Sarah stared at her business credit card statement in disbelief. There it was: a $500 charge from a software company she barely remembered signing up for. Eight months of automatic payments totaling $4,000, all for a tool her team had stopped using after the first week. Sound familiar? You’re not alone.
This $500 mystery charge represents a common challenge for small business owners: runaway expenses that subtly drain profits while you concentrate on managing your business. The good news? You can control these sneaky costs with just 30 minutes of attention each week.
What are runaway expenses?
For small business owners, runaway expenses are charges that creep up on you when you are not looking. They may start small, but over time, these costs add up to hundreds or even thousands of dollars, eroding your profitability.
Just like personal streaming services you intended to cancel after the free trial, business expenses operate similarly, but the stakes are significantly higher.
Four major money drains hiding in plain sight
As business owners, you have probably reviewed your credit card and financial statements, missing the hidden expenses that are right in front of you. Below are the top four culprits:
Forgotten subscriptions – Software tools, online services or membership fees that keep charging month after month, long after you have stopped using them.
Overpaying for services you’ve outgrown – Maybe you signed up for a premium software plan when you had 20 employees, but now you’re down to 12. You’re still paying for features you don’t need.
Duplicate tools doing the same job – It’s easy to end up with three different project management tools or two accounting software subscriptions without realizing the overlap.
Price increases you never noticed – Small price hikes slip under the radar, and many vendors count on you not noticing the extra charges that quietly creep in every month.
Your runaway expense plan: How to stop the bleeding in just 30 minutes a week
In just 30 minutes a week, you can get runaway expenses under control within a month. Here is your step-by-step monthly review process:
Week 1: The credit card scan
Print the last three months of your business credit card statements. Yes, print them–there’s something about seeing charges on paper that makes problems jump out.
Grab a highlighter and mark every recurring charge. These are your monthly or annual subscriptions, service fees, and automatic payments. Next, circle anything you don’t immediately recognize.
Week 2: The subscription audit
Create a simple list of every software and service subscription your business pays for. For each one, rate it as Essential, Helpful, or Waste.
Essential items are tools you use daily and would find it hard to live without. Helpful items offer value but are not necessary. Waste items are subscriptions you seldom use or have entirely forgotten about.
Cancel all “Waste” items immediately. Don’t fall into the trap of thinking you might use them someday–if you haven’t used them in three months, you won’t miss them.
Use a shared spreadsheet to track all subscriptions with their renewal dates. This prevents surprises and helps you prepare for annual fees.
Week 3: The vendor check-in
Call your top five vendors and ask for better rates. Here’s a simple script that works: “Hi, I’m reviewing our accounts. What discounts are available for loyal customers?”
You’d be surprised how often vendors offer discounts just for asking. They’d rather give you a 10% discount than lose your business entirely.
Compare your current vendors’ pricing with their competitors. Sometimes, a quick online search reveals you’re paying 30% more than necessary for the same service.
Week 4: The future planning
Set calendar reminders for all annual renewals. This is crucial because yearly charges can be budget-busters if they catch you off guard.
Set up guardrails to catch runaway expenses
Once you’ve cleaned up your current expenses, these systems will keep waste from creeping back in:
The approval system – Establish a rule that any recurring expense exceeding a specified monthly amount requires approval from two individuals. Develop a simple form that asks: What problem does this solve? What’s the monthly cost? Who will use it? How will we measure success?
The tracking system – Use one shared document for all recurring expenses. Include the service name, monthly cost, renewal date, person responsible, and the date of the last review.
The alert system – Set up phone or email alerts 30 days before major renewals. Enable your bank’s unusual charge alerts to identify any unexpected price increases quickly. Designate one person as your “expense watchdog” to review all business spending monthly.
The regular review system – Schedule quarterly “expense parties” where your team reviews all spending together. Make it collaborative and celebrate the money saved by cutting unnecessary expenses.
When outside professional help makes financial sense
Sometimes the best investment is professional help. Consider these options:
Bookkeeping services can catch expense problems you miss and often pay for themselves through the savings they find.
Expense management software automatically categorizes spending and flags unusual charges.
Financial consultants can review your entire financial picture and offer suggestions for improvement.
Take control: Stop runaway expense spending today
Are you ready to rein in those runaway expenses? Let’s begin!
- Schedule your first 30-minute money check for this week. Put it on your calendar right now.
- Create a simple expense tracking template. Start with a basic spreadsheet that includes columns for service name, cost, renewal date, and person responsible.
- Cancel one unnecessary subscription today. Review your most recent credit card statement and identify one subscription that you can eliminate immediately.
Remember, controlling runaway expenses is about being intentional with your money. Every dollar you save by cutting unnecessary expenses is a dollar you can invest in growing your business or simply keeping as profit.
The best part? Once you establish these habits, they become automatic. Your 30-minute weekly money check will become as routine as checking email, and your business will be stronger for it.