Many small businesses don't realize it until they're knee-deep in their accounting and tax documents, but not having an expense management system is a major problem. Too often, they handle expenses by hand and rely on paper receipts that can get misplaced easily.
As your company grows, you may find yourself struggling to keep up with the volume of expenses on your own, which can lead to oversights and mistakes that affect your financial reports.
Don't let this happen to you. In this blog post, we'll be discussing eight tell-tale signs that indicate it's time for a new expense management system for your business.
You can't keep up with the growing volume of expenses
Expenses are only going to increase as your workforce grows and new projects start taking off. If you find yourself drowning in a sea of paperwork then it's time for an automated solution.
It enables you to stay on top of things before they get out of hand. You'll be able to cut down on paperwork while saving time, money, and resources - allowing you more room for growth in both your business ventures and personal interests.
You're losing track of your company's financial data
As a business owner, it can be all too easy to underestimate the importance of tracking expenses. But if you don't know where your money is going or what kind of return on investment (ROI) each project has given you - whether internally-focused like dining out with clients and suppliers, or externally-oriented like sponsoring events at local venues - it will be difficult for you to figure out which areas need additional funding support. This could lead to uninformed decision-making that negatively impacts revenue growth.
So instead, invest in an online expense management system today so that your employees have access anytime/anywhere!
You're late when reimbursing employees
Your employees are required to fill out expense reports and receipts, but without a better system in place, you're likely still stuck doing this for them. If your company has more than five or ten people on staff, it's time to consider upgrading so you can reimburse each other quickly and easily using your mobile devices.
This way, you won't spend a lot of time reimbursing people for expenses in cash or by check. Using an online system, that everyone can access, can generally make your life easier.
Your accounting department is understaffed
Expense management software enables you to manage multiple users at once -- so there's no need to add staff just because the volume of work has increased. This will help keep your business running smoothly while keeping costs down - perfect if you don't have additional office space available.
You'll also be able to save money on payroll taxes since employee reimbursement isn't considered taxable income when using a proper expense management system like Penny Inc.
You're worried about your employees abusing company credit cards
Instead of dealing with lost receipts and other issues associated with cash reimbursement systems - which can lead to receiving less than the full amount that's owed due to theft and mistakes - employers should implement expense management software that allows their workforce complete control over how much money they spend on business-related items while still tracking all transactions in one place!
The best part? They'll be able to receive real-time alerts when it comes time for submitting reports based on spending thresholds (i.e., spending more than $500 at any one restaurant or retailer).
You're concerned about the security of your data
Companies that manage their own expense management systems often place a heavy burden on IT and accounting teams, as they have no choice but to handle all expenses manually.
This can lead to mistakes in reporting since it's so time-consuming for those groups - not to mention problems with complying with new regulations related to financial reporting. If you think this is something you need assistance with, then look into an automated expense tracking solution instead.
Not only will employees be able to visualize spending habits via graphical analytics reports, but they'll also have access from anywhere at any time without handing over physical receipts or worrying about misplaced paperwork.
You're not sure what your employees are doing
A good expense management system offers transparency between company spending and employee habits. If your books aren't in order then this can lead to some serious problems down the line as an unscrupulous workforce may take advantage of financial loopholes that could result in lost profits. It's better just to implement automated software solutions so everyone knows where every dollar goes.
You aren't automating expense reports
A good way to make sure that no one gets lost in the shuffle is by employing streamlined, efficient expense reporting software so everyone has what they need at their fingertips...no matter who's involved (employees, bookkeepers, or managers).
Plus, since all data is stored online, then there's never going to be an issue locating files - which means less time filling out forms and more time concentrating on your core business functions.
Expense management software can help you improve the efficiency of your business from top to bottom.
You'll be able to see where every penny is going and how much money has been spent by employees on expenses that don't directly impact their work productivity. It will also make tax season less stressful because all of this information will already be organized in one convenient location.
If any of the 7 tell-tale signs we mentioned caught your attention—or you feel like they may catch your eye in the future—it's time to take action:
Register for a Free Penny Inc Account Today
If you're looking for expense management software that can automate the process of submitting expenses while also providing real-time alerts when spending above certain amounts, then Penny Inc covers all your bases.
The expense system will help eliminate your reimbursement hiccups, streamline your accounting process, and put an end to your employee spending problems.