We trust that you had a well-earned break and are no doubt back into the swing of things. This month we will be discussing Expense Management and why it is so important for your business. We will also have our usual business and book review and end off with a great inspirational quote. Also, if you have any questions related to the work we do at Cloud CFO, don’t hesitate to get in contact with us.
Expense Management refers to the systems and processes deployed by a business to manage their day-to-day business expenditure. These costs include, but are not limited to, travel and entertainment; office expenses; consulting services. Expense management includes the policies and procedures, which govern such spending, as well as the technologies, and services utilized to process and analyse the data associated with it.
There are a many reasons why you should keep track of your expenses and manage them the best you can. Firstly, to keep track of your expenses is to see where your revenues are going. Secondly to determine how you can maximise your net profit. Only through analysing your expenses can you determine just how expensive it is to keep the doors open, and figure out where you might be able to cut back and save money.
Lastly, you will want to take advantage of every possible tax deduction you can, to save yourself money at tax time.
Businesses that fail often do so because they neglected to properly track and manage their expenses, so it is important to keep up with this chore on a monthly, if not weekly or daily, basis. The best way to tackle these issues is by using Expense Automation.
Expense Automation is the means by which an organisation can significantly reduce transaction costs and improve management control when logging, calculating and processing corporate expenses. Independent research evaluating the use of automated expense management systems has confirmed that the cost of processing an expense claim is reduced as the level of automation increases.
So what tools should you be using to manage your incoming and outgoing expenses? A great place to start is Receipt Bank. Receipt Bank extracts the key information from your bills, receipts and invoices, removing the need for manual data entry. It can then publish the data to your accounting software or it can be downloaded as a spreadsheet or used to create expense reports.
So there you have it, a cost effective and manageable way to cover all your expenses under one umbrella. We know this information will be relevant to the health and well-being of your financial reporting and encourage you to explore them on a more in-depth level.
The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers – Ben Horowitz
Offers essential advice on building and running a start-up – practical wisdom for managing the toughest problems business school doesn’t cover.
While many people talk about how great it is to start a business, very few are honest about how difficult it is to run one. Ben Horowitz analyses the problems that confront leaders every day, sharing the insights he’s gained developing, managing, selling, buying, investing in, and supervising technology companies.
A must read for all aspiring CEOs, wannabe CEOs, executives (present or future), and anyone who wants to know how their boss thinks and/or should be thinking.
“A person who never made a mistake never tried anthing new” – Albert Einstein