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Overlook these nine sales expenses and your sales expense budget will fail!

by , 03 September 2014
You know that old saying: 'You have to spend money to make money'. Well it's very true when it comes to your company's sales. You'll probably incur thousand of rands of expenses before you make a decent profit.

This is simply how this industry works. But if you don't control those sales expenses, they could end up robbing you of that profit you worked so hard for.

That's why you need to draw up a sales expenses budget and ensure you don't overlook these nine expenses when you do. Otherwise your budget will fail...

 

These nine expenses fall into two different groups

 
The nine expenses you must never forget to include in your sales expenses budget fall into two groups:
 
- Fixed sales expenses; and
- Variable sales expenses.
 
Fixed expenses are ones that remain constant month after month. These are regular expenses you must always budget for.
 
Variable sales expenses change in amount or even disappear from month to month. You need to carefully assess your needs and expenses for the month to determine if you have any variable expenses you must budget for.
 
Read on for the nine expenses you must never overlook from these two groups.
 
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How to save on auditors' fees and:
 
- Ensure your fixed asset register is prepared by the time your auditor arrives;
- Maintain your cash flow;
- Identify problem areas in your business; and
- Cost less than what an accountant charges for two hours of his work.
 
 
***********************************
 

These are the nine expenses you must never forget to include in your sales expenses budget

 
Fixed sales expenses
 
1. Sales department office stationery;
2. Sales department rent expense;
3. Sales personnel salaries;
4. Sales personnel fringe benefits; and
5. Promotional and marketing materials.
 
Variable sales expenses
 
6. Sales personnel telephone costs;
7. Sales commissions;
8. Travel costs related to selling product; and
9. Client (These expenses could include providing refreshments during a client meeting).
 
There you have it. If you want to control your sales expenses with a successful sales expenses budget ensure you include these nine expenses in yours.
 


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