All companies generate expenses, which can be defined as the costs associated with conducting business operations. In order to identify unnecessary expenditures and subsequently save money by cutting costs, enterprises must rigorously record and regularly review all of their expenses.
Expense management can be a painstaking, time-intensive activity when conducted manually, but expense tracking technology
and expense reporting software
can significantly expedite the process. Solutions such as Sage Timeslips eCenter, which allow professionals to capture time and expense data when they are not at their desks, offer the freedom of creating expense slips in real time using wireless internet connections and mobile devices, including smartphones and tablets.
The ability to record expenses while away from the office mitigates issues that can crop up when professionals are unable to access their regular time and expense tracking frameworks. Expense tracking software
helps to facilitate the creation of accurate expense records that can then be used to make business tax deductions for qualifying purchases, such as those related to travel and entertainment, office supplies and equipment, use of company vehicles and more.
As well as allowing professionals to track time and expenses in real time, negating the need to refer to old receipts or rely on memory, Sage Timeslips eCenter also offers a slew of other conveniences, such as customized weekly templates and a stopwatch functionality for second-by-second time recording.Maintaining expense tracking compliance
published by Pepperdine University's Graziadio School of Business and Management underscored the importance of not using personal cash, checking accounts or credit cards for business expenses, as this introduces unnecessary complications and may invite unwelcome extra attention from the Internal Revenue Service (IRS). In the event of an IRS audit, company owners should be prepared to document tax-deductible expenses using receipts, which can be stored digitally as photos or PDFs with the help of scanners and smartphones.
However an enterprise stores its receipts, time is of the essence. If professionals do not regularly record their expenses, they may quickly become buried under a mountain of receipts and similar documentation. Additionally, they also risk exposing themselves to the pitfalls of working with outdated financial information that may result in less-than-optimal decision-making.