Have you been tracking and managing the expenses of your business organization? Recording and regularly reviewing the expenses of your business organization would help you pinpoint all the unnecessary expenditures, cutting down the costs and being prepared for the come tax time. And in order to improve and manage your business expenses try the following 10 tips.
Does your expense management team know what it wants to achieve: Have you been encountering too many errors in your expense management reports? Or have you been spending too much of time sorting out the bills? By knowing your expense management team pain points you could enable them to offer you with the best possible solution of your business.
Does your system know who is spending what: The most common company positions who maximize the spend visibility of your organization are generally the chief executive officers and the chief financial officers. The software that you choose would help you understand and know if you are on budget, how much you have been spending, can you afford more of spending, and are you paying for whatever you need.
Being Timely: It’s always good when you have your expenses been recorded on time so that you don’t end up piling receipts. Regularly documenting the entire data would help you save your time and money in a long run ensuring that your financial records are up to date.
Using a separate credit card for your business: When you are starting with a new business it’s obvious that you would use a personal card or debit card in order to manage the expenses of your business organization. Business credits are something that have to be established before an entrepreneur could access the business cards. However when you have your personal and business purchases done from the same card then it does become difficult to manage the expenses of your business organization.
Backup of all your documents: The most important thing that you could do for your business is regularly backing up your folders. If you have a track record maintained for each and every expenses of your business organization and then lose the data all of a sudden, it would be even worse when you wait for the year to end and do things in the last moment. You would here assume that you have covered each and everything covered when it comes to the expense management software but whereas you lose all the valuable required documents.
Harness technology: There are many mobile applications and cloud based systems made available in the market that would help you track the expenses of your business organization, where ever you are categorizing them in the right category. So try and look out for products that integrate easily with your existing software system.
Monitoring the results: Make use of all your accounting systems in order to create weekly and monthly reports examining the expenses and revenue of your business organization. Develop a monthly, quarterly and annual budget set based on the past expenditures. Doing this on regular basis would help you understand and monitor your expenses and see if they are within the budget.
Watch out the cash: Petty cash expenditures made could lead you with huge problems if not tracked on timely and regular basis. So try and limit the use of the cash you have in hand making sure that you use it only when required. Have a cash account been created in your software tool in order to track down the expenses.
Centralize Travel: Instead of having each and every trip being booked separately try and consider consolidating your travel expenses by going through the same website for each and everything. Choosing the right expense management software system would help you book and track all your expenses in one place. And once you have employees being hired for the entire system this centralized system of service would turn out to be specifically beneficial for you and your organization.
Trim the fat: Are your expenses increasing more than what your budget is? Or do you think it’s time for you need to improve the profit margins? Try and have a look at the expenses of your organization in order to figure out where you could cut back, starting with those that directly contribute to the bottom line.
Following with these guidelines is one of the best ways you could have a great start. So did we miss any step above? Do leave your thoughts and comments below and we would be happy to add them in the above mentioned list.
Shivli Ratul is a freelancer and has experience of over 5 years in expense and travel management softwares.She has in-depth knowledge about managing travel and different type expenses incurred in business.she writes about expense account software as a freelancer.