An expense control plan template is basically a pre-planned list of all the expenses that will be made by the company in the coming month. It includes all the expenses and their brief description along with their estimated prices. These planned list of expenses help a company to manage their monthly expenses and can get a general idea of how much amount they need to keep aside for the coming month. It also helps them to get an insight about their company’s cash flow. This is an effective technique or measure taken by the finance management team to help their company manage their expenses. It is usually formulated by one of the accountants of the company or the human resource manager. It is then passed over to the general manger, who approves the list and sends it back to the finance team. The team then proceeds to manage the money of the coming moth accordingly. The total amount of money estimated on the control plan is taken out of the company’s income. It is preferred to always keep a little extra amount as well for any unpredictable expenses.
Making An Expense Control Plan:
In order to make an expense control plan template, the employee or accountant needs to have an in depth knowledge about all the expenses that their organization makes. Which includes their income sources, crucial expenses and petty expenses. Additionally, it should include all the estimated prices of each expense. Along with how much money they are planning to allot for each specific expense (the amount allotted for each expense should be more than the estimated price). This plan is usually made on an Microsoft Excel spreadsheet. Specified rows and columns should be prepared for the name of expenses, brief description, their estimated prices, their allotted amount and total amount.
Tips for Preparing An Expense Control Plan:
An expense control plan is then forwarded to the general manager in the form of an email or a printout. Then he either approves it or requests a few changes in it. After the approval of the document, it is implanted throughout the organization. A simple guide on making an expense control plan is as follows:
1. The document should start off by the name of the person who made the sheet and their brief introduction. For example, name, department and contact information.
2. The second step is to mention all the possible expenses that the organization might make.
3. The estimated amount spent on each of those expense monthly.
4. The amount which should be kept for each expense.
5. Total taxable amount included on all expenses.
6. The total estimated amount.
7. The total amount that should be allotted over all expenses.
Benefits of Expense Control Plan:
An expense control plan helps an organization to manage their monthly expenses and get an overview of their company’s cash flow. This is an effective step, mostly implemented by companies that are looking forward to reducing their unimportant expenses and save that money for the company’s betterment. This control plan ensures that there are no unexpected cash overruns.
Templates For Expense Control Plan:
