As a business owner, you know that one of the keys to success is effective expense management. However, this can be challenging as your business begins to grow, and it becomes increasingly difficult to keep track of all your expenses, especially if you don't have the right resources or software to manage them the way it needs to be addressed.
To ensure you're making the most of your resources and keeping your expenses in check, you'll want to improve your expense management. In this blog post, we'll discuss five top tips that will help you get your expenses under control, saving your business both time and money. Let's get started!
The True Struggle Of Expense Management
Expense management can be challenging, regardless of the size of your business. In fact, 82% of companies end up failing because of failure to manage their expenses and cash flow. This could be for a number of reasons, but it usually comes down to one thing: not having the right tools and processes in place to manage expenses effectively.
When you don't have a system for tracking expenses, it's easy for them to get out of control. This is especially true if you're growing quickly and your business is expanding into new areas where you have more employees and contractors working on projects.
Without the proper expense management, your business could end up overspending in certain areas, which can quickly eat into your profits. Additionally, you may also miss out on potential tax deductions if you're not tracking your expenses correctly. This is why it's so important to have a system in place for managing your expenses. By taking the time to set up a system that works for you and your business, you can save yourself a lot of headaches (and money) down the road.
How To Make Your Business Easier With These 5 Expense Management Tips
When it comes to expense management, there's no one-size-fits-all solution. Every business is different, and what works for one company might not work for another. However, there are some general tips that can help any business get a better handle on their expenses. Here are five of our top tips:
Establish A Clear Travel And Spend Policy
One of the first things you should do is establish a clear travel and spend policy for your business. This will help ensure that all employees are on the same page regarding expenses, and it will also help you keep track of spending in specific areas.
You can create a travel and spend policy by setting limits on certain types of expenses, such as airfare, hotels, and meals. You can also require employees to submit receipts for all expenses, no matter how small.
This policy should be clearly communicated to all employees so that there are no surprises when it comes time to file expenses. By setting clear guidelines from the start, you can avoid a lot of headaches (and wasted money) down the road.
Zero Paper Receipts
Another tip for improving your expense management is to go paperless with your receipts. This may seem like a small change, but it can make a big difference when it comes to keeping track of expenses.
When you have paper receipts, they can easily get lost or misplaced. And if an employee needs to submit their expenses for reimbursement, they'll have to track down all their receipts and submit them individually.
With a paperless system, all receipts are stored electronically, so they can't get lost. And if an employee needs to submit their expenses, they can simply export them from the system and send them over. This can save a lot of time and frustration when it comes to managing expenses.
Do Not Exceed Two Levels Of Validation
Another way to improve your expense management is to limit the number of levels of validation. This means that you should only require two people or approval levels in order to authorize an expense before it's reimbursed.
By requiring more than two people to approve an expense, you're adding unnecessary steps to the process. This can make it harder for employees to get their expenses approved, and it can also slow down the reimbursement process.
By limiting the number of levels of validation, you can make it easier for employees to get their expenses approved, and you can also speed up the reimbursement process.
Create Checks In The Expense Reports
As you're reviewing expense reports, be sure to create checks in the system. This means that you should verify that all expenses are legitimate and that there is a paper trail for each expense.
This may seem like a time-consuming task, but it's essential to do if you want to avoid fraud and abuse. By creating checks in the system, you can help ensure that all expenses are legitimate and that your business is protected.
Automate VAT Recovery
Finally, one of the best ways to improve your expense management is to automate VAT recovery. This means that you can automatically reclaim VAT on eligible expenses.
This can save your business a lot of money, and it can also help you avoid the hassle of manually claiming VAT. By automating VAT recovery, you can make it easy for your business to get the money it's owed.
These are just a few of our top tips for improving your expense management. By following these tips, you can help your business save money and avoid fraud and abuse.
Expense Management Made Easy With Jenji
If you want to save time and money when it comes to your expense management, it's essential to invest in a system that can easily keep track of all your expenses in one place. This allows you to see where your money is being spent, identify areas where you may be overspending, and make changes to ensure your business is as efficient as possible.
Jenji is the perfect solution for businesses of all sizes looking to streamline their expense management. With Jenji, you can track expenses in real-time, get automated reports on your spending, and even recover VAT. In addition, Jenji is a cloud-based solution, so it's always up-to-date and accessible from anywhere, making it simple to track your expenses, create reports, and submit receipts without additional paperwork or paper trails. If you want to learn more about how Jenji can help your business, click here.
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