Expense Control Isn’t About Policing Staff, It’s About Protecting Profit

Introduction

For many construction and engineering businesses, expense control is an uncomfortable topic. Directors worry that tightening controls will feel like mistrust, damage morale, or slow teams down. As a result, expense processes are often left loose, informal, or inconsistent.

At Jones Financial Accounts (JFA), we see the opposite outcome when expense control is done properly. Strong expense processes do not police staff, they protect profit, improve clarity, and remove friction.

This blog explains why weak expense management quietly erodes margins, why this affects small and fast-growing businesses the most, and how simple, centralised controls stop leakage without damaging trust, particularly in construction and engineering environments.

Expense Control Isn’t About Policing Staff, It’s About Protecting Profit

Expenses feel small individually. A fuel receipt here. A meal there. A card payment that “seems reasonable”. But over time, unmanaged expenses become a significant drain on profit.

In plain English:

• Profit is what’s left after costs

• Expenses are one of the easiest costs to lose control of

Unlike labour or materials, expenses often lack scrutiny because they feel operationally necessary. Without structure, this creates silent margin erosion.

Why Expense Problems Grow as Businesses Scale

When a business is small, the director sees most spending. As it grows:

• More staff incur expenses

• More cards are issued

• More decisions happen without oversight

Without a clear process, costs drift. No one is abusing the system, but no one is controlling it either.

For a £1m–£3m construction business, even £300 per week of unnecessary expenses adds up to over £15,000 per year. That is pure profit leakage.

Common Expense Issues in Construction and Engineering

From our experience, expense problems usually show up in predictable ways:

Missing or Late Receipts

Expenses are claimed weeks later with limited detail. Finance has no visibility.

Credit Card Sprawl

Multiple cards with unclear limits or purposes make tracking difficult.

Inconsistent Rules

Different teams follow different standards. What’s acceptable for one person is challenged for another.

No Regular Review

Expenses are processed, but never analysed.

None of these issues require bad intent. They require structure.

Why This Matters More for Small Businesses Than Big Ones

Large companies can absorb inefficiency. Smaller ones cannot.

Growing SMEs typically operate with:

• Tight margins

• Limited cash buffers

• Heavy reliance on trust

This makes clear rules essential. When expectations are clear, staff are protected as much as the business.

Expense control removes awkward conversations by replacing them with policy.

Small Controls, Big Impact

We worked with an engineering business employing around 30 staff. Expense claims averaged £6,000 per month, with little review.

After introducing:

• A simple expense policy

• Centralised expense processing

• Monthly expense review

Total monthly expenses reduced by 20%, saving over £14,000 annually. Staff feedback was positive because rules were finally clear and consistent.

Common Myths That Block Better Expense Control

“It’s not worth the effort.” Small amounts compound into big losses.

“People will feel micromanaged.” People prefer clear rules to unclear expectations.

“We trust our staff.” Trust works best when supported by structure.

Practical Steps to Improve Expense Control Without Friction

You do not need complex systems to improve control.

Start with:

1. One clear expense policy

2. Centralised expense submission

3. Mandatory receipts and descriptions

4. Monthly review of total spend

Helpful tools and templates can be found here:

• Free expense and cash flow resources: https://www.jonesfa.co.uk/resources

• Broader financial discipline insights: https://www.jonesfa.co.uk/blog/why-every-small-business-should-have-a-monthly-finance-health-check

Construction-Specific CFO Insight

Construction businesses often allow expense flexibility due to site work, travel, and reactive jobs. That flexibility must still sit within a framework.

Strong expense controls:

• Improve cost forecasting

• Protect margins

• Support cleaner project costing

Without them, job profitability is distorted.

Key Takeaways

• Expense control protects profit, not just cash

• Small costs add up quickly in growing businesses

• Clear rules improve fairness and trust

• Simple structure prevents margin leakage

If your expenses feel “about right” but margins keep tightening, the issue is often lack of structure. JFA helps construction and engineering businesses implement expense controls that protect profit without damaging culture.

Wrapping up today's insights, tomorrow we simplify another accounting challenge.