In our journey as Business Consultants, we've encountered diverse approaches to tracking staff expenditure, each with its unique challenges and advantages. Let's explore the most popular methods and the inherent difficulties associated with each:
- Petty Cash Tins:
- Pros: Quick reimbursement for small expenses.
- Cons: Ineffective for remote workers, challenges in reconciling petty cash floats, and dependence on a Petty Cash Custodian.
- Payroll Systems for Reimbursement:
- Pros: Seamless reimbursement process.
- Cons: Lack of live links to accounting systems, limiting visibility into expense and project categories.
- Corporate Credit Cards:
- Pros: Eliminates the need for reimbursement.
- Cons: Difficulty in allocating receipts to correct expense categories.
The Memory Challenge:
- Remembering the purpose of each expense becomes cumbersome for both employees and the accounts department.
The Modern Solution: Expense Tracking Apps:
- Benefits: Simplify the expense tracking process through mobile apps for Apple and Android devices.
- Features to Look For:
- Integration with Accounting Systems: Automatically set up employees as suppliers for cash or personal credit card expenses.
- Multiple Photo Capture: Ability to take multiple photos of receipts for comprehensive documentation.
- Live Link to Accounting System: Ensures accurate posting of transactions, whether expenses, credit card transactions, or reimbursements.
- Configurable Back End: Enables customization of access, valid credit cards, and expense categories. Allows review and correction of expenses before posting.
Choosing the Right Expense App:
- Look for apps that address your specific business needs and offer seamless integration with your accounting system.
- Verify if the app simplifies the reimbursement process for cash or personal credit card expenses.
Key Considerations:
- Evaluate whether the app facilitates the supplier invoice setup for reimbursement through the accounting system's cash book.
- Ensure the app allows multiple photos for each expense and has a live link to your accounting system.
- Check for a supporting back end that provides configuration options, access control, and the ability to review and correct expenses before posting.
Efficient expense tracking is not just about reimbursement; it's about ensuring accuracy, visibility, and streamlined processes. Choose an expense tracking solution that not only meets your immediate needs but also aligns with the future growth of your business.