Most startup business owners try to do everything on their own as much as possible. They may eventually hire staff that could help them, but things can get tricky as the business grows, especially with managing operational costs. Startup businesses don’t realize how much they need expense management software until they are drowning in accounting and tax documents.
Reason Why Your Startup Businesses Needs an Expense Management Software
There is a misconception that expense management software is for large businesses and enterprises only. However, startup businesses can also benefit from investing in good software for managing their expenses.
For instance, it is easy to lose paper receipts and documents while handling expense reports by hand. You may find yourself struggling to keep up with all the paperwork which can lead to oversights and errors that can AND will affect your financial records.
Key Benefits of an Expense Management Software for Startups
Here are some benefits that startup businesses can gain by implementing an expense management software in their process:
Manage the growing volume of expenses.
The cost management tasks may be manageable for you and your team at first. However, expenses are going to increase as you take on more projects and hire more people. Soon, you will not be able to keep up with the volume of paperwork.
An expense management software will help you cut down on paperwork by simplifying the process and automating some steps.
Keep better track of the company financial data.
Tracking your business’s expenses is important since it allows you to have a clear view of how much ROI (return on investment) you are getting from each project. An expense management software will help you keep better track of the company financial data which will allow you to make informed business decisions.
Give timely reimbursements to employees.
Employees need to submit expense reports and receipts so that the company can reimburse them. If you are still handling things manually, you are more likely to get stuck reviewing each report, especially if you have more than 5-10 people on your staff. Surely, you want to take care of your people and delays in reimbursements can cause some issues.
An expense management software can help you review the reports faster which in turn allows you to process timely reimbursements to your staff.
Prevent your accounting department from being overwhelmed.
Most startups have a small accounting department and sometimes the “accounting department” only consists of the owner. As mentioned previously, your company will grow and you will need more people as more projects come in. Manually processing expense reports can easily overwhelm you or a small accounting department.
An expense management software can lighten up the load by streamlining your entire expense management process – from receipt scanning to payment processing.
Prevent false or fraudulent expense reports.
Tracking the expenses of each member of the company can be challenging if you are handling things manually. You can overlook double entries, errors, and even fraudulent expense reports. An expense management software can help by simplifying the tracking process and putting all the records in one place.
The software can notify you if there are any questionable entries in the system.
Experience better data security.
It is easy to misplace hardcopies of financial reports and even digital records can be stolen if not placed in a secure folder. An expense management software can help you protect the company and employee financial data by keeping everything in one safe place. Never lose your data and prevent data leaks– you just need to choose a reliable software.
Promote transparency when it comes to company spending and employee habits.
Transparency can help you and your managers easily review company spendings and employee habits. You’d be able to determine where change is needed and you’d be able to see if anyone is taking advantage of any financial loopholes that could result in lost profits.
Automate your expense reports.
You can effortlessly streamline the expense management process with the help of a software that automates the steps for you. An expense reporting software can eliminate manual data entry and auto-populate expense report forms with information regarding expenses and expense categories.
Expense management software can help a startup company improve the efficiency of the financial process. Your employees can submit reports and requests with ease. Since most of the process is simplified and automated, you’d be able to review and approve without any hassle.
This type of financial tool does not only make the process convenient for you, but it also makes sure that records are accurate so that you can make informed decisions regarding your company’s future.
Danielle works with Fyle in changing expense management as we know it. She understands how overwhelming the process of tracking cost operations can be, which is why she is passionate about sharing tips, news, and information on how to simplify expense management. Danielle shares information based on her experience with Fyle– an expense management software that helps streamline and automate the pre-accounting process.