Spring Clean your invisible expenses. Put that money towards your cash flow instead.

Spring cleaning is a bit bittersweet, isn’t it?

Sure, you’d rather be outside basking in the spring sun, but you have to admit that there are few things better than the cleansing, fresh-start feeling you get from blowing the dust off everything.

And, just like it’s the perfect time to scrub surfaces and sort your cupboards, it’s also a good time to clean out the invisible expenses crippling your bottom line.

What invisible expenses?

You know, the small amounts that sneak their way on our bank statements every month or quarter, hiding there in plain sight. The ones that you just couldn’t name off the top of your head, even if you tried real hard.

We know what you’re thinking…. Who cares, do they really matter? They’re just small expenses – subscriptions, memberships, morning (and afternoon) coffees probably.

Get serious! You know better than that.

You know that it’s the small things – the invisible expenses that drain your bottom line in a big way over time.

And, it’s time they go. They’re burning your hard earned profit as well as whatever you were going to put on the family dinner table tomorrow night.

How much money are we talking?

Well, think about it. What small purchases do you make without really thinking about? Are there things that you purchase every day or every week without much thought? What about the promising piece of business software (that you never use) or the membership to a network of like-minded people (that you never really benefit from)?

Now, to be clear –  It’s not about getting stingy. We’re not talking about casual drinks with friends from time to time or shouting a potential client a coffee.

We’re talking about looking hard at where your money is going and making sure your expenses are in line with what you’re trying to achieve.

A fair sum of your $ may be heading down the drain disguised as unfamiliar looking but regular debits to “something tech”, “some kind of meet-up thing”, “morning latte” as well as “newsletters” that come floating past your inbox only to remain unread.

Before you know it, it’s at least hundreds a month – thousands a year spent on something that adds no real value to your end goal.

Put that money to your cash flow instead.

Here are the three crucial steps to follow when spring cleaning your invisible expenses:

1. Remember your big picture and know your magic number.

Start with the end in sight. What are you trying to achieve and what’s the magic number that will get you there?

Think about the revenue your business needs to pay you (properly), your team, your expenses incl. tax, paying down any debt and contributions to your cash hub. Once you know your number, you’ve got something to aim for.

2. Identify all expenses that directly contribute towards the achievement of your magic number.

Your expenses can either help you get to your magic number faster, or they can considerably slow you down. It’s important to know the difference.

3. Eliminate ALL other expenses.

This is where you will discover just how much the little things can really hurt your bottom line. Clean out the expenses that don’t fit in #2 above. They’re unwanted.

You can do this yourself or you can sit down with your accountant for an honest chat and helpful nudge in the right direction.

Take a breath, take a good look and take a feather duster to all those unwanted, unneeded expenses.

It’s time to put that money towards your cash flow, your magic number.

Go on – start your spring clean.