17th-Dec-2025 • Alice Wambui • SME Expense Management
Small and Medium Enterprises (SMEs) in Kenya are the backbone of our economy, contributing significantly to our GDP. However, managing expenses effectively can be a challenging task. Inefficient expense management often leads to financial instability, reduced profitability, and hinders growth prospects.
The good news is that with the right tools and strategies, SMEs can master expense management and set themselves up for success.
Firstly, it's crucial to categorize expenses accurately. Common categories include salaries, rent, utilities, marketing, and office supplies. This helps you identify where your money is being spent and spot any unnecessary costs.
Manual expense tracking can be time-consuming and prone to errors. Fortunately, digital solutions like Lipabiz Technologies Ltd's business management platform offer automated expense tracking. This feature eliminates manual data entry, saves time, and reduces the risk of errors.
Setting a budget is essential for controlling expenses. Determine how much you can afford to spend in each category, and stick to it. Regularly review your budget to ensure it's still realistic and relevant.
Look for opportunities to cut costs without compromising quality. For instance, negotiate better deals with suppliers or switch to more cost-effective services. Regularly review your expenses and make adjustments as necessary.
Approval workflows help prevent unnecessary expenses by requiring approval for large purchases or expense claims. This ensures that every expenditure is necessary and approved by a responsible party.
Digital payments offer several benefits, including faster transactions, reduced errors, and improved security. Adopting digital payment solutions can streamline your expense management process and reduce costs associated with manual transactions.