Regularly Reviewing Your Business Costs can be Transformative for Business Profits

If you run a business or work as a freelancer, chances are you’re laser-focused on bringing money in via new clients, bigger projects and higher turnover.

But the truth is Turnover is Vanity. Profit is Sanity.

It’s not about how much you earn.

It’s about how much you keep and how well you use it.

The Silent Profit Killers

When you don't regularly review your business costs, you're likely wasting money in ways that go unnoticed:

• Subscriptions that auto-renew with no real return

• Tools and platforms you no longer use

• Overpriced vendor contracts you set up 2 years ago (often based on headcount or revenue, that may have changed)

• Hidden bank fees and transaction charges

• Overlapping software with similar features

  
  

Each one might seem small. But together, they chip away at your margins and cashflow.

Try This: A Simple Monthly Business Expense Tracker

To help you start taking control, try this tracker. Update it weekly or monthly to stay clear on what’s going out.

Date	Category	Description	Vendor / Supplier	Amount (£)	Paid? (Y/N)	Notes
01/04/2025	Software	Canva Pro Subscription	Canva	10.99	Y	Auto-renew
03/04/2025	Marketing	Instagram Ads	Meta	50.00	Y	Q2 campaign
07/04/2025	Operations	Office Supplies	Amazon	25.60	N	Order pending
15/04/2025	Professional Fees	Freelance Designer	Today Design	200.00	Y	Logo + Brand assets

Monthly Summary

• Total Expenses: £___

• Highest Spending Category: ___

• Potential Savings Identified: ___

• Changes for Next Month: ___

Quick Tips for Boosting Business Profitability

Once you've got visibility on your business costs, here’s how to take it a step further:

1. Cut What’s Not Working

Do you have a subscription you barely use? Cancel it.

Or an agency that hasn’t delivered in months? Time to consider if you need it. Freeing up even £100/month can create room to invest in what is working.

2. Negotiate with Confidence

Review your regular suppliers and renegotiate contracts. Loyalty is great, but your costs need to stay lean, especially as your business evolves.

3. Get focused on Return On Investment

Ask yourself: “What expenses actually bring in revenue?” Spend more where there’s a clear return and pause the rest.

4. Build Profit Into Your Pricing

Too many business owners price based on what feels “fair.” Instead, work backwards: Desired profit → Operating costs → Break-even → Then set your price.

5. Track Monthly Trends

Seeing patterns helps you plan. Are your costs creeping up? Are you hitting consistent profit margins or are they declining?  A regular monthly review can keep you on track and stay ahead of problems.  If you don’t have that information, then get your book-keeper to run it.

Revenue looks great in headlines, but profit pays the bills.

Remember, when you’re intentional with your outgoings, you protect your profits and your future.

Financial clarity doesn’t have to be overwhelming. You don’t need to check your bank app 10 times a day. But you do need a system, and a regular check-in.

If you need support getting that clarity? That’s exactly where a freelance business manager can help, by being on top of your finances and helping you conduct regular financial reviews.