Statistics show that 43% of companies still manage their expense reporting manually.
Does your business have a system for tracking your expenses? How often do you check the reports for accuracy? What could be improved with your current approach?
Expenses are an important part of your business and of your tax information during tax season.
Keep reading to learn more strategies for tracking your company expenses:
1. Educate Everyone On Expenses
Which expenses fall under each category? How much of the budget can be spent in a certain area?
Educating your staff on what each expense looks like can help them have a more knowledgeable approach when it comes to spending the company’s money.
2. Have A System For Paying For Expenses
Use this card for office supplies, that card for client entertainment, and turn in your mileage at the end of the month – every business has a different system of how they keep track of expenses. Evaluating the effectiveness of your current system is important when tracking company spending.
Employing a new system with a more focused finance tracker can be helpful as well.
3. Save Receipts
It might be a digital world but the paper trail is still extremely important when it comes to business transactions. Your tax preparer won’t be excited to hear that you didn’t have a paper backup of all your expenses because this will mean hours of combing through credit card transactions from the previous year.
4. Explore Virtual Options
Money tracking within your business doesn’t have to be a monthly check-in. There are now apps and different accounting programs that allow you to have up-to-date information on the spending of any company card.
Check out virtual cards at Bento for a simple, straightforward payment option for you and your employees to use on business expenses.
5. Consult With An Accounting Professional
Whether you have an accounting person on your team or you outsource your accounting, talking with a professional about your expenses can help you be clear on the different rules, strategies, and options moving forward.
An accounting professional is already looking after your best interest in finances and the expense process is a big part of the overall financial health of the business.
6. Employ An Approval System If Needed
In the process of tracking your expenses, you may find that some of your employees spend more than others on business items or spend large amounts without consulting the team. This may require you to structure an approval system in which they need permission for purchases over a specific dollar amount.
Putting this system in place will help to ensure you know before a big purchase is being made.
7. Strategize Future Company Expenses
Businesses tend to spend large amounts of time focused on making money and how to continually increase revenue. While this is important for the longevity of the business, planning how to properly spend your budget is important too.
Factoring in the different tax incentives for different items and timing out your big purchases can end up saving your company money in the long term.
Get Started Today
Now that you have read more strategies for tracking your company expenses, you can approach your expenses with a new strategy today. Leading your company to be exceptional in this area can help you excel financially in other areas with a more accurate view of your budget. Check out our website for more helpful articles like this one.