Financial bookkeeping and tracking can be complicated. Nevertheless, it is critical to ensure the progressive growth and scalability of a business. If you are the CEO or business owner of your company, the responsibility of keeping track of your income and expenditures falls on you.
You can either do it yourself or onboard accountants to manage business finances.
The hinge here is leveraging cloud-based expense software to lower operational costs, boost efficiency, and achieve profitability.
The reason is that on-premises solutions like spreadsheets or other traditional paper-based systems are time-consuming, invite unnecessary costs, and hamper the progress of a business.
Here are 5 reasons why small and medium-sized businesses must invest in online expense software.
- Ensures you are ready for the tax season
Tracking expenses is hardly an enjoyable process for business owners and so, they end up stalling it until the tax season — the most dreaded time of a financial year.
Delaying your expense tracking can have you scrambling for receipts and invoices at the last moment.
However, it doesn’t necessarily have to be so.
Having your records meticulously maintained will ensure you are not stressed out, scouring for records come tax time.
You can ensure you receive tax deductions associated with business meetings, travel costs, business supplies, rent, and so on. Even home-office expenses, utilities, and purchases qualify for tax returns. However, unless you can disclose these expenses as business transactions, you won’t be eligible for tax deductions.
An online expense software like Dext ensures you have accurate records that can be leveraged to your benefit. It ensures your data remains safe and secure for collaboration, and syncs accounts and backups around the clock so you never lose access.
- Minimized errors and delays
An online expense doesn’t just cut down time but the automation speeds up processes and reduces human errors. For instance, if you rely on manual expense reports, you will likely end up with a bunch of data-entry errors no matter how meticulous your employees are.
An expense software, on the other hand, eliminates human errors entirely. In addition to that, it can detect duplicate entries and flag them by matching them with internal records. A lot of times, this prevents business owners from overpaying a vendor or potentially delaying an incoming payment (because you forgot to send your client a reminder).
- Gives you a clear picture of where your business stands
For business owners to make effective decisions, it is imperative that they know how profitable their business is. While most people are aware of how to determine profitability (minus expenses from revenue) and also realize how critical it is to measure your success, very few has up-to-date knowledge of their business’s financial health.
Not to mention, business owners don’t always have accurate records of their expenses, which makes it difficult for them to plan forward effectively.
Understandably, expense software can be of huge help here. Not only does it provide up-to-the-last-minute real-time reports and insights into your financial health but also ensures you can leverage financial analytics to make data-driven decisions.
The majority of small businesses have difficulty keeping track of business transactions which affects their financial management processes.
The automation of an online expense software like Dext eliminates errors occurring from manual processes, accelerates operational speed, and ensures compliance with security standards with little effort. The automated backups and regular updates ensuring business continuity are other reasons why it makes sense for businesses to leverage expense software for efficient financial management.
Sign up on Dext today and simplify your expense management with online expense software!