Scenario: Reviewing Costs After 12 Months in Business
A structured annual cost review using the AskBiz CFO expense data and cost configuration — identifying what has crept up and what can be negotiated or removed.
Key Takeaways
- After 12 months of operation, AskBiz has a full year of expense data — enough for a meaningful annual cost audit.
- Cost creep — small, gradual increases across many categories — often accounts for 10 to 15 percent of unnecessary spend in a year-old business.
- The annual review is the right time to renegotiate fixed costs like rent, insurance, and supplier rates using AskBiz data to support your case.
The Situation
Your business has been operating for 12 months. You have a full year of transaction and expense data in AskBiz. Now is the right time to do a systematic cost review — not just looking at what you spent last month, but at patterns across the full year. This annual review typically surfaces 10 to 20 percent of spend that can be reduced, renegotiated, or eliminated without materially affecting operations.
Step 1 — Pull the Annual Expense Summary
Open the Expenses tab and set the date range to cover your full 12-month period. Sort the results by category and note the total spend in each category for the year. Then calculate the monthly average for each category (annual total divided by 12). This gives you a clear, comparable baseline. Compare the monthly averages to what you have entered in your Cost Configuration — discrepancies (where actuals consistently exceed configuration) reveal categories that have crept above your planned budget.
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Start for free →Step 2 — Identify the Four Categories of Cost
Review your annual expense list and sort each cost into one of four categories. First, Essential and optimised — costs that are necessary and already at the best available rate (leave these alone). Second, Essential but over-priced — costs you need but are paying more than necessary for (these are renegotiation targets). Third, Useful but optional — costs that provide some value but could be cut if needed (these are your first reduction candidates). Fourth, Unused or forgotten — costs you are still paying for services or subscriptions you have stopped using (these should be cut immediately). For most 12-month-old businesses, one to three software subscriptions fall into the fourth category and can be cancelled today.
Step 3 — Renegotiate Key Fixed Costs
Armed with your annual spend data from AskBiz, approach your key fixed cost suppliers for renegotiation. For each negotiation, use AskBiz data to make your case concrete: show your landlord or insurance broker the exact annual figure you have paid, and ask for a renewal discount given your track record as a reliable paying customer. Common annual costs worth renegotiating include business insurance (typically negotiable by five to ten percent with a clean year of claims), supplier pricing (volume discounts based on a year of demonstrated purchase history), and any SaaS tools with annual billing options that are cheaper than the monthly rate you are currently paying.
Step 4 — Update Configuration and Measure the Impact
Once you have cancelled unnecessary costs and renegotiated others, update your Cost Configuration in AskBiz to reflect the new amounts. Close the configuration drawer and check the Rolling Cash Forecast — the lower cost base should improve your projected net cash figures and extend your runway. Recalculate the annual saving: multiply the monthly saving by 12. For many businesses that go through this process, the saving is $3,000 to $8,000 annually — enough to fund a new hire, a significant product investment, or simply a more comfortable cash buffer. Document the changes and schedule a reminder to repeat this review at the 24-month mark.