Most businesses suffer from wasteful spending to one degree or another.
Much of this type of spending comes from careless habits and an inability to say no to employees who are wanting to spend money unnecessarily. It is important to recognize which expenditures are important and which could be considered frivolous or at least unnecessary. Budgets will help guide spending, but they don't generally detail specifically what will be purchased. It goes without saying that employees need positive reinforcement. It seems that too many managers try to catch employees doing something wrong rather than looking for things they are doing right.