What Is Expense Management?

Expense management is the management of corporate circulation expenses, and it is an integral part of corporate financial management. The task of expense management is: through forecasting, planning, control, accounting, assessment and analysis, reflecting the expenditure of commodity circulation expenses, tapping the potential of reducing expenses, and improving economic benefits. The basis of management is: "Regulations on the Cost Management of State-owned Enterprises", "Implementation Rules on the Cost Management of State-owned Commercial and Foreign Trade Enterprises", and relevant national regulations and rules on expenditures and expenditure standards. The forms of management are: plan management, quota management, budget management, branch management, and hierarchical management. The enterprise's specific management of expenses is usually organized from three aspects: (1) The financial and accounting department implements comprehensive management of the company's overall expenses and expenses; according to the division of labor within the enterprise, it implements separate responsibility and hierarchical management. (2) Different management methods are adopted for each expense item according to its different characteristics. Such as the fixed rate of fees, fixed amount management, cost-saving dry-cut commission system, discounts on internal fund vouchers, etc. The enterprise may set up a chief accountant or a competent manager who is proficient in management, and may also implement a management method that can only be listed after the chief accountant or the competent manager has written a single instruction.

Expense management

Management expenses refer to the expenses incurred by the administrative department of the enterprise to provide various supporting services for the management and organization of production and operation, including salaries and welfare fees of management personnel, company-level depreciation fees,

First we need to distinguish the relationship between expenses and reimbursement. Expenses are not equivalent to reimbursement, that is, expenses are not fully incurred through reimbursement, such as

Business expenses incurred by the company

1. Direct payment expenses: The main businesses that belong to direct payment expenses are hospitality fees, audit fees,

1. Establish expenses that meet the actual needs of the enterprise

1. Define the expenses, consumption levels of materials, labor, hydropower and other expenses;

2. Accurate cost data is the basis for setting prices, which is convenient for enterprises to improve their market competitiveness;

3. The manifestation of direct economic benefits: reduction of expenses = increased income = increased profit = increased net profit;

4. The cost is related to each department and employee of the company, which is of great significance for all staff management and economy;

5. The improvement of the cost management level can drive and promote the improvement of the management level of the entire company.

The core problems that companies usually have in terms of expense management: 1. The design of the expense reimbursement system is unreasonable and unscientific

2. No good expense budget

3. The cost accounting is not comprehensive, meticulous, scientific, and accurate, but it is very rough and simple, and even estimates are backwards.

4. The planning and design of the cost accounting method is unreasonable-no complete cost ledger system has been established;

5, the process is unreasonable, without first designing a scientific and reasonable cost reporting management process;

6. The voucher is not automatically generated during the cost accounting process, resulting in the inability to integrate the cost and finance;

7. Failure to establish various consumption standards such as materials and working hours, resulting in uncontrolled consumption and increased costs;

8. There is no effective cost control, which will not reduce costs;

9, procurement, inventory, sales, workshop, HR and other related departments do not cooperate or ineffective coordination costs, which is the root cause;

10. There is no plan for the entire cost management, including: cost forecast, cost budget, cost accounting, cost control, cost assessment, cost analysis

Therefore, cost accounting can only be completed or simply completed at best. It is impossible to talk about cost management, not to mention a modern cost management system. Without a scientific modern cost management system, it cannot be used for cost management. efficacy.

11. No cost data system has been established, and cost analysis cannot be performed in a timely and effective manner;

12. The cost method of modern western science is not used, including:

Management of expenses such as fixed fees and variable fees

Controllable expenses, uncontrollable expenses and other responsible expense management

Therefore, a modern cost management system cannot be established, and the management and decision-making of the enterprise cannot be well supported!

13. The total negative consequences ultimately caused are:

Expense data is unclear, price competition cannot be carried out, fee control is ineffective, consumption is too high, and costs increase. At the same time, it leads to the dual consequences of irregular management, loss of benefits and management. Causes the company's overall competitiveness to decline!

The accounting and management of expenses is a system that is closely connected internally (internal data flow of expense management) and externally (with procurement, inventory, workshops, etc.). Since it is a system, only integrity can work. Therefore, any simple and sloppy rough Fragmented cost accounting and management fail to achieve their goals; the cost is the same as the management of the entire enterprise. Only by seriously-building a scientific, complete and standardized system can economic benefits, management benefits, and proper effects be achieved. She is like a human body With the same structure, incompleteness is not a system, and a system cannot perform its functions and functions.