It is never been a fun topic for entrepreneurs to talk about expense management, but have considered it to be essential tool for all the businesses in order to survive, thrive, and yes make profits.

So if your expense management software is running away with all your revenue and there is nothing left to pay with your employees, then it is the right time that you pay attention to your expense management software and manage them accordingly. This article would help you understand as to why the software is important to you and your organization, & how to take the pain out of the painstaking chore of the business ownership.

Why do we need to manage our expenses?

There are a few reasons as to why you need to keep a track record of your expenses and manage them in one of the best ways you can. You are paying your bills in order to continue to be in the business, so why do you need to pay taxes for the money you are using in order to maintain your business. With concern to this the IRs have come up with strict guidelines of what are the required records you would have to maintain, along with the burden of proof that have incurred your expenses.

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Therefore you would have to maintain the accurate and comprehensive records of all the expenses incurred within your business, starting from your rent to lease payments and even the cost of your office supplies. The second reason of tracking all your expenses is to understand and see where your revenue is going and determine how you could maximize the net profit. By analyzing your expenses you could determine of how expensive it could be to keep the doors open & find out where you might be able to cut back & save money.

Who are the ones who need to manage your expenses?

This is a tricky question as there is no hard and fast answer to it. You could handle all the book keeping in house, or have an accountant to manage the things for you. What you need to be aware of which is again an issue of trust do make sure that whoever is managing your expenses could be easily trusted.

Many business owners to this have been driven to the brink of bankruptcy as they have some employees who could not be trusted and were cooking their own books to cover up the embezzlement and the worse. So if you have your accounting process done within one house, then do make sure that the checks and balances are in the right place. Try and have more than one person hired who could look into the books each and every time providing you with the audit reports on time ensuring you that there is no funny business going on with the company hard owned money.

What happens if I do not manage my expenses?

Have you ever come across this point to know what things could happen if you do not manage your expenses. The only situation you could go through is prison time in case you have been claiming the tax deductions that have never been there. You could also come across the situation where you might find your business money bleeding to the point that you cannot just keep the doors open anymore. You may also come across the situation where you may find your business in debt and the only option left with you is bankruptcy. These are all the different ways where your business could easily come to an end so it does become very important which you can manage your expenses carefully in order to avoid the untimely demise of your business.

Wrapping Up

Managing your expenses does not always have to be painful and scary. But it is very important that you pay attention and plan according to the task. Through an effective expensive management your business would be learner and stronger having a healthier bottom line in the end. Pay attention to the above given guidelines and feel free to visit a consultant whenever required.

To conclude if you have a track record maintained of where all your company money has been spent then your business is more profitable to you and your business, having a peaceful mind knowing that you’re having a healthy & a wealthy business.

Author Bio:

This article has been written by Shivli Ratul. As  a Marketing Operations Manager for Expenzing, he’s responsible for working with customers and partners to evangelize the benefits of Expenzing across the Indian community. Expenzing offers mature, deep, affordable solutions to manage travellers, expense management and reporting software & vendors across organizations.

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