Economy is capricious and unstable and rate of unemployment is at large. It has become important for businesses to keep a check on this and therefore, they are looking out for an effective solution to cut costs in order to remain profitable. But, before they begin to look-out for a solution the most obvious question that arises �what do they need to cut-down?� This is where, Expense Management steps-in to sort-out their worries and questions.
A lot of businesses rely on their monthly credit card reports so that they are aware of where their money is going to. However, it is seen quite often that these reports are not sufficient to give them a correct idea about how much money is being wasted and where. That is why Expense management is the right software that businesses should implement so that they have a crystal clear idea about the flow of their money. Besides, a good expense management allows you to keep a check on where and how you are spending all your money and what could be done to cut costs. Expenses should fall under expense category, the employees incurring the expenses and how the expense was paid for. This helps managers to make informed decisions when deciding policies come on what expenses should be reimbursed by the business.
Given below are few important things that a new expense tracking solution must possess.
Receipt Capture- this is very important at the time of auditing and must to have in expense management software.
Some businesses have this belief that they are not going to be audited ever but, it is a wrong impression and they can find their turn anytime. If you have digital copies of your receipts, it cuts down time spent on searching the expense, saves physical space and increases organization. So, next time when the IRS arrives at your office for auditing or the Fortune 500 interested to buy your company, you can provide them the copies of all your expenses receipts to show the competence of your business’ financial organization and this also give confidence to the auditor that your number are correct.
Mileage tracking- many business-men have to travel around for their business matters and if you are one of them then you are probably missing-out on the amount of miles that you can write-off on your tax return at the end of the year. To make out this loss it is must that your expenses management software has a way to track mileage. It is necessary to keep a track on your mileage.
Accounting/ Payroll System Integration- after recording all your expenses you need to easily flow them into your accounting system. This helps to keep your books up to date. You may find it not so important step but, if all your numbers are not found in one place then you will not get a complete picture at the time when you sit down to have a look at your books.
It is important to ensure that your expense management software can easily integrate with your accounting system so that you are not hassled to move expenditures into your balance sheet.
