An Entrepreneur’s Guide to Business Expense Management
Are you looking for a better way to manage your business expenses? Have you wondered if there are any options to automate some of your manual expense tracking processes?
Last year, more than 60 percent of businesses moved their workloads to the cloud. When your business data is easy for your team to access, it’s easier to manage expenses.
If you want to grow your business, it’s essential to keep track of your expenses. Here are several ways to help improve your business expense management.
Pay Bills On Time
One great way to reduce costs is to avoid late payment fees and interest charges. Schedule bill payments and set reminders for important dates to ensure that you take care of this vital task.
Take advantage of any discounts offered. If you are a regular customer that pays their bills on time, you may be able to purchase volumes at a discount. Some suppliers are happy to give discounts for early payments.
Keep Personal Expenses Separate
Open a separate bank account for your business finances. Never pay a personal expense using this account. It’s better to transfer funds to a personal account and pay your personal costs from there.
It may seem like an extra step, but it’s much easier to calculate your business expenses when they don’t include personal costs. Your private bills aren’t tax-deductible expenses, and you don’t want to make an incorrect tax deduction when you file your income taxes.
A straightforward way to automate your company expenses is to shift to a credit card platform that offers features that will save you time and money. Reconciliation tools and different levels of card controls will allow you to provide this option to more members of your team.
Check out Bento as the best Divvy alternative for business cards. Your business can use them to automate and track your business expenses.
Restrict The Use Of Cash
It’s more challenging to keep track of cash expenditures because of the manual steps involved in maintaining a petty cash fund. Consider issuing a credit card with a lower limit to certain members of your team.
They will appreciate your trust in them, and you will eliminate the need to reimburse small amounts by cheque.
Organize Your Receipts
When you make a purchase, write a note on the receipt. Indicate the name of the project or the business contact you had lunch with. If you document the purpose of the purchase it will be easier to justify it later.
Use file folders to organize your receipts. Label each folder with the name of a category of expense, such as office supplies or fuel. Then be sure to file your receipts frequently to keep from getting bogged down.
Improve Your Business Expense Management
When you understand how much easier it can be to improve your business expense management, you’ll take the steps you need to get started. Then you will spend less time on paperwork and more time building your business.
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