Basic math deems that the amount of money that a business spends on expenses versus what they earn as a profit will ultimately determine their success. It is unavoidable for businesses to not have expenses, and to cover the costs they need to generate a substantial profit. There is always a fine line between expenses and profit - and one that business managers and owners need to monitor closely. Expenses need to continually be evaluated and monitored so that owners can understand where they are spending the most money and how they can better control costs.
Keeping Track of Business Expenses
If a business can decrease their expenses, they can increase their profit margins. But before a proper evaluation can occur, expenses must be properly tracked, to begin with. There are numerous ways to track expenses including paper filing, accounting software, and spreadsheets. One very effective method is to use prepaid business debit cards by Emburse which organizes company expenses by specific categories and controls costs by requiring purchase approval before funds are loaded onto the card.
Tips to Track Expenses
Some businesses are still using the paper method to keep copies of all receipts and track expenses, although it can be costly. Some businesses prefer having a paper copy of all records stored in filing cabinets. No matter how your business tracks expenses, always make sure to record receipts over $75.00 as per the IRS requirements.
Spreadsheets and software such as Quickbooks can be helpful and track costs similar to paper logs but with less hassle. As a bonus, they require less physical space and the records can be accessed from anywhere. With Emburse, our platform can be integrated into software like Quickbooks to record all custom expense categories such as travel costs, entertainment, utilities and office supplies automatically without having to re-enter any details. By using Emburse prepaid debit cards which capture receipts and document each time an employee makes a purchase and is automatically loaded into your preferred accounting software, business managers not only have complete visibility to what spending is occurring but can spend less time tracking down receipts and updating paper logs.
For more information on how the Emburse system can help your business better track and manage expenses, contact a member of our team today.