Knowing what your business situation is at present would help you plan things in advance. The costs that have be incurred in the past by your organization would help you plan for a better future. Having a tight control on all your expenses is essential for reducing the costs and maximizing profits within your organization. Till date there is no 100% full proof method that would help you in completely streaming the expense management system in your business. Given below are the nine essential expense management tips that provide a gauge to the entire process, and the organizations could implement in the mid-2015.
Tracking down the expenses whenever they happen: Each and every employee in the organization has to be trained to note down the expenses whenever they happen. This helps them in saving their time and money keeping the entire process faster. Doing this would further enable you to faster the analysis and controls. Attaching the expenses receipts should be made compulsory in order to have accurate records maintained.
Getting help whenever you need: It can be a tough process in order to know how you could amortize the business equipment’s. In case in a doubt you could always hire a pro – certified public accountant or tax agent in order to make sure that you are getting all the tax breaks as much as you can keeping you penalty free.
Having an employee expense management policy: Having a policy document maintained with respect of all the expenses incurred within the organization is helpful. This in turn would help the new and existing employees to follow the guidelines keeping the expenses within the prescribed norms.
Keeping the personal and business account separate: Have separate bank accounts created that you would be using to manage your businesses expenses. It’s easy to have the track records maintained for all your business if for example you do not use a different credit card to pay for your groceries and office supplies. And if you need to find a forgotten business expenses later in a year you would here then need to search through one account rather than several accounts.
The administrative costs: Each and every expense weather small or big has to be taken care of. Having an eye on the administrative expenses too is also important for any business.
The Variable costs: The variable costs of producing all the goods and services has to be kept in control by having a careful planning and analysis done within the organization.
Monthly and Weekly Reviews: Business expenses related to your organization has to be reviewed on weekly and monthly basis on regular basis, and is an activity that has to be done by each and every team. The review meeting would here help you in understanding who is spending more and who is spending less. The respective team members would then have to help the other team members in understanding the gaps and resolving the issues.
Submitting and approving your expenses on time: Best practices here mean having something clear and a time frame for submitting their expenses. And when it comes to expense management it does become important that you do things right by your employees and you pay them on time. And when an employee delays claiming their expenses for months would not only hurt their pockets, it could also cause cash flow challenges for your business and lead to accounting nightmares.
Paying the employees on time: Have you ever waited for someone to pay you the amount that they had to pay you. This is something that is never funny. Once the employees have gone through the entire process, and have understood the policies, filled out the right claims and attached receipts for the expenses then it’s fair enough to pay them. If the individuals feel that they would have to continue waiting just to get their money then they will have to think twice before going on any business trip.
To conclude when it comes to running a specific software certain expenses are unavoidable. And practitioners who make an effort to use all their resources in an effective manner and follow a budget can get the most out of their entire money protecting the financial health of the entire practice.
Ashly is a freelancer and an expert in the IT Industry with over twelve years of experience in vendor spend management software and expense managing. Through the experiences she communicates the value of identity to customers, partners, and the larger community by targeting specific markets through segmentation and analysis.