Purchase Orders: What Happens When You Don’t Track Your Expenses
You decide to start your own business. You realize that breaking away from the everyday hustle and bustle of big business life is a big step. At this point you have done enough research on how to spend your money and what your target market is looking for. You are confident that you are making the right decision. Have you thought about how to track your expenses?
Starting a business is like ascending a long staircase one step at a time. With every step you take something else becomes important and continued growth comes with added stress. You may even have to employ more and more people to cope with it. Because you can’t oversee everything yourself and you need to put some of the little things on the back-burner. One of such things is usually perfecting the expense process. You use a paper-based system, and yes, sometimes requisitions get lost in the process! And wrong purchases are made too, but you tell yourself, “hey it works and we are showing a profit at the end of the day.”
Sooner or later the snake is going to bite you on the heel. It’s time to realize you need to track expenses more efficiently to create financial awareness. If you don’t have transparency with your expenses, how will you know if your money is working for you? When you put a good expense process in place you can identify serious spending issues and eliminate them. You will be in control of every aspect of your business. You can also see if your spend correlates with your business priorities. If you don’t track your expenses you will not know when your spending budget overruns.
The business needs to look at it’s financial realities. The simple knowledge gained by recording your expenses is enough to make a difference in your financial situation.
Some small mistakes that happen to make your project go south
Failing to recognize that something qualifies as a legitimate expense is one of the mistakes that is easily made when it comes to business expenses. Cash expenses that don’t get recorded all the time, without employees assistance in the documentation of it it gets overlooked. When purchases are not documented immediately they get lost and forgotten.
Working with contractors that buy things on budget the contractor tends to lose receipts.
Not knowing what kind of expenses you’re eligible to claim on your business taxes, consider that one of the most commonly-missed deductions is mileage accrued traveling to and from customer visits. Deducting meal and drink for company meetings for tax purposes is great, actually they are helping you to cover the costs of meeting people and enjoying a nice meal, all while expanding your business at the same time. These expenses are only deductible at 50% of the total cost, and you must be able to provide documentation supporting the business purpose of every meal or drink you expense.
Most employees are not accountants and small expenses are not calculated as business expenses and without a process of reporting expenses in place these do not get filed to be used for tax deductions. Not all employees take advantage of expense reports, and keeping proper records will ensure that all parties involved are protected. Some bad apple employees use receipts more than once and this is the most typical form of expense fraud. Another recorded occurrence is employees augmenting actual costs. Yet another way in which employees can take advantage of expenses is claiming non-business related expenses.
Tweet This: Being in control of your purchases is not just having the power in your hands, it also helps you turn a profit at the end of the day.
Why is purchase order software such a helpful tool in tracking expenses
Whether you are a CFO that has more than one project to run or a retail manager that needs a better way to manage the inventory, at some point you would have realized you need help.
Putting a purchase order system in place might just be the key you need to succeed in meeting your everyday targets. Just think of having everything you need in one central place; requisitions, orders, invoices, and vendor management.
By implementing electronic purchase order software you can instantly approve purchases within minutes with the click of a button. Any appointed employee can load the purchase order and you can see it instantly on any mobile device.
Why Procurementexpress.com is the answer to your expense needs
Procurementexpress.com software is the most customizable purchase order software in the industry. How does it work:
– The app has a built-in reporting feature to help you keep track of inefficiencies.
– You will never have to wonder what has been spent and by whom. Reports are updated in
real-time and can be downloaded at any time.
– You can also view the budget remaining per project before purchases are approved.
– Even custom fields can be set up so you can report on what’s important to your company.
– Any one of your staff members can master it in a few minutes, so all your Departments can
– You preferred vendors can also be set and managed so that only those vendors
– It’s basic and fast, but with a load of functionality under the hood.
– Adaptable with tailored reports and a customizable Pdfs.
– Approval rules can also be set per budget and project.
– Same day company-wide implementation.
– And of course the best customer service in the industry.
One of the biggest benefits of centralizing your purchase order process is that you can manage what happens in you purchasing process. A mobile procurement system minimizes internal bureaucratic forms and saves time.
Being in control of your purchases is not just having the power in your hands, it also helps you turn a profit at the end of the day.
Stay on top of every aspect of the project. Try Procurementexpress.com for free today!
What will it take for you to realize that Tracking Expenses is in your business’s best interest?