General and administrative expenses can get out of hand pretty quickly. You may think they're just small amounts and you don't need to think twice about them. But this could land you in serious though.
You can reduce the impact these expenses have on your business and stop them getting out of hand.
All you have to do if carefully control them and take every transaction, no matter how big or small, seriously.
To help you do this, we have a list of 14 golden rules you must follow to minimise your general and administrative expenses...
Following these 14 rules will help you minimise your general and administrative expenses
1. Always budget for inflation and price increases;
2. Have separate bank accounts you use specifically for business and personal expenses;
3. Save your documents in electronic format instead of hard copy;
4. Try to buy your material in bulk;
5. Make it a company-wide policy to print double-sided;
6. Monitor and control telephone use;
7. Manage entertainment expenses;
8. Consider different purchasing options for equipment;
9. Make employee training and development a priority;
10. Use office space effectively;
11. Become electricity conscious;
12. Increase e-mail usage;
13. Set up a printer network for employees; and
14. Do a monthly comparison between expenses and find the reasons behind big fluctuations.
Each of these 14 rules may have a minor impact on their own. But when you combine them all together, they can save you a lot of money on your general expenses.
Here's what you need to remember when it comes to reducing these expenses.
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Remember this important point to help you reduce your general and administrative expenses
To reduce your general and administrative expenses you must remember that no saving is too small. For example, getting employees to print double-sided will help you halve the amount of paper they use. This is a small saving but it's one you can easily make each and every month.
These small savings add up and, in the end, you'll save a lot more than you realised.
By following these 14 rules you can cut down on your general and administrative expenses every month.
PS. Find out how to improve your cash flow and eliminate simple accounting mistakes