A small business guide to mastering spend management
As you know, running a small or medium-sized business (SMB) is an exhilarating journey filled with challenges and opportunities. One of the most critical aspects of managing an SMB successfully is controlling expenses and business spend — especially ahead of holidays like Small Business Saturday.
This is where Expensify steps in to make your life easier. In this post, we'll explore the importance of spend management for SMBs and share actionable tips on how to streamline your business’ finances using Expensify.
The spend management challenge for SMBs
Small and medium-sized businesses often face unique spend management challenges that can impact their growth and profitability. Here are some common issues SMB owners encounter:
Manual expense tracking: Many SMBs still rely on manual processes like spreadsheets and paper receipts, which are not only time-consuming but also prone to errors. The efficiency drag a manual process can inject into your business should not be underestimated. We have a saying here: “Excel is only free if your time is worthless”.
Lack of visibility: Without a centralized spend management system, it's challenging to gain real-time insights into your business spend. This lack of visibility can lead to overspending, financial inefficiencies, and surprise budget issues come at the end of the month.
Compliance and audit concerns: Meeting tax regulations and maintaining accurate records is crucial for SMBs. Experts think higher rates of SMBs being audited is coming in the future, so make sure you are prepared. An audit is significantly easier if you have all your business expenses in one place that can be easily downloaded and shared with an auditor. Non-compliance can result in fines and legal issues.
Employee reimbursement hassles: Managing employee expenses and reimbursements can be a logistical nightmare, especially if you have a growing team.
Expense fraud: Without proper controls in place, SMBs are vulnerable to expense fraud, which can bleed resources and erode trust within the organization.
Expensify: The solution to SMB spend management woes
Expensify is a powerful tool specifically designed to address these challenges head-on. Here's how it can help your SMB regain control over their spend management strategy:
Simplify expense reporting: Expensify allows employees to snap pictures of receipts and automatically extracts relevant information, making expense reporting effortless.
Real-time visibility: With our software, you get real-time insights into your expenses. You can track spending patterns, set budgets, and make informed financial decisions.
Streamlined compliance: We automate compliance by applying tax rules and providing the necessary documentation for audits, ensuring that you stay on the right side of the law.
Effortless reimbursements: Say goodbye to reimbursement hassles. We streamline the entire process, from submission to approval and payment. Your employees get reimbursed next-day, a feature they will love, and now we can reimburse globally!
Expense fraud prevention: Expensify's built-in fraud detection helps identify suspicious transactions, reducing the risk of expense fraud within your organization.
Using Expensify in your small business
Now that you're familiar with how Expensify can revolutionize your spend management, let's delve into some actionable strategies for SMBs:
Onboard your team: ensure all employees are familiar with Expensify. Provide training and resources to help them make the most of the platform.
Set clear guidelines: establish clear expense guidelines to instruct your team on what expenses are reimbursable and what documentation is required.
Determine if you will have employees pay out of pocket and then reimburse them or use a free corporate card like the Expensify Card.
Automate approval workflows: use our workflow automation to streamline the approval process. This reduces bottlenecks and ensures quicker reimbursements.
Track and analyze: regularly review expense reports and analytics within our product to identify trends and areas where cost-cutting is possible.
Effective spend management is vital for the success of small and medium-sized businesses. Expensify empowers SMBs to take control of their expenses, reduce inefficiencies, and make more informed financial decisions.
By leveraging the features and strategies outlined above, you can ensure your SMB thrives in 2023’s challenging business landscape. Say goodbye to manual processes and future-proof your business with Expensify.
To speak to an onboarding specialist now, reach out to concierge@expensify.com
