When running a business, it goes without saying that expenses (whether fixed or variable) play an important role in both profitability and prosperity. Common fixed expenses such as an office lease, insurance, or subscriptions stay constant over time, regardless of the production levels or sales volume. With this amount being constant, many business owners spend considerable amounts of time looking for ways to best manage their fixed expenses to increase their bottom line.
There are various bookkeeping tools for businesses to keep track of their expenses, resulting in increased profit and spend management visibility. For example, should your business purchase a new piece of equipment such as a copier (a fixed cost), with increased spend visibility the business can recognize that the $100 cost upfront will decrease as the company scales. Meaning, for each copy, the true fixed cost per unit produced decreases with each additional use. Therefore, if you only use the copier to create one copy, the cost is $100/copy but if you use the copier to create 1,000 copies, the cost drops to $0.10 per copy.
How can NachoNacho help manage other common fixed expenses that are more fluid, such as various subscriptions? The best way to manage fixed expenses is to use your bookkeeping tool to highlight, across the company, the costs of production so that all levels of the business can understand how with scale, the costs will decrease and profitability will increase. NachoNacho provides a cumulative spend dashboard for all your companies subscription (fixed) costs and allows users to manage their spend instantly.