The majority of business owners are aware of the headache that manually tracking your expenses causes. You are likely to misplace key expense receipts and cause human errors to creep in during calculation. This leads to delays in reimbursement, inaccurate records cause companies to lose thousands of dollars, plus you could ditch yourself in serious trouble when filing taxes.
If you are a business owner who travels a lot, studies show you will spend 10% of your annual budget on travel expenses. With expense-processing costs eating away at a company’s resources, business owners agree there is a need to streamline end-to-end expense management, automate related tasks, and save valuable time. Nearly 40% of SMB owners are seeking ways to cut down expense-related costs through operational efficiency.
And pen and paper-based expense tracking—or even Excel-based management—is unlikely to help you achieve your goals.
Your best bet is a cloud-based expense software which allows you to upload receipts from anywhere in the world, at any time—and have them processed promptly as and when you need them.
Here’s looking at how expense software allows companies to achieve operational efficiency. Let’s get started:
- Expense software aids in effective budgeting
An expense software provides you with accurate financial insights which let you devise long-term business and financial goals. With a solid plan, you can forecast and predict any changes down the line, and strive to be prepared. For example, if the demand in your business increases, you can arrange for a reserve of funds to tap into without affecting other business aspects. This specific feature comes in really handy to a lot of businesses.
- You can monitor and manage your business trip expenses
Let’s understand this with a realistic scenario: you are expected to take a business trip to meet with a client. If you were to follow traditional tracking norms, say—if you left in the morning by train, you would pay for your ticket and be expected to store the receipt/ticket safely for future tracking. Once you arrive at your destination, you are likely to take your client out for lunch, possibly spend the night at a hotel, and in the morning return to your city. You would need to set aside bills for each of the above transactions and hand them over to your accountant.
But it doesn’t end here—your bills will further undergo investigation for validity before they are finally authorized by your supervisor. Following authorization—and a few other technical processes—you will receive reimbursement for your travel expenses.
An expense software eliminates the unnecessary and repeatable to-and-fro by allowing you to snap and upload your receipts to your cloud expense software right there and then. Since it is immediately accessible by your supervisor or administrator, they can approve your reimbursement and have it dispatched promptly.
An expense software helps busy professionals to eliminate operational inefficiencies and increase productivity by allowing you to track your expenses even if you are sitting in your hotel room in an off-site work location.
- It allows quick and easy reconciliation
With a cloud-based expense software like Dext that guarantees accurate reporting, you don’t have to worry about how multiple sources of expenses can jeopardize your calculations. Every expense becomes easier to track and balance via the easy reconciliation advantages of advanced expense software. You can link your credit cards, bank accounts, and sales channels to your expense software, and have it work as a single source of truth for accurate reporting.
For business owners looking for top-of-the-range expense software, Dext comes highly recommended for its hassle-free expense management system and advanced reporting capabilities.
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