Keeping to a budget will help you to run your business effectively, increase profits and reduce overheads. Within your main business budget, you will need to allocate separate budgets to different aspects of your business. For example, you will need to set a budget for your office supplies and you will need to plan how this money is spent.
Considering Your Office Supply Needs
To set your budget, you will need to think about your needs. The budget should reasonably be able to cover your office supply needs, even if it means you have to think carefully about what you buy and when. List what you need to complete each of the daily activities undertaken in your office. Compare prices for these items from a number of suppliers to give you some guidance on your potential spend.
Depending on the type of business, you will spend more money on some items and less on others. For example, you may need to allocate more of your office supplies budget to printing than to stationery if printing is an important aspect of your business’s daily functions. You need to set limits on what you will spend on each of the different elements of running your office.
Keeping track of what you spend on office supplies is important for several reasons. Firstly, you will need accurate expenditure information for your business accounts. Secondly, it can help you to keep a record of the items you use most regularly and the areas where the majority of your budget is spent. Finally, it will help you to look at ways you can make savings on office supplies in the future and identify areas where money has been wasted in the past. You can track your spending by keeping copies of invoices from orders.
Looking for ways to save money will help you to keep within the budget you have set and reduce your business’s overheads. There are many different steps you can take to cut your costs. For example, you may choose to purchase remanufactured Lexmark ink cartridges as this can help you to save around 50 per cent on OEM products. Also, you can look for ways to reduce the amount of paper used in your office, such as printing only what you need and checking through work for errors to avoid reprinting. Using a lower quality of paper for day-to-day use is another option if you want to cut the amount you spend on paper. Buying items of stationery in bulk if they are items you use regularly is something else you may wish to consider as the cost per unit is often much lower.
Reviewing the Budget
A budget is not something that necessarily needs to be set in stone. It is important to review your funds on a regular basis to make sure it is working. If you are regularly overspending on your budget, then you should first look at any savings you can make. If you are already making as many savings as you can, then it may simply be that the allowance is just not enough. If this is the case, you may need to look at the overall budget of your business and see if the money allocated elsewhere can be reduced to provide more cash for your office supplies. This is possible if there is an area of your business where you are consistently underspending.
Setting and keeping to your office supplies budget will help you to reduce your overall business overheads and increase your profits. Careful planning and reviewing are necessary to make sure you stay within the parameters of the budget you have set for this area of your business.