| Did You Know: A worldwide study in 2023 found that companies waste 10% of their funds due to poor expense management. This means a business spending RM10,000 might throw away around RM1,000! |
This causes major issues for small and medium companies in Malaysia. When you fail to manage your business costs, your profits decrease. Some companies even face huge losses because of this problem which calls out for the need of a proper Expense Management System.
How Can You Improve Your Expense Management?
This blog will cover:
- The meaning of expense management
- The importance of controlling costs
- Common challenges in Malaysia
- Simple ways to manage expenses
- Useful tools
- How Info-Tech’s program can assist you
Let’s begin!
What Does Expense Management Mean?
Expense management involves planning, monitoring, and regulating the money your company spends. It helps ensure that you stay within your budget.
It covers:
Estimating – Predict how much you will spend
Budgeting – Establish a spending cap
Controlling – Stick to your budget
It’s almost like managing your household finances. Without tracking your cash, you might overspend—and that leads to issues.
Why Does Expense Control Matter?
Every company aims to turn a profit. But excessive spending will decrease your profits.
Solid expense control allows you to:
- Prevent overspending
- Allocate your money effectively
- Take smarter business actions
- Complete your projects within budget
- Build trust with clients and partners
In a nutshell: Control your spending and your business will thrive.
Common Issues in Malaysia
Malaysian businesses often struggle with these challenges:
These issues make it tough to understand where your money goes. Without this knowledge, you can’t manage your costs.
5 Simple Ways to Handle Expenses
Let’s explore some straightforward steps you can take.
1. Set Up Your Budget
When starting a project or job, list all your expected expenses:
- Wages and overtime for employees
- Tools and supplies
- Transportation costs
- Computer programs or subscriptions
Look at old records to create a more accurate budget.
2. Monitor Hours and Expenses
Keep tabs on:
- Time employees spend working
- Money spent on trips or materials
Do this daily or weekly—not just at month’s end.
3. Check Live Updates
Don’t wait until the month is over to review your costs. Use a system that gives you up-to-date information. This lets you address issues.
4. Adapt When Necessary
Changes happen. It’s fine. Just tweak your budget and keep your team in the loop. You might need to cut costs in one area to pay for another.
5. Build Reports and Grow
Once you wrap up your project, put together a basic report:
- How much did you plan to spend?
- How much did you spend?
- Where did costs run higher than you thought?
- What can you do better next time?
These reports help you improve down the road.
How Technology Helps
Many small businesses in Malaysia still rely on Excel or paper to monitor expenses. This works fine at first, but as your company expands, it becomes challenging and problematic.
Using expense management software has an impact on your ability to:
- Keep tabs on employee hours and expenses
- Link up with your payroll setup
- Figure out total costs including wages extra hours, and perks
- Display up-to-the-minute spending breakdowns
- Ping you if you’re burning through cash too fast
- Use it anywhere – on your phone or computer
What Makes Info-Tech’s Project Cost Management Software Stand Out As An Expense Management Tool
Info-Tech has a reputation as a top-notch software company in Malaysia. They’ve come up with an Project Cost Management Software that lets you keep your spending in check without breaking a sweat.
Here’s what you get:
Who Should Use It?
- Construction businesses
- Engineering companies
- Event planners
- Any business with numerous employees or teams
And yes—it adheres to all Malaysian regulations for payroll and expense records.
Final Thoughts
Still stuck with Excel or doing it all by hand? It might be time to upgrade to something cleverer.
Running your business expenses doesn’t need to be complicated.
With solid planning regular checks, and suitable tools, you can maintain control and cut costs.
Check out Info-Tech’s Project Cost Management Software. It’s easy to use, powerful, and perfect for growing Malaysian companies.
Curious to learn more? Contact us for a free demo now!