical steps.
1. List and Categorise All Business Expenses
There’s no shortcut to controlling business expenses. The first step is to list every single outgoing cost and categorise them. This process eliminates mystery expenses and provides a clear picture of your cash outflows. Hidden costs often creep into business finances, and a detailed review ensures they don’t go unnoticed.
2. ASK the Right Questions
Once you have a full list of expenses, it’s time to challenge each one with the ASK method:
A – Assess Necessity
Is this expense essential for running your business?
Can you quantify the benefits it brings?
S – Scrutinise Value for Money
Are you getting the best value?
Is it the service you are obtaining value from or the provider?
If it’s a non-monetary benefit, could there be alternative ways to achieve the same outcome?
K – Keep an Eye on Cost-Effective Alternatives
Could you find a cheaper supplier, a better plan, or an innovative way to meet the requirement?
Are there hidden fees you might have overlooked?
3. Align Expenses with your Values
While cost-cutting is essential, some expenses reflect what you truly value—whether that’s upskilling, maintaining strong supplier relationships, outsourcing admin work, or prioritising creative control. When considering alternatives, ensure they align with your core values as the business owner.
4. Make Expense Reviews a Regular Habit
Expense management isn’t a one-time task—it’s an ongoing process. Review your expenses quarterly to adapt to business growth, new costs, and changing priorities. This habit ensures you stay financially agile and maintain control over your business cash flow.
Ready to Take Control of Your Business Finances?
At Million Goals, we host monthly cash flow management workshops designed for UK entrepreneurs and small business owners. Learn how to optimise your spending and scale sustainably.
📅 Book your spot now and start your journey towards financial success!
Written by
Mrudula Muralidharan
Founder & Finance Coach
Million Goals
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