All companies require a spending to be managed appropriately. Otherwise, the cash will run out, and the company will be in debt too often, and likely fail.  When you are in business, make sure you are aware of these things to help you stay in the positive.

Look at seasonal trends. Determine when your services or sales of goods are slow, and keep spending limited during these times. When it is booming, make wise decisions with spending.

Find out ways to decrease your overrhead costs, some of which can save you a lot of money are advertising, freight costs, payroll and bank charges.

Watch the loans you purchase. Don't take on too many loans, and pay them off aggressively.

Your accounts payable should be limited to what you can pay off in a reasonable amount of time. A good accounts payable balance means that vendors are not sending you 30-60 day notices of payments overdue.

Make a budget. You can simply set up a budget with your forecasted totals for each month in comparison with your budgeted amounts, and stick by it.

Purchase inventory in amounts that reflect customer demand. This way, your inventory totals will be maintained better and you won't be holding onto too much inventory at your warehouse.

These are only some of the possible ways to manage your spending in your business.  Look at your company and see what you can do to keep your cash in control.

Copyright Jeanine Pfeiffer

 

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