Expense management. These are two words that can make even the most seasoned entrepreneur cringe. Tracking receipts, categorizing expenses, and reconciling the balances can be an endless chore and waste of time and energy. But what if we could show you that expenses could be automated, streamlined, even… dare we say… enjoyable?
We at Protea Financial are passionate about utilizing technology to turn mundane work into productive and meaningful work. We have a team of experts learning the ins and outs of smart bookkeeping software and how it will revolutionize your expense management by eliminating tedious tasks and allowing you to act based on data.
The Challenges of Traditional Expense Management
In the old-school way of calculating expenses, which was often characterized by shoeboxes full of receipts, spreadsheets full of mistakes, and tedious manual entry, there are several problems:
- Completing and processing the expense manually can take countless hours, taking valuable time away from your core business.
- Human error is inherent in manual processes, making mistakes, mismatches, and compliance problems.
- The traditional approaches do not provide any real-time insight into spending habits, which can make it difficult to spot areas where you can make changes or tame the cost.
- Paper receipts get lost or ruined, which is a headache during tax time and could result in deductions not being made.
- In absence of adequate controls and oversight, manual expense management can be susceptible to fraud and abuse.
Smart Bookkeeping Solutions: Your Expense Management Arsenal
Fortunately, the digital era has brought with it a new mode of expense management; one in which smart bookkeeping tools automate tasks, improve accuracy, and offer useful data. Let’s take a look at a few of these game-changing tools that could make your life easier.
1. Cloud-Based Accounting Software
Cloud accounting solutions like NetSuite, QuickBooks Online, and Xero provide a single, encrypted place to store all your financial information including your expenses. Key features include:
- Link your bank accounts and credit cards to automatically load transactions without typing them in and improve reconciliation.
- Record and sort expenses on the go with mobile apps, including receipts and notes for quick tracking.
- Prepare cost reports with ease by automatically adding up totals and aggregating expenses per category.
- Configure approval workflows to ensure all expenses are approved before reimbursing.
- Allows you to connect to other business tools, including CRM and project management tools, to facilitate the data flow and have a full picture of your budget.
2. Dedicated Expense Management Software
To handle more advanced needs in terms of expense management, dedicated expense management solutions, including Expensify, Zoho Expense, and InnoVint, are designed for you:
- Take receipts with your mobile device and use Optical Character Recognition (OCR) to automatically capture data so you don’t have to type.
- Track mileage on business trips automatically using GPS/map integration for accurate reimbursement calculations.
- Enforce company expense policies by setting spending caps, pre-approvals, and flagging out-of-policy costs.
- Gain detailed visibility into your spending habits, cost savings opportunities, and KPI’s.
- Connect with travel booking services for business expense tracking.
3. Corporate Credit Cards and Expense Management Platforms
Corporate credit cards integrated with expense management tools such as Bill.com or Brex can be a powerful way to control expenses and automate expense tracking:
- See how employees spend money in real-time, define spending limits, and get alerts when something is not right.
- Activities are automatically categorized and integrated with your accounting software, so you don’t have to manually fill out expense reports.
- Establish individual employee or department budgets to help keep expenses in-line with your financial strategy.
- Receive rewards points or cashback for business purchases so that you can spend the best you can.
4. Artificial Intelligence (AI) and Machine Learning (ML)
AI and ML are changing the way we manage expenses by automating processes, automating accuracy, and forecasting. AI-powered tools can:
- Filter transactions to categorize expenses automatically, saving you time and increasing accuracy.
- Recognize anomalous transactions or trends that could signal fraud or misuse.
- Forecast past expenditure to create an idea of how you’ll spend in the future and take control of your budget.
5. Integration with Other Business Systems
By connecting your expense management system to other business systems, including your CRM, project management software, and payroll system, you can create a unified flow of information and improve efficiency:
- Identify the expenses related to specific customers or projects and gain insights on profit and customer lifetime value.
- Define spending by project, monitor project budgets, and track project profitability.
- Link to your payroll platform to pay employees for approved expenses.
Choosing the Right Solution: Factors to Consider
What’s the right expense management solution for your business depends on a number of things:
- Smaller businesses with minimal expense tracking requirements can use standard accounting software, but larger companies with more extensive expense procedures can leverage expense management solutions.
- Some businesses, like construction, wineries, and healthcare, often have specific expense tracking requirements that may require additional solutions.
- Take into account your budget and select a solution that provides you the features and capabilities you require at a price that suits your budget.
- Make sure the solution you select integrates with your existing accounting system and other business systems.
- Pick an app-based solution that allows you and your employees to keep track of costs while on the move.
The Protea Financial Advantage: Your Partner in Expense Management
At Protea Financial, we know how confusing the world of expense management tools can be. Our certified bookkeepers can do the following for you:
- We analyze your expense management systems to determine areas for improvement.
- We recommend tailored solutions according to your business requirements, financial limits, and compliance requirements.
- We help with integrating and deploying new tools in a manner that minimizes downtime to your workflow.
- We offer continued support to help you get the most out of your solution choice.
Let Protea Financial Help Set Up Smart Bookkeeping Solutions to Help You Grow
Optimizing your expense process through smart bookkeeping solutions can save time, ensure accuracy and give you valuable insights into how you spend money. Using the right technologies and working with industry professionals allows you to automate your expense control procedures and help your business grow.Ready to revolutionize your expense management? Contact Protea Financial today for a free consultation. Let our team help set your business up to thrive.
