How to achieve an effective revenue and expense control for your business

The control of income and expenses is a challenge for companies, as it involves financial analysis to make faster and more certain decisions.

In fact, the lack of financial visibility is one of the main causes of the closure of SMEs in Mexico.

Most small businesses do not know exactly their sources of income and expenses, as well as financial indicators that would allow them to obtain greater profitability.

With this in mind, we invite you to learn about some processes so that you can obtain greater control of income and expenses in your business. Let's get started!

How to increase the control of income and expenses in your company?

These good accounting practices will help you control your company's income and expenses:
  • Financial planning
  • Cash flow organization
  • Stock planning
  • Prepayments
1. Financial Planning

Financial planning is not only necessary to generate favorable results aimed at meeting organizational objectives, but also to chart the path to success in a sustained and calculated manner.

The types of income and expenses are established in a financial plan to identify what part of the income will be used to satisfy the expenses or cash outflows, such as the payment of financing.

Revenues and expenses

Knowing the difference between revenues and expenses is simple: Revenues are the amount of money your business receives and expenses are what you must pay for the entire operation of your business.

Revenues can be of two types:
  • Fixed income: Money that is received periodically.
  • Variable income: Money that is received without prior notice and usually independently.
  • Active type income: It is generated through the performance of a specific good or service.
  • Passive income: Generates money without having carried out any particular activity such as renting.
Expenses can be:
  • Fixed expenses: These are the ones required for your company to operate.
  • Variable expenses: Those that depend on the volume of the company's products or services.
Fixed and variable expenses must be calculated every month and every year.

In addition, you must make a projection of income and profits looking for a positive balance, using the forecast to have a more effective control of income and expenses.

Review all the information and answer the following questions:
  • What are the levels of fluctuation in expenses from month to month and what are the reasons?
  • Can you reduce costs with new suppliers?
The first thing to do is to create your own budget and start applying it. If you use a management software like Bind ERP, you can know exactly all the income and expense items in your business.

In Bind ERP, the company's movements automatically generate accounting policies. In this way, your accountant or you only have to approve them to generate the accounting and always work with reliable numbers.

In addition, with Bind ERP it is possible to analyze and forecast the estimated costs in a given period, considering all the fixed expenses of your company in an orderly, automatic and reliable way.

With Bind ERP, the control of your business' income and expenses is simplified because it allows you to make the following reports with just a few clicks:
  • Sales report
  • Purchasing report
  • Collections report
  • Historical inventory report
  • Product movement report
  • Statement of financial position
  • Balance sheet
  • Income statement
  • Auxiliary accounts
2. Cash flow organization

To control the income and expenses of your business, you must also consider the cash flow, which is established for a weekly, biweekly or monthly period.

With a management system you can organize all expenses, income, accounts payable and receivable, as well as investments, bank loans and more.

The main advantage of a software compared to an Excel, is that it generates in seconds different reports on the income and expenses of your company, in real time per period.

For example, Bind ERP gives you a punctual follow-up of your collections to avoid delays; it also consolidates balances to develop better strategies.

3. Inventory planning

Deliveries after the promised date cause a bad reputation for your brand. Mercado Libre considers that on-time deliveries are a key factor to increase your level as a leading seller.

Take control of your inventory and monitor the movement of all your merchandise. Bind ERP handles multi-branch and multi-warehouse functions so you can control all your warehouses in a single interface.

Your company should invest in stock planning, considering sales levels. The best way to organize your stock is to plan it to maximize profitability, automating the process to avoid errors and visualize movements in real time.

4. Advance payments

Another way to control your company's income and expenses is to follow up on your commitments with your suppliers.

If one of your suppliers of products or services offers discounts for early payments, you can take advantage of this to save resources that in other scenarios could be useful.

In addition, payments on the agreed date improve your business image.


The great secret to good control of income and expenses is the adaptation of processes that simplify decision making based on consolidated, reliable and accurate information.

By obtaining financial information from automated processes, you reduce the risk of erroneous decisions that result in large losses.

On many occasions, shrinkage and ant theft arise from human errors that can be eliminated with the use of management software such as Bind ERP, which helps you to have a more accurate control, in addition to facilitating some tasks such as purchase orders and invoices that connect with your inventories.

So we invite you to schedule a completely free demo to learn about the Bind ERP modules that will help you to manage your business in a much simpler way.