7. Invest in Expense Tracking Software
One common reason that cost creep takes place is poor record keeping. However, the good news is that, today, there are so many tools and software available to automate these processes and allow you to keep a much better handle on your business expenses. And, in general, they won’t break the bank.
For example, Expensify is one of our favorite tools to recommend. This user-friendly platform really enables you to watch in real-time what expenses your employees are acquiring, and allows you to approve these things automatically so that everyone can continue working--no hang-ups waiting for approval. And, best of all, your books are easy to keep up when you can record everything as soon as it happens--no need to remember.
By ditching your old shoe box record keeping process and switching to Expensify you can enjoy several benefits:
1. Add cash expenses, auto import card transactions, reimburse employees, and capture mileage.2. Unlimited receipt uploads and storage.3. Process reports, administer & reconcile all card transactions.4. Manage compliance settings with company rules, automated and rule-based approval workflow.5. Free mobile apps.6. Integrate with any accounting, payroll, CRM or ERP solution.
Expensify offers a few packages that you can choose from. Starting at a base monthly fee of $5 will get you unlimited smart scans, basic expense approval, online reimbursement capabilities and sync up with QuickBooks and Xero. The next step up will cost you $9 per month, and after that, you can negotiate a custom package.
Another popular spend management software is Divvy. With a Divvy card, your team can make purchases from a preapproved amount, making your budgets enforceable and tracking expenses easier. It's also faster to issue reimbursements to the whole company for out-of-pocket and mileage expenses with their new feature. Like Expensify, Divvy gives you optimal visibility of your company spending. You can categorize expenses and update your totals at any time, on any device (mobile or desktop). Unlike Expensify, you can save money by consolidating your software for reimbursements and expense reports.
Create Good Habits: Run Your Transaction Report Every Week
It’s time to make cost management a consistent practice and not something that is only done when your business is strapped for cash. We recommend designating a particular day to review your transaction report each week. As the business owner you should be able to quickly identify any discrepancies and make sure that you are only paying for services that you need and agreed to.
Overall, your goal should be to cultivate a culture of fiscal responsibility at every level of your company. In this way, you can move from reactive decision-making to proactive strategy. Doing this will also give you better control over your business and help you develop a profitable mindset for business growth.
Next Steps: Consider CFO Services
When it comes to your company’s financial future, as a small business owner you want to get it right the first time. That said, you might need some outside help with creating a strategy that will not only help you with expenses management, but also monitor cash flow, manage labor costs and reduce debt. Partnering with an accounting firm for virtual CFO or online bookkeeping services is one way to ensure your business model is positioning you for the most success in your market.
Virtual CFO services allow you to leverage the expertise of a highly trained professional at a fraction of the cost of hiring an executive in-house. Furthermore, you can benefit from flexible options so you only pay for the help you need, exactly when you need it.
Other benefits of choosing CFO services include:
If you’re a small business owner you know that time is your most precious resource, and there never seems to be enough of it. With flexible, virtual CFO services, you can spend less time trying to put together a financial plan that works for your business and more time actually executing it.
Hiring a CFO adds a layer of protection between the CEO and the rest of the executive management that stands as an objective check and balance to reduce that risk. CFOs also mitigate risk by helping small business owners make sound financing and purchasing decisions.
Ignite Spot has worked with hundreds of clients to transform their businesses. But don’t just take our word for it. Sign up for a free session with our team and see the difference for yourself. Let us work with you to customize the tools to help make your business profitable, a whole lot sooner.