1. Budgeting: Creating a detailed budget that outlines expected revenues and expenses is the first step. This involves forecasting sales, estimating costs, and planning for contingencies. 2. Monitoring: Regularly tracking actual expenditures against the budget helps in identifying variances and taking corrective actions. 3. Analysis: Analyzing financial statements and cost reports to understand where money is being spent and identifying areas for cost reduction. 4. Control Measures: Implementing policies and procedures to control spending, such as approval processes for purchases and spending limits.