How to manage your coworking spend budget

With many companies moving toward fully remote work environments, we’re seeing an increase in coworking space usage, even in the suburbs where coworking has typically had a slower trajectory. Coworking spaces offer many benefits to remote work and hybrid work employees, from better work-life balance and more productivity to social interaction and networking opportunities. And for team members who conduct sales meetings or other in-person conferences where a physical meeting space is necessary, they’re an essential part of doing business. 

In the past, many companies had fewer expenses related to coworking spaces. This might have been due to the small number of hybrid or remote employees, traveling employees, or full-time freelance contractors. In these cases, finance teams saw managing coworking spend as a pretty straightforward task. Employees or freelancers would simply submit their invoices or expense reports for reimbursement. 

But, as more companies are now moving to fully remote settings, and presumably, more employees are utilizing coworking spaces as part of their regular work week, finance teams will be experiencing an increase in the volume of invoices and expense reports, and the existing systems for managing this type of coworking spend might not be effective. 

Previously, companies typically allocated office space “spend” based on square footage. But now, with a fully remote workforce, the amounts will be based on different metrics, like what is being spent on a monthly basis for an on-demand coworking space. And while that will be significantly less than what the in-office “spend” might have been, with more employees using this benefit, this can create a challenge for finance teams. 

If you look at travel and expense (T&E), you’ll see a good model for how companies can manage their coworking spend budgets. Here’s how that translates to coworking spend.  

5 steps to managing your coworking spend budget

1. Set a budget: Determine how much money you should be allocating to your coworking spend budget each month. This will help you keep track of your expenses and ensure that you don’t overspend. If you’re not sure how to actually determine your budget, we’ve outlined the specifics in several blog posts that will help you do so, including considerations on employee level, location, job description, and more. 
2. Prioritize your needs: Decide what the most important coworking needs are for your team. Do they need a private office or desk in a shared space? Do they require access to meeting rooms or other amenities, like phone call suites or podcasting rooms? Make a list of what your team’s priorities are and then allocate what you think you’ll need to spend based on that. 
3. Research your options: Not surprisingly, prices of coworking spaces vary based on location. Do your due diligence and research various coworking spaces in the places where your teams live. Compare prices, amenities, and services offered to find the best fit for your team’s needs and budget.
4. Track your expenses: Over the course of thirty or sixty days, carefully track the expenses of your team’s coworking space spend. Having an average spend across a couple of months (or longer) can help you easily determine what the budget needs to be, and then, best manage the spend. 
5. Constantly review the spend: Because this might be a new expense for your team, it’s imperative that you constantly review how the coworking spaces are being used and by whom, as well as how much your team is spending. This will help you evaluate the effectiveness of your budget. 

With the increase in coworking space usage by many remote-first companies, Flexspace is offering coworking spend and budget support, allowing companies to easily budget, book, and manage their team’s coworking usage. Our free, on-demand workspace booking platform allows companies to seamlessly book spaces, whether it’s for daily or weekly personal use, or for connecting with other team members or clients within a meeting or conference setting. And, Flexspace provides support in coworking space budget management, allowing you to streamline your costs and spend. Get ahead of your company’s coworking space spend, and manage your budget easily.

Schedule a Flexspace demo today!