As we enter a new year, it is important for businesses to have a solid financial management plan in place. One key aspect of this plan is keeping track of business expenses. In fact, 42% of small business owners say that managing and keeping track of expenses is their biggest challenge.
With the evolving landscape of technology and finance, it can be overwhelming to keep up with the best practices for tracking expenses. That’s why today, we will discuss 7 ways to keep track of business expenses in 2024.
7 Ways to Keep Track of Business Expenses in 2024
1. Use Online Expense Tracking Tools
One of the most convenient ways to keep track of business expenses is by using online expense tracking tools such as QuickBooks, Freshbooks, or Expensify. These tools offer features such as receipt scanning, automatic categorization of expenses, and real-time tracking. They also allow multiple users to access and update expense records, making collaboration and teamwork easier.
2. Implement Digital Receipts
Paper receipts can easily get lost or damaged, making it difficult to track business expenses accurately. In 2024, businesses should consider implementing digital receipts to eliminate this problem. Digital receipts are electronic versions of paper receipts that can be easily stored and tracked using expense tracking software.
Digital receipts also reduce the need for physical storage space and help save the environment by reducing paper waste. This method is not only efficient but also cost-effective in the long run.
3. Use Credit Cards for Business Purchases
Using credit cards for business purchases can be beneficial in keeping track of expenses. Most credit card companies offer online account management tools, which allow businesses to monitor and categorize their expenses easily. This eliminates the need for manual data entry and reduces human error.
Moreover, using a credit card also provides an additional layer of security as it reduces the risk of cash theft or loss. Make sure to choose a card with rewards programs that align with your business needs to maximize benefits.
4. Set Up Automatic Expense Tracking
In today’s fast-paced world, manual expense tracking can be time-consuming and prone to errors. In 2024, businesses should consider setting up automatic expense tracking to save time and improve accuracy. With this method, business expenses can be automatically recorded and categorized in real-time as they occur.
There are various expense tracking software that offer this feature, such as QuickBooks, Wave, and FreshBooks. By setting up automatic expense tracking, businesses can focus on other important tasks while ensuring their expenses are tracked efficiently.
5. Create a Budget
Having a budget is essential for effective financial management. In 2024, businesses should create a detailed budget plan that includes all expected business expenses. This will help keep track of spending and identify areas where costs can be reduced or optimized.
Budgets also provide an overview of how much money is coming in and going out, making it easier to plan for future expenses. Regularly reviewing the budget and adjusting it as needed will help keep the business on track financially.
6. Conduct Frequent Audits
Regular audits are crucial in identifying any discrepancies or fraudulent activities in business expenses. In 2024, businesses should conduct frequent audits to ensure that all expenses are accurate and legitimate. This will also help identify any areas where expense tracking methods can be improved.
Audits can be done internally by designated staff or outsourced to a professional auditing firm. Whichever method is chosen, conducting frequent audits will ensure transparency and accountability in business expenses.
7. Educate Employees on Expense Policies
Last but not least, educating employees on expense policies is crucial in keeping track of business expenses. In 2024, businesses should have clear and detailed expense policies that are communicated to all employees. This will help avoid any misunderstandings or misuse of company funds.
Employees should be trained on how to use expense tracking tools and understand the importance of accurate recording and categorizing of expenses. Regular reminders and updates on expense policies should also be provided to keep everyone up to date.
Conclusion
In conclusion, keeping track of business expenses is essential for financial management and accountability. By implementing these 7 methods in 2024, businesses can improve their expense tracking process, improve accuracy, and focus on growth and success.
With the right tools and strategies in place, managing business expenses will no longer be a troublesome task but a manageable part of running a successful business. So start implementing these methods now and set your business up for financial success in 2024!
