When you are focusing intently on growing your business, it is all too easy for operating expenses to blow out.

For this reason, the start of a new financial year is a great time to conduct an annual review of expenses.

Run off a report that details the business’s last financial year expenses. Compare the actuals with the budget for the same period and, ideally, with actuals for the year before.

Highlight the increases with an orange highlighter and the decreases with a yellow highlighter. Then investigate the reasons for these variances. It is critical to take action on expenses that need reining in.

Even if your expenses are on track, examine all costs to ensure you are getting maximum value for money. Is it possible to negotiate a better rate with your courier company?

Are you planning your purchases to take advantage of sales by suppliers? What procedures do you have in place to make sure what is purchased is received?

It is also a great time to review your incoming money situation. Are you raising invoices and posting them immediately? Are overdue amounts actively being pursued?

Remember, you are not a bank.