Tracking expenses may seem like a lot of work, but it holds you accountable for your company’s finances. Supplies expense is another cost a company has to spend on. This leads us to the question, “How to control office supplies expense?” Read until the end.
Reasons to Keep Track of Expenses
Itemizing your expenses is not an easy task, so it’s important to know why you should keep track of your expenditures before learning how to control office supplies expense.
- It helps you stick to your budget – It is said that a budget is a living document that should develop over time to suit your needs and goals. Realizing that you are overspending or underspending consistently in a category in your budget can help you decide whether you need to make cuts or increases in the next month’s budget.
- It can reveal spending issues – Another purpose of keeping track of your expenses is to become more aware of your spending habits. If you don’t know where your money is going, you won’t be able to realize negative spending habits that you need to change.
- Helps you meet your financial objectives – It’s not enough to stick to your budget if you don’t take a step toward important saving goals. Create a savings plan, and track your spending to make sure that it matches your priorities.
Steps to Keep Track of Expenses
Before we tackle learning how to control office supplies expense, companies need to know the steps to keep track of their expenses. While there are other approaches, the best approach is the one that makes you feel comfortable enough to stick to every day.
- Create a budget – A budget is a monthly money plan. This is your expected income and expenses for a specified time.
- Record Expenses – Keep up with what you’re spending. You can use the pencil and paper method, envelope system, computer spreadsheets, or budgeting apps.
- Watch the amounts – When you make an expense, make sure you keep track of how much is left in that category.
Ways to Reduce Office Supplies Expense
Every business would need office supplies, but cutting down on office supplies expense doesn’t necessarily mean you don’t need one. There are many ways on how to control office supplies expense, here are some:
- Keep all your supplies in one place – Make sure to gather all your supplies in one place to see what you have. This way, you’ll end up buying the only supplies you need.
- Make an inventory – Make an accurate inventory of your supplies. Repeat this process on a monthly or weekly basis to know exactly what you have and don’t have.
- Recycle – Office supplies from the previous year’s inventory can be re-used. You have to be resourceful and creative at the same time.
- Compare prices – Compare rates before you purchase an item.
- Buy at the right time – During summer, many office supply stores offer big discounts. Take advantage of sales and off-peak discounts.
- Purchase bulk wholesale office supplies – There are substantial price markdowns if you purchase in bulk.
Understanding the importance of tracking expenses and how to control office supplies expense can help you successfully commit to the activity and become more aware of your spending. Know more about office supplies here!