What to Check When Business Expenses Suddenly IncreaseWhat to Check When Business Expenses Suddenly Increase
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Aroosa's avatar
Aroosa Mughal
• Oct 11
Series 1: Things I Notice as an Accountant Episode 2: A client's expenses suddenly increase. What do I check first? 👀
Imagine this. 👇
Last month, your business expenses were $5,000.
This month, they’re $8,000.
Your first thought might be: “Business is getting expensive!”
But as an accountant, I don't jump to conclusions. I investigate. 🔍
Here’s what I look at first:
📌 1. Which expense increased? I compare this month's expenses with the previous month to identify exactly where the increase happened.
📌 2. Is it a one-time expense? Perhaps you purchased new equipment, paid an annual subscription, or incurred a one-off professional fee.
📌 3. Are there duplicate entries? Sometimes, the same bill is recorded twice. This can make expenses look higher than they actually are.
📌 4. Are personal expenses mixed with business expenses? This can happen, especially in small businesses where founders use the same account for both.
📌 5. Is it a timing difference? Maybe an expense relates to a previous month but was recorded this month. Or several bills were entered together.
📌 6. Has the business actually grown? More sales, more employees, or more customers can naturally lead to higher expenses.
The goal isn't simply to reduce expenses. It's to understand them.
Because higher expenses aren't always a bad sign.
But unexplained expenses? That's where I start asking questions. 👀
As an accountant, I believe every unusual number deserves a closer look before anyone makes a decision.
Business owners, do you compare your expenses month by month, or do you only check them when your profit starts falling?
I'd love to know. 👇
#ThingsINoticeAsAnAccountant #Bookkeeping #SmallBusiness #AccountingTips #FinancialManagement
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Fatima's avatar
Fatima Akbar
• Oct 11
It means you have got the real analytical skills 👍
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