Say you just started running a business recently. After a month or two, you notice that you have no clue where all the money has gone. The expectations you had might have burst like a balloon once you have seen that the profit isn’t as great as you might have expected. I have one important question to ask you. Have you bothered tracking your expenses?
This can work the other way around too. Your profits can be through the roof, but you still aren’t sure where some of the money went. While you might not be as worried as in the first instance, celebrating is still not a good idea. You are now a business owner, for God’s sake, and every business owner needs to know exactly where company money goes. Otherwise, you will find yourself all puzzled and confused in a few months when things start getting a bit more difficult.
Here’s a useful read to help you finally understand the importance of tracking business expenses: https://www.entrepreneur.com/article/288818
It’s Not As Easy As You Might Think
When you decide to track all your expenses, you might think that this will go easily and straightforwardly. Tracking how much money you spend on a daily basis as a person can get difficult. You might forget certain things and you might give up after a day, or two. Now, when businesses are in question, things can get even more difficult, but they can also get easier if you play your cards right.
What’s that? You have invoices for every single thing. That’s right, but those might not always be given to you on the same day of a specific purchase. Thinking that tracking is easier just because you get invoices is an indicator that you don’t really know what you are talking about. Go to the accounting department in any company and tell them that their work is easy. Watch their faces turn red either from anger or from laughter.
Things are definitely not as easy as you might think and you need to be highly responsible and devoted to recording and managing all your expenses if you want your company to succeed. If the complexity of the task makes you want to give up, just remember how difficult things will get when it’s tax season. I believe that this reason alone is enough to make you continue with the tracking process. It might not be a piece of cake, but it’s definitely worth your time. In case you don’t know how to do this the right way, you will find some useful tips on this page.
It Can Get Easier
Did you get all scared and frustrated about not being able to do this the right way? That’s not the attitude I am looking for! In fact, that’s the worst attitude that you can have, since determination is all it takes for you to succeed. If you are getting frustrated before even starting, that means that you definitely aren’t determined enough. Turn that frown upside down, because this whole task can get much easier in a few simple steps.
Unsurprisingly, the first thing you need to do is change the attitude. Make the decision to track every single expense you have and make sure to stick to that decision no matter what. The best thing to do is keep track of those at the same time you make them, so that you avoid those forgotten expenses that make you wonder where your money went. When I say that you need to make that important decision, I mean that you really need to make it and you really need to mean it. Determination is key.
The next thing you need is proper organization. You won’t have any luck if you simply write your expenses down on your arm, or on a piece of paper that’s been sitting around in your wallet since forever. Most likely, expenses tracked that way will go unrecorded and that’s exactly what you are trying to avoid. If you want to succeed in anything, you will need to have a highly organized and well-structured system.
Finally, here comes the silver lining. I know that the things I have been saying so far haven’t really struck you as easy, but I needed to get you in the right mindset before introducing something that will definitely make this whole process and your life much easier. I am talking about getting yourself an expense tracking software that will really take the tracking process to the next level, both simplicity-wise and success-wise.
There’s a really big chance that you haven’t heard about these before. It would be a shame, though, to not get acquainted with these software systems, since they can definitely be of huge help when money tracking is in question. Your business can find good use in these services and I suppose you don’t want to miss out on them. In case you aren’t sure how your company would benefit from an expense tracking software, let me quickly make that clear for you. Keep reading to learn about the benefits that come with these.
Is there anything worse than having to spend hours and hours writing and recording every single expense? Sure, you regard it as a necessary task and you have probably made your peace with having to do it that way, but, from time to time, you catch yourself wishing that it would all go just a little bit faster. I have some news for you! It can get faster.
When you decide to use an expense tracking software, a lot of the work you do will be automated. That means that you won’t have to spend long hours doing everything manually. This little helper will do all the calculations and other important tasks automatically, which will leave you with a lot of time on your hands. You can use that time to do other important business-related things or perhaps finally get in motion some of the new ideas you have.
Less Room For Error
When you do everything manually, you are bound to make a mistake. Even if you are a superhuman, crunching numbers can definitely get your mind all confused. You might think that you have done everything perfectly and then, when you return to some of your previous work, you’ll notice that you unknowingly made quite a few mistakes. Sometimes, those mistakes can cause further issues and they can be hard to fix.
Since you aren’t a superhuman, you need a super-software. This is a computer we are talking about and since a lot of the functions are automated, there is very little room for mistakes left. Human errors won’t be as frequent as they were before since a large portion of the job won’t be done by humans at all. Of course, you still need to play your part, it’s not like the software can replace you. You will simply have a perfect tool on your hands and that tool will make sure that you aren’t making any serious mistakes.
Remember those expenses you have written down on that piece of paper in your wallet? Take that paper and take all the receipts that you have saved in order to justify your expenses and throw everything in the trash. Now, go to all your employees and tell them to do the very same thing. It’s 2020, people, things have gotten more modern.
Among all the tips that you will find on how to track your expenses, whether business or personal ones (such as the tips provided by this useful source), you will most definitely love the advice to use a software the most. It allows you to throw away those old-school methods such as keeping piles of receipts until you have returned from your business trip so that you can record and justify everything. Your finance teams and all other employees will be able to collaborate effortlessly with the help of this tool, no matter where they are at a specific point of time.
Sending an e-mail to the wrong people, accidentally disclosing certain information, losing or inadequately disposing of paperwork are only some of the ways in which a human error can lead to a security breach. Nobody wants this to happen, but it very well can and when you least expect it. Protecting your information is the best thing you can do for your business and no matter how much you trust your employees, they are but humans and they can make an unintentional mistake.
When you opt for an expense tracking software, on the other hand, your security level will be maximized. For starters, these provide you with perfect cyber security. Then, there is the fact that your employees are able to input data no matter where they are, which means that the chances of losing the documents will get significantly lower. Plus, you don’t want them to have to send some sensitive information to another employee via an e-mail, because there’s a chance for it to go to the wrong address, and using this software allows you to eliminate the necessity for doing things like that.