Managing employee expenses is a thing that most companies have to do. However, with the long-standing use of having computers and spreadsheets, that has become the go-to for all accounting management. There are a lot of companies that still do that, and there are likely to be more than you would initially think. The issue with that, is they are spending more and more time creating and keeping up to date with spreadsheets when they don’t need to.
Digital tools and Tucson Certified Public Accountants can undoubtedly help the matter. That is because there is a significant drain on human resources and capacity through using “traditional accounting methods” such as spreadsheets and paper books. The more employees you have, the worse it gets. Tracking and reconciling employee spending can be significantly reduced by the same methods.
Here is why you should consider using more up to date accounting management.
Company Expenses
Expenses are a difficult outgoing to manage at the best of time, and using manual data inputting does not help, even if you think t does. Studies have found that there are considerable outgoings that never get noticed when using your methods of accounting, such as travel expense. But why would you see that when you only have a spreadsheet? You probably wouldn’t. When you have software that is more comprehensive than a spreadsheet, it gives you graphs and charts so that you can see correctly, by percentage, what you are spending, and where.
It is not only travel expenses that raise concerns, though. There are many instances where you do not see how much money you are spending on specific areas of business, like training and client entertainment.
Overspending is a day to day reality for everyone. However, people seldom think about the fact that businesses can overspend, too. That fact can be even more prominent when you consider allowing your staff to have their own expenses also. They find it difficult to know what is an appropriate expense, and what is not. That is when the real issue comes along. Once you find out how much money they have spent, and on what, it is too late. Strict rules and guidelines will help you and your staff from overspending on legitimate costs, and also, it will help you stop unauthorised spending at all.
The Challenge
With the time consumed by the “traditional methods” and the errors caused by them, there are often some very frustrating situations that you come across. You have to count and file all of the receipts and amounts onto a spreadsheet. And the employee needs to carry them all around with them. If they lose them, they get frustrated at you for not paying it. Even so, those receipts still need to be checked against credit card bills, etc.
When there is an issue with the numbers at the end, the whole process needs to start again. Not to mention that keeping those receipts and expense forms filed is a horrible task that no one wants to complete.
Engagement
Talk to your staff. That is the best way that you are going to resolve some of the issues that you face. However, some people are “stuck in their ways” and do not want to move away from the paper system, and they fight it until the end. On the other hand, however, some people will actively seek out companies who do not use more modern technologies for accounting, as they do not want the hassle presented by paperwork, receipts, and problems that follow.
Conclusion
Using outdated methods is a challenging, difficult task that everyone should move away from if you possibly can. Using more up to date accounting software, and/or certified public accountants will alleviate the majority of the issues that you will find when you are running your own business. Therefore, it is an easy decision to make, update your software, talk to your employees, set out some strict, clear rules, and hire a certified public accountant to help you.
There is not a better feeling in the world than leaving all of your money worries to someone else and being told that you have “this much” money in your account to use for this sector of your business. If you have it, and you know about it, you can spend it. If you know you do not have it, you do not overspend.