WHY

Gain a clear picture of where your money is going, helping you prioritise and control costs.
Accurately predict future expenses to avoid cash flow surprises.
Evaluate if your income covers costs and yields the desired profit

Understanding and tracking your expenses is crucial for maintaining financial stability and achieving your income goals. It provides clarity on how resources are being used and helps you make informed decisions to optimise spending.

EACH YEAR, OVER 50,000 NEW BUSINESSES ARE REGISTERED IN NZ, EACH WITH ITS OWN STRUCTURE AND RULES.

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EACH YEAR, OVER 50,000 NEW BUSINESSES ARE REGISTERED IN NZ, EACH WITH ITS OWN STRUCTURE AND RULES. ✦

WHAT

Business expenses represent the costs incurred to generate revenue and maintain operations. These are essential to achieving your income goals, as they directly impact profitability and cash flow management.

Using the expenses tab, you’ll categorise and track costs, ensuring they align with your financial objectives.

By mastering the expenses tab, you’ll have a clear and actionable roadmap for managing costs, maximising profitability, and achieving your business objectives.

This step is key to understanding the financial backbone of your business and making informed decisions every step of the way.

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BREAK YOUR EXPENSES DOWN, THE MORE CLARITY YOU HAVE THE MORE PREPARED YOU ARE FOR THE FUTURE

✦ BREAK YOUR EXPENSES DOWN, THE MORE CLARITY YOU HAVE THE MORE PREPARED YOU ARE FOR THE FUTURE

One size does not fit all when it comes to your business

Dont feel limited by your specific trades or skills; instead, consider your options. You have the opportunity to explore and expand your potential beyond what you might think.

Categorise Your Expenses

Now that you’ve set your income goals, it’s time to determine the costs required to achieve them.

Expenses are categorised into three preset groups:

Fixed Costs: Recurring expenses such as rent, employee salaries, or insurance. These are predictable and often essential to keep the business running.
Variable Costs: Costs that change based on business activity, such as production materials, shipping, or utilities. These can fluctuate and require close monitoring.
Unexpected Costs: One-off or emergency expenses like equipment repairs or unforeseen legal fees. Planning for these helps maintain stability during surprises.

Whenever you identify a cost, assign it to the appropriate category in the expenses tab.

This ensures your expenses are logically organised and easy to analyse.

Growth is a positive sign, lean into it with confidence

Let your business evolve naturally over time, adapting to the changing landscape and embracing new opportunities as they arise. This can lead to sustainable success and a thriving enterprise in the long run.

Track & Update Costs

Regularly Track and Update Costs
As expenses arise, enter them into the worksheet under the corresponding category.

Accurate tracking helps you:

Stay on Budget: Avoid overspending by comparing actual expenses with budgeted amounts.
Monitor Patterns: Identify trends in spending that may indicate opportunities for savings.
Make Real-Time Adjustments: Respond promptly if expenses exceed projections to keep your cash flow balanced.

The cashflow worksheet automatically integrates your updates, providing an up-to-date overview in the budget, cashflow, and charts tabs..

Stay flexible and adapt to change and new opportunities.

Your business will undoubtedly grow and thrive when you leverage the right tools and strategies to enhance your operations and financial management. With the right approach, you can unlock new opportunities for expansion and success.

Your expenses should support, not hinder, your income objectives. Now that you’ve defined your revenue targets, map out the costs needed to achieve them.

Evaluate if your income projections are realistic compared to actual costs and adjust as necessary.

This process allows you to:

Ensure Sustainability: Confirm that your income can cover expenses without compromising profitability.
Strategise Spending: Allocate resources toward activities that generate the most value or growth.
Prepare for Growth: Budget for additional costs as your business scales.

Mapping out expenses and keeping them aligned with your goals ensures you’re not just meeting financial targets but also paving the way for long-term success.

Align Expenses with Income Goals

Conclusion

One size does not fit all when it comes to business, you are not limited by your specific trades or skills; instead, you have the opportunity to explore and expand your potential beyond what you might initially think. The best way to define your business is to make a Business Plan, this allows you to see the full picture of your business or organisation over the next 3 years.

Your Business Plan explains how you will operate, earn revenue, and handle expenses and most importantly clarifies roles and processes in your organisation.

Regularly updating your plan to include new insights and adjustments is crucial for staying relevant and achieving long-term success.