An expense review should not be a random cost-cutting exercise. The goal is to remove waste, improve terms, and redirect money toward priorities that produce stronger results.
Build the review list
Export the last three months of expenses and group recurring vendors. Include annual costs by converting them to a monthly equivalent. Assign an owner or business purpose to each expense.
Score the value
Use a simple one-to-five score based on customer impact, revenue support, risk reduction, time saved, and operational necessity. Low cost does not automatically mean low value, and high cost does not automatically mean waste.
Choose an action
- Keep: The cost is necessary and appropriately priced.
- Renegotiate: The service is useful, but terms or usage can improve.
- Reduce: Lower the plan, seats, frequency, or scope.
- Cancel: The expense no longer supports a real need.
- Invest more: A high-return tool or service is underused.
Assign accountability
Record the owner, action date, expected savings, and actual outcome. Repeat the review quarterly so abandoned subscriptions and outdated contracts do not accumulate again.