How to Manage Expense Tracking Efficiently

For any business to succeed, it must have the resources to maintain financial health and stability, even in a fast-moving, sometimes erratic economic landscape. A key element of that financial health is efficient, well-organized expense management. But while it’s easy enough to say that a business must know how to manage expense tracking well, what does this actually entail? In this article, we’ll focus on effective ways your business can manage expense tracking in its chosen field, highlighting the role of technology, and proactive strategies for financial (and overall!) success. 

Proactive Expense Management Strategies

Foremost, it is crucial that any business that wishes to operate successfully create a culture of accountability and transparency around expenses and expense management. In order to cultivate this environment, clear, comprehensive policies should be communicated to all employees to ensure their understanding. To promote further understanding and compliance, consider introducing regular training sessions about these expense policies. 

Once implemented, employees should be invited and have the resources to ask questions and provide feedback on company expense policies. Paying close attention to this feedback can provide valuable insights on what it is about these policies that is working, as well as where there is room for clarification or improvement.

Likewise, don’t hesitate to regularly update expense policies. In fact, periodic reviews should be implemented to assess the effectiveness of current expense trends and policies, and to gauge whether policies in place remain effective and relevant. To manage expense tracking well, your policy should always reflect the current business climate, including all relevant laws, regulations, and requirements, and regular updates and adjustments will help maintain this compliance.

Best Practices in Expense Tracking

When it comes to expense tracking, consistency is key to maintain the integrity of any and all financial records. Encourage prompt and accurate reporting of all relevant expenses, with the aid of standardized forms or templates to ensure uniformity if necessary. 

Conducting regular audits also helps verify that all employees remain compliant and accurate with their expense tracking. Consider conducting surprise checks every so often to ensure that your employees are always compliant with expense policies, and not just when they think you’re paying the most attention. As with expense policies as outlined above, review and update audit processes periodically so that they remain effective and aligned with the needs of your business. 

Common Mistakes in Expense Management 

Another way to manage expense tracking as efficiently as possible is to know common mistakes, and to be on the lookout for them. 

For example, one common issue with expense management is delays in tracking expenses for manager approval and reimbursement. Such delays can lead to financial inaccuracies, as well as issues with cash flow. For many businesses, especially ones that use expense management software, this problem can be mitigated by establishing automated reminders, to prompt timely expense submissions.

However, most of the most common and egregious mistakes seen in the realm of expense tracking and management involve poor or insufficient record-keeping. Keeping clear, consistent records is vital to effective expense management! Insufficient documentation will pose huge challenges for your business when tax season arrives, or on an occasion when your organization needs to prove an audit trail. Comprehensive records, including receipts and justifications, should be maintained for all expenses. 

Impact of Technology

While it’s impossible to eliminate the possibility of mistakes in expense management completely, there are some ways to seriously reduce the margin for error when it comes to expense management and tracking, primarily with the use of the right technological tools. Advances in technology have significantly transformed, and in many ways, improved, the ways in which businesses can monitor and track expenses. 

The right expense management software can be a boon in many ways; systems that automate traditionally manual processes minimize the chance for human error, as well as saving valuable time for employees, managers, and supervisors. Digital tools also give businesses greater transparency over the way expense management operates within their organization. 

Many digital tools enable real-time expense recording, which besides enhancing accuracy and efficiency, let businesses monitor tracking, identify patterns, and flag errors or possibly problematic behaviors in real time. Software that has cloud-based platforms can also offer greater accessibility to businesses with large numbers of remote or mobile employees, as well as facilitating collaborative opportunities for teams. 

However, remember that all expense management and tracking software is not created equal! One key to managing expenses effectively is selecting the appropriate technology for your businesses. Factors to consider include ease of use, scalability, and the software’s ability to integrate with a company’s existing systems. 

Manage Expense Tracking Efficiently with CompanyMileage

Effective and accurate expense tracking and management is vital to the internal health of your company. You should never take any chances, and use the right digital and technological resources. 

Let CompanyMileage be that resource for you! Our suite of software solutions, SureMileage, SureMobile, and SureExpense, are specifically and uniquely designed to optimize expense management for companies that need to reimburse mobile employees for work-related use of their personal vehicles. 

SureMieage uses a unique point-to-point calculation system to identify the fastest route between a work trip’s starting and ending point and calculating the mileage driven, eliminating the need for error-ridden mileage tracking methods like GPS tracking or odometer calculations. Our SureMobile app makes the process even more efficient and intuitive; employees simply have to record the starting and ending points of a work-related trip right from their smartphones. 

Once submitted, expense reports move easily and seamlessly through an automated, customizable workflow for manager approval. Our software also integrates easily with major accounting and payroll systems, so every step of the process will be as smooth and efficient as possible. 

Managing expense tracking can be daunting; let us help! Contact CompanyMileage for a demo today.