Overview:
- Find out how to budget for warehouse expenses
Why do you budget for warehouse expenses?
Warehouse managers budget to keep track of and manage warehouse expenses.
How to budget for warehouse expenses?
Here’s a guide to understanding and managing budget for warehouse expenses.
- Understand warehouse expenses: Running a warehouse involves various expenses, including but not limited to:
- Rent, equipment, maintenance and repairs, salaries and supplies.
- Group warehouse expenses: Categorising expenses helps to better manage and track warehouse expenses. This includes and are not limited to:
- Utilities expenses which comprise of electricity, water, gas and internet.
- Operational expenses which include rent, salaries and supplies.
- Estimate monthly expenses: Review historical bills and records and find the average monthly expenses of your grouped expenses.
- Consider adjusting expenses when there are changes such as purchasing new equipment, an increase in fuel costs or changes to the warehouse rent.
- Set budget priorities: Identify expenses that are essential, and which can be adjusted when necessary. Plan for unexpected expenses like emergency repairs or increase in the utility bills.
- Create a budget: Use an Excel spreadsheet to keep a detailed record of your budgeted expenses. Compare your budget to actual expenses regularly and adjust expenses.
- Monitor spending: Communicate the budget with your warehouse employees and explain the importance of staying within the budgeted expenses. Keep track of all spending and regularly update the Excel spreadsheet.
- Review the budget: Establish a review policy to periodically review both budgeted expenses and actual expenses. Consult your internal accountants to refine the budgeting process and make improvements for the following year.
What’s next?
Find out how to manage customer order deliveries.
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