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Resolutions to Get Your Expense Management off to a Good Start in 2015

By on January 27, 2015 in General with 0 Comments

Far too frequently, business owners struggle with the ability to manage their expenses in an organized manner. As a result, they often approach tax season with something akin to panic. With so many tasks on which to focus, it is certainly easy to see why many businesses neglect to manage their business expenses in a proactive manner. Due to the fact that profits, which are derived from revenue less expenses, ultimately decide the success of a business, making a few simple resolutions can help business owners ensure they are properly managing their expenses. The good news is that now is the perfect time to embrace strategies that can help your business get off to a good start with your expense management.

1. Stop Putting off Automation

If it feels as though you are spending too much time on expense management, you probably are. Traditional expense reporting can be time-consuming and lead to overtime as well as the potential for errors. Fortunately, there are numerous tools available that make it possible to automate the expense report process, thus helping prevent errors and saving time. For instance, Tallie reports that its users save an average of 67 percent of time spent on expense reports. It can often be tempting to procrastinate about implementing new processes. This can be particularly true when it comes to introducing a new automated process. By taking steps to automate the expense reporting and management process now, however, you can save yourself and your employees a tremendous amount of hassle in the future.

2. Establish an Expense Management Policy

If your company has not already taken the step of establishing an expense management policy, you are likely spending more money on expenses than is necessary. Furthermore, you could be placing your company at risk if a lack of an expense management policy results in claiming expenses that are not legitimate. It is not unusual for employees to attempt to claim more than what is actually allocated to them. Without the presence of an expense policy, employees can easily pass off additional expenses if they are not made aware of any spending limits. Implementing a policy helps you ensure that costs are legitimate and within limits.

3. Develop a List of Preferred Vendors and Suppliers

Do your employees use any vendors they want or do you have a list in place? Without a list of preferred suppliers and vendors, your business could be paying more than is necessary if your employees are not searching for the lowest priced vendors. Such a list can be particularly important if your business makes frequent, repeat purchases. The goal of such a list should be to identify vendors and suppliers who are willing to negotiate, thus giving you the ability to project future costs in a reliable manner.

Keeping a handle on expense management begins by making sure you have the right processes in place. With these resolutions, you can get your year off to the right start.

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