For many business owners, opening a business is a labor of love. It’s a way to follow a passion, engage with their community, or share an interest that brings them joy. A chef who opens a restaurant does it because he loves to cook; an avid reader who opens a bookstore hopes to share her love of stories. But what neither of them may realize is just how much paperwork goes into making that dream a reality.
When it comes to running a business, the truth is that passion is only one small piece of the puzzle. Sure, passion can motivate an aspiring entrepreneur to finally take that leap of faith – it can provide the seed of inspiration and drive a person to act. But oftentimes, it’s what goes on behind the scenes that keeps a business running efficiently – so that it can grow, thrive, and reach its fullest potential.
Administrative tasks like payroll processing, bookkeeping, and expense tracking aren’t the most glamorous part of running a business. Still, these essential functions are the backbone – and the workhorses – of any successful organization. From paying your valued employees on time to keeping an accurate record of your company’s financials, these “boring” tasks are the unsung heroes that keep your business moving forward – so you can focus on your passion.
For most business owners, expense tracking falls under the category of “boring-but-necessary” tasks. But we know all too well that “boring” does not equate to unimportant! In fact, effective expense tracking means better financial management, accurate tax reporting, and increased profitability for your organization.
So, how can you optimize your expense tracking to better support your business? Let’s check it out!
Best Practices for Business Expense Tracking
Define Your Expense Policy:
When it comes to expense tracking, it’s important to start at the beginning! To define your expense tracking policy, be sure to offer clear guidelines and rules regarding employee expenses and reimbursements. Start by specifying exactly what expenses are reimbursable. These may include travel, meals, lodging, entertainment, office supplies, and other work-related costs.
Set Reimbursement Procedures and Timelines:
Clear reimbursement procedures and set reimbursement timelines allow for maximum transparency – and can help to minimize confusion or misunderstandings. Be sure to address the submission process, outline the required documentation for reimbursement, and give a clear timeline for when employees can expect to receive reimbursements.
Implement Expense Management Software:
Business expense tracking doesn’t have to be complicated or confusing! When you implement the right expense management software, you can enjoy an effortless expense tracking experience. Modern software, like Primepoint’s, can offer everything from mobile-friendly, on-the-go platforms to automated notifications and reimbursement approvals.
Review and Analyze:
As with any administrative process, it’s crucial to review and analyze your expense tracking procedures on an ongoing basis. This gives you the opportunity to gather data, identify spending trends, and look for cost-saving opportunities.
Tracking your business expenses can be tedious and time-consuming work, but with clear policies and the right software, the process can be shockingly simple. Even better? You can streamline your expense tracking with Primepoint’s new business expense tracking tool. What more could you ask for?
To learn more about our expense tracking technology, click here.